Adastria Co.,Ltd. (2685) AI Stock Analysis

• Market Cap: €131.72B
• Dividend Yield: 3.09%
• Average Volume (3M): 210.26K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.15
• Revenue Growth: 5.50%
• EPS Growth: -30.13%
• Country: JP
• Employees: 6,603
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): 94.70
• Shares Outstanding: 48,800,000
• 10 Day Avg. Volume: 181,230
• 30 Day Avg. Volume: 210,263
• PEG Ratio: -0.68
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €3,199.31
• Price Target Upside: 8.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥3,296.00 ▲(11.39%Upside)

Adastria Co.,Ltd. receives a strong overall score, driven by solid financial performance, particularly in revenue growth and balance sheet robustness. Technical analysis shows positive momentum, though room for operational improvements exists as indicated by declining margins. The valuation is reasonable, supported by an attractive dividend yield.

Adastria Co.,Ltd. Business Overview & Revenue Model

Company Description

Adastria Co., Ltd. is a leading Japanese fashion retail company that designs, manufactures, and sells a wide range of apparel and accessories. The company operates through various retail brands, including Global Work, niko and..., and LOWRYS FARM, among others. Adastria caters to diverse customer segments, offering products for men, women, and children. With a strong presence in Japan and an expanding international footprint, the company is known for its trendy and affordable fashion offerings.

How the Company Makes Money

Adastria Co., Ltd. generates revenue primarily through the retail sale of its apparel and accessories. The company operates a network of physical retail stores across Japan and other countries, as well as an online sales platform, which allows it to reach a broad customer base. Key revenue streams include in-store sales and e-commerce transactions. The company also benefits from strategic partnerships and collaborations with other brands and designers, which help to enhance its product offerings and market reach. Seasonal collections and limited edition items often drive increased sales, contributing to its overall earnings.

Adastria Co.,Ltd. Financial Statement Overview

Summary

Adastria Co.,Ltd. displays a solid financial performance with strong revenue growth and profitability. The balance sheet reflects a well-capitalized structure with manageable debt levels, ensuring financial stability. Cash flow management is effective, supporting operations and investment while maintaining flexibility. However, attention should be paid to operational efficiency as indicated by declining EBIT and EBITDA margins.

Income Statement

Adastria Co.,Ltd. has shown consistent revenue growth over the past few years, with a notable increase from 2015 to 2020. The gross profit margin and net profit margin have been stable, indicating strong cost management and profitability. However, there was a decline in EBIT and EBITDA margins in the latest year, which might suggest increased operational costs or reduced efficiency.

Balance Sheet

The company's financial stability is highlighted by a solid equity base and a low debt-to-equity ratio, suggesting prudent financial management. Return on equity has been positive, indicating efficient use of equity to generate profits. The equity ratio is strong, emphasizing a robust capital structure with more equity financing than debt.

Cash Flow

Adastria Co.,Ltd. has maintained a healthy operating cash flow, consistently covering its capital expenditures. The free cash flow has shown growth, although the free cash flow to net income ratio indicates some volatility, reflecting fluctuations in cash generation relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	293.11B	275.60B	242.55B	201.58B	183.87B
Gross Profit	149.10B	152.35B	132.66B	111.01B	100.13B
EBITDA	26.39B	27.66B	20.57B	13.93B	8.08B
Net Income	9.61B	13.51B	7.54B	4.92B	-693.00M
Balance Sheet
Total Assets	133.11B	127.92B	111.39B	97.96B	95.45B
Cash, Cash Equivalents and Short-Term Investments	21.14B	23.37B	16.38B	16.98B	24.18B
Total Debt	8.96B	8.95B	8.18B	5.01B	3.64B
Total Liabilities	55.91B	56.34B	50.63B	42.99B	44.75B
Stockholders Equity	77.10B	70.14B	59.41B	53.96B	50.70B
Cash Flow
Free Cash Flow	13.85B	13.23B	2.95B	-3.43B	5.43B
Operating Cash Flow	21.37B	22.22B	13.46B	3.50B	11.93B
Investing Cash Flow	-16.97B	-9.92B	-9.96B	-7.78B	-7.37B
Financing Cash Flow	-7.11B	-5.58B	-4.40B	-3.25B	-6.84B

Adastria Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2959.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2685, the sentiment is Positive. The current price of 2959 is above the 20-day moving average (MA) of 2930.15, above the 50-day MA of 2885.70, and below the 200-day MA of 3154.53, indicating a neutral trend. The MACD of 8.89 indicates Positive momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2685.

