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Adastria Co.,Ltd.
(2685)
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Rating:73Outperform
Price Target:
¥3,863.00
▲(35.78% Upside)
Action:Reiterated
Date:08/07/26
Overall score is driven primarily by solid financial performance (revenue growth, positive earnings, and low leverage), tempered by recent margin compression and some free-cash-flow variability. Technicals are supportive with price above key moving averages and neutral-to-positive momentum. Valuation appears fair with a moderate P/E and a mid-single-digit dividend yield contribution.
Positive Factors
Conservative Balance Sheet
Low leverage and steadily expanding equity give the company durable financial flexibility. A conservatively levered balance sheet supports investment, resilience in downturns, and ability to pursue growth or return capital without adding risky debt over a 2–6 month horizon and beyond.
Negative Factors
Margin Compression
Declining margins across gross, operating and net lines signal rising input costs or pricing pressure. If structural, this reduces long-term profitability per sale and requires either price increases, cost restructuring, or higher volume to restore prior returns and ROE levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and steadily expanding equity give the company durable financial flexibility. A conservatively levered balance sheet supports investment, resilience in downturns, and ability to pursue growth or return capital without adding risky debt over a 2–6 month horizon and beyond.
Read all positive factors
Adastria Co.,Ltd. (2685) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥152.94B
Dividend Yield2.66%
Average Volume (3M)179.72K
Price to Earnings (P/E)17.3
Beta (1Y)0.35
Revenue Growth3.58%
EPS Growth-5.51%
CountryJP
Employees6,936
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)205.80
Shares Outstanding48,800,000
10 Day Avg. Volume180,290
30 Day Avg. Volume179,723
Financial Highlights & Ratios
PEG Ratio-9.87
Price to Book (P/B)1.70
Price to Sales (P/S)0.45
P/FCF Ratio12.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)249.51
Revenue Forecast (FY)¥315.81B
Adastria Co.,Ltd. Business Overview & Revenue Model
Company Description
Adastria Co., Ltd. (2685) is a Japan-based apparel and lifestyle company that plans, manufactures (including through outsourced production), and retails clothing, accessories, and related consumer goods under multiple brands. The company operates ...
How the Company Makes Money
Adastria makes money primarily by selling apparel and lifestyle products through its brand portfolio. The core revenue model is retail sales: (1) Direct-to-consumer sales at company-operated stores generate revenue from the sale of merchandise, wi...
Adastria Co.,Ltd. Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 304.35B | 293.11B | 275.60B | 242.55B | 201.58B |
| Gross Profit | 153.69B | 149.10B | 142.61B | 124.22B | 104.28B |
| EBITDA | 29.92B | 27.00B | 28.31B | 20.57B | 13.67B |
| Net Income | 9.50B | 9.61B | 13.51B | 7.54B | 4.92B |
Balance Sheet | |||||
| Total Assets | 139.69B | 133.11B | 127.92B | 111.39B | 97.96B |
| Cash, Cash Equivalents and Short-Term Investments | 24.91B | 21.14B | 23.37B | 16.38B | 16.98B |
| Total Debt | 6.95B | 8.96B | 8.95B | 8.18B | 5.01B |
| Total Liabilities | 57.86B | 55.91B | 56.33B | 50.63B | 42.99B |
| Stockholders Equity | 81.44B | 77.10B | 70.14B | 59.41B | 53.96B |
Cash Flow | |||||
| Free Cash Flow | 11.14B | 13.85B | 16.55B | 6.47B | -292.00M |
| Operating Cash Flow | 20.57B | 21.37B | 22.22B | 13.46B | 3.50B |
| Investing Cash Flow | -9.52B | -16.97B | -9.92B | -9.96B | -7.78B |
| Financing Cash Flow | -7.43B | -7.11B | -5.58B | -4.40B | -3.25B |
Adastria Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥152.94B | 17.26 | 11.07% | 3.59% | 3.58% | -5.51% | |
66 Neutral | ¥49.45B | 12.27 | ― | 5.23% | -1.88% | 28.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥229.17B | 17.18 | 6.42% | 2.23% | -1.37% | 103.53% | |
56 Neutral | ¥71.66B | 17.94 | 4.13% | 3.15% | 16.25% | -71.70% | |
54 Neutral | ¥119.14B | 254.59 | 0.46% | 3.66% | -4.52% | -92.19% | |
48 Neutral | ¥17.44B | -14.34 | ― | ― | -0.62% | -33.86% |
* Consumer Cyclical Sector Average
JP:2685
Adastria Co.,Ltd.
3,470.00
475.38
15.87%
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Adastria Co.,Ltd. Corporate Events
Adastria July Sales Rise Despite Typhoon and Earthquake Disruptions
Aug 4, 2026
Adastria reported that in July 2026, all-store sales rose 3.8% year-on-year while same-store sales increased 2.2%, supported by stronger demand for summer apparel and accessories once temperatures turned summery mid-month. Key brands such as niko ...
ST HD Co., Ltd. Details Operational Impact from Kumamoto Earthquake
Jul 29, 2026
ST HD Co., Ltd., listed on the TSE Prime Market under securities code 2685, operates retail stores and an e-commerce business in Japan, with a notable presence in Kumamoto Prefecture and the broader Kyushu region. The company depends on physical s...
Adastria’s June Sales Slip on Cool Weather and Typhoon Disruptions
Jul 2, 2026
Adastria Co., Ltd. reported that in June of fiscal year 2027, all-store sales were 95.7% and same-store sales were 93.8% year-on-year, reflecting a notable slowdown in demand for summer items due to a prolonged nationwide cold and rainy season. Th...
Adastria outlines FY2027/02 first-quarter performance and outlook
Jun 30, 2026
Adastria Co., Ltd. reported its financial results for the first quarter of FY2027/02, outlining performance across consolidated operations and major business segments. The disclosure covers income statements, balance sheet data, and store counts, ...
And ST HD Delivers Strong Q1 Profits but Lower Net Income
Jun 30, 2026
And ST HD Co., Ltd. reported first-quarter consolidated net sales of ¥80.3 billion, up 3.7% year on year, with operating profit surging 40.5% and ordinary profit up 48.4%. Despite this margin expansion, net income attributable to owners of th...
Adastria Boosts May Same-Store Sales on Campaign-Driven Demand
Jun 2, 2026
Adastria reported that for May in the FY2027/02 period, all-store sales rose 8.2% year-on-year and same-store sales increased 6.1%, supported by stronger traffic and higher customer spending. A 20% point reward campaign for members, backed by a TV...
Adastria Posts Solid April Sales on Strong Spring and Summer Demand
May 7, 2026
Adastria reported that in April of FY2027/02, all-store sales rose 4.9% year on year while same-store sales increased 2.9%, supported by strong demand for both spring and summer items amid higher-than-average temperatures. Parent-only figures, whi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.