Forval RealStraight Inc. (9423) AI Stock Analysis

• Market Cap: ¥2.72B
• Dividend Yield: 2.43%
• Average Volume (3M): 215.53K
• Price to Earnings (P/E): 43.6
• Beta (1Y): 0.68
• Revenue Growth: 11.80%
• EPS Growth: -41.76%
• Country: JP
• Employees: 69
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 2.02
• Shares Outstanding: 24,277,800
• 10 Day Avg. Volume: 205,720
• 30 Day Avg. Volume: 215,530
• PEG Ratio: -0.89
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 43.07
• 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: 63 Neutral
• Price Target: ¥115.00 ▲(6.48% Upside)

The score is driven primarily by solid financial stability (no debt and growing equity) and a history of revenue growth, but is held back by margin/ROE compression and uneven cash-flow consistency. Technicals are neutral-to-slightly positive with a potentially stretched short-term signal, while valuation looks demanding due to the high P/E despite a moderate dividend yield.

Positive Factors

Financial Stability

A debt-free balance sheet significantly reduces financial risk, providing a strong foundation for growth and resilience.

Revenue Growth

Consistent revenue growth indicates expanding market presence and product adoption, supporting long-term business sustainability.

Equity Growth

Rising equity levels enhance financial stability and provide a buffer for future investments and operational needs.

Negative Factors

Profitability Compression

Declining profitability margins suggest challenges in cost management or pricing power, potentially impacting future earnings.

Cash Flow Volatility

Volatile cash flows indicate inconsistent cash conversion, which can affect liquidity and the ability to fund operations or growth.

Return on Equity Decline

A declining ROE suggests reduced efficiency in generating profits from equity, potentially impacting investor confidence and valuation.

Forval RealStraight Inc. Business Overview & Revenue Model

Company Description

Forval RealStraight Inc. provides real estate brokerage and office relocation support services in Japan. It also engages in the sale of OA communication equipment. The company was formerly known as Fread Co., Ltd. and changed its name to Forval RealStraight Inc. in July 2009. The company was incorporated in 1995 and is headquartered in Tokyo, Japan. Forval RealStraight Inc. operates as a subsidiary of Forval Co., Ltd.

How the Company Makes Money

Forval RealStraight Inc. generates revenue through various streams associated with its real estate operations. Key revenue streams include brokerage fees earned from facilitating the sale and lease of properties, management fees from handling property operations for clients, and consulting fees for providing strategic advice on real estate investments. The company may also earn income from property development projects and partnerships with other real estate firms, though details on these aspects are not specified. Additionally, market conditions, such as property demand and economic factors, can significantly influence its earnings.

Forval RealStraight Inc. Financial Statement Overview

Summary

Strong financial stability from a debt-free balance sheet and rising equity, plus multi-year revenue growth. Offsetting this, profitability compressed in the latest year (lower net margin and ROE) and cash flows have been uneven with recent free-cash-flow declines.

Income Statement

Revenue has grown steadily over the last several years (about ¥0.89B in 2020 to ¥3.14B in 2025 annual), with mid-single-digit growth in the most recent year. Profitability is positive but has weakened recently: net margin fell to ~2.8% in 2025 annual from ~4.2% in 2024 annual, and operating profitability also compressed. Gross margin remains fairly stable around ~39–40% in the last three years, which supports earnings power, but the business is currently showing thinner bottom-line conversion than in prior periods.

Balance Sheet

The balance sheet is conservatively positioned with zero reported debt across all periods, which materially reduces financial risk. Equity has been building (¥450M in 2022 annual to ~¥640M in 2025 annual), supporting growth and resilience. Returns on equity are solid but have moderated (about 21% in 2024 annual to ~13.5% in 2025 annual), signaling some profitability pressure even with a strong capital structure.

Cash Flow

Cash generation is positive in recent years, with operating cash flow of ~¥65M and free cash flow of ~¥61M in 2025 annual. Free cash flow broadly tracks reported earnings (free cash flow is ~0.93x net income in 2025 annual), which is a quality signal. However, cash flow has become more volatile: free cash flow declined year-over-year in 2024 and again in 2025, and operating cash flow was negative in 2022—suggesting uneven working-capital dynamics and less consistent cash conversion versus earlier periods.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.14B	3.07B	2.98B	2.15B	1.90B
Gross Profit	1.24B	1.24B	1.15B	872.34M	932.34M
EBITDA	143.52M	174.44M	160.17M	74.41M	131.67M
Net Income	86.35M	130.16M	112.23M	50.41M	103.08M
Balance Sheet
Total Assets	1.32B	1.30B	1.19B	802.13M	909.50M
Cash, Cash Equivalents and Short-Term Investments	761.19M	770.02M	729.56M	471.84M	534.75M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	678.73M	693.57M	663.60M	351.67M	471.40M
Stockholders Equity	639.89M	607.88M	530.04M	450.46M	438.10M
Cash Flow
Free Cash Flow	60.78M	93.27M	293.72M	-28.68M	190.11M
Operating Cash Flow	65.50M	107.55M	295.97M	-17.05M	192.55M
Investing Cash Flow	-16.52M	-14.28M	-2.25M	-9.62M	27.56M
Financing Cash Flow	-57.81M	-52.81M	-35.99M	-36.24M	-13.22M

Forval RealStraight Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.00
• 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:9423, the sentiment is Positive. The current price of 108 is below the 20-day moving average (MA) of 111.60, below the 50-day MA of 108.56, and below the 200-day MA of 109.75, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9423.

Forval RealStraight Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9342	72 Outperform	¥3.03B	23.27	―	0.22%	5.29%	22.75%
3494	70 Outperform	¥2.91B	6.22	―	1.68%	13.14%	34.11%
3490	66 Neutral	¥4.51B	13.35	―	1.03%	5.69%	15.12%
8912	66 Neutral	¥2.32B	18.76	―	2.00%	6.86%	10.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9423	63 Neutral	¥2.72B	43.59	―	2.43%	11.80%	-41.76%
8836	55 Neutral	¥2.88B	221.57	―	―	10.68%	―