Miyairi Valve Mfg.Co., Ltd. (6495) AI Stock Analysis

• Market Cap: ¥8.06B
• Dividend Yield: 1.65%
• Average Volume (3M): 42.57K
• Price to Earnings (P/E): 134.8
• Beta (1Y): 0.76
• Revenue Growth: 3.96%
• EPS Growth: N/A
• Country: JP
• Employees: 226
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.15
• Shares Outstanding: 48,849,937
• 10 Day Avg. Volume: 39,580
• 30 Day Avg. Volume: 42,573
• PEG Ratio: 0.44
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -9.67
• 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: 54 Neutral
• Price Target: ¥164.00 ▲(19.71% Upside)

The score is held back primarily by weakening financial performance (negative net income and declining free cash flow) and a very expensive valuation (high P/E with modest yield). Strong technical momentum helps, but overbought indicators raise near-term risk.

Positive Factors

Diversified revenue model & after-sales

Miyairi's mix of direct sales, distributor channels, custom manufacturing and after-sales/maintenance generates both project and recurring revenue. This reduces exposure to single buyers, improves customer retention, and supports more predictable cash flows across industry cycles.

Leading market position across industries

Serving multiple capital-intensive end markets gives Miyairi demand diversification and access to long-lived infrastructure projects. The technical nature of industrial valves creates high entry barriers, supporting customer stickiness, long-term contracts, and sustained order visibility.

Moderate leverage and stable equity ratio

A moderate debt profile and stable equity ratio suggest financial flexibility to fund operations and capex without excessive refinancing risk. When combined with positive operating cash flow, this balance-sheet position supports medium-term investment and operational resilience.

Negative Factors

Negative net income and margin decline

The shift to negative net income alongside contracting gross and net margins indicates structural pressure on profitability. Persistent margin erosion undermines retained earnings, limits reinvestment in product development or capacity, and weakens sustainable return prospects.

Deteriorating free cash flow

A decline in free cash flow, despite positive operating cash flow, points to higher capex or working capital absorption. Lower FCF constrains debt reduction, dividends, and strategic investment, and may force external financing or austerity that hampers long-term growth options.

Declining equity and falling ROE

Reduced stockholders' equity and lower ROE signal erosion of shareholder value and weaker capital efficiency. This can increase cost of capital, impair the firm's ability to raise equity, and pressure long-term shareholder returns unless profitability and equity are rebuilt.

Miyairi Valve Mfg.Co., Ltd. Business Overview & Revenue Model

Company Description

Miyairi Valve Mfg. Co., Ltd. engages in the manufacture and sale of various valves in Japan. The company offers brass products, such as LP gas cylinder, screw-end globe, filling, screw-end ball, and safety valves, as well as couplings and valves for bulk system. It also offers steel products, including globe, Y-shaped, ball, check, safety, filling, and emergency shut-off valves. In addition, the company provides strainers; level indicators, manifold distribution systems, and other products. It provides its valves for various applications, such as LP gas cylinders, LPG supplying lines, LPG filling devices, bulk storage tanks, gas transportation, cryogenic valve for LNG, and storage tanks and piping. Miyairi Valve Mfg. Co., Ltd. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Miyairi Valve generates revenue through the sale of its industrial valves and components, which are distributed to various sectors that require reliable fluid control solutions. The company’s revenue model is primarily based on direct sales to end-users and distributors, complemented by custom manufacturing services for specialized applications. Key revenue streams include bulk orders from large industrial clients, long-term contracts with governmental and municipal projects, and partnerships with global distributors. Additionally, Miyairi Valve benefits from after-sales services and maintenance contracts, which provide a steady income stream and enhance customer loyalty.

Miyairi Valve Mfg.Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: profitability has weakened with negative net income and declining gross/net margins, and free cash flow has deteriorated despite positive operating cash flow. Leverage is moderate, but declining equity and ROE signal reduced returns for shareholders.

Income Statement

The company exhibits a fluctuating revenue trend with recent declines in gross and net profit margins. Despite experiencing revenue growth in the past, the current period shows challenges with a negative net income impacting profitability metrics. While EBITDA margins remain positive, the decline in EBIT margins suggests operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, a decline in stockholders' equity raises concerns. The equity ratio remains stable, suggesting the company maintains a reasonable level of equity relative to its assets, but the decrease in ROE indicates reduced profitability on shareholder investment.

Cash Flow

The cash flow statement reveals a downturn in free cash flow, impacting the company's liquidity. While operating cash flow remains positive, contributing to some stability, the negative free cash flow growth highlights cash management challenges. The ratios of operating and free cash flow to net income are strained due to recent net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.79B	6.16B	6.33B	5.39B	4.65B
Gross Profit	1.02B	1.17B	1.19B	844.43M	765.28M
EBITDA	260.96M	452.06M	484.09M	262.36M	290.06M
Net Income	-74.85M	176.82M	233.26M	40.68M	45.20M
Balance Sheet
Total Assets	8.90B	8.65B	8.14B	8.18B	8.30B
Cash, Cash Equivalents and Short-Term Investments	436.80M	481.21M	377.01M	281.08M	291.34M
Total Debt	2.60B	2.12B	1.86B	2.31B	2.64B
Total Liabilities	4.92B	4.47B	4.06B	4.29B	4.43B
Stockholders Equity	3.98B	4.18B	4.08B	3.88B	3.86B
Cash Flow
Free Cash Flow	-488.18M	170.20M	652.77M	465.06M	341.98M
Operating Cash Flow	104.11M	435.07M	825.37M	534.53M	373.11M
Investing Cash Flow	-585.44M	-276.85M	-175.84M	-80.19M	-15.98M
Financing Cash Flow	436.92M	-54.01M	-573.61M	-464.61M	-264.75M

Miyairi Valve Mfg.Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6495, the sentiment is Positive. The current price of 137 is below the 20-day moving average (MA) of 169.90, below the 50-day MA of 141.48, and above the 200-day MA of 120.22, indicating a bullish trend. The MACD of 8.51 indicates Positive momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 46.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6495.

Miyairi Valve Mfg.Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6490	79 Outperform	¥152.50B	17.73	―	2.50%	-2.46%	-10.72%
6498	72 Outperform	¥174.58B	15.10	10.44%	2.77%	2.74%	7.86%
6486	70 Outperform	¥152.04B	20.25	―	3.88%	1.70%	18.50%
6496	69 Neutral	¥23.50B	14.72	―	1.82%	34.70%	-8.44%
6492	65 Neutral	¥11.64B	11.13	―	0.72%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	54 Neutral	¥8.06B	134.84	―	1.65%	3.96%	―