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

• Market Cap: ¥187.96B
• Dividend Yield: 2.18%
• Average Volume (3M): 89.91K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.28
• Revenue Growth: 6.30%
• EPS Growth: 27.88%
• Country: JP
• Employees: 9,518
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 83.58
• Shares Outstanding: 53,987,500
• 10 Day Avg. Volume: 107,780
• 30 Day Avg. Volume: 89,910
• PEG Ratio: 0.60
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 24.84
• 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: 79 Outperform
• Price Target: ¥4,008.00 ▲(18.93% Upside)

Valor Holdings Co., Ltd. scores well due to its strong financial performance and reasonable valuation. The technical analysis suggests bullish momentum, although caution is advised due to overbought signals. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Consistent revenue growth

Sustained top-line growth indicates expanding store sales and product demand, supporting long-term scale benefits. Over the next several quarters this underpins margin leverage, funds reinvestment in stores/logistics, and reduces reliance on one-off drivers for earnings.

Strong balance sheet equity

A healthy equity base and moderate leverage provide financial flexibility for store refurbishment, network expansion, and supply-chain investments. This durability supports capital allocation through cycles and cushions the company from short-term sales variability.

Robust operating cash flow

Consistent cash generation from operations enhances the company’s ability to fund maintenance capex, manage working capital, and return capital. Strong cash conversion improves resilience to margin pressure and supports sustainable reinvestment in the retail network.

Negative Factors

Free cash flow volatility

Variable free cash flow creates uncertainty for capital allocation and dividends. Over a multi-quarter horizon this can constrain investments in stores, technology or logistics and force more conservative financial policies, limiting growth initiatives.

Rising total debt levels

An upward trend in total debt increases leverage risk and interest exposure, reducing financial flexibility. If sustained, higher debt could limit the company’s capacity to fund capex or respond to cost shocks without affecting margins or capital returns.

Slight gross profit decline

A drop in gross profit suggests pressure on procurement costs or pricing power. Persisting margin erosion would compress operating profit and free cash flow, forcing either cost cuts or price increases that could hurt traffic and long-term market share.

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

Company Description

Valor Holdings Co., Ltd. operates supermarkets and home centers in Japan. The company also operates drug stores, sports clubs, and pet shops. In addition, it engages in the agricultural production, food manufacturing and processing, logistics, material procurement, maintenance, and cleaning activities. Further, the company is involved in the warehousing, food wholesale, mushrooms and tomatoes cultivation and sale, miscellaneous goods and materials wholesale, renewable resources and gardening material wholesale, flower and packing materials wholesale, sale of clothing items and tennis equipment, insurance agency, and advertising agency businesses; sale of materials and tools related to internet; and ownership, development, acquisition, leasing, and operation of real estate, as well as provision of equipment maintenance and store cleaning services. As of March 31, 2021, it operated 1,226 stores. The company was incorporated in 1958 and is headquartered in Tajimi, Japan.

How the Company Makes Money

Valor Holdings generates revenue through multiple streams, including property development, leasing, and management services. The company profits from the sale of residential and commercial properties, as well as ongoing rental income from its real estate holdings. Additionally, Valor Holdings may engage in strategic partnerships with other firms in the construction and real estate industries, which can enhance its project capabilities and market reach. These partnerships often lead to shared revenues from joint ventures and collaborative projects, contributing significantly to the company's overall earnings.

