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FAST RETAILING CO LTD (JP:9983)
:9983

FAST RETAILING CO (9983) AI Stock Analysis

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JP

FAST RETAILING CO

(OTC:9983)

Rating:72Outperform
Price Target:
¥53,922.00
▲(10.20%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 (9983) vs. iShares MSCI Japan ETF (EWJ)

FAST RETAILING CO Business Overview & Revenue Model

Company DescriptionFAST RETAILING CO., LTD. is a leading global retail holding company headquartered in Japan. It primarily operates in the fashion retail sector through its flagship brand, UNIQLO, along with other brands such as GU, Theory, Helmut Lang, and J Brand. The company is known for offering high-quality, casual apparel at affordable prices and has a strong presence across Asia, Europe, and the United States. FAST RETAILING is committed to innovation in clothing technology and sustainability initiatives, aiming to provide functional and stylish clothing for all age groups.
How the Company Makes MoneyFAST 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 revenue growth and profitability, with a solid balance sheet characterized by low leverage and strong equity. The company's cash flow is healthy, although there is room for improvement in cash conversion metrics. Overall, the company is well-positioned within the industry, demonstrating both growth and stability.
Income Statement
82
Very Positive
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
78
Positive
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
75
Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
2.40T3.10T2.77T2.30T2.13T2.01T
Gross Profit
1.14T1.47T1.44T1.21T1.07T975.85B
EBIT
577.85B500.90B381.09B421.14B249.01B149.35B
EBITDA
803.96B771.25B633.54B600.36B450.22B338.42B
Net Income Common Stockholders
277.69B372.00B296.23B273.33B169.85B90.36B
Balance SheetCash, Cash Equivalents and Short-Term Investments
977.33B1.19T1.48T1.48T1.23T1.14T
Total Assets
3.73T3.59T3.30T3.18T2.51T2.41T
Total Debt
622.90B478.06B465.65B480.73B460.66B466.18B
Net Debt
-354.43B-715.50B-437.63B-877.57B-717.08B-627.35B
Total Liabilities
1.47T1.52T1.43T1.57T1.35T1.42T
Stockholders Equity
2.20T2.02T1.82T1.56T1.12T956.56B
Cash FlowFree Cash Flow
481.02B575.78B366.06B350.42B352.00B195.55B
Operating Cash Flow
627.37B651.52B463.22B430.82B428.97B264.87B
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 Price48930.00
Price Trends
50DMA
46842.60
Positive
100DMA
47272.40
Positive
200DMA
48073.60
Positive
Market Momentum
MACD
405.96
Negative
RSI
57.15
Neutral
STOCH
87.79
Negative
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 48930 is above the 20-day moving average (MA) of 48150.00, above the 50-day MA of 46842.60, and above the 200-day MA of 48073.60, indicating a bullish trend. The MACD of 405.96 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 87.79 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$711.78B15.6912.63%2.29%8.14%13.37%
75
Outperform
¥332.38B27.00
1.63%7.94%-7.29%
73
Outperform
¥60.10B13.60
2.99%12.39%-11.38%
72
Outperform
$15.34T36.5619.24%0.90%13.69%20.90%
65
Neutral
¥483.95B28.65
1.23%3.23%5.67%
62
Neutral
$6.84B11.412.80%3.87%2.70%-24.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9983
FAST RETAILING CO
48,930.00
7,634.87
18.49%
JP:2726
PAL GROUP Holdings Co., Ltd.
3,695.00
1,910.40
107.05%
JP:7564
Workman Co., Ltd.
6,080.00
2,489.66
69.34%
JP:7606
UNITED ARROWS LTD.
2,106.00
309.40
17.22%
JP:2670
ABC-MART
2,910.50
7.68
0.26%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.