VALTES HOLDINGS CO. LTD. (JP:4442)
:4442
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VALTES HOLDINGS CO. LTD.
(4442)
Select Model
Select Model
Rating:63Neutral
Price Target:
¥432.00
▲(0.70% Upside)
Action:Downgraded
Date:05/16/26
The score is anchored by healthy fundamentals—steady multi-year growth and strong recent cash flow—tempered by margin pressure and rising leverage. Technical indicators are meaningfully weak (below major moving averages with negative MACD), which pulls the overall score down despite a reasonable P/E.
Positive Factors
Business model: Software QA services
A focused services model on software QA/testing provides durable demand as software complexity and regulatory needs rise. Project and time-and-materials contracts create recurring revenue streams, utilization leverage, and client stickiness that support stable long-term cash flow.
Negative Factors
Margin compression
Declining margins reduce the company's long-term earnings power and free cash flow potential. If structural (pricing pressure, higher labour or overhead costs), sustained margin compression can erode return on invested capital and limit reinvestment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Business model: Software QA services
A focused services model on software QA/testing provides durable demand as software complexity and regulatory needs rise. Project and time-and-materials contracts create recurring revenue streams, utilization leverage, and client stickiness that support stable long-term cash flow.
Read all positive factors
VALTES HOLDINGS CO. LTD. (4442) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.54B
Dividend Yield0.95%
Average Volume (3M)35.56K
Price to Earnings (P/E)8.3
Beta (1Y)0.87
Revenue Growth10.61%
EPS Growth-1.13%
CountryJP
Employees801
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)32.26
Shares Outstanding21,450,000
10 Day Avg. Volume53,430
30 Day Avg. Volume35,556
Financial Highlights & Ratios
PEG Ratio-12.67
Price to Book (P/B)2.19
Price to Sales (P/S)0.67
P/FCF Ratio9.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)27.8
Revenue Forecast (FY)¥13.00B
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 ...
How the Company Makes Money
The company makes money primarily by selling software quality assurance services delivered by its operating subsidiaries. Revenue is typically generated through contracted projects and ongoing support engagements in which the group provides (1) te...
VALTES HOLDINGS CO. LTD. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.10B | 11.94B | 10.80B | 10.36B | 9.06B | 6.71B |
| Gross Profit | 3.41B | 3.66B | 3.21B | 2.99B | 2.70B | 1.87B |
| EBITDA | 1.25B | 1.21B | 1.17B | 1.02B | 1.09B | 638.86M |
| Net Income | 649.09M | 573.34M | 589.09M | 518.07M | 651.48M | 413.84M |
Balance Sheet | ||||||
| Total Assets | 6.24B | 6.73B | 6.51B | 5.39B | 4.13B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 2.19B | 2.36B | 1.94B | 1.76B | 1.54B | 1.36B |
| Total Debt | 1.78B | 1.52B | 1.61B | 997.22M | 172.75M | 204.02M |
| Total Liabilities | 3.13B | 3.10B | 3.25B | 2.57B | 1.72B | 1.23B |
| Stockholders Equity | 3.11B | 3.63B | 3.26B | 2.82B | 2.41B | 1.71B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 856.27M | 481.11M | 293.57M | 729.10M | 461.95M |
| Operating Cash Flow | 0.00 | 934.84M | 603.23M | 457.63M | 846.96M | 505.34M |
| Investing Cash Flow | 0.00 | -234.09M | -865.66M | -859.53M | -639.67M | -104.26M |
| Financing Cash Flow | 0.00 | -281.45M | 439.16M | 625.08M | -29.44M | -235.61M |
VALTES HOLDINGS CO. LTD. Technical Analysis
Negative
429.00
Price Trends
418.32
Negative
422.95
Negative
429.21
Negative
Market Momentum
-4.55
Positive
40.78
Neutral
7.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4442, the sentiment is Negative. The current price of 429 is above the 20-day moving average (MA) of 410.10, above the 50-day MA of 418.32, and below the 200-day MA of 429.21, indicating a bearish trend. The MACD of -4.55 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 7.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4442.
VALTES HOLDINGS CO. LTD. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥29.91B | 9.69 | ― | 2.93% | 7.86% | 28.33% | |
71 Outperform | ¥21.43B | 10.82 | ― | 1.70% | 15.21% | 12.50% | |
70 Outperform | ¥43.10B | 10.08 | 17.50% | 2.88% | 4.87% | 3.91% | |
64 Neutral | ¥16.46B | 15.75 | ― | 2.36% | -2.06% | 87.60% | |
63 Neutral | ¥8.54B | 8.30 | ― | 0.95% | 10.61% | -1.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | ¥10.54B | -0.86 | ― | 5.03% | -6.49% | -402.49% |
* Technology Sector Average
JP:4442
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VALTES HOLDINGS CO. LTD. Corporate Events
Valtes Holdings Grows Sales but Signals Profit Squeeze for Full Year
Feb 16, 2026
Valtes Holdings reported consolidated net sales of ¥8.7 billion for the nine months ended Dec. 31, 2025, up 10.5% year on year, with operating profit edging up 1.3% to ¥548 million and ordinary profit rising 1.0% to ¥546 million. Pr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.