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

• Market Cap: €125.34B
• Dividend Yield: 2.95%
• Average Volume (3M): 160.28K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.12
• Revenue Growth: 3.96%
• EPS Growth: -36.23%
• 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: 130,380
• 30 Day Avg. Volume: 160,283
• 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: €3,509.81
• Price Target Upside: 25.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥3,208.00 ▲(14.29% 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.

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 Co., Ltd. generates revenue through the sale of clothing and accessories across its multiple fashion brands. The company operates a mix of physical retail stores and an online shopping platform, catering to a wide range of customer preferences. Key revenue streams include direct sales from its branded stores, e-commerce sales, and potentially wholesale operations. Adastria's earnings are driven by its ability to design appealing collections, manage efficient supply chains, and maintain a strong brand presence through marketing and strategic partnerships. The company's financial performance is also influenced by seasonal fashion trends, consumer spending behavior, and its ability to adapt to changing market conditions.

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: 2807.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 2807 is below the 20-day moving average (MA) of 3102.90, below the 50-day MA of 3033.78, and below the 200-day MA of 2997.55, indicating a bearish trend. The MACD of -26.05 indicates Positive momentum. The RSI at 24.09 is Positive, neither overbought nor oversold. The STOCH value of 15.63 is Positive, 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
8016	76 Outperform	¥89.79B	10.82	10.10%	5.72%	13.65%	20.39%
3569	76 Outperform	¥161.49B	12.29	10.24%	2.52%	9.12%	7.93%
3201	74 Outperform	¥101.74B	12.99	7.30%	2.56%	7.01%	11.28%
7447	73 Outperform	¥58.12B	23.28	―	5.22%	2.96%	-6.25%
3608	70 Outperform	¥70.25B	4.40	14.11%	6.35%	-1.54%	446.34%
2685	64 Neutral	€125.34B	16.01	11.28%	2.95%	3.96%	-36.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.