PAL GROUP Holdings Co., Ltd. (2726) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SHIMAMURA Co., Ltd.

Adastria Co., Ltd.

UNITED ARROWS LTD.

PAL GROUP Holdings Co., Ltd.

FAST RETAILING CO., LTD.

NISHIMATSUYA CHAIN Co., Ltd.

AOKI Holdings, Inc.

Chiyoda Co., Ltd.

Baroque Japan Ltd.

AOYAMA TRADING Co., Ltd.

XEBIO Holdings Co., Ltd.

Why is PAL GROUP Holdings Co., Ltd. ?

Strong Long Term Fundamental Strength with a 21.14% CAGR growth in Operating Profits

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 209.18% signifying high profitability per unit of total capital (equity and debt)

With ROE of 18.97%, it has a very attractive valuation with a 4.67 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.47%, its profits have risen by 1.8% ; the PEG ratio of the company is 13.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to PAL GROUP Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PAL GROUP Holdings Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PAL GROUP Holdings Co., Ltd.

-8.47%

-0.34

65.30%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.48%

EBIT Growth (5y)

21.14%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.01

Sales to Capital Employed (avg)

2.55

Tax Ratio

39.81%

Dividend Payout Ratio

43.97%

Pledged Shares

Institutional Holding

ROCE (avg)

139.32%

ROE (avg)

14.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.67

EV to EBIT

10.96

EV to EBITDA

9.90

EV to Capital Employed

-247.49

EV to Sales

1.25

PEG Ratio

13.59

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

18.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

ROCE(HY)

Highest at 22.87%

RAW MATERIAL COST(Y)

Fallen by -1.12% (YoY

NET PROFIT(9M)

Higher at JPY 14,126.94 MM

CASH AND EQV(HY)

Highest at JPY 181,460 MM

NET SALES(Q)

Highest at JPY 59,270 MM

-9What is not working for the Company

INTEREST(HY)

At JPY 77 MM has Grown at 35.09%

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.45 times

Here's what is working for PAL GROUP Holdings Co., Ltd.

Net Sales

Highest at JPY 59,270 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 181,460 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 14,126.94 MM

than preceding 12 month period ended Nov 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -1.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 772 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for PAL GROUP Holdings Co., Ltd.

Interest

At JPY 77 MM has Grown at 35.09%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 13.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio