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

• Market Cap: ¥173.19B
• Dividend Yield: 2.39%
• Average Volume (3M): 89.91K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.27
• 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): 42,046.16
• Revenue Forecast (FY): ¥10.00T>

• Rating: 79 Outperform
• Price Target: ¥3,607.00 ▲(11.84% 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

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and competitive positioning.

Strategic Acquisition

The acquisition of DOMY Co., Ltd. aims to strengthen Valor's supermarket business, enhancing its market presence and supporting long-term growth objectives.

Profitability

The significant increase in operating profit reflects efficient cost management and operational effectiveness, contributing to sustainable profitability.

Negative Factors

Mixed Segment Performance

Mixed performance across segments suggests potential challenges in maintaining uniform growth, which could affect overall business stability if not addressed.

Rising Debt Levels

Increasing debt levels could limit financial flexibility and pose risks to long-term financial stability if not managed carefully.

Fluctuating Free Cash Flow

Fluctuations in free cash flow can impact the company's ability to invest in growth opportunities and maintain financial resilience.

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. 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. Continued focus on cost management and debt oversight will be essential to sustain growth and financial resilience.

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: 3225.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3225 is above the 20-day moving average (MA) of 3007.20, above the 50-day MA of 2920.37, and above the 200-day MA of 2590.71, indicating a bullish trend. The MACD of 90.60 indicates Negative momentum. The RSI at 73.03 is Negative, neither overbought nor oversold. The STOCH value of 88.20 is Negative, 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	¥173.19B	11.18	―	2.39%	6.30%	27.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8273	59 Neutral	¥207.43B	17.41	―	3.04%	18.89%	-34.43%
2653	58 Neutral	¥101.34B	13.02	―	1.58%	4.07%	47.70%
7512	55 Neutral	¥125.57B	39.46	―	1.77%	8.65%	-45.94%
3222	53 Neutral	¥171.73B	114.10	―	1.82%	30.67%	―
8217	45 Neutral	¥34.10B	―	―	3.08%	1.46%	-436.55%

Valor Holdings Co., Ltd. Corporate Events

Valor Holdings Reports Mixed September 2025 Business Results

Valor Holdings Co., Ltd. reported its monthly business results for September 2025, showing varied performance across its divisions. The grocery store segment experienced a steady increase in sales and customer numbers, while the pharmacy division faced challenges with declining customer numbers but maintained stable unit prices. The home improvement sector struggled with declining sales and customer numbers, indicating potential operational challenges. These results reflect the company’s ongoing efforts to adapt to market conditions and optimize store performance, impacting its strategic positioning in the retail industry.

The most recent analyst rating on (JP:9956) stock is a Buy with a Yen3091.00 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 Completes Tender Offer for DOMY Co., Ltd.

Valor Holdings Co., Ltd. has successfully concluded a tender offer to acquire shares of DOMY Co., Ltd., with the latter set to become a consolidated subsidiary by October 21, 2025. This acquisition marks a significant expansion in Valor Holdings’ operations, potentially enhancing its market position and offering new opportunities for growth.

The most recent analyst rating on (JP:9956) stock is a Buy with a Yen3410.00 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 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.