Forval Corporation (8275) AI Stock Analysis

• Market Cap: ¥30.35B
• Dividend Yield: 2.51%
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.24
• Revenue Growth: 8.88%
• EPS Growth: 2.72%
• Country: JP
• Employees: 2,367
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 20.62
• 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: ¥1,468.00 ▲(13.80% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.

Cash Flow Management

Efficient cash flow management ensures that the company can sustain operations, invest in growth opportunities, and maintain financial flexibility.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability, reduces risk, and allows for strategic investments and resilience in downturns.

Negative Factors

Earnings Decline

A decline in earnings percentage since the last filing may indicate challenges in maintaining profitability, affecting investor confidence and future growth prospects.

Market Volatility

A beta greater than 1 suggests higher volatility compared to the market, which can lead to increased risk and uncertainty for investors in the company's stock.

Limited Recent Developments

Lack of recent corporate events or strategic initiatives may suggest stagnation in innovation or market expansion, potentially impacting future growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 1199.75, above the 50-day MA of 1218.84, and below the 200-day MA of 1336.40, indicating a bearish trend. The MACD of -10.14 indicates Negative momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 9.42 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	80 Outperform	¥43.75B	15.84	―	3.28%	-3.21%	8.89%
4725	77 Outperform	¥35.05B	10.16	10.34%	4.82%	-3.03%	38.83%
4709	72 Outperform	¥34.24B	13.88	―	3.40%	12.64%	30.73%
8275	68 Neutral	¥30.35B	15.82	―	2.51%	8.88%	2.72%
9742	66 Neutral	¥39.67B	31.74	―	2.77%	-2.93%	-30.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4813	38 Underperform	¥22.67B	-3.51	―	―	25.89%	-285.21%

Forval Corporation Corporate Events

Forval Corporation Reports Mixed Financial Results for First Half of 2025

Forval Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 0.3% compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, reflecting challenges in maintaining profitability. Despite these setbacks, Forval Corporation maintains a stable financial position with an equity ratio of 45.8%, and it forecasts a moderate growth in net sales and profits for the full fiscal year ending March 31, 2026.