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Palemo Holdings CoTSE:2778 +0.87%56 Net Margin % is 0.16% as of Feb. 2026, which is 88% below its 10-year median of 1.38. GuruFocus rates TSE:2778 with a GF Score™ of 56/100 and a GF Value™ of 円134.16 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,123 Retail - Cyclical companies, Palemo Holdings Co ranks worse than 67.94% on this metric.
Palemo Holdings Co (TSE:2778) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Palemo Holdings Co Net Margin % Related Terms
Palemo Holdings Co Net Margin % Historical Data
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The historical data trend for Palemo Holdings Co's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSE:2778 vs TJX, ROST, BURL: Net Margin % Comparison
For the Apparel Retail subindustry, Palemo Holdings Co's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palemo Holdings Co Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Palemo Holdings Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Palemo Holdings Co's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Palemo Holdings Co (TSE:2778) has a Net Margin % of 0.16% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Palemo Holdings Co and its competitors. This is 88% below median its historical median of 1.38. According to the industry distribution chart, Palemo Holdings Co ranks #763 out of 1123 companies in the Retail - Cyclical industry, placing it in the top 67.9%.
Is Palemo Holdings Co's Net Margin % too high?
Palemo Holdings Co's current Net Margin % of 0.16% is 88% below median its 10-year median of 1.38. The Retail - Cyclical industry median Net Margin % is 2.41. Palemo Holdings Co's value of 0.16% is 93.4% below this industry median. Based on the distribution chart, Palemo Holdings Co ranks #763 out of 1123 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Palemo Holdings Co has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palemo Holdings Co's Net Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Palemo Holdings Co ranks #763 out of 1123 companies for Net Margin %. This places Palemo Holdings Co in the lower half of its industry. The industry median Net Margin % is 2.41. Palemo Holdings Co's value of 0.16% is 93.4% below this benchmark. While the company's 10-year median is 1.38 vs. the industry median of 2.41, Palemo Holdings Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.41, based on 1,123 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palemo Holdings Co's current Net Margin % of 0.16% is 93.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Palemo Holdings Co and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palemo Holdings Co's current Net Margin % is 0.16%, which is 88% below median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palemo Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Palemo Holdings Co (TSE:2778) is currently considered Modestly Undervalued. The stock's GF Value™ is 円134.16, compared to a current price of 円116.00 — trading 13.5% below its estimated fair value. The current Net Margin % is 0.16%, which is 88% below median its 10-year median of 1.38 and 93.4% below the Retail - Cyclical industry median of 2.41. Palemo Holdings Co's overall GF Score™ is 56/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Palemo Holdings Co (TSE:2778), the current Net Margin % is 0.16% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palemo Holdings Co (TSE:2778) Overvalued in 2026?
Based on GuruFocus' analysis, Palemo Holdings Co stock appears to be undervalued.
The current stock price of 円116.00 is trading 13.5% below its estimated GF Value™ of 円134.16.
GuruFocus considers Palemo Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:2778:
Net Margin %: 0.16% (88% below median its 10-year median of 1.38)
GF Value™: 円134.16 vs. price of 円116.00 (13.5% below fair value)
Industry Position: 93.4% below the Retail - Cyclical median (#763 of 1123)
No single metric tells the full story. See the TSE:2778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palemo Holdings Co Ltd is a holding company based in Japan. The business of the company includes operating apparel stores for women, variety merchandise, and bag specialty store chain. The brands of the company include Palemo, Ludic park, Noemie, Hare no hi, Lilou de chouchou, Daisy Merry, and others.
56GF Score
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