UNITED ARROWS LTD. (JP:7606)
:7606
Want to see JP:7606 full AI Analyst Report?
Top Page
UNITED ARROWS LTD.
(7606)
Select Model
Select Model
Rating:73Outperform
Price Target:
¥2,747.00
▲(15.08% Upside)
Action:Reiterated
Date:05/13/26
The score is driven by improving fundamentals and a strong balance sheet, plus supportive valuation (low P/E and solid dividend yield). Offsetting factors are volatile free cash flow in 2026 and technical signals that look somewhat stretched in the near term (RSI ~70) despite a longer-term uptrend.
Positive Factors
Revenue recovery and growth trend
A sustained revenue recovery since 2022 demonstrates the company has regained demand and market traction after prior weakness. Consistent top-line expansion supports operational leverage, strategic reinvestment in stores and e-commerce, and is a durable indicator of improving business momentum over the next several quarters.
Negative Factors
Volatile free cash flow
Free cash flow volatility reduces the reliability of internal funding for inventory, investment, and dividends. Near break-even FCF in 2026 implies working-capital or investment timing risks that could constrain durable reinvestment or shareholder returns if cash conversion does not stabilize in subsequent quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and growth trend
A sustained revenue recovery since 2022 demonstrates the company has regained demand and market traction after prior weakness. Consistent top-line expansion supports operational leverage, strategic reinvestment in stores and e-commerce, and is a durable indicator of improving business momentum over the next several quarters.
Read all positive factors
UNITED ARROWS LTD. (7606) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥70.21B
Dividend Yield2.73%
Average Volume (3M)186.62K
Price to Earnings (P/E)10.9
Beta (1Y)0.58
Revenue Growth9.07%
EPS Growth42.66%
CountryJP
Employees3,980
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)214.17
Shares Outstanding30,213,676
10 Day Avg. Volume209,660
30 Day Avg. Volume186,620
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.58
Price to Sales (P/S)0.40
P/FCF Ratio5.13K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,610.00Price Target Upside9.34% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)228.97
Revenue Forecast (FY)¥167.63B
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 UNI...
How the Company Makes Money
The company primarily makes money by selling apparel and lifestyle goods to consumers through a multi-channel retail model. Key revenue streams include (1) in-store retail sales from company-operated shops (select shops/brand stores) in Japan, whe...
UNITED ARROWS LTD. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.56B | 164.60B | 150.91B | 134.27B | 130.13B | 118.38B |
| Gross Profit | 83.08B | 84.40B | 77.31B | 69.46B | 67.18B | 59.09B |
| EBITDA | 10.84B | 12.81B | 9.64B | 9.21B | 8.43B | 3.64B |
| Net Income | 5.92B | 6.11B | 4.28B | 4.88B | 4.34B | 732.00M |
Balance Sheet | ||||||
| Total Assets | 79.16B | 71.51B | 70.55B | 60.42B | 61.18B | 59.70B |
| Cash, Cash Equivalents and Short-Term Investments | 6.27B | 3.46B | 6.67B | 6.49B | 8.56B | 5.59B |
| Total Debt | 8.20B | 1.90B | 1.03B | 202.00M | 2.50B | 7.80B |
| Total Liabilities | 36.50B | 29.37B | 32.73B | 25.39B | 27.48B | 29.63B |
| Stockholders Equity | 42.66B | 42.13B | 37.82B | 35.03B | 33.70B | 30.07B |
Cash Flow | ||||||
| Free Cash Flow | -2.55B | 13.00M | 4.46B | 3.26B | 9.10B | 5.96B |
| Operating Cash Flow | 3.42B | 5.55B | 7.10B | 6.34B | 10.26B | 6.89B |
| Investing Cash Flow | -7.39B | -9.63B | -6.24B | -2.66B | -1.25B | 215.00M |
| Financing Cash Flow | 3.32B | 842.00M | -699.00M | -5.77B | -5.98B | -8.00B |
UNITED ARROWS LTD. Technical Analysis
Positive
2387.00
Price Trends
2482.84
Negative
2398.98
Positive
2219.66
Positive
Market Momentum
4.44
Negative
52.16
Neutral
65.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7606, the sentiment is Positive. The current price of 2387 is below the 20-day moving average (MA) of 2440.87, below the 50-day MA of 2482.84, and above the 200-day MA of 2219.66, indicating a neutral trend. The MACD of 4.44 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 65.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7606.
UNITED ARROWS LTD. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥22.70T | 40.16 | 19.84% | 0.90% | 11.25% | 16.84% | |
73 Outperform | ¥70.21B | 10.90 | ― | 2.73% | 9.07% | 42.66% | |
73 Outperform | ¥691.84B | 20.92 | 8.48% | 2.02% | 5.20% | 6.54% | |
71 Outperform | ¥116.27B | 24.22 | 5.53% | 6.09% | -1.90% | -9.34% | |
71 Outperform | ¥265.89B | 19.34 | ― | 1.46% | 12.93% | 32.83% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | ¥26.04B | -50.53 | ― | 4.99% | -11.48% | ― |
* Consumer Cyclical Sector Average
JP:7606
UNITED ARROWS LTD.
