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

• Market Cap: ¥9.77B
• Dividend Yield: 0.87%
• Average Volume (3M): 61.66K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.54
• Revenue Growth: 7.43%
• EPS Growth: 44.57%
• Country: JP
• Employees: 801
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.68
• Shares Outstanding: 21,450,000
• 10 Day Avg. Volume: 26,890
• 30 Day Avg. Volume: 61,660
• 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

• Rating: 72 Outperform
• Price Target: ¥503.00 ▲(17.25% Upside)

VALTES HOLDINGS CO. LTD. scores well due to its strong financial performance, characterized by solid revenue growth and profitability. Technical analysis shows a positive trend, though momentum indicators are mixed. The valuation is reasonable, with a fair P/E ratio and modest dividend yield.

VALTES HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Valtes Co., Ltd. offers testing services to products and processes. The company provides software and content testing, and educational consulting services. It offers testing services for software, Web and smart phone applications, and social games. The company also provides digital broadcasting, functional operation, stream reception, digital broadcast receiver record, and multimedia broadcast testing services; and test stream creation and sales, test center, equipment, and device services for digital broadcast receivers. In addition, it offers testing services for digital multifunction office machines and digital cameras. The company was founded in 2004 and is headquartered in Osaka, Japan.

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	1.19B	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: Positive
• 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 below the 20-day moving average (MA) of 451.75, below the 50-day MA of 448.24, and below the 200-day MA of 436.04, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 79.07 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	¥8.16B	11.19	―	3.10%	9.60%	2.11%
2391	80 Outperform	¥8.25B	20.60	―	3.49%	-0.32%	-12.51%
4356	76 Outperform	¥11.59B	14.47	―	1.53%	1.03%	8.80%
3918	73 Outperform	¥12.01B	10.49	―	3.51%	-7.36%	35.89%
4442	72 Outperform	¥9.77B	14.25	―	0.87%	7.43%	44.57%
4398	65 Neutral	¥6.19B	42.63	―	1.08%	-5.47%	-68.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

VALTES HOLDINGS CO. LTD. Corporate Events

VALTES HOLDINGS CO., LTD. Reports Strong Q1 Financial Performance

VALTES HOLDINGS CO., LTD. reported a significant improvement in its financial performance for the three months ended June 30, 2025, with net sales increasing by 12.7% year-on-year. The company achieved a net profit attributable to owners of the parent of 53 million yen, marking a turnaround from the previous year’s loss. Despite a slight decrease in total assets and net assets, the equity ratio remained stable. The company forecasts continued growth in net sales for the full year ending March 31, 2026, although operating and ordinary profits are expected to decline.