UNITED ARROWS LTD. (7606) AI Stock Analysis

• Market Cap: ¥68.45B
• Dividend Yield: 2.73%
• Average Volume (3M): 186.62K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.49
• Revenue Growth: 10.48%
• EPS Growth: -34.38%
• Country: JP
• Employees: 3,980
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -12.16
• Shares Outstanding: 30,213,676
• 10 Day Avg. Volume: 209,660
• 30 Day Avg. Volume: 186,620
• PEG Ratio: -1.18
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 13.08
• 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: 74 Outperform
• Price Target: ¥2,715.00 ▲(13.74% Upside)

UNITED ARROWS LTD. has a strong technical position with bullish momentum, which is the most significant factor in its overall score. Financial performance is solid but faces challenges in profitability and cash flow management. Valuation is a concern due to the high P/E ratio, but the dividend yield offers some compensation.

Positive Factors

Revenue Growth

The company shows a positive revenue growth trend, indicating strong market demand and effective sales strategies, which supports long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and low leverage, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Brand Recognition

Strong brand recognition enhances customer loyalty and market position, enabling the company to maintain pricing power and drive sustainable revenue growth.

Negative Factors

Profitability Pressure

Decreasing net profit margins indicate potential challenges in maintaining cost efficiency and profitability, which could impact long-term financial performance if not addressed.

Cash Flow Management

Negative free cash flow suggests issues in cash generation, which could limit the company's ability to invest in growth initiatives or manage financial obligations effectively.

Earnings Decline

A significant decline in EPS growth reflects challenges in profitability and earnings generation, potentially affecting investor confidence and long-term growth prospects.

UNITED ARROWS LTD. Business Overview & Revenue Model

Company Description

United Arrows Ltd. plans, buys, and retails men's and women's clothing and accessories, and miscellaneous items in Japan. It operates multi-brand shops under the UNITED ARROWS, District UNITED ARROWS, LOEFF, AEWEN MATOPH, BLAMINK, BEAUTY&YOUTH UNITED ARROWS, monkey time BEAUTY&YOUTH UNITED ARROWS, 6(ROKU), H BEAUTY&YOUTH, STEVEN ALAN, UNITED ARROWS green label relaxing, Odette e Odile, DRAWER, ASTRAET, UNITED ARROWS LTD.OUTLET, California General Store, UNITED ARROWS & SONS, and CITEN brands, as well as online store under the UNITED ARROWS ONLINE brand name. The company also sells its products under the coen and CHROME HEARTS brands. United Arrows Ltd. was incorporated in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

UNITED ARROWS LTD. generates revenue primarily through the sale of its apparel and lifestyle products across multiple retail formats, including flagship stores, specialty shops, and an online presence. The company employs a multi-brand strategy, allowing it to capture a wide customer base and diversify its product offerings. Key revenue streams include direct sales from physical stores, e-commerce transactions, and wholesale partnerships with other retailers. Significant factors contributing to its earnings include strong brand recognition, effective marketing strategies, and seasonal promotions that drive customer traffic. Additionally, collaborations with designers and limited-edition releases help create buzz and demand, further enhancing sales.

UNITED ARROWS LTD. Financial Statement Overview

Summary

UNITED ARROWS LTD. demonstrates stable financial performance with strong balance sheet metrics and consistent income statement margins. However, cash flow challenges, particularly in free cash flow generation, pose potential risks. The company should focus on improving cash flow efficiency to enhance overall financial health.

Income Statement

UNITED ARROWS LTD. shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.79% and a consistent gross profit margin around 51-52%. The net profit margin is modest at 2.84% TTM, indicating room for improvement in profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency. However, the company has seen fluctuations in revenue growth over the years, suggesting potential market challenges.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.027 TTM, indicating prudent financial leverage. The return on equity is healthy at 11.57% TTM, showcasing effective use of equity capital. The equity ratio is robust, reflecting a solid capital structure. Overall, the company maintains a stable financial position with low leverage and good returns on equity.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -150.30% TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.26 TTM, suggesting limited cash conversion efficiency. Despite these challenges, the free cash flow to net income ratio is relatively strong, indicating that the company can generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.36B	150.91B	134.27B	130.13B	118.38B	121.71B
Gross Profit	80.26B	77.31B	69.46B	67.18B	59.09B	55.02B
EBITDA	9.14B	9.64B	9.21B	8.43B	3.64B	-4.98B
Net Income	3.51B	4.28B	4.88B	4.34B	732.00M	-7.20B
Balance Sheet
Total Assets	71.99B	70.14B	60.20B	61.18B	59.70B	63.62B
Cash, Cash Equivalents and Short-Term Investments	2.94B	6.67B	6.49B	8.56B	5.59B	6.60B
Total Debt	3.90B	1.03B	202.00M	2.50B	7.80B	15.60B
Total Liabilities	34.36B	32.32B	25.17B	27.48B	29.63B	33.77B
Stockholders Equity	37.63B	37.82B	35.03B	33.70B	30.07B	29.84B
Cash Flow
Free Cash Flow	-2.51B	4.46B	3.26B	9.10B	5.96B	-6.76B
Operating Cash Flow	3.32B	7.10B	6.34B	10.26B	6.89B	-4.28B
Investing Cash Flow	-8.04B	-6.24B	-2.66B	-1.25B	215.00M	-4.08B
Financing Cash Flow	-747.00M	-699.00M	-5.77B	-5.98B	-8.00B	9.27B

