Reported Earnings • Jul 17
Full year 2026 earnings released: JP¥90.04 loss per share (vs JP¥222 loss in FY 2025) Full year 2026 results: JP¥90.04 loss per share (improved from JP¥222 loss in FY 2025). Revenue: JP¥308.5b (flat on FY 2025). Net loss: JP¥3.39b (loss narrowed 61% from FY 2025). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Aankondiging • Jun 17
Pasona Group Inc. to Report Fiscal Year 2026 Results on Jul 15, 2026 Pasona Group Inc. announced that they will report fiscal year 2026 results on Jul 15, 2026 Upcoming Dividend • May 21
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 28 May 2026. Payment date: 10 August 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.2%). Reported Earnings • Apr 15
Third quarter 2026 earnings released: JP¥34.08 loss per share (vs JP¥61.38 loss in 3Q 2025) Third quarter 2026 results: JP¥34.08 loss per share (improved from JP¥61.38 loss in 3Q 2025). Revenue: JP¥74.9b (flat on 3Q 2025). Net loss: JP¥1.27b (loss narrowed 47% from 3Q 2025). Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 1% per year. Buy Or Sell Opportunity • Apr 01
Now 22% overvalued Over the last 90 days, the stock has fallen 6.1% to JP¥1,901. The fair value is estimated to be JP¥1,561, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.3% over the last 3 years. Meanwhile, the company became loss making. Aankondiging • Mar 17
Pasona Group Inc. to Report Q3, 2026 Results on Apr 14, 2026 Pasona Group Inc. announced that they will report Q3, 2026 results on Apr 14, 2026 Buy Or Sell Opportunity • Feb 27
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 7.2% to JP¥2,049. The fair value is estimated to be JP¥1,696, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.3% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Feb 03
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 6.1% to JP¥2,029. The fair value is estimated to be JP¥1,670, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.3% over the last 3 years. Meanwhile, the company became loss making. Declared Dividend • Jan 16
Dividend of JP¥75.00 announced Dividend of JP¥75.00 is the same as last year. Ex-date: 28th May 2026 Payment date: 10th August 2026 Dividend yield will be 3.7%, which is higher than the industry average of 1.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. Reported Earnings • Jan 15
Second quarter 2026 earnings released: JP¥0.37 loss per share (vs JP¥65.52 loss in 2Q 2025) Second quarter 2026 results: JP¥0.37 loss per share (improved from JP¥65.52 loss in 2Q 2025). Revenue: JP¥77.6b (flat on 2Q 2025). Net loss: JP¥14.0m (loss narrowed 100% from 2Q 2025). Profit margin: 0% (up from net loss in 2Q 2025). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Aankondiging • Jan 14
Pasona Group Inc. Provides Earnings Guidance for the Full Year Ending May 31, 2026 Pasona Group Inc. provided earnings guidance for the full year ending May 31, 2026. For the year, the company expected net sales of JPY 330,000 million, operating profit of JPY 2,500 million, profit attributable to owners of parent of JPY 2,800 million and net profit per share of JPY 13.19. Buy Or Sell Opportunity • Dec 25
Now 20% overvalued Over the last 90 days, the stock has fallen 9.7% to JP¥1,987. The fair value is estimated to be JP¥1,650, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 6.5% over the last 3 years. Meanwhile, the company became loss making. Aankondiging • Dec 13
Pasona Group Inc. to Report Q2, 2026 Results on Jan 14, 2026 Pasona Group Inc. announced that they will report Q2, 2026 results on Jan 14, 2026 Buy Or Sell Opportunity • Oct 27
Now 20% overvalued Over the last 90 days, the stock has fallen 3.9% to JP¥1,987. The fair value is estimated to be JP¥1,654, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 6.5% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Oct 16
First quarter 2026 earnings released: JP¥15.89 loss per share (vs JP¥30.47 loss in 1Q 2025) First quarter 2026 results: JP¥15.89 loss per share (improved from JP¥30.47 loss in 1Q 2025). Revenue: JP¥77.0b (flat on 1Q 2025). Net loss: JP¥606.0m (loss narrowed 49% from 1Q 2025). Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Aankondiging • Sep 14
Pasona Group Inc. to Report Q1, 2026 Results on Oct 15, 2025 Pasona Group Inc. announced that they will report Q1, 2026 results on Oct 15, 2025 Aankondiging • Aug 22
