FAST RETAILING CO (9983) AI Stock Analysis

• Market Cap: ¥14.19T
• Dividend Yield: 1.03%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.02
• Revenue Growth: 12.19%
• EPS Growth: 7.45%
• Country: JP
• Employees: 60,454
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Apparel - Retail
• EPS (TTM): 343.98
• Shares Outstanding: 318,220,980
• 10 Day Avg. Volume: 949,030
• 30 Day Avg. Volume: 1,243,440
• PEG Ratio: 1.50
• Price to Book (P/B): 7.10
• Price to Sales (P/S): 4.61
• P/FCF Ratio: 24.85
• 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: ¥51,667.16
• Price Target Upside: 14.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: ¥48,750.00 ▲(7.95% Upside)

The overall stock score is primarily driven by strong financial performance, with robust revenue growth and profitability. However, technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

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 Risks

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

ESG Concerns

ESG concerns or negative publicity are potentially damaging to the company's outlook.

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 exhibits strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage and high return on equity. While cash flow generation is strong, the recent decline in free cash flow growth warrants attention. Overall, the company is well-positioned in the apparel retail industry with a stable financial foundation.

Income Statement

FAST RETAILING CO has demonstrated strong revenue growth with a TTM increase of 1.79% and consistent improvement in gross profit margins, reaching 54.10%. The net profit margin has also improved to 12.43% TTM, indicating enhanced profitability. The EBIT and EBITDA margins are healthy at 16.50% and 22.95% respectively, reflecting efficient operational management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.28 TTM, indicating prudent financial leverage. Return on equity is strong at 19.30%, showcasing efficient use of equity capital. The equity ratio stands at 57.19%, highlighting a solid equity base relative to total assets.

Cash Flow

Operating cash flow remains strong, though there is a decline in free cash flow growth by -1.19% TTM. The operating cash flow to net income ratio is 0.71, indicating good cash generation relative to earnings. The free cash flow to net income ratio is 0.77, suggesting a healthy conversion of earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.35T	3.10T	2.77T	2.30T	2.13T	2.01T
Gross Profit	1.75T	1.67T	1.44T	1.21T	1.07T	975.85B
EBITDA	772.58B	696.65B	422.82B	600.36B	450.22B	338.42B
Net Income	398.26B	372.00B	296.23B	273.33B	169.85B	90.36B
Balance Sheet
Total Assets	3.70T	3.59T	3.30T	3.18T	2.51T	2.41T
Cash, Cash Equivalents and Short-Term Investments	991.76B	1.19T	1.48T	1.48T	1.23T	1.14T
Total Debt	633.48B	478.06B	465.65B	480.73B	460.66B	466.18B
Total Liabilities	1.53T	1.52T	1.43T	1.57T	1.35T	1.42T
Stockholders Equity	2.11T	2.02T	1.82T	1.56T	1.12T	956.56B
Cash Flow
Free Cash Flow	475.30B	575.78B	366.06B	350.42B	352.00B	195.55B
Operating Cash Flow	624.26B	651.52B	463.22B	430.82B	428.97B	264.87B
Investing Cash Flow	-369.10B	-82.23B	-574.40B	-212.23B	-82.60B	-75.98B
Financing Cash Flow	-310.92B	-269.00B	-364.56B	-213.05B	-302.99B	-183.27B

FAST RETAILING CO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45160.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 45160 is below the 20-day moving average (MA) of 45690.50, below the 50-day MA of 46929.20, and below the 200-day MA of 48278.82, indicating a bearish trend. The MACD of -336.48 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 5.64 is Positive, 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
7606	76 Outperform	¥63.74B	15.51		2.53%	12.39%	-11.38%
2670	75 Outperform	$739.76B	16.36	12.68%	2.36%	6.21%	9.69%
2726	73 Outperform	¥460.01B	34.37		1.12%	9.20%	-0.71%
7564	67 Neutral	¥478.24B	26.28		1.17%	5.25%	14.24%
9983	66 Neutral	¥14.19T	34.79	18.78%	1.03%	12.19%	7.45%
Sector *	56 Neutral	HK$24.69B	3.84	-3.23%	5.89%	0.25%	-59.97%

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.