UNITED ARROWS LTD. (JP:7606)
:7606
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UNITED ARROWS LTD.
(7606)
Select Model
Select Model
Rating:72Outperform
Price Target:
¥2,775.00
▲(16.25% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by improved profitability and a conservative balance sheet, tempered by weak recent cash generation (negative free cash flow) and higher debt. Technicals are supportive with an established uptrend, while valuation (P/E ~11.8 and ~2.61% yield) is reasonable and adds modest support.
Positive Factors
High gross margin
A ~51% gross margin is a durable competitive advantage in apparel retail: it provides pricing power and a buffer against rising input or occupancy costs, allowing the company to sustain positive operating profit and reinvest in merchandising and omnichannel capabilities over the medium term.
Negative Factors
Negative free cash flow
Negative FCF in the latest TTM means reported profits are not translating into excess cash after investment. Over several quarters this constrains the firm's ability to self‑fund capex, inventory build or shareholder returns and may force reliance on external funding if persistent.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A ~51% gross margin is a durable competitive advantage in apparel retail: it provides pricing power and a buffer against rising input or occupancy costs, allowing the company to sustain positive operating profit and reinvest in merchandising and omnichannel capabilities over the medium term.
Read all positive factors
UNITED ARROWS LTD. (7606) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥70.47B
Dividend Yield2.73%
Average Volume (3M)186.62K
Price to Earnings (P/E)3.0
Beta (1Y)0.60
Revenue Growth10.48%
EPS Growth-34.38%
CountryJP
Employees3,980
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)N/A
Shares Outstanding30,213,676
10 Day Avg. Volume209,660
30 Day Avg. Volume186,620
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)1.54
Price to Sales (P/S)0.39
P/FCF Ratio13.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,700.00Price Target Upside13.11% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
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, a...
UNITED ARROWS LTD. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.56B | 150.91B | 134.27B | 130.13B | 118.38B | 121.71B |
| Gross Profit | 83.08B | 77.31B | 69.46B | 67.18B | 59.09B | 55.02B |
| EBITDA | 10.84B | 9.64B | 9.21B | 8.43B | 3.64B | -4.98B |
| Net Income | 5.92B | 4.28B | 4.88B | 4.34B | 732.00M | -7.20B |
Balance Sheet | ||||||
| Total Assets | 79.16B | 70.55B | 60.42B | 61.18B | 59.70B | 63.62B |
| Cash, Cash Equivalents and Short-Term Investments | 6.27B | 6.67B | 6.49B | 8.56B | 5.59B | 6.60B |
| Total Debt | 8.20B | 1.03B | 202.00M | 2.50B | 7.80B | 15.60B |
| Total Liabilities | 36.50B | 32.73B | 25.39B | 27.48B | 29.63B | 33.77B |
| Stockholders Equity | 42.66B | 37.82B | 35.03B | 33.70B | 30.07B | 29.84B |
Cash Flow | ||||||
| Free Cash Flow | -2.55B | 4.46B | 3.26B | 9.10B | 5.96B | -6.76B |
| Operating Cash Flow | 3.42B | 7.10B | 6.34B | 10.26B | 6.89B | -4.28B |
| Investing Cash Flow | -7.39B | -6.24B | -2.66B | -1.25B | 215.00M | -4.08B |
| Financing Cash Flow | 3.32B | -699.00M | -5.77B | -5.98B | -8.00B | 9.27B |
UNITED ARROWS LTD. Technical Analysis
Negative
2387.00
Price Trends
2523.34
Negative
2416.85
Positive
2251.70
Positive
Market Momentum
-19.46
Positive
43.93
Neutral
47.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7606, the sentiment is Negative. The current price of 2387 is below the 20-day moving average (MA) of 2564.25, below the 50-day MA of 2523.34, and above the 200-day MA of 2251.70, indicating a neutral trend. The MACD of -19.46 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥19.45T | 29.11 | 19.84% | 0.90% | 9.56% | 16.37% | |
72 Outperform | ¥70.47B | 3.05 | ― | 2.73% | 10.48% | -34.38% | |
71 Outperform | ¥122.95B | 24.22 | 5.53% | 6.09% | -1.03% | 4.12% | |
70 Outperform | ¥257.12B | 19.60 | ― | 1.46% | 12.02% | -15.70% | |
68 Neutral | ¥738.53B | 16.45 | 8.48% | 2.02% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | ¥27.08B | 13.91 | ― | 4.99% | -7.21% | -5127.88% |
* Consumer Cyclical Sector Average
JP:7606
UNITED ARROWS LTD.
2,473.00
343.92
16.15%
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10.17%
UNITED ARROWS LTD. Corporate Events
UNITED ARROWS Weighs Switch to Holding Company Structure to Drive Diversification
Feb 5, 2026
UNITED ARROWS LTD. has resolved at its Board of Directors meeting to begin considering a transition to a holding company structure, pending approval at a future General Meeting of Shareholders, as part of its long-term vision toward 2032. The prop...
UNITED ARROWS Delivers Strong Nine-Month Earnings and Confirms Higher Dividend for FY2025/26
Feb 5, 2026
UNITED ARROWS reported consolidated net sales of ¥123.6 billion for the nine months ended December 31, 2025, up 9.4% year on year, with operating profit rising 9.1% to ¥8.8 billion and profit attributable to owners of parent jumping 32.2...
UNITED ARROWS Delivers Double-Digit January Sales Growth on Strong Winter and Early Spring Demand
Feb 3, 2026
UNITED ARROWS reported a strong start to 2026, with total company sales in January rising 16.3% year on year and same-store retail plus online sales up 14.0%, supported by robust winter sale activity and steady demand for early spring collections....
United Arrows to Sell Struggling COEN Subsidiary to Gyet for Portfolio Streamlining
Jan 29, 2026
United Arrows has signed a definitive agreement to transfer all shares of its loss-making consolidated subsidiary COEN Co., Ltd. to Gyet Co., Ltd., a nationwide casual apparel retailer that recently rebranded and is expanding into a digitally enab...
UNITED ARROWS Posts Double-Digit December Sales Growth Despite Fewer Holidays
Jan 6, 2026
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 ...
UNITED ARROWS Delays Share Transfer Agreement for COEN Subsidiary
Dec 25, 2025
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 annou...
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.