FAST RETAILING CO (9983) AI Stock Analysis

• Market Cap: $15.27T
• Dividend Yield: 0.96%
• Average Volume (3M): 847.20K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 1.01
• Revenue Growth: 13.69%
• EPS Growth: 20.90%
• Country: JP
• Employees: 60,454
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Retail
• EPS (TTM): 331.19
• Shares Outstanding: 318,220,980
• 10 Day Avg. Volume: 877,870
• 30 Day Avg. Volume: 847,203
• PEG Ratio: 4.16
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.04
• 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: $48,333.81
• Price Target Upside: 2.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥53,922.00 ▲(14.29%Upside)

FAST RETAILING CO receives a strong score driven by solid financial performance and positive technical indicators. The stock's valuation is relatively high, which tempers the overall score. With no recent earnings call or notable corporate events, the analysis is based primarily on financial and technical aspects.

Positive Factors

Brand Expansion

Expansion of Theory and Fast Retailing's other global brands could be another long-term growth driver.

Regional Growth

Strong growth in North America and Europe has been crucial to the company's performance, likely being a long-term growth driver.

Sales Strategy

Strategic discounting and sales promotion have proven effective in generating revenue, with the company expecting recovery of operating profits in some regions.

Negative Factors

Currency Impact

Weak yen is impacting the company's cost of sales and profit margins, particularly for additional production orders.

Market Performance

Weaker performances in Greater China have been observed, despite the company's optimism about low market penetration and strong brand recognition.

Regional Performance

China recorded a sharp downturn due to persistent warm weather, insufficient product mixes, and weak response to individual regions.

FAST RETAILING CO Business Overview & Revenue Model

Company Description

Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through four segments: UNIQLO Japan, UNIQLO International, GU, and Global Brands. It manufactures and retails clothing for men, women, children, and babies; and lingerie, as well as other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.

How the Company Makes Money

FAST RETAILING CO. makes money primarily through the retail sale of clothing and accessories. The company's revenue model is centered on its extensive network of physical retail stores, e-commerce platforms, and its diverse brand portfolio. UNIQLO, as the most prominent brand, contributes significantly to the company's earnings through its wide range of casual and functional apparel. Revenue streams include direct sales to consumers via brick-and-mortar stores and online platforms, leveraging a strong supply chain to keep costs low. The company also benefits from strategic partnerships and collaborations with designers and brands to create special collections that drive customer interest and sales. Additionally, FAST RETAILING's focus on efficient inventory management and production processes helps maintain profitability.

FAST RETAILING CO Financial Statement Overview

Summary

FAST RETAILING CO shows strong financial performance with robust revenue growth and profitability. The balance sheet is solid with low leverage and strong equity. Cash flows are healthy, though there is potential for improving cash conversion metrics.

Income Statement

FAST RETAILING CO has demonstrated strong revenue growth, with a significant increase from prior periods. The TTM (Trailing-Twelve-Months) gross profit margin is robust, indicating efficient cost management. Net income has improved, reflecting a healthy net profit margin. However, EBIT and EBITDA margins show some room for improvement, suggesting the need for better operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a strong equity base and manageable debt levels. The debt-to-equity ratio is favorable, reflecting low leverage risk. The equity ratio is also healthy, indicating a strong foundation of stockholders' equity. Return on equity is commendable, showcasing effective utilization of equity to generate profits.

Cash Flow

FAST RETAILING CO's cash flow analysis reveals positive operating cash flow, indicating strong cash generation from operational activities. The free cash flow growth is solid, supporting future investments and debt repayments. The operating cash flow to net income ratio is strong, but there is room for improvement in free cash flow to net income ratio, suggesting potential enhancements in cash conversion.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.40T	3.10T	2.77T	2.30T	2.13T	2.01T
	Gross Profit
1.14T	1.47T	1.44T	1.21T	1.07T	975.85B
	EBIT
577.85B	500.90B	381.09B	421.14B	249.01B	149.35B
	EBITDA
803.96B	771.25B	633.54B	600.36B	450.22B	338.42B
	Net Income Common Stockholders
277.69B	372.00B	296.23B	273.33B	169.85B	90.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
977.33B	1.19T	1.48T	1.48T	1.23T	1.14T
	Total Assets
3.73T	3.59T	3.30T	3.18T	2.51T	2.41T
	Total Debt
622.90B	478.06B	465.65B	480.73B	460.66B	466.18B
	Net Debt
-354.43B	-715.50B	-437.63B	-877.57B	-717.08B	-627.35B
	Total Liabilities
1.47T	1.52T	1.43T	1.57T	1.35T	1.42T
	Stockholders Equity
2.20T	2.02T	1.82T	1.56T	1.12T	956.56B
Cash Flow		Free Cash Flow
481.02B	575.78B	366.06B	350.42B	352.00B	195.55B
	Operating Cash Flow
627.37B	651.52B	463.22B	430.82B	428.97B	264.87B
	Investing Cash Flow
-410.20B	-82.23B	-574.40B	-212.23B	-82.60B	-75.98B
	Financing Cash Flow
-287.82B	-269.00B	-364.56B	-213.05B	-302.99B	-183.27B

FAST RETAILING CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47180.00
• 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:9983, the sentiment is Positive. The current price of 47180 is below the 20-day moving average (MA) of 48091.50, above the 50-day MA of 46992.80, and below the 200-day MA of 48206.20, indicating a bullish trend. The MACD of 390.37 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 59.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9983.

FAST RETAILING CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9983	72 Outperform	$15.27T	36.38	19.24%	0.96%	13.69%	20.90%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
AMKYF		$5.01B	16.74	12.63%	2.46%	―	―
SHAOF		$5.02B	18.37	8.49%	0.01%	―	―
2726	75 Outperform	¥325.61B	26.45		1.66%	7.94%	-7.29%
7606	73 Outperform	¥59.04B	13.36		3.67%	12.39%	-11.38%
7564	65 Neutral	¥483.95B	28.65		1.15%	3.23%	5.67%