Onward Holdings Co., Ltd. (8016) AI Stock Analysis

• Market Cap: ¥81.78B
• Dividend Yield: 4.31%
• Average Volume (3M): 650.48K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.48
• Revenue Growth: 13.65%
• EPS Growth: 20.39%
• Country: JP
• Employees: 5,750
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 31.47
• Shares Outstanding: 157,921,660
• 10 Day Avg. Volume: 559,660
• 30 Day Avg. Volume: 650,483
• PEG Ratio: 0.34
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥604.86
• Price Target Upside: 1.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥604.00 ▲(1.51%Upside)

Onward Holdings Co., Ltd. benefits from strong financial performance with improvements in revenue and profitability, coupled with a stable balance sheet. Technical analysis indicates neutral momentum with no immediate signals of significant price movement. The stock's valuation is attractive due to its low P/E ratio and high dividend yield, making it appealing for value and income investors.

Onward Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Onward Holdings Co., Ltd. (8016) is a Japan-based company primarily engaged in the apparel business. The company designs, manufactures, and sells a wide range of fashion products, including men's, women's, and children's clothing, accessories, and lifestyle goods. Onward Holdings operates through numerous subsidiaries and owns various well-known brands, catering to both domestic and international markets. It strives to deliver high-quality products that meet diverse consumer preferences while maintaining a robust supply chain and retail network.

How the Company Makes Money

Onward Holdings Co., Ltd. generates revenue primarily through the sale of its fashion and lifestyle products. The company's key revenue streams include direct retail sales through its own branded stores and online platforms, as well as wholesale operations supplying products to third-party retailers. Onward Holdings leverages its portfolio of diverse brands to capture a wide customer base and employs a multi-channel retail strategy to enhance reach and sales volume. The company also engages in strategic partnerships and collaborations with other fashion entities to expand its market presence and product offerings. Additionally, Onward Holdings invests in brand development and marketing to strengthen brand loyalty and drive consumer demand, contributing to its overall financial performance.

Onward Holdings Co., Ltd. Financial Statement Overview

Summary

Onward Holdings Co., Ltd. shows a promising growth trend in revenue and profitability, suggesting a rebound in the Apparel & Luxury industry. The balance sheet reflects stability with improved leverage ratios, although cash flow management presents potential risks. The company's financial health appears sound, yet operational efficiencies and cash flow stability should be prioritized to sustain growth and enhance shareholder value.

Income Statement

Onward Holdings Co., Ltd. has shown a strong recovery in income metrics. The revenue growth from ¥168.5 billion in 2022 to ¥208.4 billion in 2025 is commendable, indicating a solid growth trajectory. Notable improvements in gross profit margin (54.5% in 2025) and net profit margin (4.1% in 2025) demonstrate increasing profitability. However, the decline in EBIT and EBITDA margins from 2024 to 2025 suggests some operational cost pressures.

Balance Sheet

The balance sheet of Onward Holdings Co., Ltd. reflects a stable equity position with stockholders' equity rising to ¥84.3 billion in 2025. The debt-to-equity ratio improved to 0.62 in 2025, showing reduced leverage. However, the equity ratio slightly decreased to 47.0% in 2025, indicating a modest reliance on liabilities. Overall, the balance sheet indicates stability, though improvements in asset management could enhance financial health.

Cash Flow

Cash flow metrics present mixed results. Operating cash flow has decreased significantly from ¥7.8 billion in 2022 to ¥3.1 billion in 2025, raising concerns about cash generation from core activities. The free cash flow to net income ratio remains stable, but the free cash flow growth rate is inconsistent, indicating volatility in cash reserves. Despite these challenges, maintaining positive free cash flow is a positive sign, but further improvement is needed.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	208.39B	189.63B	176.07B	168.45B	174.32B
Gross Profit	113.58B	105.78B	96.75B	87.61B	69.72B
EBITDA	16.52B	11.85B	10.38B	4.29B	-18.52B
Net Income	8.52B	6.61B	3.06B	8.57B	-23.18B
Balance Sheet
Total Assets	179.22B	171.36B	159.20B	157.73B	196.05B
Cash, Cash Equivalents and Short-Term Investments	13.51B	14.13B	13.80B	15.21B	21.30B
Total Debt	52.07B	41.95B	32.05B	39.66B	91.70B
Total Liabilities	94.93B	86.37B	74.13B	80.47B	136.54B
Stockholders Equity	84.29B	79.87B	74.83B	67.01B	56.86B
Cash Flow
Free Cash Flow	568.00M	2.03B	3.52B	4.88B	-23.86B
Operating Cash Flow	3.12B	4.00B	5.68B	7.81B	-19.61B
Investing Cash Flow	-10.45B	-4.32B	4.39B	21.68B	6.09B
Financing Cash Flow	8.67B	263.00M	-11.96B	-36.17B	5.86B

