Want to see JP:7606 full AI Analyst Report?
Top Page
UNITED ARROWS LTD.
(7606)
Select Model
Select Model
Rating:78Outperform
Price Target:
¥2,928.00
▲(22.66% 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
Improved profitability
Robust trailing margins (TTM gross ~51%, operating ~5.7%, net ~4.1%) reflect improved merchandising, pricing and cost control. Sustained margin expansion enhances resilience to retail cycles, supports reinvestment in brands and omnichannel growth, and underpins long-term cash generation.
Negative Factors
Volatile free cash flow
FCF volatility—TTM FCF 5.3B but FY2026 annual FCF nearly breakeven—limits predictable internal funding for capex, inventory and shareholder returns. Persistent swings heighten reliance on working-capital management and increase vulnerability to seasonal and demand shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Robust trailing margins (TTM gross ~51%, operating ~5.7%, net ~4.1%) reflect improved merchandising, pricing and cost control. Sustained margin expansion enhances resilience to retail cycles, supports reinvestment in brands and omnichannel growth, and underpins long-term cash generation.
Read all positive factors
UNITED ARROWS LTD. (7606) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥70.70B
Dividend Yield3.57%
Average Volume (3M)186.62K
Price to Earnings (P/E)10.2
Beta (1Y)0.45
Revenue Growth8.20%
EPS Growth69.92%
CountryJP
Employees3,904
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)245.07
Shares Outstanding30,213,676
10 Day Avg. Volume209,660
30 Day Avg. Volume186,620
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
¥2,855.00Price Target Upside19.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)235.67
Revenue Forecast (FY)¥166.93B
UNITED ARROWS LTD. Business Overview & Revenue Model
Company Description
United Arrows 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 numerous mu...
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 | 8.43B | 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
2469.48
Positive
2467.56
Positive
2406.32
Positive
Market Momentum
13.67
Positive
48.15
Neutral
11.28
Positive
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 2520.05, below the 50-day MA of 2469.48, and below the 200-day MA of 2406.32, indicating a neutral trend. The MACD of 13.67 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 11.28 is Positive, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥22.67T | 41.86 | 20.52% | 0.75% | 14.76% | 30.54% | |
79 Outperform | ¥275.58B | 14.50 | ― | 1.46% | 10.33% | 23.55% | |
78 Outperform | ¥70.70B | 10.17 | ― | 2.73% | 8.20% | 69.92% | |
73 Outperform | ¥735.88B | 15.22 | 9.21% | 2.07% | 6.57% | 12.36% | |
67 Neutral | ¥117.02B | 33.65 | 3.98% | 6.09% | -2.14% | -29.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ¥26.61B | -556.82 | ― | 5.11% | -10.37% | 97.76% |
* General Sector Average
JP:7606
UNITED ARROWS LTD.
2,493.00
475.78
23.59%
JP:9983
FAST RETAILING CO
71,540.00
25,239.92
54.51%
JP:8227
SHIMAMURA Co
3,313.00
-235.45
-6.64%
JP:8219
AOYAMA TRADING Co., Ltd.
777.00
3.44
0.44%
JP:2726
PAL GROUP Holdings Co., Ltd.
1,494.00
-1,013.58
-40.42%
JP:3548
BAROQUE JAPAN LIMITED
735.00
-0.96
-0.13%
UNITED ARROWS LTD. Corporate Events
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....
UNITED ARROWS Posts Double-Digit May Sales Growth on Strong Summer Demand
Jun 2, 2026
UNITED ARROWS LTD. reported that total company sales for May 2026 rose 16.3% year on year, with existing store sales across retail and online up 10.8%. Growth was driven by strong demand for early- and peak-summer items, including shirts, cut-and-...
United Arrows Yet to Start Share Buybacks Under Newly Approved Program
Jun 1, 2026
United Arrows Ltd. reported that, despite board authorization to repurchase up to 1,000,000 shares for as much as ¥2.0 billion between May 12 and August 31, 2026, it acquired no shares during the initial period from May 12 to May 31. The abse...
United Arrows Lifts Profit, Boosts Dividend and Signals Steady Growth for FY2027
May 25, 2026
United Arrows reported consolidated net sales of ¥164.6 billion for the year ended March 31, 2026, up 9.1% year on year, with operating profit rising 14.3% to ¥9.1 billion and profit attributable to owners of parent jumping 42.7% to ...
UNITED ARROWS to Shift to Holding Company Structure and Rebrand as TABAYA HOLDINGS
May 11, 2026
UNITED ARROWS LTD. will transition to a holding company structure via an absorption-type company split, transferring its operating business to wholly owned subsidiary New UNITED ARROWS on or around October 1, 2026. The parent company will remain l...
UNITED ARROWS Launches Up to ¥2 Billion Share Buyback
May 11, 2026
UNITED ARROWS LTD. has authorized a share buyback of up to 1.0 million common shares, representing about 3.6% of its outstanding stock, with a maximum outlay of 2.0 billion yen. The repurchase, scheduled between May 12 and August 31, 2026 via purc...
United Arrows Raises Year-End Dividend on Strong Earnings
May 11, 2026
United Arrows Ltd. has approved an increase in its year-end dividend for the fiscal year ended March 31, 2026, raising the payout to ¥69 per share from a previously forecast ¥62, with the record date set as March 31, 2026. This brings th...
United Arrows Profit Surges Despite Loss on COEN Share Sale
May 11, 2026
United Arrows reported a 10.6% year-on-year increase in non-consolidated net sales to ¥154.1 billion for the fiscal year ended March 31, 2026, driven by strengthened product assortments in business casual wear and items adapted to climate nor...
United Arrows lifts profits and dividends as margins improve
May 11, 2026
United Arrows reported consolidated net sales of ¥164.6 billion for the year ended March 31, 2026, up 9.1% year on year, with operating profit rising 14.3% to ¥9.1 billion and profit attributable to owners of parent jumping 42.7% to ...
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.