UNITED ARROWS LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2387.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7606, the sentiment is Neutral. The current price of 2387 is below the 20-day moving average (MA) of 2437.05, above the 50-day MA of 2310.36, and above the 200-day MA of 2154.20, indicating a neutral trend. The MACD of 29.26 indicates Positive momentum. The RSI at 51.36 is Neutral, neither overbought nor oversold. The STOCH value of 29.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7606.

UNITED ARROWS LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7606	74 Outperform	¥68.45B	18.89	―	2.73%	10.48%	-34.38%
7564	74 Outperform	¥535.36B	28.80	―	1.04%	10.84%	16.83%
2792	72 Outperform	¥41.72B	12.19	―	3.62%	-0.98%	-29.86%
8214	72 Outperform	¥158.58B	18.33	―	4.49%	2.21%	4.36%
8219	71 Outperform	¥132.22B	14.13	5.53%	6.09%	-1.03%	4.12%
2726	70 Outperform	¥311.22B	19.83	―	1.46%	12.02%	-15.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

UNITED ARROWS LTD. Corporate Events

UNITED ARROWS Posts Double-Digit December Sales Growth Despite Fewer Holidays

UNITED ARROWS reported a robust December 2025, with total company sales up 10.1% year-on-year and existing store sales for retail and online rising 7.1%, driven by a combination of successful promotional initiatives—such as VIP sales and UA Club member events—and solid full-price sales. Key product categories including jackets, pants, and core winter items like knits and outerwear continued to perform strongly despite one fewer holiday than the prior year, which the company estimates shaved about 1.4 percentage points off same-store sales growth, while outlet and other channels also remained firm, partially offset by a 12.6% year-on-year sales decline at subsidiary COEN CO., LTD.; final figures will reflect a modest downward adjustment due to changes in revenue recognition standards, as seen in November’s confirmed data.

The most recent analyst rating on (JP:7606) stock is a Buy with a Yen2715.00 price target. To see the full list of analyst forecasts on UNITED ARROWS LTD. stock, see the JP:7606 Stock Forecast page.

UNITED ARROWS Delays Share Transfer Agreement for COEN Subsidiary

UNITED ARROWS LTD. has postponed the scheduled execution date of the share transfer agreement to sell all shares of its consolidated subsidiary COEN CO., LTD. to Gyet Co., Ltd., citing the need for additional time to finalize terms, and will announce a revised schedule once determined. Following completion of the transaction, COEN will be deconsolidated from UNITED ARROWS’ group, and the company is currently assessing the impact on its consolidated results for the fiscal year ending March 2026, with further disclosures to be made if material effects arise.

The most recent analyst rating on (JP:7606) stock is a Buy with a Yen2715.00 price target. To see the full list of analyst forecasts on UNITED ARROWS LTD. stock, see the JP:7606 Stock Forecast page.

UNITED ARROWS Explores COEN Subsidiary Share Transfer to Gyet

UNITED ARROWS LTD. has announced its decision to enter into discussions with Gyet Co., Ltd. for the potential transfer of all shares in its subsidiary, COEN CO., LTD. This move comes as COEN faces challenges in achieving profitability due to changes in the fashion industry and consumer behavior. By collaborating with Gyet, a company with significant expertise in apparel and brand restructuring, UNITED ARROWS aims to ensure COEN’s sustainable growth and optimize its brand portfolio.

The most recent analyst rating on (JP:7606) stock is a Hold with a Yen2028.00 price target. To see the full list of analyst forecasts on UNITED ARROWS LTD. stock, see the JP:7606 Stock Forecast page.

UNITED ARROWS LTD. Reports Mixed Financial Results for First Half of 2025

UNITED ARROWS LTD. reported its consolidated financial results for the six months ended September 30, 2025, showing an 8% increase in net sales compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite sales growth. The company forecasts a 9.8% increase in net sales for the full fiscal year ending March 31, 2026, with expectations of improved profitability.

The most recent analyst rating on (JP:7606) stock is a Hold with a Yen2028.00 price target. To see the full list of analyst forecasts on UNITED ARROWS LTD. stock, see the JP:7606 Stock Forecast page.