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

• Market Cap: €77.04B
• Dividend Yield: 4.82%
• Average Volume (3M): 450.14K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.39
• Revenue Growth: 9.90%
• EPS Growth: 28.80%
• Country: JP
• Employees: 5,750
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 20.15
• Shares Outstanding: 157,921,660
• 10 Day Avg. Volume: 515,270
• 30 Day Avg. Volume: 450,143
• PEG Ratio: -0.24
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.14
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥604.00 ▲(6.71%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., through its subsidiaries, designs, manufactures, and sells men's, women's, and children's apparel, accessories, and other products in Japan, Europe, Asia, and the United States. The company operates through Apparel Business and Lifestyle Business segments. It offers uniforms, jewelry, accessories, health-related and cosmetic products, gift items, gift catalogs, and sales promotion goods; pet supplies, and other product lines; stage, theater, and ballet supplies; inner wear and related products; and sports shoes, leather goods, dance supplies, and luxury and fashion products. The company also engages in the planning, designing, and constructing of commercial, cultural, and environmental facilities; promotion of art and culture; planning and production of advertising and promotional materials; management, purchase, sale, and rental of real estate; import, export, and sale of cosmetic products; retail and wholesale of clothing products and bags; operation of stores; and operation and management of Lakeland Country Club and Talofofo Golf Club, as well as hotels and resort facilities. In addition, it is involved in the provision of management consultation, and property and life insurance agency services; and apparel sales, restaurant management, digital marketing, and IT solutions businesses. The company offers its products primarily under the GRACE CONTINENTAL, JIL SANDER, JOSEPH, J. PRESS, Nijyusanku, ICB, KASHIYAMA, Jiyuku, and other brands. It provides its products through department stores, as well as through e-commerce stores. The company was formerly known as Onward Kashiyama Co., Ltd. and changed its name to Onward Holdings Co., Ltd. in 2007. Onward Holdings Co., Ltd. was founded in 1927 and is headquartered in Tokyo, Japan.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
198.19B	208.39B	189.63B	176.07B	168.45B	174.32B
	Gross Profit
108.73B	113.58B	105.78B	96.75B	87.61B	69.72B
	EBIT
10.12B	10.15B	11.26B	5.21B	-1.08B	-21.23B
	EBITDA
10.23B	16.52B	11.85B	10.38B	4.29B	-18.52B
	Net Income Common Stockholders
6.64B	8.52B	6.61B	3.06B	8.57B	-23.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.61B	13.51B	14.13B	13.80B	15.21B	21.30B
	Total Assets
195.16B	179.22B	171.36B	159.20B	157.73B	196.05B
	Total Debt
51.31B	52.07B	41.95B	32.05B	39.66B	91.70B
	Net Debt
34.70B	38.57B	27.81B	18.24B	24.46B	70.40B
	Total Liabilities
113.37B	94.93B	86.37B	74.13B	80.47B	136.54B
	Stockholders Equity
81.79B	84.29B	79.87B	74.83B	67.01B	56.86B
Cash Flow		Free Cash Flow
0.00	568.00M	2.03B	3.52B	4.88B	-23.86B
	Operating Cash Flow
0.00	3.12B	4.00B	5.68B	7.81B	-19.61B
	Investing Cash Flow
0.00	-10.45B	-4.32B	4.39B	21.68B	6.09B
	Financing Cash Flow
0.00	8.67B	263.00M	-11.96B	-36.17B	5.86B

Onward Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 566.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 566 is above the 20-day moving average (MA) of 563.15, above the 50-day MA of 557.34, and above the 200-day MA of 535.91, indicating a bullish trend. The MACD of 4.90 indicates Negative momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 74.53 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
8016	69 Neutral	€77.04B	9.05	10.13%	4.82%	9.90%	28.80%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
GUN		€693.02M	18.29	5.24%	4.25%	―	―
TSIHF		$517.10M	5.51	14.52%	5.72%	―	―
1E0		€778.72M	13.25	12.59%	3.27%	―	―
3201	71 Outperform	¥89.56B	11.06		2.41%	5.77%	11.61%
8011		¥34.80B	8.16		4.50%	―	―

Onward Holdings Co., Ltd. Corporate Events

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.

Onward Holdings Reports Strong March Sales Boosted by WEGO Consolidation

Onward Holdings Co., Ltd. reported that its net sales for March 2025 at all stores increased by 23.1% compared to the previous year, primarily due to the consolidation of WEGO CO., LTD. since October 2024. Despite a delay in spring clothing sales due to cooler temperatures, Onward Personal Style’s discount campaign and WEGO’s successful launch of a new brand contributed positively to the company’s performance.

Onward Holdings Introduces New Restricted Stock Compensation Plan

Onward Holdings Co., Ltd. has announced the introduction of a Restricted Stock Compensation Plan aimed at incentivizing its directors to enhance corporate value and align their interests with shareholders. This plan, pending shareholder approval, will replace the existing stock compensation system and involves issuing restricted stock to eligible directors, with specific conditions on transfer and disposal during a restricted period.

Onward Holdings Reports Increased Sales and Profit for FY 2025

Onward Holdings Co., Ltd. reported a 9.9% increase in net sales for the fiscal year ended February 28, 2025, with a notable 28.8% rise in profit attributable to owners of the parent. Despite a decline in operating profit, the company has shown resilience in its financial performance. The company plans to increase its annual dividends and has made significant changes in its scope of consolidation, which may impact its future operations and market positioning.