Pasona Group Inc. Announces Board and Board Committee Changes, Effective August 22, 2025 Pasona Group Inc. announced that at the General Meeting of Shareholders held on August 22, 2025, directors were appointed, and at the subsequent Board of Directors Meeting, resolved to make the following executive appointments as of the same day. Members of the Board (Excluding Directors who are Audit and Supervisory Committee Members): Name, Current position, and Previous position: Hirotaka Wakamoto was appointed as Representative Director, Chairperson and CEO, previously serving as Representative Director, President and CEO. Shintaro Nakao was appointed as Representative Director, President and COO Representative Director & President of Pasona Inc., previously serving as Managing Executive Officer General Manager of the Group Sales General Headquarters, Representative Director & President of Pasona Inc. Junko Fukasawa was appointed as Director, Vice President and Executive Officer General Manager of the Pasona Way General Headquarters, responsible for the Social Contribution Department, with the same previous position. Kinuko Yamamoto was appointed as Director, Vice President and Executive Officer General Manager of the NATUREVERSE General Headquarters, with the same previous position. Makiya Nambu was appointed as Director, Vice President and Executive Officer General Manager of the Global Strategy General Headquarters, General Manager of the International Business Headquarters, previously serving as Director and Managing Executive Officer General Manager of the Global Strategy General Headquarters, General Manager of the International Business Headquarters. Directors who are Audit and Supervisory Committee Members: Name, Current position, and Previous position: Kazufumi Nomura was appointed as Director (Full-time Audit and Supervisory Committee Member) with the same previous position. Haruo Funabashi was appointed as Outside Director (Audit and Supervisory Committee Member/Independent Director)with the same previous position. Kazuo Furukawa was appointed as Outside Director (Audit and Supervisory Committee Member/Independent Director) with the same previous position. Ryohei Miyata was appointed as Outside Director (Audit and Supervisory Committee Member/Independent Director) with the same previous position. Yutaka Atomi was appointed as Outside Director (Audit and Supervisory Committee Member/Independent Director)with the same previous position. Reported Earnings • Jul 16
Full year 2025 earnings released: JP¥222 loss per share (vs JP¥2,448 profit in FY 2024) Full year 2025 results: JP¥222 loss per share (down from JP¥2,448 profit in FY 2024). Revenue: JP¥309.2b (down 13% from FY 2024). Net loss: JP¥8.66b (down 109% from profit in FY 2024). Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Aankondiging • Jul 15
Pasona Group Inc., Annual General Meeting, Aug 22, 2025 Pasona Group Inc., Annual General Meeting, Aug 22, 2025. Aankondiging • Jun 27
Pasona Group Inc. Revises Consolidated Earnings Guidance for the Full Year Ending May 31, 2025 Pasona Group Inc. revised consolidated earnings guidance for the full year ending May 31, 2025. For the year, the company expected net sales of JPY 309,200 million compared to previous guidance of JPY 320,000 million, operating loss of JPY 1,250 million compared to previous guidance operating profit of JPY 1,700 million, loss attributable to owners of parent of JPY 8,650 million compared to previous guidance of JPY 4,300 million. Reasons for Revision of Consolidated Business Forecasts for the Fiscal Year Ended May 31, 2025: In the current fiscal year, the company planned for a decrease in net sales from the previous fiscal year due to the discontinuation of the Outsourcing segment at the beginning of the current consolidated fiscal year as a result of the sale of shares in a consolidated subsidiary in the previous fiscal year, as well as the peak-out of large-scale BPO Solution projects. Under these circumstances, although we made progress in acquiring new BPO demand associated with productivity improvements and DX promotion at companies experiencing expanding demand, the acquisition of projects did not grow as much as expected toward the end of the fiscal year, and sales are expected to fall short of the previous forecast. In the Expert Solutions business, although the number of temporary workers exceeded the previous year's figures on a monthly basis from April onwards, it is unlikely to reach the previous forecast. These shortfalls in sales have affected profits, which are now expected to fall short of the previous forecast. Career Solutions are expected to exceed initial forecasts, but due to longer-than-expected employment decision periods in the reemployment support business, results are not expected to reach the previous forecast. Aankondiging • Jun 14
