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

• Market Cap: ¥9.00B
• Dividend Yield: 0.94%
• Average Volume (3M): 37.52K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.51
• Revenue Growth: 4.18%
• EPS Growth: 15.01%
• Country: JP
• Employees: 801
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 6.82
• Shares Outstanding: 21,450,000
• 10 Day Avg. Volume: 48,550
• 30 Day Avg. Volume: 37,523
• PEG Ratio: 0.58
• Price to Book (P/B): 9.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.58
• 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: 71 Outperform
• Price Target: ¥473.00 ▲(11.56%Upside)

VALTES HOLDINGS CO. LTD. achieves a strong overall score, primarily driven by its robust financial performance, which indicates solid growth and efficient operations. Technical analysis suggests stable market conditions, while valuation metrics show a fair market valuation. The lack of earnings call and corporate events data means these factors did not influence the score.

VALTES HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

VALTES HOLDINGS CO., LTD. operates primarily in the software testing and quality assurance sectors. The company offers a range of services aimed at ensuring the reliability, functionality, and performance of software applications. Its core services include manual and automated testing, security testing, and consulting services related to software quality assurance. VALTES serves a diverse range of industries, including information technology, telecommunications, and consumer electronics.

How the Company Makes Money

VALTES HOLDINGS CO., LTD. generates revenue primarily through its service offerings in software testing and quality assurance. The company charges its clients for conducting thorough testing processes, which may include manual testing, automated testing, and security assessments. Additionally, VALTES provides consulting services to help organizations enhance their software development processes and improve product quality. Key revenue streams for the company include fees from these services, which are often contracted on a project basis or through long-term engagements with clients. Partnerships with technology firms and a strong reputation in the industry contribute to VALTES' ability to secure new contracts and maintain a steady flow of income.

VALTES HOLDINGS CO. LTD. Financial Statement Overview

Summary

VALTES HOLDINGS CO. LTD. demonstrates robust financial health with strong revenue growth, solid profit margins, and a healthy balance sheet. Cash flow generation is improving significantly, 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.39B	10.80B	10.36B	9.06B	6.71B	5.26B
Gross Profit	3.04B	3.21B	2.99B	2.70B	1.87B	1.43B
EBITDA	1.09B	1.17B	1.02B	1.09B	638.86M	393.58M
Net Income	436.62M	589.09M	518.07M	651.48M	413.84M	246.64M
Balance Sheet
Total Assets	6.16B	6.51B	5.40B	4.09B	2.93B	2.54B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.94B	1.76B	1.54B	1.36B	1.19B
Total Debt	1.64B	1.61B	997.13M	169.75M	196.69M	223.64M
Total Liabilities	3.10B	3.25B	2.57B	1.68B	1.22B	1.04B
Stockholders Equity	3.06B	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	592.77M	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	449.61M	625.08M	-29.44M	-235.61M	-4.96M

VALTES HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 424.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 424 is above the 20-day moving average (MA) of 414.30, above the 50-day MA of 418.44, and below the 200-day MA of 430.61, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 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
2391	80 Outperform	¥8.50B	19.17		3.35%	1.49%	-2.81%
2332	76 Outperform	¥7.41B	9.97		3.50%	5.00%	10.16%
4356	76 Outperform	¥8.86B	11.33		1.93%	5.64%	1.34%
3918	74 Outperform	¥10.57B	21.72		4.66%	-6.79%	-1.31%
4442	71 Outperform	¥9.00B	14.51		0.94%	4.18%	15.01%
4398	69 Neutral	¥5.84B	30.19		0.77%	-3.90%	-63.64%
Sector *	57 Neutral	$1.15B	27.35	-27.06%	10.34%	10.83%	-5.57%

VALTES HOLDINGS CO. LTD. Corporate Events

VALTES HOLDINGS Reports Strong Financial Performance Amid Future Challenges

VALTES HOLDINGS CO., LTD. reported a 4.2% increase in net sales for the fiscal year ending March 31, 2025, reaching 10,795 million yen. The company also saw a significant rise in operating profit by 12.2% and ordinary profit by 11.3%, indicating a strong financial performance. However, the forecast for the next fiscal year predicts a decrease in profits despite an expected increase in net sales, suggesting potential challenges in maintaining profit margins.