Adastria Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	75 Outperform	¥130.05B	10.01	10.24%	2.81%	12.50%	7.68%
3201	75 Outperform	¥87.60B	10.78		2.97%	7.01%	11.28%
3608	74 Outperform	¥77.26B	4.68	16.23%	5.78%	-1.54%	446.34%
2685	73 Outperform	€131.72B	14.05	12.99%	3.09%	5.50%	-30.13%
7447	73 Outperform	¥66.32B	25.29		2.75%	1.33%	-8.28%
8016	69 Neutral	¥81.78B	9.34	10.87%	4.31%	13.65%	20.39%
Sector *	67 Neutral	¥267.20B	13.40	6.45%	2.59%	5.22%	-11.90%

Adastria Co.,Ltd. Corporate Events

Adastria Transfers Equity in U.S. Subsidiary Velvet to PIVOT GROWS

Adastria Co., Ltd. has decided to transfer its equity interest in Velvet, LLC, a California-based apparel business, to PIVOT GROWS LLC as part of its strategy to exit the U.S. market. This move follows a previous announcement to liquidate its U.S. subsidiary, Adastria USA, and is not expected to significantly impact the company’s consolidated financial results for the fiscal year ending February 28, 2026.

The most recent analyst rating on (JP:2685) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.

Adastria Co., Ltd. Reports Mixed June Sales with Brand Highlights

Adastria Co., Ltd. reported a mixed performance in June, with all store sales at 103.6% and same store sales at 99.8% compared to the previous year. Despite a slow start in summer product sales, an increase in temperature later in the month boosted sales, although the absence of a holiday negatively impacted same store sales by 1.8 points. The company saw strong performances from brands like LOWRYS FARM and PAGEBOY, with popular items including summer trousers and short-sleeve shirts. The merger with TODAY’S SPECIAL Co., Ltd. has been factored into year-on-year sales comparisons.

The most recent analyst rating on (JP:2685) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.

Adastria Co., Ltd. Reports Q1 Financial Results with Increased Sales but Declining Profits

Adastria Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending February 28, 2026, showing a 4.7% increase in net sales compared to the previous year. However, the company experienced declines in operating and ordinary profits, with a notable decrease in comprehensive income by 19.5%. The company has also revised its dividend forecast, maintaining a stable outlook for the fiscal year, and has included KARRIMOR International Ltd. in its scope of consolidation, indicating strategic expansion.

The most recent analyst rating on (JP:2685) stock is a Buy with a Yen4400.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.

Adastria Co., Ltd. to Transfer Non-Current Assets for Strategic Optimization

Adastria Co., Ltd. has announced the transfer of non-current assets held by its subsidiary, Adastria Logistics Co., Ltd., as part of a strategic move to enhance capital investment efficiency and optimize management resources. This transfer, involving the Fukuoka Distribution Center, is expected to yield a special gain of approximately ¥3.4 billion, impacting the company’s financial results for the fiscal year ending February 2026.

The most recent analyst rating on (JP:2685) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.

Adastria Co., Ltd. Reports Strong May Sales Boosted by Summer Demand and Strategic Merger

Adastria Co., Ltd. reported a strong sales performance in May, with all store sales reaching 108.4% and same store sales at 104.2% compared to the previous year. The increase was driven by the popularity of summer products and a successful membership campaign. The merger with TODAY’S SPECIAL Co., Ltd. has also contributed to the year-on-year sales growth, enhancing Adastria’s market presence and operational scale.

The most recent analyst rating on (JP:2685) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.

Adastria Delays Shareholder Benefit Plan Changes to 2028

Adastria Co., Ltd. has announced a postponement in the effective date for changes to its shareholder benefit plan, originally set for February 2026, now delayed to February 2028. This decision was made to accommodate shareholders who were not informed about the change in holding period requirements when purchasing their shares, ensuring fairness and transparency in the implementation of the benefit plan.

The most recent analyst rating on (JP:2685) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.

Adastria Co., Ltd. Reports April Sales Decline Amid Strategic Expansion

Adastria Co., Ltd. reported a decline in April sales compared to the previous year, with all store sales at 98.5% and same store sales at 95.0%. The company attributed this to discounted spring products and slow summer product sales due to cooler temperatures. Despite the overall sales dip, certain brands and items, such as jackets and thick-soled sneakers, performed well. The merger with TODAY’S SPECIAL Co., Ltd. has been included in the year-on-year sales comparison, indicating a strategic move to enhance market presence.