Onward Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 595.00
• 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:8016, the sentiment is Positive. The current price of 595 is below the 20-day moving average (MA) of 597.25, above the 50-day MA of 581.38, and above the 200-day MA of 548.85, indicating a bullish trend. The MACD of 4.67 indicates Positive momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 49.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8016.

Onward Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3201	75 Outperform	¥88.49B	10.88		2.94%	7.01%	11.28%
2685	73 Outperform	€132.21B	14.10	12.99%	3.08%	5.50%	-30.13%
8016	69 Neutral	¥81.78B	9.34	10.87%	4.31%	13.65%	20.39%
3002	68 Neutral	€121.24B	19.58	5.24%	2.11%	3.18%	26.10%
Sector *	67 Neutral	¥265.88B	13.58	6.45%	2.57%	5.21%	-11.92%
3608	65 Neutral	¥71.97B	4.36	16.23%	6.20%	-1.54%	446.34%

Onward Holdings Co., Ltd. Corporate Events

Onward Holdings Reports Mixed Sales Performance for June 2025

In June 2025, Onward Holdings Co., Ltd. reported that net sales at existing stores were 95.1% compared to the previous year, while all stores, including the newly consolidated WEGO, achieved 120.3% of the previous year’s sales. The increase in temperatures boosted sales of summer items, although existing store sales were impacted by fewer holidays and postponed sales events. The company’s made-to-order brand ‘KASHIYAMA’ and WEGO performed well due to effective promotional campaigns and strong demand for fashion goods.

Onward Holdings Reports FY2025 Q1 Results with Focus on Sustainable Growth

Onward Holdings Co., Ltd. has released its FY2025 Q1 results, highlighting its commitment to enhancing lifestyles while maintaining environmental harmony. The company’s strategic focus on customer-centric management and employee diversity aims to strengthen its market position and deliver sustainable growth.

Onward Holdings Reports Strong Q1 Sales Growth

Onward Holdings Co., Ltd. reported a 17.1% increase in net sales for the three months ending May 31, 2025, compared to the same period last year. Despite a slight decline in comprehensive income, the company showed growth in operating profit and profit attributable to owners of the parent. The financial outlook for the fiscal year ending February 28, 2026, remains positive with expected increases in net sales and profits, indicating a stable market position and potential benefits for stakeholders.

Onward Holdings Completes Treasury Share Disposal with Adjustments

Onward Holdings Co., Ltd. announced the completion of payment procedures for the disposal of treasury shares as compensation for restricted stock, following a board resolution. The final number of shares disposed and the total disposal amount were lower than initially planned due to partial forfeiture, as some individuals declined their allotted shares.

Onward Holdings Reports Strong Sales Growth in May 2025

In May 2025, Onward Holdings Co., Ltd. reported a significant increase in net sales, with all stores achieving 129.5% of the previous year’s sales, driven by the consolidation of WEGO and strong performance in ladies’ apparel and custom clothing. The company’s strategic expansion, including the successful launch of a large-scale store and the integration of WEGO, has bolstered its market position and sales growth, indicating a positive outlook for stakeholders.

Onward Holdings Implements Restricted Stock Compensation Plan

Onward Holdings Co., Ltd. has announced a decision to dispose of its treasury stock as part of a new restricted stock compensation plan aimed at aligning the interests of its directors and executives with those of its shareholders. This initiative, approved at the company’s recent Annual General Meeting, involves distributing 287,471 shares to eligible directors and executive officers, with the goal of incentivizing sustainable corporate growth and value sharing.

Onward Holdings Reports Mixed Sales Performance for April 2025

In April 2025, Onward Holdings reported a 97.2% net sales performance at same-stores compared to the previous year, while all stores, including the newly consolidated WEGO, achieved 119.8%. Despite strong sales during Golden Week, overall performance was affected by sluggish early summer item sales due to cooler temperatures. Onward Personal Style and WEGO showed strong performance, with increased customer numbers and higher unit prices contributing to growth.