Recruit Holdings Co (6098) AI Stock Analysis

• Market Cap: $12.05T
• Dividend Yield: 0.29%
• Average Volume (3M): 4.10M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.21
• Revenue Growth: 1.95%
• EPS Growth: 22.99%
• Country: JP
• Employees: 51,373
• Sector: Communication Services
• Sector Strength: 97
• Industry: Staffing & Employment Services
• EPS (TTM): 83.97
• Shares Outstanding: 1,563,912,100
• 10 Day Avg. Volume: 3,317,890
• 30 Day Avg. Volume: 4,100,233
• PEG Ratio: 0.86
• Price to Book (P/B): 5.18
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 22.28
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 5.83
• Enterprise Value/Ebitda: 17.98
• 1Y Price Target: $10,233.79
• Price Target Upside: 23.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: ¥9,167.00 ▲(10.27% Upside)

Recruit Holdings Co's overall stock score is primarily influenced by its strong financial performance, despite recent challenges in revenue and cash flow growth. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

Recruit Holdings Co Business Overview & Revenue Model

Company Description

Recruit Holdings Co., Ltd. provides HR technology and business solutions. The company operates through three segments: HR Technology, Media & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Media & Solutions segment operates an online advertising platform for businesses in various industries, including housing, beauty, marriage, travel, and dining; and provides business management software as a service solutions for small and medium-sized companies. It also operates media platforms that publish information about jobs and new openings to support business clients' recruiting activities. The Staffing segment provides temporary staffing service in Japan, North America, Europe, and Australia. The company was founded in 1960 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Recruit Holdings generates revenue through several key streams. The HR Technology segment, which includes platforms like Indeed and Glassdoor, earns money primarily through advertising services paid by employers looking to attract candidates. The Staffing segment generates income by providing temporary staffing services, charging client companies for matching them with suitable candidates. The Media & Solutions segment derives revenue from selling advertising space and offering marketing solutions to businesses in sectors like real estate, beauty, and dining. The company also benefits from strategic partnerships and acquisitions that enhance its service offerings and market reach.

Recruit Holdings Co Financial Statement Overview

Summary

Recruit Holdings Co exhibits strong profitability with a consistent gross profit margin and healthy EBIT and EBITDA margins. The balance sheet is solid with low leverage and strong return on equity. However, recent negative revenue and free cash flow growth rates suggest potential challenges in maintaining growth momentum.

Income Statement

Recruit Holdings Co shows strong profitability with a consistent gross profit margin above 55% and a net profit margin around 12% in the TTM. However, the revenue growth rate has been negative recently, indicating a potential slowdown in growth. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of approximately 0.14 in the TTM, indicating low leverage. The return on equity is strong at over 26%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Cash flow metrics indicate a robust operating cash flow to net income ratio of around 0.80, demonstrating good cash generation relative to earnings. However, the recent decline in free cash flow growth is a concern, though the free cash flow to net income ratio remains high at nearly 0.98, indicating strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53T	3.56T	3.42T	3.43T	2.87T	2.27T
Gross Profit	2.08T	1.98T	1.85T	1.88T	1.53T	1.03T
EBITDA	673.11B	655.82B	575.94B	491.73B	504.90B	285.97B
Net Income	423.01B	408.50B	353.65B	269.80B	296.83B	131.39B
Balance Sheet
Total Assets	2.50T	2.77T	3.14T	2.79T	2.42T	2.20T
Cash, Cash Equivalents and Short-Term Investments	509.72B	808.63B	1.14T	884.00B	671.45B	540.09B
Total Debt	197.65B	208.94B	221.13B	254.95B	271.42B	417.77B
Total Liabilities	1.09T	1.14T	1.14T	1.15T	1.05T	1.10T
Stockholders Equity	1.39T	1.62T	2.00T	1.63T	1.36T	1.09T
Cash Flow
Free Cash Flow	596.16B	602.41B	465.43B	361.44B	375.23B	228.28B
Operating Cash Flow	605.25B	610.36B	535.36B	438.19B	439.61B	286.60B
Investing Cash Flow	-86.84B	-61.05B	-68.79B	-32.68B	-70.74B	-40.37B
Financing Cash Flow	-1.11T	-880.48B	-334.65B	-252.06B	-254.37B	-172.71B

Recruit Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8313.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6098, the sentiment is Negative. The current price of 8313 is below the 20-day moving average (MA) of 8607.65, below the 50-day MA of 8606.96, and below the 200-day MA of 9079.10, indicating a bearish trend. The MACD of -88.12 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6098.

