VALTES HOLDINGS CO. LTD. (4442) AI Stock Analysis

• Market Cap: ¥9.24B
• Dividend Yield: 0.95%
• Average Volume (3M): 35.56K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.59
• Revenue Growth: 9.36%
• EPS Growth: -1.69%
• Country: JP
• Employees: 801
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.44
• Shares Outstanding: 21,450,000
• 10 Day Avg. Volume: 53,430
• 30 Day Avg. Volume: 35,556
• PEG Ratio: 0.91
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥494.00 ▲(15.15% Upside)

The overall stock score of 73 reflects strong financial performance, which is the most significant factor, supported by a solid balance sheet and improving cash flow. Technical analysis indicates some short-term weakness, but with potential bullish momentum. Valuation is fair, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful client acquisition, supporting long-term business sustainability.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, enabling strategic investments and debt reduction, bolstering future growth.

Balance Sheet Health

A solid balance sheet with manageable leverage and strong equity base provides stability and capacity for future expansion.

Negative Factors

Profit Margin Pressure

Relatively low net profit margin may indicate challenges in cost management or pricing power, potentially impacting long-term profitability.

Competitive Market

The competitive nature of the IT services industry could pressure margins and require continuous innovation to maintain market position.

Dependence on Project-Based Revenue

Reliance on project-based revenue can lead to volatility in earnings, necessitating strong client relationships and consistent project acquisition.

VALTES HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

VALTES HOLDINGS CO. LTD. (4442) is a Japanese company primarily engaged in the provision of IT solutions and services, focusing on software development, system integration, and IT consulting. The company operates across various sectors, including finance, manufacturing, and public services, offering a range of products such as cloud services, cybersecurity solutions, and enterprise resource planning (ERP) systems. VALTES aims to enhance operational efficiency and digital transformation for its clients through innovative technology and tailored solutions.

How the Company Makes Money

VALTES HOLDINGS generates revenue through multiple streams, including software licensing fees, system integration services, and ongoing maintenance contracts for IT solutions. The company's revenue model is primarily based on project-based contracts where clients pay for the design, development, and implementation of bespoke software solutions. Additionally, recurring revenue is generated from annual support and maintenance agreements. VALTES also benefits from strategic partnerships with technology providers, which enhance its service offerings and market reach, thus contributing to its overall earnings.

VALTES HOLDINGS CO. LTD. Financial Statement Overview

Summary

VALTES HOLDINGS CO. LTD. displays robust financial health with consistent revenue growth and solid profit margins. The balance sheet is strong, with manageable leverage and effective equity utilization. Cash flow generation is improving, supporting future growth and stability.

Income Statement

VALTES HOLDINGS CO. LTD. demonstrates strong revenue growth with a revenue growth rate of 4.18% from 2024 to 2025. The gross profit margin stands at 29.75%, and the net profit margin is 5.46%, indicating healthy profitability. The EBIT and EBITDA margins are solid at 8.71% and 10.84% respectively, reflecting efficient operations.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.49, indicating manageable leverage. A return on equity of 18.06% illustrates effective use of equity to generate profit. The equity ratio is 50.12%, showing a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a significant increase in free cash flow, growing 63.89% year-over-year, indicating improved cash generation. Operating cash flow to net income ratio is 1.01, suggesting strong cash conversion. Free cash flow to net income ratio is 0.82, showing a healthy conversion of income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.10B	10.80B	10.36B	9.06B	6.71B	5.26B
Gross Profit	3.41B	3.21B	2.99B	2.70B	1.87B	1.43B
EBITDA	1.25B	1.17B	1.02B	1.09B	638.86M	393.58M
Net Income	649.09M	589.09M	518.07M	651.48M	413.84M	246.64M
Balance Sheet
Total Assets	6.24B	6.51B	5.40B	4.09B	2.93B	2.54B
Cash, Cash Equivalents and Short-Term Investments	2.19B	1.94B	1.76B	1.54B	1.36B	1.19B
Total Debt	1.77B	1.61B	997.13M	169.75M	196.69M	223.64M
Total Liabilities	3.13B	3.25B	2.57B	1.68B	1.22B	1.04B
Stockholders Equity	3.11B	3.26B	2.83B	2.41B	1.71B	1.50B
Cash Flow
Free Cash Flow	0.00	481.11M	293.57M	729.10M	461.95M	163.82M
Operating Cash Flow	0.00	603.23M	457.63M	846.96M	505.34M	291.15M
Investing Cash Flow	0.00	-865.66M	-859.53M	-639.67M	-104.26M	-93.02M
Financing Cash Flow	0.00	439.16M	625.08M	-29.44M	-235.61M	-4.96M

VALTES HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 429.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4442, the sentiment is Positive. The current price of 429 is above the 20-day moving average (MA) of 424.15, above the 50-day MA of 428.10, and above the 200-day MA of 428.34, indicating a bullish trend. The MACD of 2.77 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4442.

VALTES HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	80 Outperform	¥8.44B	11.68	―	3.16%	14.02%	2.74%
4356	78 Outperform	¥10.62B	11.42	―	1.61%	-3.26%	34.51%
2391	75 Outperform	¥8.50B	20.18	―	3.47%	-0.94%	-7.43%
3918	74 Outperform	¥12.50B	12.35	―	3.61%	-2.26%	3.37%
4442	73 Outperform	¥9.24B	16.88	―	0.95%	9.36%	-1.69%
4398	68 Neutral	¥6.52B	40.52	―	1.04%	-3.46%	-59.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

VALTES HOLDINGS CO. LTD. Corporate Events

VALTES HOLDINGS Reports Mixed Financial Results for First Half of 2025

VALTES HOLDINGS CO., LTD. reported its consolidated financial results for the six months ended September 30, 2025, showing a year-on-year increase in net sales by 11% to 5,641 million yen. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 12.6%, 14%, and 33.7% respectively. The company also noted a significant change in the scope of consolidation during this period.

The most recent analyst rating on (JP:4442) stock is a Buy with a Yen494.00 price target. To see the full list of analyst forecasts on VALTES HOLDINGS CO. LTD. stock, see the JP:4442 Stock Forecast page.