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

• Market Cap: ¥96.97B
• Dividend Yield: 5.56%
• Average Volume (3M): 468.16K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.45
• Revenue Growth: 16.27%
• EPS Growth: 17.45%
• Country: JP
• Employees: 5,750
• Sector: Services
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.03
• Shares Outstanding: 141,921,660
• 10 Day Avg. Volume: 328,910
• 30 Day Avg. Volume: 468,163
• PEG Ratio: 0.30
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 128.81
• 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
• EPS Forecast (FY): 9,148.94
• Revenue Forecast (FY): ¥31.87T

• Rating: 72 Outperform
• Price Target: ¥750.00 ▲(14.85% Upside)

Onward Holdings Co., Ltd. scores well due to its strong valuation metrics, with a low P/E ratio and high dividend yield indicating potential undervaluation and attractive income. Financial performance shows growth in revenue and profitability, though cash flow management needs improvement. Technical analysis supports a positive short-term trend, but caution is advised due to potential bearish momentum.

Positive Factors

Revenue Growth

The significant revenue increase indicates a strong growth trajectory, suggesting successful market expansion and product demand.

Profitability Improvement

Improved margins reflect enhanced operational efficiency and pricing power, contributing to sustainable profitability.

Balance Sheet Stability

Reduced leverage indicates stronger financial health and lower risk, providing a stable foundation for future growth.

Negative Factors

Cash Flow Concerns

Declining cash flow from operations raises concerns about the company's ability to generate cash from core activities, impacting liquidity.

Operational Cost Pressures

Falling margins suggest rising operational costs, which could pressure profitability if not managed effectively.

Equity Ratio Decline

A lower equity ratio indicates increased reliance on liabilities, which could affect financial flexibility and risk profile.

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

Company Description

Onward Holdings Co., Ltd. (8016) is a prominent Japanese company engaged in the retail and distribution of apparel and lifestyle products. The company operates through various segments, including fashion retail, manufacturing, and wholesale, offering a diverse range of clothing, accessories, and home goods. With several well-known brands under its portfolio, Onward Holdings focuses on delivering high-quality products that cater to a wide demographic, promoting both innovative design and sustainability in fashion.

How the Company Makes Money

Onward Holdings primarily generates revenue through the sale of its apparel and lifestyle products across various retail channels, including department stores, specialty shops, and online platforms. The company benefits from multiple key revenue streams, such as direct sales from its branded retail stores, wholesale distribution to other retailers, and e-commerce sales. Additionally, strategic partnerships with various fashion brands and collaborations enhance its market presence and drive sales. The company's focus on creating a strong brand image and customer loyalty further contributes to its earnings, alongside seasonal promotions and marketing campaigns that boost consumer engagement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	225.93B	208.39B	189.63B	176.07B	168.45B	174.32B
Gross Profit	122.85B	113.58B	105.78B	96.75B	87.61B	69.72B
EBITDA	19.14B	16.52B	11.85B	9.33B	19.67B	-18.52B
Net Income	9.23B	8.52B	6.61B	3.06B	8.57B	-23.18B
Balance Sheet
Total Assets	179.03B	179.22B	171.36B	159.20B	157.73B	196.05B
Cash, Cash Equivalents and Short-Term Investments	10.33B	13.51B	14.13B	13.80B	15.21B	21.30B
Total Debt	46.66B	52.07B	41.95B	32.05B	39.66B	91.70B
Total Liabilities	95.37B	94.93B	86.37B	74.13B	80.47B	136.54B
Stockholders Equity	83.66B	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	-5.39B	-4.32B	4.39B	21.68B	6.09B
Financing Cash Flow	0.00	3.61B	263.00M	-11.96B	-36.17B	5.86B

