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

• Market Cap: ¥9.39B
• Dividend Yield: 0.85%
• Average Volume (3M): 68.16K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.55
• 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: 109,920
• 30 Day Avg. Volume: 68,156
• PEG Ratio: 0.92
• 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: ¥501.00
• Price Target Upside: 6.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥497.00 ▲(5.52% Upside)

VALTES HOLDINGS CO. LTD. demonstrates strong financial performance with solid profit margins and improving cash flow, which are the most significant factors in the overall score. Technical analysis shows moderate signals, with the stock trading above key moving averages, indicating potential support. The valuation is reasonable, with a fair P/E ratio and modest dividend yield. Earnings call and corporate events were not factored into the score due to lack of data.

VALTES HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

VALTES HOLDINGS CO., LTD. is a Japanese company specializing in software testing and quality assurance services. It operates primarily in the IT sector, providing a range of services including software quality assurance, cybersecurity, and IT consulting. The company is focused on ensuring the reliability and performance of software applications across various industries, helping clients to enhance their software quality and reduce associated risks.

How the Company Makes Money

VALTES HOLDINGS CO., LTD. generates revenue through its comprehensive suite of software testing and quality assurance services. The company earns money by offering its testing services to businesses that require robust and reliable software systems. Its revenue streams include fees for manual and automated testing services, cybersecurity assessments, and IT consulting services. Additionally, VALTES may engage in partnerships with other technology firms to expand its service offerings and reach a broader client base. The company's expertise in software quality assurance allows it to charge for specialized testing services that are critical for maintaining software integrity and performance, thereby contributing significantly to its 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	10.80B	10.80B	10.36B	9.06B	6.71B	5.26B
Gross Profit	3.21B	3.21B	2.99B	2.70B	1.87B	1.43B
EBITDA	1.17B	1.17B	1.02B	1.09B	638.86M	393.58M
Net Income	589.09M	589.09M	518.07M	651.48M	413.84M	246.64M
Balance Sheet
Total Assets	6.51B	6.51B	5.40B	4.09B	2.93B	2.54B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.94B	1.76B	1.54B	1.36B	1.19B
Total Debt	1.61B	1.61B	997.13M	169.75M	196.69M	223.64M
Total Liabilities	3.25B	3.25B	2.57B	1.68B	1.22B	1.04B
Stockholders Equity	3.26B	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	439.16M	625.08M	-29.44M	-235.61M	-4.96M

VALTES HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 471.00
• 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 471 is above the 20-day moving average (MA) of 457.85, above the 50-day MA of 442.48, and above the 200-day MA of 435.62, indicating a bullish trend. The MACD of 6.87 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 71.04 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	¥8.34B	20.76	―	3.46%	-0.32%	-12.51%
2332	76 Outperform	¥7.85B	10.67	10.58%	3.24%	9.60%	2.11%
4356	76 Outperform	¥9.93B	12.77	―	1.73%	1.03%	8.80%
4442	75 Outperform	¥9.39B	14.59	―	0.85%	7.43%	44.57%
3918	74 Outperform	¥11.72B	10.33	9.28%	3.70%	-7.36%	35.89%
4398	57 Neutral	¥5.62B	39.73	6.77%	1.20%	-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 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.