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

• Market Cap: ¥11.04B
• Dividend Yield: 1.65%
• Average Volume (3M): 42.57K
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.84
• Revenue Growth: 3.96%
• EPS Growth: N/A
• Country: JP
• Employees: 226
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.81
• 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: 52 Neutral
• Price Target: ¥207.00 ▲(51.09% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is primarily held back by weak financial performance signals (profitability decline, recent net loss, and deteriorating free cash flow). Valuation is also unfavorable due to a high P/E with a modest dividend yield. Technicals are mixed, with near-term weakness but a still-supportive longer-term trend structure.

Positive Factors

Aftermarket & project demand

Recurring aftermarket sales and order-based project work create durable baseline demand for valves and parts. Replacement cycles and project specifications reduce reliance on one-time sales, supporting steadier revenue and predictable production planning and inventory turnover over the medium term.

Positive operating cash flow

Sustained positive operating cash flow indicates the core business generates cash from operations even with profit pressure. This provides breathing room to fund working capital, maintenance capex or incremental investments without immediate reliance on new financing, enhancing durability.

Moderate leverage / stable equity ratio

A moderate debt load and stable equity ratio imply manageable leverage and lower refinancing vulnerability. That capital structure allows the company to access credit if needed, finance project commitments and absorb demand cyclicality without excessive interest burden, supporting continuity.

Negative Factors

Declining profitability

Eroding gross and net margins and recent net losses signal deteriorating pricing power or rising input and operating costs. Persistent margin contraction undermines the company’s ability to convert sales into sustainable profits, weakening reinvestment capacity and long-term competitiveness.

Weakening free cash flow

Declining free cash flow constrains discretionary spending and the ability to deleverage or return capital to shareholders. Even with positive operating cash flow, weaker free cash flow raises funding needs for capex and working capital, increasing reliance on external financing in adverse cycles.

Eroding equity and ROE

Falling shareholders' equity and reduced ROE reflect accumulated losses or capital erosion, shrinking the balance sheet buffer. Lower capital efficiency limits capacity to absorb shocks, raises leverage metrics over time, and can restrict strategic investments or dividend policy flexibility.

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

Income statement performance is pressured by declining gross/net margins and a recent net loss, suggesting profitability and efficiency challenges despite positive EBITDA. The balance sheet shows moderate leverage and a stable equity ratio, but declining equity and weaker ROE raise risk. Cash flow is a key drag with weaker free cash flow and strained cash-flow-to-earnings metrics due to losses.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 137.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6495, the sentiment is Neutral. The current price of 137 is below the 20-day moving average (MA) of 253.35, below the 50-day MA of 198.98, and above the 200-day MA of 136.02, indicating a neutral trend. The MACD of 13.92 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 4.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6488	79 Outperform	¥12.03B	10.27	―	2.82%	7.10%	18.03%
6492	77 Outperform	¥17.96B	7.97	―	0.72%	6.51%	3.68%
6498	72 Outperform	¥175.45B	13.19	10.44%	2.77%	2.74%	7.86%
6376	70 Outperform	¥144.14B	7.70	8.17%	2.04%	1.48%	58.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6393	60 Neutral	¥13.15B	10.99	―	6.70%	7.96%	43.37%
6495	52 Neutral	¥11.04B	42.22	―	1.65%	3.96%	―