UNITED ARROWS LTD. (7606) AI Stock Analysis

• Market Cap: ¥61.89B
• Dividend Yield: 2.53%
• Average Volume (3M): 182.42K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.46
• Revenue Growth: 11.62%
• EPS Growth: -17.80%
• Country: JP
• Employees: 3,980
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 53.00
• Shares Outstanding: 30,213,676
• 10 Day Avg. Volume: 124,110
• 30 Day Avg. Volume: 182,423
• 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: ¥2,400.00
• Price Target Upside: 10.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,400.00 ▲(10.50% Upside)

UNITED ARROWS LTD. has a solid financial foundation with a strong balance sheet and reasonable valuation metrics. However, cash flow challenges and neutral technical indicators suggest caution. The stock is fairly valued with a decent dividend yield, making it attractive for income investors, but improvements in cash flow efficiency are needed for a more bullish outlook.

UNITED ARROWS LTD. Business Overview & Revenue Model

Company Description

UNITED ARROWS LTD. (7606) is a leading Japanese retail company specializing in the sale of high-quality apparel and accessories. The company operates a diverse range of retail stores, offering a wide array of products, including men's and women's clothing, shoes, bags, and lifestyle goods. UNITED ARROWS is known for its sophisticated and fashionable offerings, catering to discerning customers who value style and quality. The company operates several brands and store formats, each targeting different customer segments, and is recognized for its ability to blend contemporary fashion trends with classic styles.

How the Company Makes Money

UNITED ARROWS LTD. generates revenue primarily through the retail sale of apparel and accessories in its physical stores and online platforms. The company's key revenue streams include sales from its various branded stores, which are strategically positioned to target different market segments and customer demographics. Additionally, UNITED ARROWS benefits from partnerships with international brands and exclusive collaborations, allowing it to offer unique and premium products that attract a loyal customer base. The company's earnings are also supported by its effective supply chain management and ability to adapt to changing fashion trends, ensuring a steady flow of high-demand products.

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: 2172.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2172 is below the 20-day moving average (MA) of 2173.35, above the 50-day MA of 2169.74, and below the 200-day MA of 2251.46, indicating a bearish trend. The MACD of 4.99 indicates Positive momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 12.33 is Positive, 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
8219	84 Outperform	125.34B	13.31	5.29%	5.05%	-0.46%	-1.91%
8214	78 Outperform	151.03B	16.33	6.75%	3.06%	2.37%	19.23%
2726	73 Outperform	473.68B	34.48	16.71%	1.16%	9.20%	-0.71%
7606	71 Outperform	¥61.89B	14.96	―	2.53%	11.62%	-17.80%
2792	69 Neutral	43.98B	11.63	―	3.49%	2.00%	-23.48%
7564	67 Neutral	481.50B	26.41	12.48%	1.15%	5.25%	14.24%
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.

UNITED ARROWS LTD. Reports Strong Sales Growth and Increased Dividends

UNITED ARROWS LTD. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a notable increase in net sales by 12.4% to ¥150,910 million and operating profit by 18.5% to ¥7,984 million. Despite a decline in profit attributable to owners of parent by 12.2%, the company improved its cash flow from operating activities and increased dividends per share, indicating a positive outlook for future growth and shareholder returns.

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.

UNITED ARROWS LTD. Announces Progressive Dividend Policy and Dividend Increase

UNITED ARROWS LTD. announced a change in its dividend policy to introduce a progressive dividend approach, aiming to enhance shareholder value by maintaining or increasing dividends in line with profit growth. The company also reported a dividend increase for the fiscal year ended March 31, 2025, with a year-end dividend of 46 yen per share, reflecting a stronger-than-expected business performance and a commitment to a payout ratio of 40% or higher.

UNITED ARROWS Reports Increased Sales but Decline in Profit

UNITED ARROWS LTD. reported a 12.4% increase in net sales for the fiscal year ending March 31, 2025, reaching 150,910 million yen. Despite the growth in sales and operating profit, the profit attributable to owners of the parent decreased by 12.2% to 4,282 million yen. The company plans to increase its annual dividends per share to 63 yen and forecasts further growth in net sales and profits for the next fiscal year, indicating a positive outlook for stakeholders.