Pasona Group Inc

Pasona Group Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥192.28 billion, significantly exceeding its total liabilities of ¥152.6 billion, resulting in a current ratio of 2.35. The company's debt-to-equity ratio of 0.29 indicates a conservative capital structure, with long-term debt of ¥42.93 billion compared to total equity of ¥148.49 billion. Despite a negative operating income of ¥9.38 billion, the company reported a net income of ¥96.64 billion, suggesting non-operating gains or other income sources contributed significantly to profitability.

The company's return on equity (ROE) of 65.08% and return on assets (ROA) of 32.1% are well above typical industry benchmarks, indicating strong profitability relative to its equity and asset base. However, the negative operating income of ¥9.38 billion raises concerns about the sustainability of core operations, particularly in a competitive employment services market.

Pasona Group Inc's revenue is concentrated in Japan, with no disclosed international segments, making it highly sensitive to domestic economic conditions. The company's operating cash flow of ¥7.46 billion and capital expenditures of ¥20.15 billion suggest a balance between maintaining operations and investing in growth.

Looking ahead, the company's revenue is expected to grow, supported by its strong liquidity and the potential for expansion in the employment services sector. However, the negative operating income and the need for continued investment in capital expenditures may pose challenges to maintaining profitability.

The risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's strong cash position and low debt levels reduce the likelihood of near-term dilution, although the negative operating income could necessitate future capital raising.

Recent financial filings and transcripts do not highlight any significant events that would alter the company's current trajectory. The company's performance is closely tied to the domestic labor market, and any economic downturn in Japan could impact its operations.

Pasona's net margin of 1.06% ranks best-in-class compared to the 0.035% median for the Employment Services cohort.

Dilution and liquidity risks are assessed as low, providing a stable capital structure environment for investors.

The debt-to-equity ratio of 0.29 is below the cohort median of 0.19, indicating manageable leverage levels.

Book value stands at 148.49 billion JPY, providing a tangible asset base for the company's operations.

The company faces high credit risk, posing potential challenges for debt servicing and financial stability.

Revenue ¥74.94B, −0,1% YoY; Operating income +26,1% YoY.

• ▍Revenue ¥74.94B, −0,1% YoY
• ▍Operating income +26,1% YoY
• ▍Net income +46,9% YoY
• ▍Net margin -1.7%

Revenue ¥77.56B, −0,1% YoY; Operating income +88,2% YoY.

• ▍Revenue ¥77.56B, −0,1% YoY
• ▍Operating income +88,2% YoY
• ▍Net income +99,5% YoY
• ▍Net margin -0.0%

Revenue ¥76.97B, +0,8% YoY; Operating income −149,8% YoY.

• ▍Revenue ¥76.97B, +0,8% YoY
• ▍Operating income −149,8% YoY
• ▍Net income +49,1% YoY
• ▍Net margin -0.8%

Revenue ¥80.33B, −11,9% YoY; Operating income +74,4% YoY.

• ▍Revenue ¥80.33B, −11,9% YoY
• ▍Operating income +74,4% YoY
• ▍Net income −102,6% YoY
• ▍Net margin -3.1%

Revenue ¥74.98B; Operating income -¥1.66B.

• ▍Revenue ¥74.98B
• ▍Operating income -¥1.66B
• ▍Net margin -3.2%

Revenue ¥77.61B; Operating income -¥2.09B.

• ▍Revenue ¥77.61B
• ▍Operating income -¥2.09B
• ▍Net margin -3.3%

Revenue ¥76.32B; Operating income -¥434.0M.

• ▍Revenue ¥76.32B
• ▍Operating income -¥434.0M
• ▍Net margin -1.6%

Revenue ¥91.17B; Operating income -¥9.38B.

• ▍Revenue ¥91.17B
• ▍Operating income -¥9.38B
• ▍Net margin 106.0%

Revenue ¥309.24B, −13,3% YoY; Operating income −40,5% YoY.

• ▍Revenue ¥309.24B, −13,3% YoY
• ▍Operating income −40,5% YoY
• ▍Net income −109,0% YoY
• ▍Free cash flow −131,1% YoY
• ▍Net margin -2.8%

Revenue ¥356.73B, −4,2% YoY; Operating income −132,1% YoY.

• ▍Revenue ¥356.73B, −4,2% YoY
• ▍Operating income −132,1% YoY
• ▍Net income +1 472,0% YoY
• ▍Free cash flow +5 357,9% YoY
• ▍Net margin 26.9%

Revenue ¥372.58B, +1,8% YoY; Operating income −33,5% YoY.

• ▍Revenue ¥372.58B, +1,8% YoY
• ▍Operating income −33,5% YoY
• ▍Net income −29,2% YoY
• ▍Free cash flow +52,2% YoY
• ▍Net margin 1.6%

Revenue ¥366.10B, +9,4% YoY; Operating income +31,9% YoY.

• ▍Revenue ¥366.10B, +9,4% YoY
• ▍Operating income +31,9% YoY
• ▍Net income +27,1% YoY
• ▍Free cash flow −78,1% YoY
• ▍Net margin 2.4%