FAST RETAILING CO (9983) AI Stock Analysis

• Market Cap: $13.99T
• Dividend Yield: 1.08%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.00
• Revenue Growth: 12.19%
• EPS Growth: 7.45%
• Country: JP
• Employees: 60,454
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Retail
• EPS (TTM): 343.98
• Shares Outstanding: 318,220,980
• 10 Day Avg. Volume: 1,537,630
• 30 Day Avg. Volume: 1,164,933
• PEG Ratio: 9.90
• Price to Book (P/B): 6.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.65
• 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: $50,750.04
• Price Target Upside: 14.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: ¥50,933.00 ▲(14.95%Upside)

FAST RETAILING CO achieves a robust financial performance with strong revenue growth and a solid balance sheet. However, the stock's valuation is high with a modest dividend yield, and technical indicators suggest a lack of bullish momentum, resulting in a moderate overall score.

Positive Factors

Brand Expansion

Expansion of Theory and Fast Retailing's other global brands could be another long-term growth driver, with efforts to restructure and reposition smaller brands into affordable top-quality casualwear.

Earnings

Fast Retailing delivered stronger-than-expected results driven by strong outperformance from UNIQLO Japan and other regions like Southeast Asia, India, Australia, North America, and Europe.

Growth Strategy

Strong growth in North America and Europe is seen as a long-term growth driver for the company, with plans to open more stores in the coming years.

Negative Factors

Currency Impact

Weak Yen and currency depreciation pose risks to the company's cost of sales and profit margins.

Market Conditions

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

Profitability

The decline in operating profits in some areas is due to the failure in conducting strategic discounting.

FAST RETAILING CO Business Overview & Revenue Model

Company Description

FAST RETAILING CO., LTD. is a leading Japanese retail holding company primarily known for its global clothing retail brand, UNIQLO. Headquartered in Yamaguchi, Japan, the company operates in the fashion retail sector, offering a wide range of casual wear for men, women, and children. FAST RETAILING is also associated with other brands such as GU, Theory, and Comptoir des Cotonniers, expanding its presence in the apparel industry beyond UNIQLO.

How the Company Makes Money

FAST RETAILING CO. makes money primarily through the sale of clothing and accessories across its various brands, with UNIQLO being the most significant contributor to its revenue. The company operates an extensive network of retail stores worldwide, complemented by a robust online presence that caters to a diverse and global customer base. Revenue is generated through direct sales to consumers via these retail outlets and e-commerce platforms. Additionally, FAST RETAILING's strategic partnerships, supply chain efficiencies, and innovative product lines, such as its popular HeatTech and AIRism clothing technologies, contribute to its profitability. The company's focus on operational efficiency, cost management, and market expansion, particularly in high-growth regions, further supports its revenue model.

FAST RETAILING CO Financial Statement Overview

Summary

FAST RETAILING CO displays strong revenue growth and profitability with a robust balance sheet. The company has low leverage, strong equity, and solid cash flow generation, although there is room for improvement in 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.10T	2.77T	2.30T	2.13T	2.01T
Gross Profit	1.67T	1.44T	1.21T	1.07T	975.85B
EBITDA	696.65B	422.82B	600.36B	450.22B	338.42B
Net Income	372.00B	296.23B	273.33B	169.85B	90.36B
Balance Sheet
Total Assets	3.59T	3.30T	3.18T	2.51T	2.41T
Cash, Cash Equivalents and Short-Term Investments	1.19T	1.48T	1.48T	1.23T	1.14T
Total Debt	478.06B	465.65B	480.73B	460.66B	466.18B
Total Liabilities	1.52T	1.43T	1.57T	1.35T	1.42T
Stockholders Equity	2.02T	1.82T	1.56T	1.12T	956.56B
Cash Flow
Free Cash Flow	575.78B	366.06B	350.42B	352.00B	195.55B
Operating Cash Flow	651.52B	463.22B	430.82B	428.97B	264.87B
Investing Cash Flow	-82.23B	-574.40B	-212.23B	-82.60B	-75.98B
Financing Cash Flow	-269.00B	-364.56B	-213.05B	-302.99B	-183.27B

FAST RETAILING CO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44310.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 44310 is below the 20-day moving average (MA) of 46720.50, below the 50-day MA of 47463.80, and below the 200-day MA of 48483.64, indicating a bearish trend. The MACD of -796.29 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9983.

FAST RETAILING CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2726	79 Outperform	¥392.81B	29.42		1.38%	9.20%	-0.71%
2670	79 Outperform	$714.38B	15.97	12.68%	2.54%	6.21%	9.69%
7606	76 Outperform	¥61.46B	13.84		3.54%	12.39%	-11.38%
7564	71 Outperform	¥529.65B	31.55		1.05%	3.23%	5.67%
9983	66 Neutral	$13.99T	34.29	18.78%	1.08%	12.19%	7.45%
Sector *	62 Neutral	C$5.30B	8.88	20.23%	3.47%	3.08%	9.19%

FAST RETAILING CO Corporate Events

FAST RETAILING Subsidiary Seeks Judicial Recovery for Strategic Revitalization

FAST RETAILING FRANCE S.A.S., a subsidiary of FAST RETAILING CO., has filed for judicial recovery proceedings in France to implement structural reforms and stabilize its financial foundation. This move aims to revitalize the Comptoir des Cotonniers and Princesse tam.tam brands by consolidating their store network and enhancing customer experiences with shared retail spaces. The impact on FAST RETAILING CO.’s overall financial results is expected to be minimal, with less than a 1% effect on consolidated operating profit.

The most recent analyst rating on (JP:9983) stock is a Hold with a Yen44000.00 price target. To see the full list of analyst forecasts on FAST RETAILING CO stock, see the JP:9983 Stock Forecast page.