Forval Corporation (8275) AI Stock Analysis

• Market Cap: ¥28.20B
• Dividend Yield: 2.51%
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 8.88%
• EPS Growth: 2.72%
• Country: JP
• Employees: 2,367
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -10.22
• Shares Outstanding: 27,732,622
• 10 Day Avg. Volume: 7,560
• 30 Day Avg. Volume: 6,896
• PEG Ratio: 2.78
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 9.54
• 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: 68 Neutral
• Price Target: ¥1,207.00 ▼(-6.43% Downside)
• Action: Downgraded Date: 10/01/25
• Date: Action: Downgraded 10/01/25

Forval Corporation's strong financial performance is the primary driver of its overall score, supported by solid revenue and profit growth, a stable capital structure, and efficient cash management. However, technical analysis indicates bearish momentum, which tempers the overall score. Valuation metrics are reasonable, providing a balanced view of the stock's potential.

Positive Factors

Margin Sustainability

Forval's IncomeStatement indicates robust gross profit, healthy EBIT/EBITDA and solid net margins. Sustained margins reflect durable pricing power and cost control, supporting operating leverage and enabling reinvestment or shareholder returns without relying on volatile top-line swings.

Cash Generation / Free Cash Flow

Strong operating cash flow relative to net income and significant free cash flow growth improve financial flexibility. Reliable cash generation funds capex, dividends, and strategic initiatives internally, reducing dependence on external financing and supporting execution over the next several months.

Balance Sheet Strength

A low debt-to-equity ratio and a high equity ratio point to conservative leverage and a stable capital structure. That enhances resilience to economic stress, preserves borrowing capacity for growth or M&A, and gives management flexibility in capital allocation across business cycles.

Negative Factors

Earnings Decline

EPS growth is down roughly 47%, indicating meaningful earnings deterioration. Large negative EPS movement undermines internal funding for growth, may signal margin pressure or one-offs, and can reduce investor confidence, constraining strategic flexibility over the medium term.

Modest Revenue Growth

Revenue growth of about 3.9% is positive but modest for an IT services provider. Limited top-line expansion constrains the company’s ability to scale operating leverage, forcing reliance on margin improvements for profit growth and risking falling behind faster-growing competitors.

Low Market Liquidity

Average 3‑month volume near 9,652 shares indicates limited trading liquidity. Structurally low liquidity can widen transaction costs, deter large institutional allocations, complicate capital raises or M&A execution, and reflect limited analyst coverage, raising execution risk.

Forval Corporation Business Overview & Revenue Model

Company Description

Forval Corporation (8275) is a prominent Japanese company specializing in financial services and investment management. It operates primarily in the asset management sector, providing a range of products and services that include investment advisory, portfolio management, and real estate investment. The company caters to both institutional and individual clients, focusing on delivering tailored financial solutions that align with their clients' investment goals and risk profiles.

How the Company Makes Money

Forval Corporation generates revenue through various channels within its asset management and financial services offerings. The primary revenue stream comes from management fees charged on the assets under management (AUM), which are collected from clients for ongoing investment advisory and portfolio management services. Additionally, the company may earn performance fees based on the success of its investment strategies. Other revenue sources include commissions from brokerage services and fees from real estate transactions. Strategic partnerships with financial institutions and corporations further enhance its service offerings, providing additional avenues for revenue generation through collaborative investment products and services.

Forval Corporation Financial Statement Overview

Summary

Forval Corporation displays a strong financial position with consistent revenue and profit growth. The balance sheet reflects a stable capital structure with low leverage. Cash flow metrics indicate efficient cash management and operational cash generation.

Income Statement

Forval Corporation has demonstrated strong revenue growth with a remarkable increase from the previous year. The gross profit margin stands robustly, indicating efficient cost management. The EBIT and EBITDA margins show healthy operational profitability. Net profit margin also remains solid, reflecting overall profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio, highlighting prudent financial leverage. Return on equity is favorable, indicating effective use of equity capital. The equity ratio suggests a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow to net income ratio is strong, suggesting solid cash generation relative to reported profits. The free cash flow has grown significantly, improving financial flexibility. The free cash flow to net income ratio is favorable, indicating efficient capital management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	72.81B	72.63B	63.53B	59.54B	51.54B	49.79B
Gross Profit	25.45B	25.25B	22.46B	20.36B	19.05B	17.86B
EBITDA	5.62B	6.22B	5.44B	4.45B	4.66B	3.19B
Net Income	2.04B	2.17B	2.01B	1.68B	1.84B	1.36B
Balance Sheet
Total Assets	36.54B	42.13B	40.73B	35.86B	32.50B	31.41B
Cash, Cash Equivalents and Short-Term Investments	9.69B	11.41B	11.93B	11.16B	10.17B	11.06B
Total Debt	2.10B	2.73B	4.54B	2.50B	2.63B	4.05B
Total Liabilities	17.61B	22.43B	22.98B	20.22B	18.13B	18.37B
Stockholders Equity	16.75B	17.54B	16.50B	14.65B	13.45B	12.44B
Cash Flow
Free Cash Flow	3.51B	3.93B	2.24B	2.47B	1.72B	2.24B
Operating Cash Flow	3.68B	4.14B	3.17B	3.28B	2.59B	2.72B
Investing Cash Flow	-1.28B	-1.36B	-1.06B	-912.71M	-912.68M	-712.29M
Financing Cash Flow	-2.56B	-3.31B	-1.45B	-1.39B	-2.67B	-845.16M

Forval Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1290.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8275, the sentiment is Negative. The current price of 1290 is above the 20-day moving average (MA) of 1118.75, above the 50-day MA of 1148.76, and above the 200-day MA of 1277.88, indicating a bearish trend. The MACD of -11.75 indicates Negative momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 7.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8275.

Forval Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	81 Outperform	¥43.23B	15.76	―	3.28%	-3.21%	8.89%
4709	72 Outperform	¥30.89B	13.94	―	3.40%	12.64%	30.73%
8275	68 Neutral	¥28.20B	-28.94	―	2.51%	8.88%	2.72%
4725	65 Neutral	¥31.83B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	58 Neutral	¥42.53B	74.72	―	2.77%	-2.93%	-30.16%
4813	46 Neutral	¥23.70B	-55.02	―	―	25.89%	-285.21%

Forval Corporation Corporate Events

Forval Posts Sharp Profit Drop but Lifts Dividend Outlook Amid Modest Recovery Forecast

Forval Corporation reported consolidated net sales of ¥51.56 billion for the nine months ended December 31, 2025, a slight 0.8% decline year on year, while operating profit fell 10.3% to ¥2.10 billion and profit attributable to owners of parent plunged 75.5% to ¥335 million. Despite this earnings deterioration, the balance sheet strengthened modestly, with total assets at ¥38.63 billion and the equity ratio improving to 45.3% from 41.6% at the prior fiscal year-end.

The company maintained its interim dividend at zero but projects a year-end dividend of ¥31, up from ¥30 in the previous fiscal year, signaling a continued commitment to shareholder returns even amid profit pressure. For the full year to March 31, 2026, Forval forecasts a recovery in top-line momentum, targeting net sales of ¥76.0 billion and operating profit of ¥4.10 billion, though full-year profit attributable to owners of parent is expected to drop 35.4% to ¥1.40 billion, suggesting ongoing cost or margin challenges that investors will watch closely.

The most recent analyst rating on (JP:8275) stock is a Hold with a Yen1235.00 price target. To see the full list of analyst forecasts on Forval Corporation stock, see the JP:8275 Stock Forecast page.