UNITED ARROWS LTD. (7606) AI Stock Analysis

• Market Cap: ¥54.97B
• Dividend Yield: 3.27%
• Average Volume (3M): 186.62K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.50
• Revenue Growth: 11.62%
• EPS Growth: -17.80%
• 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: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,300.00
• Price Target Upside: 18.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,028.00 ▲(4.43% Upside)

The overall stock score is primarily influenced by stable financial performance and reasonable valuation. However, technical analysis indicates bearish market momentum, which is a significant risk factor. Improving cash flow efficiency and market sentiment could enhance the stock's attractiveness.

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	153.60B	150.91B	134.27B	130.13B	118.38B	121.71B
Gross Profit	79.52B	77.31B	69.46B	67.18B	59.09B	55.02B
EBITDA	9.29B	9.64B	9.21B	8.43B	3.64B	-4.98B
Net Income	3.98B	4.28B	4.88B	4.34B	732.00M	-7.20B
Balance Sheet
Total Assets	69.00B	70.14B	60.20B	61.18B	59.70B	63.62B
Cash, Cash Equivalents and Short-Term Investments	5.16B	6.67B	6.49B	8.56B	5.59B	6.60B
Total Debt	6.30B	1.03B	202.00M	2.50B	7.80B	15.60B
Total Liabilities	30.92B	32.32B	25.17B	27.48B	29.63B	33.77B
Stockholders Equity	38.08B	37.82B	35.03B	33.70B	30.07B	29.84B
Cash Flow
Free Cash Flow	-2.24B	4.46B	3.26B	9.10B	5.96B	-6.76B
Operating Cash Flow	3.46B	7.10B	6.34B	10.26B	6.89B	-4.28B
Investing Cash Flow	-9.04B	-6.24B	-2.66B	-1.25B	215.00M	-4.08B
Financing Cash Flow	1.71B	-699.00M	-5.77B	-5.98B	-8.00B	9.27B

UNITED ARROWS LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1942.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1942 is below the 20-day moving average (MA) of 1953.05, below the 50-day MA of 2053.92, and below the 200-day MA of 2141.17, indicating a bearish trend. The MACD of -32.26 indicates Negative momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 23.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2726	73 Outperform	¥379.56B	31.66	―	2.97%	12.02%	-15.70%
8214	72 Outperform	¥140.37B	15.20	―	4.80%	2.37%	19.23%
8219	71 Outperform	€115.63B	12.21	5.63%	6.59%	-0.46%	-1.91%
2792	69 Neutral	¥41.47B	12.04	―	3.68%	-0.98%	-29.86%
7564	68 Neutral	¥474.16B	26.05	―	1.10%	5.25%	14.24%
7606	62 Neutral	¥54.97B	13.37	―	3.27%	11.62%	-17.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

UNITED ARROWS LTD. Corporate Events

UNITED ARROWS LTD. Reports Mixed Financial Results for Q1 2025

UNITED ARROWS LTD. reported its consolidated financial results for the three months ended June 30, 2025, showing a 7.6% 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 managing costs or market conditions. Despite these challenges, the company maintains a strong equity-to-asset ratio, and its financial forecasts for the fiscal year ending March 31, 2026, project growth in net sales and profits, suggesting optimism for future performance.

The most recent analyst rating on (JP:7606) stock is a Hold with a Yen2500.00 price target. To see the full list of analyst forecasts on UNITED ARROWS LTD. stock, see the JP:7606 Stock Forecast page.