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Onward Holdings Co., Ltd. (JP:8016)
:8016

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

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JP

Onward Holdings Co., Ltd.

(Berlin:8016)

Rating:69Neutral
Price Target:
¥604.00
▲(3.60%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. (8016) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionOnward 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 MoneyOnward 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
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue198.19B208.39B189.63B176.07B168.45B174.32B
Gross Profit108.73B113.58B105.78B96.75B87.61B69.72B
EBITDA10.23B16.52B11.85B10.38B4.29B-18.52B
Net Income6.64B8.52B6.61B3.06B8.57B-23.18B
Balance Sheet
Total Assets195.16B179.22B171.36B159.20B157.73B196.05B
Cash, Cash Equivalents and Short-Term Investments16.61B13.51B14.13B13.80B15.21B21.30B
Total Debt51.31B52.07B41.95B32.05B39.66B91.70B
Total Liabilities113.37B94.93B86.37B74.13B80.47B136.54B
Stockholders Equity81.79B84.29B79.87B74.83B67.01B56.86B
Cash Flow
Free Cash Flow0.00568.00M2.03B3.52B4.88B-23.86B
Operating Cash Flow0.003.12B4.00B5.68B7.81B-19.61B
Investing Cash Flow0.00-10.45B-4.32B4.39B21.68B6.09B
Financing Cash Flow0.008.67B263.00M-11.96B-36.17B5.86B

Onward Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price583.00
Price Trends
50DMA
570.44
Positive
100DMA
556.85
Positive
200DMA
541.87
Positive
Market Momentum
MACD
7.59
Positive
RSI
51.34
Neutral
STOCH
48.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8016, the sentiment is Neutral. The current price of 583 is below the 20-day moving average (MA) of 584.85, above the 50-day MA of 570.44, and above the 200-day MA of 541.87, indicating a neutral trend. The MACD of 7.59 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 48.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8016.

Onward Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥94.07B11.61
332.12%5.77%11.61%
71
Outperform
¥130.58B13.9312.99%3.81%5.50%-30.13%
69
Neutral
€79.07B9.0310.87%4.46%13.65%20.39%
68
Neutral
¥119.12B19.245.24%2.15%3.18%26.10%
66
Neutral
$77.88B5.4014.52%5.73%0.79%262.44%
62
Neutral
$16.90B11.24-7.48%2.95%1.60%-23.76%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8016
Onward Holdings Co., Ltd.
583.00
38.37
7.05%
JP:3201
Japan Wool Textile Co., Ltd.
1,482.00
197.16
15.35%
JP:3002
Gunze
3,610.00
925.99
34.50%
JP:2685
Adastria Co.,Ltd.
2,906.00
-122.04
-4.03%
JP:3608
TSI Holdings Co
1,134.00
255.40
29.07%

Onward Holdings Co., Ltd. Corporate Events

Onward Holdings Reports Mixed Sales Performance for June 2025
Jul 3, 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
Jul 3, 2025

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
Jul 3, 2025

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
Jun 20, 2025

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
Jun 4, 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
May 22, 2025

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
May 7, 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.

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.Date of analysis: May 27, 2025