Onward Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 653.00
• 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 653 is below the 20-day moving average (MA) of 705.55, below the 50-day MA of 682.26, and above the 200-day MA of 611.46, indicating a bullish trend. The MACD of 10.64 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 70.67 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	72 Outperform	¥96.97B	10.49	11.49%	5.56%	16.27%	17.45%
3201	72 Outperform	¥109.04B	15.66	―	2.66%	7.56%	-17.12%
3608	68 Neutral	$60.91B	4.24	17.77%	6.12%	-6.22%	679.61%
3002	66 Neutral	¥137.89B	52.28	2.34%	3.38%	>-0.01%	-49.83%
2685	64 Neutral	¥124.88B	14.74	11.28%	3.59%	3.96%	-36.24%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Onward Holdings Co., Ltd. Corporate Events

Onward Holdings Reports Strong November Sales Boosted by Cold Weather and Holidays

In November 2025, Onward Holdings Co., Ltd. reported a significant increase in sales, with existing stores seeing a 108.4% rise and all stores a 111.6% increase compared to the previous year. The growth was driven by strong sales of knitwear and outerwear due to colder temperatures and additional holidays, which boosted consumer spending. The brand ‘KASHIYAMA’ continued to perform well, attracting a significant number of new customers, while WEGO saw strong sales in sweatshirts, outerwear, and winter accessories.

Onward Holdings Announces Asset Transfer to Boost Growth Investments

Onward Holdings Co., Ltd. has announced the transfer of non-current assets from its subsidiary, Onward Corporate Design Co., Ltd., as part of its ONWARD VISION 2030 strategy. This move aims to streamline assets and accelerate digital transformation and growth investments. The transfer of land and buildings in Chiyoda-ku, Tokyo, to Nomura Real Estate Development Co., Ltd. is expected to generate approximately 3.2 billion yen in extraordinary income, impacting the company’s financial results positively for the fiscal year ending February 28, 2026.

Onward Holdings Reports Strong October Sales Boosted by Seasonal Demand

In October 2025, Onward Holdings Co., Ltd. reported an increase in net sales, with existing stores achieving 104.1% and all stores 105.7% compared to the previous year. The company saw strong sales in autumn and winter apparel due to colder weather, and its new lifestyle concept store ‘KASHIYAMA’ performed well. The cosmetics line at Chacott also showed positive sales results, indicating robust consumer demand.

Onward Holdings Completes Significant Treasury Share Cancellation

Onward Holdings Co., Ltd. has completed the cancellation of 16 million treasury shares, which represents 10.13% of its total shares outstanding prior to the cancellation. This strategic move reduces the total number of shares outstanding to 141,921,669, potentially enhancing shareholder value and improving the company’s financial metrics.

Onward Holdings Reports Mixed Sales Performance for September 2025

Onward Holdings reported a mixed performance for September 2025, with net sales at existing stores at 96.2% compared to the previous year, while all stores, including the newly consolidated WEGO, achieved 124.7%. The high temperatures boosted summer item sales, but autumn items initially lagged, picking up as temperatures fell. Onward Personal Style saw strong sales from digital marketing, and WEGO benefited from collaboration products and sweat items.

Onward Holdings Expands J. Press Business in U.S.

Onward Holdings Co., Ltd. is promoting the expansion of its J. Press business in the U.S., a brand with a 123-year history and significant cultural value. The company, which acquired J. Press in 1986, aims to leverage the brand’s iconic status and historical significance to strengthen its market position in the U.S., potentially impacting its operations and stakeholder interests positively.

Onward Holdings Reports Strong Financial Growth in First Half of 2025

Onward Holdings Co., Ltd. reported a significant increase in net sales and profits for the six months ending August 31, 2025, with net sales rising by 18.4% and profit attributable to owners of the parent increasing by 17.4% compared to the previous year. Despite a decrease in comprehensive income, the company maintains a stable financial position with a slight decrease in shareholders’ equity ratio. The company has announced a forecast for continued growth in the fiscal year ending February 28, 2026, with expected increases in net sales and profits, reflecting a positive outlook for stakeholders.