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Valqua Ltd. (JP:7995)
:7995
Japanese Market
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Valqua Ltd. (7995) AI Stock Analysis

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JP:7995

Valqua Ltd.

(7995)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥7,187.00
▲(97.72% Upside)
Action:Reiterated
Date:06/09/26
The score is driven primarily by stable profitability and a conservative balance sheet, tempered by declining revenue and weak free-cash-flow conversion. Technicals are supportive with strong trend momentum, while valuation is somewhat elevated (P/E ~26) with only a modest dividend yield (~2%).
Positive Factors
Resilient margins
Sustained high gross and recovering operating margins indicate durable pricing power and effective cost control in engineered sealing products. For an industrial manufacturer, margins near these levels create a buffer against cyclical demand and support long-term reinvestment and profitability.
Negative Factors
Declining revenue trend
A multi-year top-line decline reduces scale benefits and can erode bargaining power with suppliers and customers. Persisting revenue contraction makes it harder to sustain investment in R&D and engineering services, threatening medium-term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient margins
Sustained high gross and recovering operating margins indicate durable pricing power and effective cost control in engineered sealing products. For an industrial manufacturer, margins near these levels create a buffer against cyclical demand and support long-term reinvestment and profitability.
Read all positive factors

Valqua Ltd. (7995) vs. iShares MSCI Japan ETF (EWJ)

Valqua Ltd. Business Overview & Revenue Model

Company Description
Based in Tokyo, Japan, Valqua, Ltd., founded in 1927 and known as Nippon Valqua Industries until its October 2018 rebranding, is a global entity specializing in the development, production, fabrication, and distribution of advanced materials. Thei...
How the Company Makes Money
Valqua makes money primarily by selling industrial sealing and fluid-handling products and related engineered solutions to corporate customers. Key revenue streams include (1) product sales of sealing materials (e.g., gaskets, gland packings, and ...

Valqua Ltd. Financial Statement Overview

Summary
Profitability and balance-sheet strength are supportive (gross margin up to ~42.7% and moderate leverage with debt-to-equity ~0.32), but revenue has declined across 2024–2026 and free-cash-flow conversion has been weak and inconsistent (FCF negative in 2024–2025, only slightly positive in 2026).
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
46
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue58.56B60.11B61.74B62.18B53.17B
Gross Profit24.98B23.84B25.31B25.74B21.50B
EBITDA9.96B9.23B9.90B11.55B9.68B
Net Income5.13B4.68B4.91B6.75B4.84B
Balance Sheet
Total Assets83.41B79.00B74.91B68.95B60.51B
Cash, Cash Equivalents and Short-Term Investments7.92B7.97B6.39B8.19B8.14B
Total Debt16.99B14.51B11.01B6.72B5.67B
Total Liabilities29.88B28.47B26.17B23.27B19.53B
Stockholders Equity53.48B50.49B48.22B45.20B39.73B
Cash Flow
Free Cash Flow572.00M-1.56B-3.06B1.72B2.08B
Operating Cash Flow5.03B4.87B1.76B4.40B5.23B
Investing Cash Flow-4.36B-4.89B-4.75B-1.33B-3.69B
Financing Cash Flow-902.00M1.57B923.00M-3.40B-1.81B

Valqua Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3635.00
Price Trends
50DMA
7284.20
Negative
100DMA
6141.92
Positive
200DMA
5037.87
Positive
Market Momentum
MACD
-205.91
Positive
RSI
39.45
Neutral
STOCH
15.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7995, the sentiment is Neutral. The current price of 3635 is below the 20-day moving average (MA) of 7362.00, below the 50-day MA of 7284.20, and below the 200-day MA of 5037.87, indicating a neutral trend. The MACD of -205.91 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 15.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7995.

Valqua Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥28.62B14.420.72%
79
Outperform
¥273.29B8.868.91%3.85%5.98%39.06%
78
Outperform
¥94.20B8.733.82%3.17%655.04%
73
Outperform
¥228.64B26.102.50%2.57%9.14%
71
Outperform
¥109.79B15.024.64%1.98%-17.69%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥116.36B23.293.77%-2.59%9.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7995
Valqua Ltd.
6,780.00
3,777.55
125.82%
JP:6371
Tsubakimoto Chain Co.
2,622.00
840.96
47.22%
JP:5192
Mitsuboshi Belting Ltd.
3,955.00
702.90
21.61%
JP:5195
Bando Chemical Industries Ltd.
2,240.00
588.79
35.66%
JP:6490
Nippon Pillar Packing Co., Ltd.
10,130.00
6,420.82
173.11%
JP:6492
Okano Valve Mfg. Co., Ltd.
16,900.00
11,038.49
188.32%

Valqua Ltd. Corporate Events

Valqua Grants ¥106 Million in Restricted Stock to Directors and Executives
Jun 24, 2026
Valqua has approved the disposal of 13,700 treasury shares as restricted stock compensation for three internal directors and 15 executive officers, valued at about ¥106 million and priced at ¥7,740 per share. The shares, subject to a 30-...
Valqua Corrects SG&A Breakdown Without Affecting Profits
May 19, 2026
Valqua Ltd. has announced a correction to its consolidated financial results for the fiscal year ended March 31, 2026, after identifying errors in the breakdown of selling, general and administrative expenses. The revisions adjust specific line it...
Valqua Boosts Profitability and Hikes Dividend on Strong FY2026 Results
May 15, 2026
Valqua reported consolidated net sales of ¥58.6 billion for the year ended March 31, 2026, down 2.6% year on year, but significantly improved profitability with operating profit rising 25.3% to ¥7.1 billion and profit attributable to own...
Valqua Swings to Stronger Profits on Margin Gains and Cost Controls
May 15, 2026
Valqua has reported a year-on-year improvement in its non-consolidated results for the fiscal year ended March 31, 2026, with net sales rising to ¥40.3 billion and earnings per share increasing to ¥388.27. Operating profit swung from a l...
Valqua Reveals ¥224 Million Embezzlement but Keeps Earnings Outlook Intact
Apr 22, 2026
Valqua has disclosed that a former employee in its Finance and Accounting Division misappropriated approximately 224 million yen over more than a decade through unauthorized withdrawals and falsified records. The misconduct was uncovered during a ...
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.Date of analysis: Jun 09, 2026