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UNITED ARROWS LTD.
(7606)
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Rating:78Outperform
Price Target:
¥2,621.00
▲(9.80% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by improving fundamentals (profitability recovery and low leverage) and an attractive valuation (low P/E with a solid dividend). Technicals are supportive with price above major moving averages and positive momentum, while the main offset is volatility in free cash flow and cash conversion consistency.
Positive Factors
Revenue Recovery
The multi-year revenue expansion indicates a substantial recovery in the company’s core apparel retail business and broader customer demand. Maintaining revenue near the TTM peak would provide a stronger base for operating leverage, brand investment, and continued expansion across stores and e-commerce.
Negative Factors
Volatile Free Cash Flow
Positive TTM cash generation is offset by sharp year-to-year volatility, including nearly breakeven annual free cash flow despite positive earnings. If this pattern persists, it could reduce confidence in earnings conversion and constrain the cash available for reinvestment, dividends, or balance-sheet strengthening.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The multi-year revenue expansion indicates a substantial recovery in the company’s core apparel retail business and broader customer demand. Maintaining revenue near the TTM peak would provide a stronger base for operating leverage, brand investment, and continued expansion across stores and e-commerce.
Read all positive factors
UNITED ARROWS LTD. (7606) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥70.59B
Dividend Yield3.96%
Average Volume (3M)166.47K
Price to Earnings (P/E)10.3
Beta (1Y)0.50
Revenue Growth8.20%
EPS Growth69.92%
CountryJP
Employees3,904
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)245.07
Shares Outstanding29,401,575
10 Day Avg. Volume175,650
30 Day Avg. Volume166,473
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.58
Price to Sales (P/S)0.40
P/FCF Ratio5.13K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,610.00Price Target Upside9.34% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)239.98
Revenue Forecast (FY)¥168.30B
UNITED ARROWS LTD. Business Overview & Revenue Model
Company Description
Tabaya Holdings Co. Ltd. is a Japanese fashion retailer specializing in the conceptualization, procurement, and distribution of men's and women's apparel, accessories, and a variety of other lifestyle goods across Japan. The company operates numer...
How the Company Makes Money
UNITED ARROWS primarily makes money by selling apparel and fashion-related products that it plans/merchandises and procures from manufacturers, then retails through its own distribution channels. Key revenue streams include: (1) Retail sales throu...
UNITED ARROWS LTD. Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
85
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 166.20B | 164.60B | 150.91B | 134.27B | 130.13B | 118.38B |
| Gross Profit | 85.45B | 84.40B | 77.31B | 69.46B | 67.18B | 59.09B |
| EBITDA | 13.28B | 10.54B | 9.64B | 9.21B | 7.81B | 3.64B |
| Net Income | 6.77B | 6.11B | 4.28B | 4.88B | 4.34B | 732.00M |
Balance Sheet | ||||||
| Total Assets | 70.27B | 71.51B | 70.55B | 60.42B | 61.18B | 59.70B |
| Cash, Cash Equivalents and Short-Term Investments | 2.89B | 3.46B | 6.67B | 6.49B | 8.56B | 5.59B |
| Total Debt | 5.10B | 1.90B | 1.03B | 202.00M | 2.50B | 7.80B |
| Total Liabilities | 28.28B | 29.37B | 32.73B | 25.39B | 27.48B | 29.63B |
| Stockholders Equity | 41.98B | 42.13B | 37.82B | 35.03B | 33.70B | 30.07B |
Cash Flow | ||||||
| Free Cash Flow | 5.35B | 13.00M | 4.46B | 3.26B | 9.10B | 5.96B |
| Operating Cash Flow | 8.98B | 5.55B | 7.10B | 6.34B | 10.26B | 6.89B |
| Investing Cash Flow | -7.46B | -9.63B | -6.24B | -2.66B | -1.25B | 215.00M |
| Financing Cash Flow | -3.83B | 842.00M | -699.00M | -5.77B | -5.98B | -8.00B |
UNITED ARROWS LTD. Technical Analysis
Positive
2387.00
Price Trends
2439.03
Positive
2432.45
Positive
2422.28
Positive
Market Momentum
55.98
Negative
58.02
Neutral
76.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7606, the sentiment is Positive. The current price of 2387 is below the 20-day moving average (MA) of 2479.30, below the 50-day MA of 2439.03, and below the 200-day MA of 2422.28, indicating a bullish trend. The MACD of 55.98 indicates Negative momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 76.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7606.
