Forval Telecom, Inc. (9445) AI Stock Analysis

• Market Cap: ¥9.64B
• Dividend Yield: 3.85%
• Average Volume (3M): 2.47K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.27
• Revenue Growth: 1.75%
• EPS Growth: 24.87%
• Country: JP
• Employees: 302
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 17.65
• Shares Outstanding: 16,757,700
• 10 Day Avg. Volume: 1,810
• 30 Day Avg. Volume: 2,470
• PEG Ratio: -4.61
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 4.05
• 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: 75 Outperform
• Price Target: ¥640.00 ▲(8.47% Upside)

The score is driven primarily by strengthened financial performance (deleveraging to zero debt, improved profitability, and better cash generation) and supportive valuation (low P/E and solid dividend yield). Technical indicators are neutral to slightly weak, limiting upside in the overall score.

Positive Factors

Debt Reduction

Eliminating debt strengthens the balance sheet, reducing financial risk and increasing flexibility for future investments or challenges.

Profitability Improvement

Rising net income indicates effective cost management and operational efficiency, enhancing long-term shareholder value.

Cash Generation

Strong cash generation supports sustainable operations and potential for reinvestment, dividends, or debt reduction.

Negative Factors

Margin Compression

Compressed margins may limit profitability growth, affecting the company's ability to invest in new opportunities or withstand cost pressures.

Cash Flow Volatility

Volatile cash flows can hinder strategic planning and investment, posing challenges in maintaining consistent financial health.

Historical Revenue Volatility

Past revenue volatility suggests potential challenges in maintaining consistent growth, impacting long-term strategic stability.

Forval Telecom, Inc. Business Overview & Revenue Model

Company Description

Forval Telecom,Inc. provides various telecommunications carrier services in Japan. The company is also involved in the security certification acquisition consulting business. In addition, it provides IP & mobile solutions; business support solutions; and supply of electricity. The company was incorporated in 1995 and is based in Tokyo, Japan. Forval Telecom,Inc. operates as a subsidiary of Forval Corporation.

How the Company Makes Money

Forval Telecom, Inc. generates revenue primarily through the provision of telecommunication services such as internet connectivity, which includes broadband and fiber-optic services. The company also earns income by providing IT solutions and consulting services to businesses, helping them implement and manage their IT infrastructure. Additionally, Forval Telecom may engage in partnerships with other technology providers to enhance its service offerings, contributing to its revenue through collaborative ventures. The company's focus on both individual and corporate clients helps diversify its income streams and mitigate risks associated with any single market segment.

Forval Telecom, Inc. Financial Statement Overview

Summary

Forval Telecom, Inc. displays strong revenue growth and operational efficiency, supported by a robust balance sheet with low leverage. However, net profit margins and cash flow data gaps present some risks. The company appears well-positioned for stability but should focus on enhancing net profitability and ensuring transparent cash flow reporting to optimize financial health.

Income Statement

Forval Telecom, Inc. demonstrated consistent revenue growth from the previous year, with a TTM revenue increase from 2023. Gross profit margins are stable around 24% across periods, indicating effective cost management. The EBIT and EBITDA margins reflect steady operational efficiency, with TTM EBIT margin at 4.38% and EBITDA margin at 5.68%. However, net profit margins are relatively low, at 3.06% TTM, signaling room for improvement in net profitability.

Balance Sheet

The company's balance sheet reveals a strong equity position with an increasing equity ratio, up to 30.39% TTM. The debt-to-equity ratio is low at 0.11 TTM, indicating limited leverage risk. Return on equity has improved to 24.52% TTM, showcasing effective use of shareholder funds. The balance sheet reflects stability, though the modest total asset base limits potential expansion.

Cash Flow

Cash flow analysis shows a lack of operating and free cash flow data for TTM, hindering complete assessment. Historically, the company maintained positive free cash flow, with significant growth from 2020 to 2023. However, the absence of current cash flow data presents uncertainty in cash management effectiveness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.40B	25.68B	23.12B	24.75B	21.80B	21.73B
Gross Profit	5.86B	5.94B	5.78B	5.25B	5.95B	5.73B
EBITDA	1.55B	1.59B	1.63B	975.85M	1.66B	930.53M
Net Income	906.55M	732.97M	750.41M	378.38M	868.03M	456.07M
Balance Sheet
Total Assets	9.31B	10.36B	10.30B	11.05B	11.05B	11.76B
Cash, Cash Equivalents and Short-Term Investments	774.00M	893.76M	1.02B	1.04B	1.30B	1.54B
Total Debt	0.00	0.00	1.30B	1.73B	2.16B	3.83B
Total Liabilities	5.94B	7.04B	7.38B	8.59B	8.71B	10.00B
Stockholders Equity	3.37B	3.32B	2.91B	2.44B	2.32B	1.74B
Cash Flow
Free Cash Flow	0.00	1.90B	1.53B	505.82M	1.34B	981.42M
Operating Cash Flow	0.00	1.93B	1.62B	907.89M	1.69B	1.25B
Investing Cash Flow	0.00	-420.92M	-936.11M	-446.91M	27.32M	-244.86M
Financing Cash Flow	0.00	-1.64B	-713.40M	-720.32M	-1.95B	-499.61M

Forval Telecom, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 590.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9445, the sentiment is Positive. The current price of 590 is above the 20-day moving average (MA) of 570.55, above the 50-day MA of 573.26, and above the 200-day MA of 526.98, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9445.

Forval Telecom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9445	75 Outperform	¥9.64B	10.48	―	3.85%	1.75%	24.87%
3934	73 Outperform	¥11.05B	11.69	―	2.10%	13.64%	44.55%
3776	66 Neutral	¥11.43B	27.11	―	1.01%	17.19%	-43.91%
4415	65 Neutral	¥6.42B	15.01	―	―	39.18%	27.87%
9419	64 Neutral	¥2.95B	23.00	―	―	-3.76%	-67.98%
9428	63 Neutral	¥12.80B	15.53	―	1.47%	10.12%	21.04%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%