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Adastria Co.,Ltd. (2685) AI Stock Analysis

JP:2685

Adastria Co.,Ltd.

(TSE/TYO:2685)

Select Model
Rating:75.2Outperform
Price Target:JPY 3,429.00â–²(8.68% Upside)
Action:reiterated
Date:08/06/26

Adastria's strong balance sheet and consistent cash flow provide a solid foundation, though slowing revenue growth and margin compression present near-term challenges. Bullish technical trends and a fair valuation contribute to an overall score of 75, indicating a moderately attractive investment with some caution on profitability.

Positive Factors
Revenue GrowthSustained revenue growth shows that Adastria has continued expanding sales after the 2021 decline, supporting the durability of its brand portfolio and retail model. Continued top-line progress provides a foundation for maintaining scale and funding product, store, and e-commerce initiatives over the next several quarters.
Negative Factors
Margin CompressionBroad margin compression across gross, operating, and net profitability indicates that revenue growth has recently translated into less profit per unit of sales. If this persists, it could reduce the earnings benefit of scale and constrain the cash available for reinvestment, dividends, or other strategic priorities.

Adastria Co.,Ltd. (2685) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:2685+21.78%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 141.17B
Dividend Yield
2.85%
Average Volume (3M)
258.86K
Price to Earnings (P/E)
15.4
Beta (1Y)
0.36
Revenue Growth
2.97%
EPS Growth
9.44%
Country
Japan
Employees
6,936
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Manufacturers

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 in...

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 customers...

Adastria Co.,Ltd. Financial Statement Overview

Summary

Adastria maintains a robust balance sheet with minimal debt (debt-to-equity 0.09) and consistent cash generation, as reflected in Balance Sheet (85) and Cash Flow (75) scores. However, revenue growth has decelerated and margins have compressed, leading to a lower Income Statement score (65). Overall financial health is solid but faces near-term profitability headwinds.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

75Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue304.35B304.35B293.11B275.60B242.55B201.58B
Gross Profit165.78B153.69B160.28B152.35B132.66B104.28B
EBITDA29.92B29.92B26.41B27.66B20.42B13.67B
Net Income9.50B9.50B9.61B13.51B7.54B4.92B
Balance Sheet
Total Assets139.69B139.69B133.11B127.92B111.39B97.96B
Cash, Cash Equivalents and Short-Term Investments24.91B24.91B21.14B23.37B16.38B16.98B
Total Debt6.95B6.95B8.96B8.95B8.18B5.01B
Total Liabilities57.86B57.86B55.91B56.33B50.63B42.99B
Stockholders Equity81.44B81.44B77.10B70.14B59.41B53.96B
Cash Flow
Free Cash Flow011.14B13.85B16.55B6.47B-292.00M
Operating Cash Flow020.57B21.37B22.22B13.46B3.50B
Investing Cash Flow0-9.52B-16.97B-9.92B-9.96B-7.78B
Financing Cash Flow0-7.43B-7.11B-5.58B-4.40B-3.25B

Adastria Co.,Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price3155.00

Price Trends

50DMA3200.51Negative
100DMA3302.16Negative
200DMA3122.76Negative

Market Momentum

MACD-21.70Negative
RSI49.78Neutral
STOCH30.58Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2685, the sentiment is Neutral. The current price of 3155.00 is above the 20-day moving average (MA) of 3084.40, below the 50-day MA of 3200.51, and above the 200-day MA of 3122.76, indicating a neutral trend. The MACD of -21.70 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 30.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2685.

Adastria Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:2685 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2685JP:268575OutperformJPY 141.17B15.3911.39%2.85%2.97%9.44%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:3002JP:300259NeutralJPY 121.80B28.174.18%3.58%-4.36%49.85%
JP:8011JP:801159NeutralJPY 37.04B10.01―8.17%-3.87%24.45%
JP:3529JP:352956NeutralJPY 17.15B-13.89――-0.62%-33.86%
JP:3608JP:360856NeutralJPY 66.77B18.583.79%3.46%28.66%-75.08%
JP:3591JP:359152NeutralJPY 188.20B162.070.49%2.77%1.78%-93.82%

* Consumer Cyclical Sector Average

Performance Comparison

-25%0%25%50%75%JP:2685JP:3002JP:3608JP:3591JP:3529JP:8011Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:2685 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2685Adastria Co.,Ltd.3155.00610.9124.01%
JP:3002Gunze 4095.00470.7612.99%
JP:3608TSI Holdings Co 1157.00236.0125.63%
JP:3591WACOAL HOLDINGS CORP3611.00-1606.14-30.79%
JP:3529Atsugi Co., Ltd.1054.00-74.00-6.56%
JP:8011Sanyo Shokai Ltd.1216.00195.3419.14%

Adastria Co.,Ltd. Corporate Events

and ST HD Reports Major Data Breach After Server Intrusion

Oct 23, 2026

and ST HD Co., Ltd. has disclosed that its business servers were subjected to unauthorized access, potentially compromising personal data for about 2.5 million customer accounts and around 10,000 business partner accounts, along with some employee re...

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 items...

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 re...

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 despite...

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 operati...

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 and...

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 stor...

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.

Date of analysis: Aug 06, 2026