Forval Corporation (8275) AI Stock Analysis

• Market Cap: ¥28.56B
• Dividend Yield: 2.51%
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• 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: ¥1,218.00 ▼(-5.58% 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

Low leverage / Stable capital structure

A low debt-to-equity ratio and a high equity ratio provide a durable financial cushion, reducing refinancing risk and interest burden. This capital structure supports resilient operations through cycles, preserves strategic optionality for M&A or capex, and sustains long-term credit access.

Strong profitability and margins

Robust gross, EBIT and EBITDA margins indicate persistent cost discipline and pricing power in services. Sustainable margins drive consistent operating cash flow, enable reinvestment in high-return projects, and create a durable buffer against margin compression in a competitive IT services market.

Solid cash generation and FCF growth

Strong operating cash conversion and significant free cash flow growth enhance financial flexibility over the medium term. Reliable FCF funds dividends, organic investment, and selective M&A without adding leverage, supporting sustainable capital allocation and balance-sheet resilience.

Negative Factors

Sharp EPS contraction

A near-50% EPS decline signals meaningful earnings volatility or non-recurring impacts that can persist into subsequent periods. This undermines confidence in recurring profitability, may constrain dividend growth or buybacks, and complicates forecasting and capital allocation decisions.

Modest revenue growth

Low single-digit revenue growth suggests limited top-line expansion relative to peers in a dynamic IT services sector. Sluggish revenue momentum can cap operating leverage, reduce scope for scaling margins, and limit the company's ability to materially expand market share over the next several quarters.

Limited forward disclosure / guidance

Absence of explicit guidance and empty earnings highlights reduces visibility into management's near-term plans and performance drivers. Limited disclosure hampers investor ability to assess execution risk, making medium-term forecasting and confidence in management signaling more difficult.

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

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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: Neutral

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 1115.60, above the 50-day MA of 1144.58, and above the 200-day MA of 1274.61, indicating a neutral trend. The MACD of -9.64 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, 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	¥42.87B	15.76	―	3.28%	-3.21%	8.89%
4709	72 Outperform	¥30.75B	13.94	―	3.40%	12.64%	30.73%
8275	68 Neutral	¥28.56B	-28.94	―	2.51%	8.88%	2.72%
4725	65 Neutral	¥31.61B	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	¥42.59B	74.72	―	2.77%	-2.93%	-30.16%
4813	46 Neutral	¥23.89B	-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.