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

• Market Cap: ¥128.73B
• Dividend Yield: 3.59%
• Average Volume (3M): 179.72K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.25
• Revenue Growth: 3.96%
• EPS Growth: -36.24%
• Country: JP
• Employees: 6,603
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 77.39
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥3,208.00 ▲(12.76% 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	298.25B	293.11B	275.60B	242.55B	201.58B	183.87B
Gross Profit	161.69B	149.10B	152.35B	132.66B	111.01B	100.13B
EBITDA	23.88B	26.39B	27.66B	20.68B	15.16B	8.08B
Net Income	8.65B	9.61B	13.51B	7.54B	4.92B	-693.00M
Balance Sheet
Total Assets	139.41B	133.11B	127.92B	111.39B	97.96B	95.45B
Cash, Cash Equivalents and Short-Term Investments	22.43B	21.14B	23.37B	16.38B	16.98B	24.18B
Total Debt	4.73B	8.96B	8.95B	8.18B	5.01B	3.64B
Total Liabilities	58.96B	55.91B	56.34B	50.63B	42.99B	44.75B
Stockholders Equity	80.08B	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: Positive
• Last Price: 2845.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2845 is above the 20-day moving average (MA) of 2833.60, above the 50-day MA of 2809.84, and below the 200-day MA of 2869.23, indicating a bullish trend. The MACD of 8.14 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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	¥164.71B	11.91	10.24%	2.43%	6.08%	8.55%
8016	72 Outperform	¥99.96B	10.81	11.49%	5.56%	16.27%	17.45%
3201	72 Outperform	¥110.08B	15.81	―	2.66%	7.56%	-17.12%
7447	71 Outperform	¥54.78B	22.75	―	5.17%	3.48%	-6.35%
3608	68 Neutral	$62.13B	4.37	17.77%	6.12%	-6.22%	679.61%
2685	64 Neutral	¥128.73B	14.17	11.28%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Adastria Co.,Ltd. Corporate Events

and ST HD Posts Higher Sales but Softer Profits, Maintains Dividend and Upbeat Full-Year Outlook

and ST HD Co., Ltd. reported a 3.3% year-on-year increase in net sales to ¥227.4 billion for the nine months ended November 30, 2025, but operating and ordinary profits declined 5.9% and 7.0%, respectively, and net income attributable to owners of the parent slipped 3.5% to ¥9.6 billion, resulting in lower earnings per share. The company’s total assets rose to ¥157.0 billion and net assets to ¥82.1 billion, though its equity ratio fell to 52.1%, while it maintained its dividend plan with a higher interim payout and a full-year forecast of ¥90 per share and projected full-year sales of ¥305.0 billion and a 29.0% rise in net income, underscoring efforts to balance growth investments, portfolio reshaping, and shareholder returns amid shifting profitability and consolidation changes.

The most recent analyst rating on (JP:2685) stock is a Hold with a Yen3208.00 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. Expands into Malaysia with New Subsidiary

Adastria Co., Ltd. has announced the establishment of a new subsidiary in Malaysia as part of its strategic expansion into Southeast Asia. This move aims to leverage the region’s economic stability and growing apparel market, with plans to introduce its main brand, ‘niko and …’, to cater to local preferences. The immediate impact on the company’s financial performance is expected to be minimal, but this expansion could strengthen its market positioning in the long term.

The most recent analyst rating on (JP:2685) stock is a Hold with a Yen3208.00 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 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.

The most recent analyst rating on (JP:2685) stock is a Hold with a Yen3208.00 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 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.

The most recent analyst rating on (JP:2685) stock is a Hold with a Yen3208.00 price target. To see the full list of analyst forecasts on Adastria Co.,Ltd. stock, see the JP:2685 Stock Forecast page.