A strong break-out to the upside has recently been seen in Recruit Holdings Co., Ltd.. The current technical chart pattern could allow for a continuation of the upward dynamic.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● The company is in a robust financial situation considering its net cash and margin position.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 46.28 times its estimated earnings per share for the ongoing year.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The company is highly valued given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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Recruit Holdings Co., Ltd. specializes in human resources and support services. Net sales break down by activity as follows:
- staffing services (52.2%): temporary recruitment of staff for specialized, administrative, technical and other positions, etc;
- promotional services (29.4%): promotion of operations related to the events organization (especially weddings), housing search, trip search, etc. ;
- online recruitment services (18.4%).
Net sales are distributed geographically as follows: Japan (54.9%), the United States (21.4%) and other (23.7%).