Qualtec Co.,Ltd. (9165) AI Stock Analysis

• Market Cap: ¥3.26B
• Dividend Yield: 2.73%
• Average Volume (3M): 12.88K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.35
• Revenue Growth: 10.65%
• EPS Growth: -3.37%
• Country: JP
• Employees: 242
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): N/A
• Shares Outstanding: 2,350,000
• 10 Day Avg. Volume: 8,040
• 30 Day Avg. Volume: 12,880
• PEG Ratio: -0.76
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -14.66
• 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: 64 Neutral
• Price Target: ¥1,563.00 ▲(13.67% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

The overall stock score of 64 reflects strong financial performance driven by revenue growth and a solid balance sheet. However, challenges in profitability and cash flow management weigh on the score. Technical indicators suggest bearish momentum, while the valuation is reasonable with a decent dividend yield.

Positive Factors

Revenue Growth

The company's consistent revenue growth of 11.07% highlights its ability to expand market reach and enhance product adoption, which is crucial for long-term business sustainability and competitiveness.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial management, reducing leverage risk and ensuring financial stability, which supports long-term operational resilience.

Market Position

Strategic partnerships enhance market access and product offerings, strengthening the company's competitive position and enabling it to capture new customer bases effectively.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate potential challenges in cost control or pricing pressures, which could impact long-term profitability if not addressed.

Profitability Decline

A decline in return on equity indicates reduced profitability relative to shareholder equity, which may affect investor confidence and long-term value creation.

Cash Flow Management

Significant negative free cash flow growth suggests potential issues in sustaining operations without external financing, affecting financial flexibility and growth capacity.

Qualtec Co.,Ltd. Business Overview & Revenue Model

Company Description

Qualtec Co.,Ltd. engages in the failure analysis and reliability testing of electronic components in Japan. It is also involved in the microfabrication on laser processing and surface treatment (plating) technologies. The company was incorporated in 1993 and is headquartered in Sakai, Japan.

How the Company Makes Money

Qualtec Co., Ltd. generates revenue primarily through the sale of its precision-engineered electronic components and systems to various industries, including telecommunications, automotive, and consumer electronics. The company's revenue model is built on direct sales, long-term contracts, and partnerships with major tech firms that require high-quality components for their products. Additionally, Qualtec may engage in research and development collaborations, which can lead to joint ventures or funding that further enhances its earnings. The focus on innovation and high-quality manufacturing allows Qualtec to command premium pricing for its products, contributing significantly to its overall revenue.

Qualtec Co.,Ltd. Financial Statement Overview

Summary

Qualtec Co.,Ltd. shows strong revenue growth and a stable balance sheet with low leverage. However, declining profit margins and negative free cash flow growth present challenges that need addressing. The company should focus on improving operational efficiency and cash flow management to enhance financial stability and shareholder value.

Income Statement

Qualtec Co.,Ltd. has demonstrated consistent revenue growth over the past years, with a notable increase of 11.07% in the most recent period. The gross profit margin has remained stable around 30%, indicating effective cost management. However, the net profit margin has decreased to 5.46% from 7.45% in the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins have also declined, which could indicate increased operational costs or pricing pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, reflecting prudent financial management and low leverage risk. The return on equity has decreased to 6.71% from 8.56%, indicating a slight decline in profitability relative to shareholder equity. The equity ratio remains robust, highlighting a solid capital structure.

Cash Flow

Qualtec Co.,Ltd. faces challenges in cash flow management, with a significant negative free cash flow growth rate of -189.74%. The operating cash flow to net income ratio is 0.77, suggesting adequate cash generation relative to net income. However, the negative free cash flow to net income ratio indicates potential issues in sustaining operations without external financing.

Breakdown	Jun 2025	Jun 2024	Jun 2022	Jun 2021
Income Statement
Total Revenue	4.03B	3.62B	3.16B	1.48B
Gross Profit	1.24B	1.10B	876.60M	350.90M
EBITDA	662.58M	693.20M	807.44M	273.94M
Net Income	219.81M	270.04M	327.46M	63.87M
Balance Sheet
Total Assets	4.35B	4.14B	3.40B	3.28B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.90B	1.46B	1.26B
Total Debt	263.49M	197.18M	393.66M	623.89M
Total Liabilities	1.07B	984.75M	1.15B	1.37B
Stockholders Equity	3.28B	3.16B	2.25B	1.92B
Cash Flow
Free Cash Flow	-219.99M	245.15M	511.71M	299.79M
Operating Cash Flow	514.29M	637.63M	686.09M	354.30M
Investing Cash Flow	-738.72M	-429.88M	-25.09M	-21.37M
Financing Cash Flow	-143.34M	431.52M	-463.19M	-404.48M

Qualtec Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1375.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9165, the sentiment is Positive. The current price of 1375 is below the 20-day moving average (MA) of 1487.20, below the 50-day MA of 1439.78, and below the 200-day MA of 1437.65, indicating a neutral trend. The MACD of 10.07 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 43.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9165.

Qualtec Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7863	76 Outperform	¥2.86B	6.02	―	4.01%	-2.33%	-68.46%
3958	70 Outperform	¥3.31B	5.78	―	3.30%	-3.41%	-24.95%
7919	66 Neutral	¥3.69B	6.84	―	3.69%	0.62%	-24.08%
9165	64 Neutral	¥3.26B	10.22	―	2.73%	10.65%	-3.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.72B	-22.35	―	2.72%	-1.30%	―
3948	53 Neutral	¥6.90B	45.76	―	2.94%	-2.81%	57.37%