2685 [Adastria] Achieves Record High Profits, Increases Dividends and Sets Minimum Dividend Payment. Confidence in Performance! What Are the Future Prospects? (Q4 23)

Adastria's Stock Price Forecast: A Comprehensive Analysis

Adastria is a major casual clothing company that has developed multiple brands mainly for women in their 20's to 30's. In this article, we will analyze Adastria's stock price forecast and provide a comprehensive analysis of the company's financials. We will start with a company analysis of Adastria, followed by a financial analysis, and finally, we will provide a stock price forecast.

Company Analysis

Adastria is a multi-brand, multi-category business that sells items in a variety of categories, including apparel, bags, shoes, kitchen goods, and furniture. The reason why Adastria is a multi-brand, multi-category business lies in its SPA manufacturing and retail business model. SPA (Specialty Store Retailer of Private Label Apparel) is a vertically integrated supply chain model called manufacturing and retailing. It was originally the first business model in the apparel industry and is said to have been started by the American clothing industry giant Gap in 1986. Clothing purchases are designed with SPA power as a springboard. SPA integrates not only manufacturing and retailing but also suppliers of parts and raw materials, research and development, product planning and promotion, and even logistics.

Adastria has more than 30 domestic and international brand stores, mainly in shop-in-shop format in building shopping centers. As of August 2022, Adastria has 13,502 stores in Japan. Adastria's multi-brand, multi-category business scheme is one of its major features. Adastria is committed to quality and has a strong will to not compromise.

Financial Analysis

Adastria's net income was used as the standard until the fiscal year ending February 2023, before burning off goodwill. Net income will be used as the standard from this fiscal year. The standard dividend payout ratio is 30%, and for the current fiscal year ending February 2024, an interim dividend of 30 yen and a year-end dividend of 35 yen, for a total of 65 yen. Based on the annual dividend of 40 yen in 2021, which is an increase of 5 yen compared to the previous fiscal year ending February 2013, dividends have increased for three consecutive years as profits recover. Moreover, the period of the medium-term management plan ends in February 2026. At the same time, the company announced that the minimum dividend amount would be 65 yen, and there will be no reduction in dividends over the next three years. This shows that the company has confidence in its medium-term management plan and gives an easy-to-understand company that increases dividends when net income increases.

Adastria's PER (price/earnings ratio) is 11.2 times, and its PBR (stock price book value ratio) is 1.77 times. Adastria's sales growth rate is 1.7%, and its operating profit margin is 4.75%. Adastria's growth rate of operating income is 18.1%. Adastria's operating profit per employee is 1.05 million yen, and its ROE (return on equity) is 13.3%.

Stock Price Forecast

Fuel's personal stock price forecast is for Adastria's stock price to rise from 2,316 yen to 2,800 yen. Adastria's recent stock price has been on an upward trend, but in the long term, it has zigzagged between 1,000 yen and 4,000 yen. From a medium- to long-term perspective for domestic apparel, the zigzag in the stock price also shows that the outlook is severe.

Pros and Cons

Pros:

- Adastria is a multi-brand, multi-category business that sells items in a variety of categories, including apparel, bags, shoes, kitchen goods, and furniture.

- Adastria's SPA manufacturing and retail business model is a vertically integrated supply chain model that integrates not only manufacturing and retailing but also suppliers of parts and raw materials, research and development, product planning and promotion, and even logistics.

- Adastria has more than 30 domestic and international brand stores, mainly in shop-in-shop format in building shopping centers.

- Adastria is committed to quality and has a strong will to not compromise.

- Adastria's dividends have increased for three consecutive years as profits recover.

Cons:

- Adastria's stock price has zigzagged between 1,000 yen and 4,000 yen in the long term.

- The zigzag in Adastria's stock price shows that the outlook is severe from a medium- to long-term perspective for domestic apparel.

Highlights

- Adastria is a major casual clothing company that has developed multiple brands mainly for women in their 20's to 30's.

- Adastria's SPA manufacturing and retail business model is a vertically integrated supply chain model that integrates not only manufacturing and retailing but also suppliers of parts and raw materials, research and development, product planning and promotion, and even logistics.

- Adastria's multi-brand, multi-category business scheme is one of its major features.

- Adastria is committed to quality and has a strong will to not compromise.

- Adastria's dividends have increased for three consecutive years as profits recover.

- Fuel's personal stock price forecast is for Adastria's stock price to rise from 2,316 yen to 2,800 yen.

FAQ

Q: What is Adastria's stock price forecast?

A: Fuel's personal stock price forecast is for Adastria's stock price to rise from 2,316 yen to 2,800 yen.

Q: What is Adastria's SPA manufacturing and retail business model?

A: Adastria's SPA manufacturing and retail business model is a vertically integrated supply chain model that integrates not only manufacturing and retailing but also suppliers of parts and raw materials, research and development, product planning and promotion, and even logistics.

Q: What is Adastria's multi-brand, multi-category business scheme?

A: Adastria's multi-brand, multi-category business scheme is one of its major features.

Q: What is Adastria's commitment to quality?

A: Adastria is committed to quality and has a strong will to not compromise.

Q: What is Adastria's dividend payout ratio?

A: The standard dividend payout ratio is 30%, and for the current fiscal year ending February 2024, an interim dividend of 30 yen and a year-end dividend of 35 yen, for a total of 65 yen.

Resources:

- https://www.voc.ai/product/ai-chatbot (AI Chatbot)