Pasona Group Inc. to Report Fiscal Year 2025 Results on Jul 15, 2025 Pasona Group Inc. announced that they will report fiscal year 2025 results on Jul 15, 2025 Upcoming Dividend • May 22
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 29 May 2025. Payment date: 08 August 2025. Payout ratio is a comfortable 0.6% but the company is not cash flow positive. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (4.0%). Lower than average of industry peers (1.1%). Reported Earnings • Apr 15
Third quarter 2025 earnings released: JP¥61.38 loss per share (vs JP¥22.92 loss in 3Q 2024) Third quarter 2025 results: JP¥61.38 loss per share (further deteriorated from JP¥22.92 loss in 3Q 2024). Revenue: JP¥75.0b (down 13% from 3Q 2024). Net loss: JP¥2.40b (loss widened 167% from 3Q 2024). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Aankondiging • Mar 13
Pasona Group Inc. to Report Q3, 2025 Results on Apr 14, 2025 Pasona Group Inc. announced that they will report Q3, 2025 results on Apr 14, 2025 Declared Dividend • Jan 16
Dividend of JP¥75.00 announced Shareholders will receive a dividend of JP¥75.00. Ex-date: 29th May 2025 Payment date: 8th August 2025 Dividend yield will be 3.8%, which is higher than the industry average of 1.2%. Reported Earnings • Jan 15
Second quarter 2025 earnings released: JP¥65.52 loss per share (vs JP¥1.07 loss in 2Q 2024) Second quarter 2025 results: JP¥65.52 loss per share (further deteriorated from JP¥1.07 loss in 2Q 2024). Revenue: JP¥77.6b (down 13% from 2Q 2024). Net loss: JP¥2.57b (loss widened JP¥2.53b from 2Q 2024). Revenue is expected to decline by 1.0% p.a. on average during the next 2 years, while revenues in the Professional Services industry in Japan are expected to grow by 5.8%. Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Aankondiging • Jan 15
Pasona Group Inc. (TSE:2168) announces an Equity Buyback for 2,000,000 shares, representing 4.97% for ¥5,000 million. Pasona Group Inc. (TSE:2168) announces a share repurchase program. Under the program, the company will repurchase up to 2,000,000 shares, representing 4.97% of its issued share capital, for ¥5,000 million. The purpose of the program is further improving capital efficiency and implementing a flexible capital policy in response to the business environment. The repurchases will expire on January 14, 2026. As of January 14, 2025, the company had 40,250,996 shares issued (excluding treasury stock) and 1,439,304 shares. Aankondiging • Jan 14
Pasona Group Inc. Revises Earnings Guidance for the Full Year Ending May 31, 2025 Pasona Group Inc. revised earnings guidance for the full year ending May 31, 2025. For the year, the company expected net sales of JPY 320,000 million compared to JPY 330,000 million, operating profit of JPY 1,700 million compared to JPY 5,000 million, loss attributable to owners of parent of JPY 4,300 million compared to profit of JPY 1,300 million. Buy Or Sell Opportunity • Dec 26
Now 22% overvalued Over the last 90 days, the stock has fallen 13% to JP¥1,991. The fair value is estimated to be JP¥1,637, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 104%. Revenue is forecast to decline by 7.4% in a year. Earnings are forecast to decline by 98% in the next year. Aankondiging • Dec 14
Pasona Group Inc. to Report Q2, 2025 Results on Jan 14, 2025 Pasona Group Inc. announced that they will report Q2, 2025 results on Jan 14, 2025 Buy Or Sell Opportunity • Nov 28
Now 20% overvalued Over the last 90 days, the stock has fallen 14% to JP¥1,955. The fair value is estimated to be JP¥1,627, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 104%. Revenue is forecast to decline by 7.4% in a year. Earnings are forecast to decline by 98% in the next year. Buy Or Sell Opportunity • Nov 12
Now 20% overvalued Over the last 90 days, the stock has fallen 12% to JP¥1,969. The fair value is estimated to be JP¥1,640, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 104%. Revenue is forecast to decline by 7.4% in a year. Earnings are forecast to decline by 98% in the next year. Reported Earnings • Oct 17
