| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 350.86 | 21 |
| Intrinsic value (DCF) | 65.67 | -77 |
| Graham-Dodd Method | 0.81 | -100 |
| Graham Formula | 276.83 | -4 |
Persol Holdings Co., Ltd. (2181.T) is a leading global human resource services provider headquartered in Tokyo, Japan. Operating under the PERSOL brand, the company offers a comprehensive suite of staffing and employment solutions, including temporary staffing, permanent placement, outsourcing, and specialized HR consulting services. Persol serves diverse industries, from clerical and sales roles to IT, engineering, and clinical research, positioning itself as a versatile workforce solutions provider. With a strong presence in Japan and expanding international operations, Persol leverages digital solutions for HR management, training, and recruitment, enhancing efficiency for both employers and job seekers. Formerly known as Temp Holdings, the company rebranded in 2017 to reflect its broader vision. As part of the Industrials sector, Persol plays a critical role in workforce mobility and talent acquisition, benefiting from Japan's dynamic labor market and global demand for flexible staffing solutions.
Persol Holdings presents a compelling investment case due to its dominant position in Japan's staffing industry and growing international footprint. The company's diversified service offerings, including high-demand IT and engineering staffing, provide resilience against economic cycles. With a market cap of ¥593.5 billion and steady revenue of ¥1.33 trillion, Persol demonstrates scale and stability. However, investors should note the sector's sensitivity to economic downturns, as seen in the modest beta of 0.85. The company's strong operating cash flow (¥77.8 billion) supports its dividend yield (¥9.5 per share), but net income margins remain relatively thin (~2.3%), reflecting competitive pressures. Persol's balance sheet is healthy, with ¥108.4 billion in cash against ¥69 billion debt, providing flexibility for strategic acquisitions or expansion.
Persol Holdings maintains a competitive edge through its integrated HR service platform, combining traditional staffing with high-growth digital solutions. Its strength lies in domestic market dominance—Japan's complex labor laws and cultural nuances favor local incumbents. The company's PERSOL brand has strong recognition, and its dual focus on temporary staffing (lower-risk revenue stream) and permanent placement (higher-margin business) provides balanced growth. Persol's IT/engineering specialization differentiates it from generalist competitors, aligning with Japan's tech talent shortage. However, its international presence lags behind global peers, limiting exposure to faster-growing APAC labor markets. The 2017 rebranding from Temp Holdings signaled strategic evolution toward comprehensive workforce solutions, but Persol still faces margin pressure from online job platforms and automation trends. Its capital allocation—dividends and selective M&A (like its Australian venture)—shows disciplined growth prioritization. Persol's main challenge is balancing Japan's aging workforce dynamics with overseas expansion while defending margins against tech-driven disruptors.