Universal Store Holdings Ltd. (UNI) AI Stock Analysis

• Market Cap: AU$673.61M
• Dividend Yield: 4.54%
• Average Volume (3M): 348.82K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.12
• Revenue Growth: 15.51%
• EPS Growth: -32.98%
• Country: AU
• Employees: 1,065
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.15
• Shares Outstanding: 76,720,810
• 10 Day Avg. Volume: 239,076
• 30 Day Avg. Volume: 348,823
• PEG Ratio: -0.77
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 1.80
• P/FCF Ratio: 8.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$10.58
• Price Target Upside: 25.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: AU$8.50 ▲(1.07% Upside)

The overall stock score of 58 reflects a combination of strong financial performance and bearish technical indicators. While the company shows potential for growth, the current market momentum is negative, and the valuation suggests the stock may be overvalued. Investors should be cautious of cost pressures and monitor technical signals for potential entry points.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, crucial for long-term sustainability in the competitive retail sector.

Operational Efficiency

High gross profit and EBIT margins reflect effective cost management and operational efficiency, supporting profitability and competitive advantage.

Cash Generation

Strong operating cash flow ensures the company can meet its obligations and invest in growth opportunities, enhancing financial stability.

Negative Factors

Net Profit Margin Decline

A declining net profit margin suggests rising costs or inefficiencies, which could pressure future profitability and require strategic adjustments.

Increased Leverage

Increased leverage may limit financial flexibility and elevate risk, potentially impacting the company's ability to finance future growth.

Free Cash Flow Decline

A decline in free cash flow can constrain the company's ability to invest in new opportunities or reduce debt, affecting long-term growth prospects.

Universal Store Holdings Ltd. Business Overview & Revenue Model

Company Description

Universal Store Holdings Limited operates as a specialty retailer of casual men's and women's fashion, shoes, accessories, lifestyle, and gifting in Australia. The company's products include tops and shirts, overshirts, t-shirts and tank tops, jeans, hoodies and sweaters, dresses, sets and coordinates, jumpers and knits, coats and jackets, pants, skirts, shorts, underwear, polos, singlets, swimwear, and denim products; boots, Havaianas, heels, shoes, slides and sandals, sneakers, socks, and shoe care and laces; kids shoes; and accessories, such as bags, belts, face masks, hair and beauty products, hats, sunglasses and eyewear, jewellery, headwear, wallets, keyrings, and watches. It offers its products through 78 physical stores, as well as online stores. The company was formerly known as US Holdings Pty Ltd. and changed its name to Universal Store Holdings Limited in October 2020. Universal Store Holdings Limited was founded in 1999 and is based in Nundah, Australia.

How the Company Makes Money

Universal Store generates revenue primarily through the sale of clothing, footwear, and accessories in its physical retail locations and online store. The company employs a multi-channel retail strategy, allowing customers to shop through its e-commerce platform while also visiting brick-and-mortar stores. Key revenue streams include direct sales of branded merchandise, seasonal promotions, and collaborations with popular fashion labels. Additionally, Universal Store benefits from strategic partnerships with various brands, enhancing its product offerings and attracting a loyal customer base. The company's focus on the youth market and its ability to adapt to fashion trends play crucial roles in driving sales and profitability.

Universal Store Holdings Ltd. Financial Statement Overview

Summary

Universal Store Holdings Ltd. shows strong revenue growth and operational efficiency with robust gross profit and EBIT margins. However, increased leverage and a decline in free cash flow are areas to watch.

Income Statement

Universal Store Holdings Ltd. has demonstrated consistent revenue growth over the years, with a notable 6.13% increase in the latest year. The gross profit margin remains strong at 61.11%, indicating effective cost management. However, the net profit margin has decreased to 6.98% from 11.90% the previous year, suggesting increased expenses or cost pressures. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.61 indicates moderate leverage, which is manageable but has increased from the previous year. The return on equity is solid at 15.99%, though it has decreased from 22.53% in the prior year, suggesting a decline in profitability relative to equity. The equity ratio of 50.66% shows a balanced capital structure.

Cash Flow

Operating cash flow remains strong, with a coverage ratio of 1.15, indicating sufficient cash generation to cover net income. However, free cash flow has decreased by 7.51%, which could impact future investments or debt repayments. The free cash flow to net income ratio of 0.86 suggests a good conversion of earnings to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	258.38M	333.27M	288.52M	263.05M	207.97M	210.82M
Gross Profit	157.43M	203.66M	173.53M	67.67M	121.28M	123.80M
EBITDA	49.47M	60.65M	83.70M	69.10M	54.67M	62.57M
Net Income	17.28M	23.26M	34.34M	23.57M	20.57M	24.37M
Balance Sheet
Total Assets	286.98M	286.98M	279.10M	288.34M	203.55M	204.19M
Cash, Cash Equivalents and Short-Term Investments	17.16M	17.16M	29.27M	21.44M	38.77M	33.41M
Total Debt	88.44M	88.44M	76.21M	99.08M	63.42M	69.79M
Total Liabilities	141.59M	141.59M	126.69M	151.90M	92.04M	101.21M
Stockholders Equity	145.40M	145.40M	152.40M	136.44M	111.51M	102.98M
Cash Flow
Free Cash Flow	61.31M	67.65M	58.74M	40.74M	34.29M	44.17M
Operating Cash Flow	69.34M	78.77M	67.51M	50.97M	42.03M	47.47M
Investing Cash Flow	-13.84M	-13.84M	-10.55M	-26.13M	-6.79M	-2.94M
Financing Cash Flow	-77.03M	-77.03M	-49.13M	-42.16M	-29.88M	-52.95M

Universal Store Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:UNI, the sentiment is Negative. The current price of 8.41 is below the 20-day moving average (MA) of 8.45, below the 50-day MA of 8.65, and above the 200-day MA of 8.07, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:UNI.