UNITED ARROWS LTD. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥113.26B | 32.65 | 3.80% | 6.12% | -2.14% | -29.53% | |
78 Outperform | ¥70.59B | 10.32 | ― | 3.96% | 8.20% | 69.92% | |
77 Outperform | ¥271.93B | 14.38 | ― | 2.70% | 7.11% | 57.75% | |
71 Outperform | ¥23.18T | 41.90 | 20.26% | 1.15% | 16.55% | 25.27% | |
71 Outperform | ¥742.74B | 15.51 | 9.11% | 2.23% | 5.20% | 11.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ¥21.32B | -18.73 | ― | 6.42% | -9.23% | 47.73% |
* General Sector Average
JP:7606
UNITED ARROWS LTD.
2,550.00
672.58
35.82%
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UNITED ARROWS LTD. Corporate Events
UNITED ARROWS Posts Double-Digit August Sales Growth, Led by Online and Discounted Merchandise
Sep 2, 2026
UNITED ARROWS reported an 11.1% year-on-year increase in total company sales for August 2026, with existing store retail and online sales up 8.4% despite a cooler month versus the prior year. Strong performance in both full-price and discounted me...
United Arrows Completes ¥2 Billion Share Buyback and Plans Full Cancellation
Sep 1, 2026
United Arrows Ltd. has completed a share repurchase program authorized by its board in May 2026, acquiring 812,100 common shares on the Tokyo Stock Exchange for approximately ¥1.999 billion. This buyback reached just below the approved maximu...
United Arrows Lifts Dividend Forecast with Commemorative Payout Ahead of Holding Company Shift
Aug 7, 2026
United Arrows Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2027, raising the expected total annual dividend per share from ¥92.00 to ¥112.00. The year-end dividend is now projected at ¥80.00 per share,...
United Arrows lifts profit and dividend as it prepares holding company shift
Aug 7, 2026
United Arrows reported consolidated net sales of ¥39.8 billion for the three months ended June 30, 2026, up 4.2% year on year, with operating profit jumping 27.5% to ¥3.23 billion and profit attributable to owners of parent climbing 44.8...
UNITED ARROWS Posts July Sales Growth Despite Lower Traffic
Aug 4, 2026
UNITED ARROWS reported a 9.6% year‑on‑year increase in total company sales for July 2026, with existing store sales for retail and online rising 6.5%. Despite lower customer traffic due to a later start to summer discount sales, higher...
UNITED ARROWS Advances Share Buyback, Acquires Over Half of Planned Treasury Shares
Aug 3, 2026
UNITED ARROWS LTD. has been executing a treasury share buyback program authorized by its board on May 11, 2026, aiming to repurchase up to 1,000,000 common shares for a maximum of ¥2.0 billion by August 31, 2026. The initiative is part of a b...
United Arrows to Cancel Up to 1 Million Treasury Shares to Boost Capital Efficiency
Jul 30, 2026
United Arrows’ board has approved the cancellation of up to 1,000,000 common shares, equivalent to 3.6% of its issued shares excluding treasury stock, to be executed on September 30, 2026. The company is using a portion of shareholders’...
UNITED ARROWS June Sales Rise as Online Strength Offsets Weak Retail Traffic
Jul 2, 2026
UNITED ARROWS reported that in June 2026 total company sales rose 4.5% year on year, while existing store sales combining retail and online increased 2.8%, supported by strong demand for higher-priced jackets and pants that lifted average spending...
UNITED ARROWS Reports Progress on Share Buyback Program
Jul 1, 2026
UNITED ARROWS LTD. reported the progress of its ongoing share buyback program, stating that it repurchased 134,400 common shares for approximately ¥331 million between June 1 and June 30, 2026 via market purchases on the Tokyo Stock Exchange....
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.