Valor Holdings Co., Ltd. Financial Statement Overview

Summary

Valor Holdings Co., Ltd. shows strong financial performance with robust revenue growth and stable profitability margins. The balance sheet is solid with a strong equity position and manageable debt levels. Cash flow generation is healthy, though fluctuations in free cash flow need 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	847.68B	854.43B	807.79B	759.98B	732.52B	730.17B
Gross Profit	227.25B	248.77B	234.44B	220.01B	212.26B	210.61B
EBITDA	45.95B	47.26B	44.43B	39.48B	42.30B	44.07B
Net Income	14.24B	13.65B	11.95B	7.60B	9.01B	12.59B
Balance Sheet
Total Assets	481.05B	460.07B	444.81B	417.11B	410.37B	404.46B
Cash, Cash Equivalents and Short-Term Investments	28.76B	22.63B	29.60B	21.48B	23.26B	29.92B
Total Debt	119.00B	128.57B	123.05B	118.78B	125.45B	120.88B
Total Liabilities	290.21B	272.02B	265.48B	249.59B	247.85B	249.27B
Stockholders Equity	173.42B	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: 3370.00
• 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:9956, the sentiment is Positive. The current price of 3370 is below the 20-day moving average (MA) of 3452.00, above the 50-day MA of 3351.00, and above the 200-day MA of 2835.77, indicating a bullish trend. The MACD of 49.71 indicates Positive momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 31.60 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	79 Outperform	¥187.96B	12.13	―	2.18%	6.30%	27.88%
8273	63 Neutral	¥218.72B	19.41	―	3.01%	18.89%	-34.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2653	58 Neutral	¥101.13B	13.24	―	1.54%	4.07%	47.70%
7512	56 Neutral	¥130.30B	36.25	―	1.77%	8.65%	-45.94%
3222	53 Neutral	¥182.69B	92.02	―	1.77%	30.67%	―
8217	45 Neutral	¥35.28B	-17.48	―	3.11%	1.46%	-436.55%

Valor Holdings Co., Ltd. Corporate Events

Valor Holdings Posts Mixed December Results as Higher Spend Offsets Weak Footfall

Valor Holdings reported monthly business results for December 2025 in the fiscal year ending March 2026, showing continued year-on-year growth in total sales at its supermarket, pharmacy and home improvement segments, though driven largely by higher spending per customer rather than increased footfall. Supermarkets posted solid gains in both overall sales and existing-store performance, pharmacies saw modest sales growth despite declining customer numbers, and home improvement stores experienced flat to slightly negative sales with persistent drops in customer traffic offset partially by higher unit prices, underscoring a group-wide reliance on price and basket-size increases amid subdued customer counts and signaling a mixed demand environment across its retail portfolio.

The most recent analyst rating on (JP:9956) stock is a Buy with a Yen3512.00 price target. To see the full list of analyst forecasts on Valor Holdings Co., Ltd. stock, see the JP:9956 Stock Forecast page.

Valor Holdings Reports Strong Financial Growth for H1 2025

Valor Holdings Co., Ltd. reported a notable increase in its financial performance for the six months ended September 30, 2025, with operating revenue rising by 6.8% and operating profit increasing by 34.6% compared to the previous year. The company’s comprehensive income also saw a significant boost of 81.6%, indicating strong operational efficiency and market positioning. These results suggest a positive outlook for stakeholders and reinforce the company’s competitive stance in the retail industry.

The most recent analyst rating on (JP:9956) stock is a Buy with a Yen3076.00 price target. To see the full list of analyst forecasts on Valor Holdings Co., Ltd. stock, see the JP:9956 Stock Forecast page.

Valor Holdings Exceeds Financial Forecasts for First Half of 2025

Valor Holdings Co., Ltd. reported better-than-expected financial results for the six months ended September 30, 2025, with operating profit, ordinary profit, and profit attributable to owners of the parent all exceeding previous forecasts. This performance was driven by strong sales in fresh food categories and improved profit margins due to unified purchasing and pricing strategies in home improvement centers, as well as increased revenues and cost reductions in the sports clubs segment. Despite these positive results, the company has maintained its full-year financial forecasts, citing the need to evaluate demand trends during the year-end shopping season.

The most recent analyst rating on (JP:9956) stock is a Buy with a Yen3076.00 price target. To see the full list of analyst forecasts on Valor Holdings Co., Ltd. stock, see the JP:9956 Stock Forecast page.