Valor Holdings Co., Ltd. (9956) AI Stock Analysis

• Market Cap: ¥162.45B
• Dividend Yield: 2.31%
• Average Volume (3M): 80.56K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.26
• Revenue Growth: 6.05%
• EPS Growth: 22.72%
• Country: JP
• Employees: 9,518
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 73.58
• Shares Outstanding: 53,987,500
• 10 Day Avg. Volume: 65,830
• 30 Day Avg. Volume: 80,563
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,410.00
• Price Target Upside: 12.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥3,410.00 ▲(12.73% Upside)

Valor Holdings Co., Ltd. demonstrates strong financial performance with robust revenue growth and stable profitability, contributing significantly to the overall score. The technical analysis indicates a bullish trend, though caution is advised due to overbought signals. The stock's valuation is reasonable, with a solid dividend yield enhancing its attractiveness.

Valor Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Valor Holdings Co., Ltd. (9956) is a diversified retail company headquartered in Japan. The company operates primarily in the retail sector, with a strong presence in supermarkets, drugstores, home improvement centers, and pet shops. Valor Holdings is known for its extensive network of stores across Japan, providing a wide range of consumer goods including groceries, pharmaceuticals, household products, and pet supplies. The company is committed to delivering value and convenience to its customers through its integrated retail services.

How the Company Makes Money

Valor Holdings Co., Ltd. generates revenue through its extensive retail operations. The primary revenue stream comes from sales in its supermarkets, which offer a wide variety of groceries and fresh produce. Additionally, the company earns income from its chain of drugstores, where it sells pharmaceuticals and health-related products. The home improvement centers contribute to the company's earnings by offering a range of hardware and home renovation products. Valor's pet shops also add to its revenue by selling pet food and accessories. The company's ability to leverage economies of scale across its diverse retail segments, along with strategic partnerships with suppliers, enhances its profitability. Furthermore, Valor Holdings capitalizes on its strong brand presence and customer loyalty programs to drive repeat business and maintain steady revenue growth.

Valor Holdings Co., Ltd. Financial Statement Overview

Summary

Valor Holdings Co., Ltd. exhibits solid financial performance with strong revenue growth and stable profitability margins. The balance sheet reflects financial stability with a strong equity position and manageable debt levels. Cash flow generation is healthy, although some fluctuations in free cash flow warrant attention.

Income Statement

Valor Holdings Co., Ltd. has demonstrated strong revenue growth, with a consistent increase in total revenue over the years. The gross profit margin remains healthy, and the company has maintained a stable net profit margin. The EBIT and EBITDA margins are also robust, indicating efficient operation management. However, the slight decline in gross profit from the previous year suggests potential cost management issues.

Balance Sheet

The company maintains a strong equity base relative to its assets, indicating financial stability. The debt-to-equity ratio is moderate, reflecting a balanced approach to leveraging debt to fuel growth. Return on equity has shown improvements, suggesting effective use of shareholder funds. However, there is a need to monitor the rising total debt levels to prevent potential financial strain.

Cash Flow

Operating cash flow remains robust, with a consistent ability to generate cash from operations. The free cash flow has seen fluctuations, yet the recent periods show positive growth, indicating better capital expenditure management. The operating cash flow to net income ratio is strong, reflecting effective cash conversion. Nonetheless, the company should aim to stabilize free cash flow to net income ratios to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	833.58B	854.43B	807.79B	759.98B	732.52B	730.17B
Gross Profit	221.48B	226.87B	234.44B	220.01B	212.26B	210.61B
EBITDA	47.26B	47.26B	44.43B	39.48B	42.30B	44.32B
Net Income	13.65B	13.65B	11.95B	7.60B	9.01B	12.59B
Balance Sheet
Total Assets	460.07B	460.07B	444.81B	417.11B	410.37B	404.46B
Cash, Cash Equivalents and Short-Term Investments	22.63B	22.63B	29.60B	21.48B	23.26B	29.92B
Total Debt	128.57B	128.57B	123.05B	118.78B	125.45B	120.88B
Total Liabilities	272.02B	272.02B	265.48B	249.59B	247.85B	249.27B
Stockholders Equity	171.21B	171.21B	164.07B	152.75B	148.71B	143.00B
Cash Flow
Free Cash Flow	0.00	5.10B	13.25B	10.75B	-2.48B	15.91B
Operating Cash Flow	0.00	37.77B	38.45B	36.23B	24.36B	44.14B
Investing Cash Flow	0.00	-39.89B	-26.05B	-25.72B	-26.73B	-28.14B
Financing Cash Flow	0.00	-4.69B	-4.56B	-12.33B	-4.12B	-10.47B

Valor Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3025.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9956, the sentiment is Positive. The current price of 3025 is above the 20-day moving average (MA) of 2911.10, above the 50-day MA of 2823.56, and above the 200-day MA of 2444.92, indicating a bullish trend. The MACD of 42.86 indicates Negative momentum. The RSI at 72.61 is Negative, neither overbought nor oversold. The STOCH value of 60.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9956.

Valor Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9956	71 Outperform	¥162.45B	10.89	―	2.31%	6.05%	22.72%
8273	68 Neutral	238.45B	19.58	4.17%	2.73%	18.53%	-36.19%
2653	62 Neutral	100.82B	16.44	10.93%	1.55%	4.66%	3.70%
3222	62 Neutral	193.27B	189.38	0.40%	1.63%	23.04%	―
7512	62 Neutral	127.52B	39.03	4.94%	1.74%	7.54%	-47.00%
8217	46 Neutral	38.20B	-16.93	-3.21%	2.79%	1.48%	-346.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Valor Holdings Co., Ltd. Corporate Events

Valor Holdings Reports Strong Q1 2025 Financial Results

Valor Holdings Co., Ltd. reported a notable increase in its financial performance for the three months ended June 30, 2025, with operating revenues rising by 6.8% to ¥221,546 million and operating profit surging by 35.6% to ¥7,045 million. The company’s strong financial results indicate a positive trajectory in its operations and market positioning, with implications for continued growth and value for its stakeholders.

Valor Holdings Reports Mixed June 2025 Business Results

Valor Holdings Co., Ltd. has released its monthly business results for June 2025, showing varied performance across its business segments. The grocery store segment experienced a positive sales growth, while the pharmacy and home improvement stores showed mixed results with fluctuations in customer numbers and unit prices. The announcement highlights the company’s ongoing efforts to adapt to market conditions and manage its diverse portfolio effectively.

Valor Holdings Announces Tender Offer for DOMY Co., Ltd.

Valor Holdings Co., Ltd. announced its decision to acquire all common shares of DOMY Co., Ltd. through a tender offer, aiming to make it a wholly-owned subsidiary. This move is part of Valor’s strategy to strengthen its supermarket business foundation, enhance corporate value, and achieve its mid-term management goals, including the creation of a ‘Valor Economic Zone’ and reaching a sales target of 1.2 trillion yen by 2034.

Valor Holdings Updates Strategic Measures for Capital Cost and Stock Price Management

Valor Holdings Co., Ltd. has updated its strategic measures to improve management’s awareness of capital costs and stock price, reflecting a new analysis of the company’s current position and challenges. This update aims to enhance future operational improvements, potentially impacting the company’s market positioning and stakeholder interests.

Valor Holdings Updates Strategic Measures for Capital and Stock Price Management

Valor Holdings Co., Ltd. has updated its strategic measures to enhance management’s awareness of capital costs and stock price, following a thorough analysis of its current position and challenges. This initiative aims to improve future performance and strengthen the company’s market positioning, potentially impacting stakeholders positively.