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Adastria Co.,Ltd.
(2685)
Select Model
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Rating:73Outperform
Price Target:
¥3,429.00
▲(20.53% Upside)
Action:Reiterated
Date:08/07/26
Overall score is driven primarily by solid financial performance (revenue growth, positive earnings, and low leverage), tempered by recent margin compression and some free-cash-flow variability. Technicals are supportive with price above key moving averages and neutral-to-positive momentum. Valuation appears fair with a moderate P/E and a mid-single-digit dividend yield contribution.
Positive Factors
Revenue Growth
The sustained revenue recovery across multiple years indicates improving scale and continued demand for Adastria’s apparel and lifestyle portfolio. Ongoing top-line growth can support brand investment, store productivity, and e-commerce development over the next several quarters.
Negative Factors
Margin Compression
Broad-based margin compression indicates that revenue growth has recently been accompanied by weaker profitability per sales yen. If this pressure persists, it could reduce the earnings benefit of scale and constrain the funds available for brand, store, and digital investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The sustained revenue recovery across multiple years indicates improving scale and continued demand for Adastria’s apparel and lifestyle portfolio. Ongoing top-line growth can support brand investment, store productivity, and e-commerce development over the next several quarters.
Read all positive factors
Adastria Co.,Ltd. (2685) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥139.14B
Dividend Yield2.93%
Average Volume (3M)204.97K
Price to Earnings (P/E)15.0
Beta (1Y)0.45
Revenue Growth2.97%
EPS Growth9.44%
CountryJP
Employees6,936
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)205.80
Shares Outstanding48,800,000
10 Day Avg. Volume285,530
30 Day Avg. Volume204,970
Financial Highlights & Ratios
PEG Ratio-9.87
Price to Book (P/B)1.70
Price to Sales (P/S)0.45
P/FCF Ratio12.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)250.88
Revenue Forecast (FY)¥313.78B
Adastria Co.,Ltd. Business Overview & Revenue Model
Company Description
Adastria Co., Ltd. (2685) is a Japan-based apparel and lifestyle company that plans, manufactures (including through outsourced production), and retails clothing, accessories, and related consumer goods under multiple brands. The company operates ...
How the Company Makes Money
Adastria primarily makes money by selling apparel and lifestyle goods under its brand portfolio through (1) directly operated physical retail stores and (2) online sales via e-commerce. Revenue is recognized mainly from product sales to end custom...
Adastria Co.,Ltd. Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 304.35B | 293.11B | 275.60B | 242.55B | 201.58B |
| Gross Profit | 153.69B | 149.10B | 142.61B | 124.22B | 104.28B |
| EBITDA | 29.92B | 27.00B | 28.31B | 20.57B | 13.67B |
| Net Income | 9.50B | 9.61B | 13.51B | 7.54B | 4.92B |
Balance Sheet | |||||
| Total Assets | 139.69B | 133.11B | 127.92B | 111.39B | 97.96B |
| Cash, Cash Equivalents and Short-Term Investments | 24.91B | 21.14B | 23.37B | 16.38B | 16.98B |
| Total Debt | 6.95B | 8.96B | 8.95B | 8.18B | 5.01B |
| Total Liabilities | 57.86B | 55.91B | 56.33B | 50.63B | 42.99B |
| Stockholders Equity | 81.44B | 77.10B | 70.14B | 59.41B | 53.96B |
Cash Flow | |||||
| Free Cash Flow | 11.14B | 13.85B | 16.55B | 6.47B | -292.00M |
| Operating Cash Flow | 20.57B | 21.37B | 22.22B | 13.46B | 3.50B |
| Investing Cash Flow | -9.52B | -16.97B | -9.92B | -9.96B | -7.78B |
| Financing Cash Flow | -7.43B | -7.11B | -5.58B | -4.40B | -3.25B |
Adastria Co.,Ltd. Technical Analysis
Negative
2845.00
Price Trends
3284.70
Negative
3310.09
Negative
3097.18
Negative
Market Momentum
-74.95
Negative
41.27
Neutral
42.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2685, the sentiment is Negative. The current price of 2845 is below the 20-day moving average (MA) of 3113.65, below the 50-day MA of 3284.70, and below the 200-day MA of 3097.18, indicating a bearish trend. The MACD of -74.95 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 42.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2685.
Adastria Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥139.14B | 15.00 | 11.39% | 2.93% | 2.97% | 9.44% | |
69 Neutral | ¥38.17B | 10.31 | ― | 7.93% | -3.87% | 24.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥120.17B | 27.89 | 4.18% | 3.63% | -4.36% | 49.85% | |
56 Neutral | ¥69.91B | 17.50 | 4.13% | 3.33% | 16.25% | -71.70% | |
53 Neutral | ¥188.20B | 162.25 | 0.49% | 2.77% | 1.78% | -93.82% | |
51 Neutral | ¥16.19B | -13.31 | ― | 2.29% | -0.62% | -33.86% |
* Consumer Cyclical Sector Average
JP:2685
Adastria Co.,Ltd.
3,075.00
424.91
16.03%
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Adastria Co.,Ltd. Corporate Events
Adastria Posts Robust September Sales on Strong Autumn Demand Despite Weather Disruptions
Oct 2, 2026
Adastria reported strong sales momentum in September 2026, with all-store sales rising 10.9% year-on-year and same-store sales up 8.8%, driven by solid demand for autumn apparel amid nationwide cooler temperatures. Key brands performed well and it...
Adastria Outlines FY2027/02 First-Half Results and Strategic Outlook
Sep 30, 2026
Adastria Co., Ltd. reported its consolidated financial results for the first half of FY2027/02, detailing income performance, balance sheet conditions, and forecasts for the full fiscal year. The release also covered trends in its global and brand...
And ST HD boosts profits, keeps dividend and full-year guidance intact
Sep 30, 2026
And ST HD Co., Ltd. reported a modest 1.9% year-on-year increase in net sales to 152.1 billion yen for the six months ended August 31, 2026, while operating profit surged 34.6% and ordinary profit rose 42.0%, signaling improved profitability despi...
Adastria Posts Solid August Sales Despite Heatwave and Disaster Closures
Sep 2, 2026
Adastria Co., Ltd. reported that in August of the FY2027/02 period, all-store sales were 103.1% year-on-year and same-store sales were 101.9%, indicating solid growth in its core Japanese apparel business. The sales data, which include online oper...
Adastria July Sales Rise Despite Typhoon and Earthquake Disruptions
Aug 4, 2026
Adastria reported that in July 2026, all-store sales rose 3.8% year-on-year while same-store sales increased 2.2%, supported by stronger demand for summer apparel and accessories once temperatures turned summery mid-month. Key brands such as niko ...
ST HD Co., Ltd. Details Operational Impact from Kumamoto Earthquake
Jul 29, 2026
ST HD Co., Ltd., listed on the TSE Prime Market under securities code 2685, operates retail stores and an e-commerce business in Japan, with a notable presence in Kumamoto Prefecture and the broader Kyushu region. The company depends on physical s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.