First quarter 2025 earnings released: JP¥30.47 loss per share (vs JP¥4.77 profit in 1Q 2024) First quarter 2025 results: JP¥30.47 loss per share (down from JP¥4.77 profit in 1Q 2024). Revenue: JP¥76.3b (down 15% from 1Q 2024). Net loss: JP¥1.19b (down JP¥1.38b from profit in 1Q 2024). Revenue is expected to decline by 3.1% p.a. on average during the next 2 years, while revenues in the Professional Services industry in Japan are expected to grow by 6.0%. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Board Change • Oct 08
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 7 experienced directors. 4 highly experienced directors. 4 independent directors (6 non-independent directors). Independent Outside Director Ryohei Miyata was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Aankondiging • Sep 12
Pasona Group Inc. to Report Q1, 2025 Results on Oct 15, 2024 Pasona Group Inc. announced that they will report Q1, 2025 results on Oct 15, 2024 Aankondiging • Aug 22
Pasona Group Inc. Approves Board and Committee Changes Pasona Group Inc. announced that at the General Meeting of Shareholders and the Board of Directors Meeting held on August 22, 2024, resolved to make the following executive appointments. Members of the Board (Excluding Directors who are Audit and Supervisory Committee Members): Yasuyuki Nambu -Group CEO & President; Hirotaka Wakamoto- From Executive Officer & Vice President, Chief Operating Officer, General Manager of the Growth Strategy General Headquarters & General Manager of the Corporate Planning Headquarters to Executive Officer & Vice President, Chief Operating Officer, General Manager of the Corporate Planning Headquarters & General Manager of the Growth Strategy Headquarters; Junko Fukasawa- from Executive Officer & Vice President, General Manager of the Pasona Way General Headquarters, responsible for the Social Contribution Department to Executive Officer & Vice President, General Manager of the Pasona Way Headquarters, responsible for the Social Contribution Department; Kinuko Yamamoto- From Executive Officer & Vice President, General Manager of the NATUREVERSE General Headquarters to Executive Officer & Vice President, General Manager of the New Business Development Headquarters; Makiya Nambu: Managing Executive Officer & Director, General Manager of the International Business Headquarters & Deputy General Manager of the Corporate Planning Headquarters. Directors who are Audit and Supervisory Committee Members: Kazufumi Nomura -Director (Full-time Audit and Supervisory Committee Member), Haruo Funabashi- Outside Director (Audit and Supervisory Committee Member), Kazuo Furukawa - Outside Director (Audit and Supervisory Committee Member), Ryohei Miyata - Outside Director (Audit and Supervisory Committee Member), Yutaka Atomi - Outside Director (Audit and Supervisory Committee Member). New Risk • Jul 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 2,342% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 141% per year for the foreseeable future. High level of non-cash earnings (2,342% accrual ratio). Reported Earnings • Jul 14
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: JP¥2,448 (up from JP¥156 in FY 2023). Revenue: JP¥356.7b (down 4.3% from FY 2023). Net income: JP¥95.9b (up JP¥89.8b from FY 2023). Profit margin: 27% (up from 1.6% in FY 2023). Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is expected to decline by 8.1% p.a. on average during the next 2 years, while revenues in the Professional Services industry in Japan are expected to grow by 5.9%. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Aankondiging • Jul 13
Pasona Group Inc., Annual General Meeting, Aug 22, 2024 Pasona Group Inc., Annual General Meeting, Aug 22, 2024. Aankondiging • Jun 14
Pasona Group Inc. to Report Fiscal Year 2024 Results on Jul 12, 2024 Pasona Group Inc. announced that they will report fiscal year 2024 results on Jul 12, 2024 Upcoming Dividend • May 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 13 August 2024. Payout ratio is on the higher end at 98% but the company is not cash flow positive. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.0%). New Risk • Apr 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 81% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 81% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). New Risk • Apr 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). Reported Earnings • Apr 14
