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

• Market Cap: €118.37B
• Dividend Yield: 3.52%
• Average Volume (3M): 179.72K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.27
• Revenue Growth: 3.96%
• EPS Growth: -36.24%
• Country: JP
• Employees: 6,603
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 35.03
• Shares Outstanding: 48,800,000
• 10 Day Avg. Volume: 180,290
• 30 Day Avg. Volume: 179,723
• PEG Ratio: -0.47
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 9.64
• 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: €3,513.32
• Price Target Upside: 23.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥3,208.00 ▲(12.88% Upside)

Adastria Co.,Ltd. has a strong financial foundation with robust revenue growth and a solid balance sheet. However, the technical analysis indicates bearish momentum, which is a significant concern. The valuation is fair, with a reasonable P/E ratio and an attractive dividend yield. The lack of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term profitability and expansion.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability, providing resilience against economic fluctuations and capacity for future investments.

Cash Flow Management

Effective cash flow management ensures operational sustainability and supports strategic investments, contributing to long-term growth potential.

Negative Factors

Declining Margins

Declining margins may indicate rising operational costs or inefficiencies, potentially impacting profitability if not addressed.

Earnings Volatility

Volatility in earnings can lead to unpredictable cash flows, affecting the company's ability to plan and invest consistently over time.

Earnings Decline

A decline in earnings per share suggests potential challenges in maintaining profitability, which could affect investor confidence and future growth.

Adastria Co.,Ltd. Business Overview & Revenue Model

Company Description

Adastria Co., Ltd. plans, produces, and retails clothes and sundry goods in Japan. It offers women's, men's, and children's apparel; and lifestyle items, including bags, shoes, kitchen goods and furniture, and household goods under various brands. The company was formerly known as Adastria Holdings Co., Ltd. and changed its name to Adastria Co., Ltd. in September 2013. Adastria Co., Ltd. was incorporated in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Adastria generates revenue primarily through the sale of clothing and accessories across its various brands. The company employs a multi-channel retail strategy, combining brick-and-mortar stores with a robust online presence, which allows it to reach a wider audience. Key revenue streams include direct sales from retail locations, online sales through its e-commerce site, and wholesale distributions to other retailers. Additionally, Adastria benefits from strategic partnerships and collaborations that enhance brand visibility and attract new customers. Seasonal promotions, exclusive collections, and loyalty programs also contribute to customer retention and increased sales, driving overall profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	296.57B	293.11B	275.60B	242.55B	201.58B	183.87B
Gross Profit	161.98B	149.10B	152.35B	132.66B	111.01B	100.13B
EBITDA	24.94B	26.39B	27.66B	20.68B	15.16B	8.08B
Net Income	9.58B	9.61B	13.51B	7.54B	4.92B	-693.00M
Balance Sheet
Total Assets	146.93B	133.11B	127.92B	111.39B	97.96B	95.45B
Cash, Cash Equivalents and Short-Term Investments	23.57B	21.14B	23.37B	16.38B	16.98B	24.18B
Total Debt	10.74B	8.96B	8.95B	8.18B	5.01B	3.64B
Total Liabilities	68.72B	55.91B	56.34B	50.63B	42.99B	44.75B
Stockholders Equity	77.82B	77.10B	70.14B	59.41B	53.96B	50.70B
Cash Flow
Free Cash Flow	0.00	13.85B	13.23B	2.95B	-3.43B	5.43B
Operating Cash Flow	0.00	21.37B	22.22B	13.46B	3.50B	11.93B
Investing Cash Flow	0.00	-16.97B	-9.92B	-9.96B	-7.78B	-7.37B
Financing Cash Flow	0.00	-7.11B	-5.58B	-4.40B	-3.25B	-6.84B

Adastria Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2842.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 2842 is above the 20-day moving average (MA) of 2840.90, above the 50-day MA of 2803.82, and below the 200-day MA of 2877.90, indicating a neutral trend. The MACD of 25.33 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 24.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	¥166.86B	12.07	10.24%	2.44%	6.08%	8.55%
7447	73 Outperform	¥47.36B	22.43	―	5.36%	3.48%	-6.35%
8016	72 Outperform	¥94.66B	10.24	11.49%	5.75%	16.27%	17.45%
3201	72 Outperform	¥103.64B	14.41	―	2.70%	7.56%	-17.12%
3608	68 Neutral	$55.55B	3.85	17.77%	6.61%	-6.22%	679.61%
2685	64 Neutral	€118.37B	13.97	11.28%	3.52%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Adastria Co.,Ltd. Corporate Events

Adastria Co., Ltd. Reports Strong November Sales Boosted by Winter Products and Strategic Merger

In November, Adastria Co., Ltd. reported a year-on-year increase in all store sales by 4.3% and same store sales by 1.2%, driven by strong winter product sales and additional holidays. Brands like niko and …, LEPSIM, HARE, and Heather performed well, with knitted tops and outerwear being particularly popular. The merger of TODAY’S SPECIAL Co., Ltd. has also contributed to the sales figures, indicating a positive impact on the company’s market positioning.

Adastria Co., Ltd. Reports Strong October Sales and Launches New Campaigns

Adastria Co., Ltd. reported a strong performance in October with all store sales reaching 107.6% and same store sales at 104.4% compared to the previous year. The company experienced sluggish sales in the first half of the year due to high temperatures in western Japan, but saw improved sales in the second half as winter products gained popularity. The launch of a new TV commercial and a membership campaign are expected to further boost their e-commerce platform.

Adastria Addresses Misappropriation Incident at Subsidiary

Adastria Co., Ltd. announced a significant incident involving the misappropriation of funds by a former employee of its consolidated subsidiary, zetton, inc. The employee, who was responsible for the finance and accounting division, misappropriated approximately ¥170 million over several years. The company has taken steps to address the issue, including dismissing the employee, initiating legal proceedings, and implementing measures to prevent future occurrences. Despite the severity of the incident, it has not materially impacted the company’s financial statements or its earnings forecast for the current fiscal year.