2,426.00
329.56
15.72%
JP:9983
FAST RETAILING CO
72,500.00
24,039.14
49.61%
JP:8227
SHIMAMURA Co
3,135.00
39.54
1.28%
JP:8219
AOYAMA TRADING Co., Ltd.
696.00
9.55
1.39%
JP:2726
PAL GROUP Holdings Co., Ltd.
1,439.00
-307.53
-17.61%
JP:3548
BAROQUE JAPAN LIMITED
724.00
25.22
3.61%
UNITED ARROWS LTD. Corporate Events
UNITED ARROWS to Shift to Holding Company Structure and Rebrand as TABAYA HOLDINGS
May 11, 2026
UNITED ARROWS LTD. will transition to a holding company structure via an absorption-type company split, transferring its operating business to wholly owned subsidiary New UNITED ARROWS on or around October 1, 2026. The parent company will remain l...
UNITED ARROWS Launches Up to ¥2 Billion Share Buyback
May 11, 2026
UNITED ARROWS LTD. has authorized a share buyback of up to 1.0 million common shares, representing about 3.6% of its outstanding stock, with a maximum outlay of 2.0 billion yen. The repurchase, scheduled between May 12 and August 31, 2026 via purc...
United Arrows Raises Year-End Dividend on Strong Earnings
May 11, 2026
United Arrows Ltd. has approved an increase in its year-end dividend for the fiscal year ended March 31, 2026, raising the payout to ¥69 per share from a previously forecast ¥62, with the record date set as March 31, 2026. This brings th...
United Arrows Profit Surges Despite Loss on COEN Share Sale
May 11, 2026
United Arrows reported a 10.6% year-on-year increase in non-consolidated net sales to ¥154.1 billion for the fiscal year ended March 31, 2026, driven by strengthened product assortments in business casual wear and items adapted to climate nor...
United Arrows lifts profits and dividends as margins improve
May 11, 2026
United Arrows reported consolidated net sales of ¥164.6 billion for the year ended March 31, 2026, up 9.1% year on year, with operating profit rising 14.3% to ¥9.1 billion and profit attributable to owners of parent jumping 42.7% to ...
UNITED ARROWS Posts Double-Digit April Sales Growth on Apparel and E-Commerce Strength
May 7, 2026
UNITED ARROWS LTD. reported a strong start to fiscal 2027, with April company-wide sales rising 15.7% year on year and existing store retail plus online sales up 11.7%. Growth was broad-based across spring to early summer categories, with robust d...
United Arrows Posts Double-Digit March Sales Growth on Strong Spring Demand
Apr 2, 2026
United Arrows reported a 10.5% year-on-year increase in total company sales for March 2026, with existing retail and online store sales up 5.8%, driven by robust demand for spring merchandise. Menswear saw strong gains in outerwear, jackets, shirt...
United Arrows Overhauls Internal Control Policy to Strengthen Governance and Risk Management
Mar 26, 2026
United Arrows has approved a revision of its basic policy for developing its internal control system, effective April 1, 2026, to better align corporate governance with its mission of creating value for key stakeholders. The company emphasizes an ...
United Arrows to Shift to Holding Company Structure for Lifestyle Expansion
Mar 26, 2026
United Arrows Ltd. has resolved to transition to a holding company structure as part of its long-term Vision 2032, which targets becoming a high-value-added lifestyle group and expanding into non-apparel fields. To facilitate this shift, the compa...
United Arrows Posts Double-Digit February Sales Growth on Strong Spring Demand
Mar 3, 2026
United Arrows reported a 17.5% year-on-year rise in total company sales for February 2026, with existing store retail and online sales up 12.9%. Warmer weather boosted demand for spring merchandise, driving increases in sales, customer traffic, an...
United Arrows Completes COEN Share Transfer and Announces Board Change
Mar 2, 2026
United Arrows Ltd. has completed the transfer of all shares in its consolidated subsidiary COEN Co., Ltd. to Gyet Co., Ltd. for 200 million yen, removing COEN from its scope of consolidation. The transaction marks a portfolio reshaping step for th...
United Arrows Books Extraordinary Loss but Lifts Profit and Dividend Forecasts
Mar 2, 2026
United Arrows Ltd. will book an extraordinary loss of 1 billion yen in the fiscal year ending March 31, 2026, stemming from the transfer and liquidation of its consolidated subsidiary COEN CO., Ltd. to Gyet Co., Ltd. Despite the one-off loss, tax-...
United Arrows to Waive ¥5.8 Billion Loan to COEN Before Subsidiary Sale
Feb 26, 2026
United Arrows Ltd. has resolved to waive 5,858 million yen in loan claims against its wholly owned apparel subsidiary COEN CO., LTD., ahead of transferring all COEN shares to Gyet Co., Ltd. COEN, founded in 2008 and fully owned by United Arrows, h...
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.