Valqua Ltd. (JP:7995)
:7995
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Valqua Ltd.
(7995)
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Rating:67Neutral
Price Target:
¥5,413.00
▲(48.91% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by mixed financial performance: solid margins and a strong equity base are offset by declining revenue, weakening EBIT/ROE, and negative free cash flow. Technicals support an uptrend but overbought signals raise near-term risk, while valuation and dividend yield are relatively supportive.
Positive Factors
High gross margins
Valqua's gross margin of ~39.7% and positive net margins indicate durable product-level profitability from engineered sealing solutions. High margins reflect pricing power and technical differentiation that support cash generation and reinvestment capacity over the medium term.
Negative Factors
Declining revenue trend
A year-over-year revenue decline signals either weaker end-market demand or market-share pressure. Sustained top-line contraction can erode operating leverage, constrain investment in R&D/sales, and make it harder to sustain margins and long-term growth trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Valqua's gross margin of ~39.7% and positive net margins indicate durable product-level profitability from engineered sealing solutions. High margins reflect pricing power and technical differentiation that support cash generation and reinvestment capacity over the medium term.
Read all positive factors
Valqua Ltd. (7995) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥93.90B
Dividend Yield3.77%
Average Volume (3M)39.90K
Price to Earnings (P/E)17.1
Beta (1Y)0.95
Revenue Growth-5.87%
EPS Growth24.10%
CountryJP
Employees1,670
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)59.47
Shares Outstanding18,688,732
10 Day Avg. Volume35,670
30 Day Avg. Volume39,903
Financial Highlights & Ratios
PEG Ratio-2.39
Price to Book (P/B)1.08
Price to Sales (P/S)0.91
P/FCF Ratio-35.04
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)362.67
Revenue Forecast (FY)¥64.37B
Valqua Ltd. Business Overview & Revenue Model
Company Description
Valqua, Ltd. designs, manufactures, processes, and sells fiber, fluorocarbon resin, high-functional rubber, and other materials in Japan and internationally. The company provides various seal products, including soft gaskets, metallic/semi-metalli...
How the Company Makes Money
Valqua Ltd. generates revenue primarily through the sale of its sealing products and fluid control solutions to various industries, including manufacturing, automotive, and energy. The company utilizes a direct sales model, supplemented by a netwo...
Valqua Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.83B | 60.11B | 61.74B | 62.18B | 53.17B | 44.72B |
| Gross Profit | 23.81B | 23.84B | 25.31B | 25.74B | 21.50B | 17.52B |
| EBITDA | 8.95B | 9.23B | 9.90B | 11.55B | 9.68B | 7.04B |
| Net Income | 4.64B | 4.68B | 4.91B | 6.75B | 4.84B | 3.09B |
Balance Sheet | ||||||
| Total Assets | 77.02B | 79.00B | 74.91B | 68.95B | 60.51B | 52.84B |
| Cash, Cash Equivalents and Short-Term Investments | 7.26B | 7.97B | 6.39B | 8.19B | 8.14B | 8.10B |
| Total Debt | 13.54B | 14.51B | 11.01B | 6.72B | 5.67B | 4.68B |
| Total Liabilities | 27.39B | 28.47B | 26.17B | 23.27B | 19.53B | 15.56B |
| Stockholders Equity | 49.59B | 50.49B | 48.22B | 45.20B | 39.73B | 35.65B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.56B | -3.06B | 1.72B | 2.08B | 907.00M |
| Operating Cash Flow | 0.00 | 4.87B | 1.76B | 4.40B | 5.23B | 4.59B |
| Investing Cash Flow | 0.00 | -4.89B | -4.75B | -1.33B | -3.69B | -2.32B |
| Financing Cash Flow | 0.00 | 1.57B | 923.00M | -3.40B | -1.81B | -803.00M |
Valqua Ltd. Technical Analysis
Positive
3635.00
Price Trends
4729.96
Positive
4359.78
Positive
3900.60
Positive
Market Momentum
102.04
Negative
63.62
Neutral
94.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7995, the sentiment is Positive. The current price of 3635 is below the 20-day moving average (MA) of 4794.87, below the 50-day MA of 4729.96, and below the 200-day MA of 3900.60, indicating a bullish trend. The MACD of 102.04 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 94.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7995.
Valqua Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥19.74B | 7.97 | ― | 0.72% | 6.51% | 3.68% | |
81 Outperform | ¥256.39B | 9.64 | 8.91% | 3.85% | 1.48% | 8.86% | |
78 Outperform | ¥112.14B | 15.71 | ― | 4.64% | 3.99% | -28.28% | |
77 Outperform | ¥90.37B | 8.96 | ― | 3.82% | 3.68% | -46.19% | |
76 Outperform | ¥200.50B | 11.03 | ― | 2.50% | -2.46% | -10.72% | |
67 Neutral | ¥93.90B | 17.07 | ― | 3.77% | -5.87% | 24.10% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Valqua Ltd. Corporate Events
Valqua Trims Sales Outlook but Reaffirms Profit Targets for FY2026
Feb 4, 2026
Valqua cut its fiscal 2026 net sales outlook by 6.5% to ¥58 billion after softer-than-planned demand in its High Performance Plastics Products Business, though it kept operating, ordinary, and net income forecasts unchanged, indicating cost d...
Valqua lifts profits despite lower sales and reaffirms FY2025 outlook
Feb 4, 2026
For the nine months to 31 December 2025, Valqua’s net sales slipped 6% to ¥42.3 billion as weaker demand offset gains from a newly consolidated subsidiary, yet operating profit jumped 15.7% to ¥4.89 billion and net inco...
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.