Third quarter 2024 earnings released: JP¥22.92 loss per share (vs JP¥30.99 profit in 3Q 2023) Third quarter 2024 results: JP¥22.92 loss per share (down from JP¥30.99 profit in 3Q 2023). Revenue: JP¥86.2b (down 7.6% from 3Q 2023). Net loss: JP¥898.0m (down 174% from profit in 3Q 2023). Revenue is forecast to stay flat during the next 2 years compared to a 6.5% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Aankondiging • Mar 13
Pasona Group Inc. to Report Q3, 2024 Results on Apr 12, 2024 Pasona Group Inc. announced that they will report Q3, 2024 results on Apr 12, 2024 New Risk • Jan 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 36% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings are forecast to decline by an average of 36% per year for the foreseeable future. Minor Risk Profit margins are more than 30% lower than last year (1.0% net profit margin). Reported Earnings • Jan 14
Second quarter 2024 earnings released: JP¥1.07 loss per share (vs JP¥36.78 profit in 2Q 2023) Second quarter 2024 results: JP¥1.07 loss per share (down from JP¥36.78 profit in 2Q 2023). Revenue: JP¥89.4b (down 2.7% from 2Q 2023). Net loss: JP¥42.0m (down 103% from profit in 2Q 2023). Profit margin: 0% (down from 1.6% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Aankondiging • Jan 12
Pasona Group Inc. Provides Year-End Dividend Guidance for the Fiscal Year 2023 Pasona Group Inc. provided year-end dividend guidance for the fiscal year 2023. For the period, the company expects to pay year-end dividend of JPY 35.00 per share compared to JPY 35.00 per share paid a year ago. Aankondiging • Dec 13
Pasona Group Inc. to Report Q2, 2024 Results on Jan 12, 2024 Pasona Group Inc. announced that they will report Q2, 2024 results on Jan 12, 2024 Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,473, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 18x in the Professional Services industry in Japan. Total returns to shareholders of 34% over the past three years. Aankondiging • Nov 16
M3, Inc. (TSE:2413) entered into a share tender agreement to acquire a 55% stake in Benefit One Inc. (TSE:2412) from Pasona Group Inc. (TSE:2168) and others for approximately ¥140 billion. M3, Inc. (TSE:2413) entered into a share tender agreement to acquire a 55% stake in Benefit One Inc. (TSE:2412) from Pasona Group Inc. (TSE:2168) and others for approximately ¥140 billion on November 14, 2023. The offer price is ¥1600 cash per share. The transaction is subject to minimum tender of 81,210,400 shares and maximum of 87,307,300 shares. The offer period will commence on November 15, 2023 and end on December 13, 2023. New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 6.6% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (1.3% net profit margin). Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥1,742, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 17x in the Professional Services industry in Japan. Total returns to shareholders of 2.4% over the past three years. Reported Earnings • Oct 15
First quarter 2024 earnings released: EPS: JP¥4.77 (vs JP¥33.01 in 1Q 2023) First quarter 2024 results: EPS: JP¥4.77 (down from JP¥33.01 in 1Q 2023). Revenue: JP¥89.9b (down 2.4% from 1Q 2023). Net income: JP¥187.0m (down 86% from 1Q 2023). Profit margin: 0.2% (down from 1.4% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.0% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Aankondiging • Sep 15
Pasona Group Inc. to Report Q1, 2024 Results on Oct 13, 2023 Pasona Group Inc. announced that they will report Q1, 2024 results on Oct 13, 2023 Aankondiging • Aug 25
Pasona Group Inc. Appoints Yutaka Atomi as Outside Director (Audit and Supervisory Committee Member) Pasona Group Inc. approved to appoint Yutaka Atomi as Outside Director (Audit and Supervisory Committee Member). New Risk • Jul 28
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 22% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 22% per year for the foreseeable future. High level of non-cash earnings (47% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.6% net profit margin). New Risk • Jul 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 47% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (47% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.6% net profit margin). Reported Earnings • Jul 16
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥156 (down from JP¥220 in FY 2022). Revenue: JP¥372.6b (up 1.8% from FY 2022). Net income: JP¥6.10b (down 29% from FY 2022). Profit margin: 1.6% (down from 2.4% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 22%. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Aankondiging • Jul 14