Recruit Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	81 Outperform	111.49B	19.60	25.62%	5.46%	13.16%	-40.17%
2124	76 Outperform	178.85B	25.41	31.01%	2.39%	19.22%	20.94%
2181	76 Outperform	643.06B	18.87	18.92%	3.36%	7.71%	3.01%
6028	72 Outperform	499.92B	31.23	20.16%	1.87%	9.01%	12.37%
9744	66 Neutral	256.03B	20.17	0.00%	5.03%	4.40%	0.23%
6098	64 Neutral	$12.05T	29.60	24.77%	0.29%	1.95%	22.99%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Recruit Holdings Co Corporate Events

Recruit Holdings Completes Strategic Share Repurchase

Recruit Holdings Co., Ltd. announced the completion of a share repurchase through the ToSTNeT-3 system, as resolved by its Board of Directors. This move, involving the repurchase of 2,717,000 shares for approximately 23.1 billion yen, aims to improve capital efficiency and maximize shareholder returns, reflecting the company’s strategic focus on financial positioning and market conditions.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Announces Share Repurchase Plan

Recruit Holdings Co., Ltd. has announced a share repurchase plan through the Tokyo Stock Exchange’s ToSTNeT-3 system, scheduled for August 12, 2025. The company aims to repurchase up to 5,000,000 shares, representing 0.35% of its total shares, with a maximum purchase amount of 45 billion yen, reflecting its commitment to optimizing capital structure and enhancing shareholder returns.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Announces Share Repurchase Plan to Boost Shareholder Returns

Recruit Holdings Co., Ltd. has announced a share repurchase plan with a maximum purchase amount of 45 billion yen, aiming to improve capital efficiency and maximize shareholder returns. The company is confident in its financial position to execute this plan, maintaining sufficient liquidity and a commitment line agreement to mitigate potential risks.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Reports Q1 FY2025 Financial Results with Strong Profit Growth

Recruit Holdings Co., Ltd. reported a slight decrease in revenue for Q1 FY2025, down 2.5% from the previous year, but saw significant growth in operating income and profit, with increases of 20.3% and 13.7% respectively. The company maintained its financial guidance for the full fiscal year, indicating stable expectations despite the revenue dip, and included Indeed Recruit Partners Co., Ltd. in its consolidated results, potentially impacting future performance.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Finalizes Terms for Series 10 Stock Options

Recruit Holdings Co., Ltd. has finalized the terms for its Series 10 stock options, designated for its Directors of the Board and Senior Vice Presidents. This move is part of its strategic compensation plan, potentially impacting the company’s leadership incentives and aligning management interests with shareholder value.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Announces Workforce Reduction in HR Technology Segment

Recruit Holdings’ HR Technology segment announced a workforce reduction of approximately 1,300 employees, about 6% of its total workforce. Despite this reduction, the financial impact has been accounted for in the company’s fiscal guidance for the year ending March 31, 2026, and the guidance remains unchanged.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen12600.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Issues Stock Options to Align Leadership with Shareholders

Recruit Holdings Co., Ltd. announced the issuance of stock options to its Directors and Senior Vice Presidents as a form of remuneration tied to stock price performance. This move is intended to align the interests of the company’s leadership with shareholders by encouraging a focus on stock price appreciation and corporate value growth, potentially impacting the company’s operational strategies and market positioning.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Completes Major Share Repurchase

Recruit Holdings Co., Ltd. has completed a significant portion of its share repurchase program, buying back 55,612,500 shares for approximately 450 billion yen. This move is part of a broader strategy to enhance shareholder value, with the company having increased its repurchase limit to 62 million shares, reflecting confidence in its financial health and market position.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Announces Progress on Share Repurchase Program

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, which was resolved by the Board of Directors in February and April 2025. From March 3 to May 31, 2025, the company repurchased 49,979,200 shares, amounting to 80.61% of the upper limit, for a total purchase price of 404 billion yen. This move is part of a broader strategy to enhance shareholder value, with a maximum of 62 million shares authorized for repurchase by the end of the year.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.