Universal Store Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STP	79 Outperform	AU$49.12M	3.88	24.28%	24.29%	2.76%	1.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AX1	61 Neutral	AU$576.95M	9.49	12.90%	7.29%	1.58%	-4.71%
UNI	58 Neutral	AU$673.61M	28.92	15.62%	4.54%	15.51%	-32.98%
ADH	58 Neutral	€352.01M	13.59	11.70%	5.80%	3.99%	-18.35%
CCX	50 Neutral	AU$33.51M	-6.00	-24.80%	―	2.35%	95.03%
MYR	42 Neutral	€682.46M	-2.40	-36.66%	6.98%	13.78%	-413.50%

Universal Store Holdings Ltd. Corporate Events

Universal Store Updates Director’s Equity Interests

Universal Store Holdings Ltd. announced a change in the director’s interest, with Dorothy Alice Barbery acquiring 72,696 Performance Rights under the company’s Equity Incentive Scheme. This adjustment increases her total securities to 2,152,716, reflecting the company’s commitment to aligning director incentives with corporate performance goals, potentially impacting the company’s governance and stakeholder confidence.

Universal Store Issues Performance Rights to Boost Employee Incentives

Universal Store Holdings Ltd. announced the issuance of 321,699 performance rights as part of an employee incentive scheme. These securities are unquoted and are not intended to be listed on the ASX, reflecting the company’s ongoing efforts to motivate and retain key personnel, potentially impacting its operational efficiency and competitive positioning.

Universal Store Holdings Ltd Reports Successful AGM Outcomes

Universal Store Holdings Ltd announced the results of its Annual General Meeting held on 30 October 2025, where all resolutions were successfully carried on a poll. The meeting included key resolutions such as the adoption of the remuneration report, re-election of directors, and the issuance of performance share rights under the company’s equity incentive plan. These outcomes reflect a strong consensus among shareholders, potentially reinforcing the company’s strategic direction and stability in the youth fashion retail market.

Universal Store Holdings Reports Strong Financial Growth Amid Retail Volatility

Universal Store Holdings Ltd reported significant growth in sales revenue and underlying EBIT over the past five years, with FY25 revenue reaching $333 million. Despite volatile retail conditions, the company achieved strong like-for-like sales growth and enhanced gross margins. The company’s financial position remains robust, with a 15.5% increase in group revenue and a 15.2% rise in underlying group profit after tax compared to the previous year. However, the volatility in the retail market has impacted the wholesale sales of the CTC business, leading to an impairment of its goodwill. The company remains positive about the growth potential of CTC’s retail channel and continues to focus on strengthening its portfolio of premium youth fashion brands.

Universal Store Holdings Reports Strong Sales Growth in FY26

Universal Store Holdings Ltd reported a 13.7% increase in direct-to-customer sales for the first 17 weeks of FY26, driven by strong performances from its Universal Store, Perfect Stranger, and Cheap Thrills Cycle brands. The company is on track to open 11 to 17 new stores in FY26, with four already opened and four more planned before Christmas. Despite a decline in CTC wholesale sales due to reduced USA export sales, the company maintains robust gross margins and continues to invest in team capabilities and system improvements to support future growth.

Universal Store Holdings Director Adjusts Investment Portfolio

Universal Store Holdings Ltd. announced a change in the director’s interest, specifically involving Trent Peterson, who disposed of 150,000 ordinary securities through an on-market trade. This transaction reduced his holdings from 1,150,000 to 1,000,000 shares, with the sale valued at $1,287,000, averaging $8.58 per share. The change reflects a strategic adjustment in the director’s investment portfolio, potentially impacting stakeholder perceptions and market dynamics.

Universal Store Holdings Announces 2025 AGM Details

Universal Store Holdings Ltd has announced details regarding its upcoming Annual General Meeting (AGM) scheduled for October 30, 2025. The company has released documents including a Shareholder Letter, Notice of Meeting, and Proxy Form, which are available on its website. This move aligns with their strategy to support environmentally sustainable practices by encouraging paperless communications. The announcement reflects Universal Store’s ongoing commitment to engage with shareholders and streamline its communication processes.

Universal Store Holdings Announces Director’s Share Acquisition

Universal Store Holdings Ltd. has announced a change in the director’s interest, specifically involving Renee Gamble, who has acquired 10,857 ordinary shares through an on-market trade. This acquisition, valued at $95,653.70, marks a significant increase in her indirect interest as a trustee and beneficiary of the Gamble and Dwyer Family Trust. The transaction reflects a strategic move within the company’s leadership, potentially impacting stakeholder perceptions and the company’s market position.