Financial Review: Fast Retailing (FRCOY) versus Its Rivals

Fast Retailing (OTCMKTS:FRCOY) is one of 39 publicly-traded companies in the “Apparel Retail” industry, but how does it weigh in compared to its peers? We will compare Fast Retailing to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Institutional and Insider Ownership

0.0% of Fast Retailing shares are held by institutional investors. Comparatively, 51.6% of shares of all “Apparel Retail” companies are held by institutional investors. 22.3% of shares of all “Apparel Retail” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Fast Retailing pays an annual dividend of $0.13 per share and has a dividend yield of 0.6%. Fast Retailing pays out 0.1% of its earnings in the form of a dividend. As a group, “Apparel Retail” companies pay a dividend yield of 3.8% and pay out 36.9% of their earnings in the form of a dividend.

Profitability

This table compares Fast Retailing and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fast Retailing	N/A	N/A	N/A
Fast Retailing Competitors	2.31%	15.32%	6.84%

Earnings and Valuation

This table compares Fast Retailing and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fast Retailing	N/A	N/A	0.23
Fast Retailing Competitors	$3.49 billion	$215.91 million	356.82

Fast Retailing’s peers have higher revenue and earnings than Fast Retailing. Fast Retailing is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Fast Retailing and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fast Retailing	0	0	1	0	3.00
Fast Retailing Competitors	190	1090	1710	27	2.52

As a group, “Apparel Retail” companies have a potential downside of 0.80%. Given Fast Retailing’s peers higher possible upside, analysts clearly believe Fast Retailing has less favorable growth aspects than its peers.

Summary

Fast Retailing peers beat Fast Retailing on 10 of the 13 factors compared.

Fast Retailing Company Profile

Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through four segments: UNIQLO Japan, UNIQLO International, GU, and Global Brands. It manufactures and retails clothing for men, women, children, and babies, and other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.