Pasona Group Inc., Annual General Meeting, Aug 24, 2023 Pasona Group Inc., Annual General Meeting, Aug 24, 2023. Aankondiging • Jun 15
Pasona Group Inc. to Report Fiscal Year 2023 Results on Jul 14, 2023 Pasona Group Inc. announced that they will report fiscal year 2023 results on Jul 14, 2023 Upcoming Dividend • May 23
Upcoming dividend of JP¥35.00 per share at 1.9% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 07 August 2023. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.2%). Reported Earnings • Apr 16
Third quarter 2023 earnings released: EPS: JP¥30.99 (vs JP¥64.21 in 3Q 2022) Third quarter 2023 results: EPS: JP¥30.99 (down from JP¥64.21 in 3Q 2022). Revenue: JP¥93.3b (up 5.6% from 3Q 2022). Net income: JP¥1.21b (down 52% from 3Q 2022). Profit margin: 1.3% (down from 2.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.1% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jan 14
Second quarter 2023 earnings released: EPS: JP¥36.78 (vs JP¥59.24 in 2Q 2022) Second quarter 2023 results: EPS: JP¥36.78 (down from JP¥59.24 in 2Q 2022). Revenue: JP¥91.9b (up 1.5% from 2Q 2022). Net income: JP¥1.44b (down 38% from 2Q 2022). Profit margin: 1.6% (down from 2.6% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Aankondiging • Dec 14
Pasona Group Inc. to Report Q2, 2023 Results on Jan 13, 2023 Pasona Group Inc. announced that they will report Q2, 2023 results on Jan 13, 2023 Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 8 experienced directors. 3 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Outside Director Haruo Funabashi was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 17
First quarter 2023 earnings released: EPS: JP¥33.01 (vs JP¥63.39 in 1Q 2022) First quarter 2023 results: EPS: JP¥33.01 (down from JP¥63.39 in 1Q 2022). Revenue: JP¥92.1b (flat on 1Q 2022). Net income: JP¥1.29b (down 48% from 1Q 2022). Profit margin: 1.4% (down from 2.7% in 1Q 2022). Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Professional Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 17
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥220 (up from JP¥173 in FY 2021). Revenue: JP¥366.1b (up 9.4% from FY 2021). Net income: JP¥8.62b (up 27% from FY 2021). Profit margin: 2.4% (up from 2.0% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 7.7%. Over the next year, revenue is forecast to grow 5.4%, compared to a 15% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 May 2022. Payment date: 06 August 2022. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.0%). Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Ryohei Miyata was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 15
Third quarter 2022 earnings: EPS exceeds analyst expectations Third quarter 2022 results: EPS: JP¥64.21 (up from JP¥33.32 in 3Q 2021). Revenue: JP¥88.4b (up 11% from 3Q 2021). Net income: JP¥2.51b (up 93% from 3Q 2021). Profit margin: 2.8% (up from 1.6% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Over the next year, revenue is forecast to grow 8.4%, compared to a 12% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jan 16
Second quarter 2022 earnings: EPS exceeds analyst expectations Second quarter 2022 results: EPS: JP¥59.24 (up from JP¥5.47 in 2Q 2021). Revenue: JP¥90.6b (up 14% from 2Q 2021). Net income: JP¥2.32b (up JP¥2.11b from 2Q 2021). Profit margin: 2.6% (up from 0.3% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Earnings per share (EPS) surpassed analyst estimates by 13%. Over the next year, revenue is forecast to grow 8.9%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 16
First quarter 2022 earnings released: EPS JP¥63.39 (vs JP¥104 in 1Q 2021) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: JP¥91.9b (up 7.2% from 1Q 2021). Net income: JP¥2.48b (down 39% from 1Q 2021). Profit margin: 2.7% (down from 4.7% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥3,095, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 23x in the Professional Services industry in Japan. Total returns to shareholders of 94% over the past three years. Reported Earnings • Jul 18
Full year 2021 earnings released: EPS JP¥173 (vs JP¥15.19 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥334.5b (up 2.9% from FY 2020). Net income: JP¥6.78b (up JP¥6.19b from FY 2020). Profit margin: 2.0% (up from 0.2% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 May 2021. Payment date: 06 August 2021. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (0.8%). 
