VALTES HOLDINGS CO. LTD. (4442) AI Stock Analysis

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VALTES HOLDINGS CO. LTD.

(TSE/TYO:4442)

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Rating:75Outperform

Price Target:JPY 485.00▲(12.53% Upside)

Action:reiterated

Date:10/24/26

The company's robust revenue growth and high-quality cash flows are the primary strengths, supporting a solid financial foundation. Technicals confirm a healthy uptrend with no immediate overbought signals. The main offsetting factor is margin compression, which tempers the overall score. Valuation is fair but not compelling.

Positive Factors

Steady Revenue GrowthRevenue has more than doubled across the period, demonstrating sustained demand for VALTES HOLDINGS’ software quality assurance and testing services. This expanding base supports continued operating scale, creates reinvestment capacity, and provides a durable foundation for growth over the next several quarters.

Negative Factors

Margin CompressionThe sustained decline in both operating and net margins shows that revenue growth has not translated into proportionate profit expansion. If this pressure persists, it can limit earnings growth, reduce the cash available for reinvestment, and weaken the operating leverage expected from a growing services platform.

VALTES HOLDINGS CO. LTD. (4442) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.50B
Dividend Yield: 0.93%
Average Volume (3M): 204.03K
Price to Earnings (P/E): 20.6
Beta (1Y): 0.69
Revenue Growth: 9.86%
EPS Growth: -35.09%
Country: Japan
Employees: 864
Sector: General
Sector Strength: 55
Industry: Information Technology Services

VALTES HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Valtes Co., Ltd. specializes in delivering extensive quality assurance and testing solutions across a variety of products and operational processes. The company's service portfolio includes comprehensive verification for software, web and smartphone...

How the Company Makes Money

VALTES HOLDINGS primarily generates revenue by delivering software quality assurance services on a contract basis to corporate clients. Key revenue streams generally come from (1) project-based engagements where the group supplies testing/QA teams an...

VALTES HOLDINGS CO. LTD. Financial Statement Overview

Summary

Strong revenue growth (18% CAGR) and excellent cash flow generation, with operating cash flow well exceeding net income. The balance sheet is stable with moderate leverage (D/E 0.42). Profitability margins have compressed, which is a concern, but overall financial health is sound.

Income Statement

75Positive

Balance Sheet

80Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.94B	11.94B	10.80B	10.36B	9.06B	6.71B
Gross Profit	3.66B	3.66B	3.21B	2.99B	2.70B	1.87B
EBITDA	1.18B	966.58M	1.17B	1.02B	1.09B	638.86M
Net Income	573.06M	573.34M	589.09M	518.07M	651.48M	413.84M
Balance Sheet
Total Assets	6.73B	6.73B	6.51B	5.39B	4.13B	2.94B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.36B	1.94B	1.76B	1.54B	1.36B
Total Debt	1.52B	1.52B	1.61B	997.22M	172.75M	204.02M
Total Liabilities	3.10B	3.10B	3.25B	2.57B	1.72B	1.23B
Stockholders Equity	3.63B	3.63B	3.26B	2.82B	2.41B	1.71B
Cash Flow
Free Cash Flow	277.60M	856.27M	481.11M	293.57M	729.10M	461.95M
Operating Cash Flow	308.49M	934.84M	603.23M	457.63M	846.96M	505.34M
Investing Cash Flow	-83.93M	-234.09M	-865.66M	-859.53M	-639.67M	-104.26M
Financing Cash Flow	-24.58M	-281.45M	439.16M	625.08M	-29.44M	-235.61M

VALTES HOLDINGS CO. LTD. Technical Analysis

Technical Analysis SentimentNegative

Last Price431.00

Price Trends

50DMA432.22Negative

100DMA415.13Positive

200DMA416.29Positive

Market Momentum

MACD-0.46Positive

RSI46.51Neutral

STOCH45.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4442, the sentiment is Negative. The current price of 431.00 is below the 20-day moving average (MA) of 460.80, below the 50-day MA of 432.22, and above the 200-day MA of 416.29, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4442.

VALTES HOLDINGS CO. LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4442 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4396	81Outperform	JPY 27.12B	14.52	―	2.43%	11.87%	21.49%
JP:2359	78Outperform	JPY 27.84B	9.56	―	3.03%	10.18%	22.45%
JP:4442	75Outperform	JPY 9.36B	20.61	―	0.93%	9.86%	-35.09%
JP:3844	71Outperform	JPY 39.11B	17.31	11.53%	4.14%	4.27%	-30.87%
JP:3676	70Outperform	JPY 22.71B	19.33	―	2.47%	1.78%	30.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3657	46Neutral	JPY 11.95B	-4.51	―	4.72%	-10.31%	-194.96%

* General Sector Average

Performance Comparison

JP:4442 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4442	VALTES HOLDINGS CO. LTD.	431.00	-18.04	-4.02%
JP:3844	Comture Corporation	1232.00	-313.28	-20.27%
JP:2359	Core Corporation	1977.00	1.96	0.10%
JP:3657	Pole To Win Holdings.Inc.	339.00	26.58	8.51%
JP:3676	DIGITAL HEARTS HOLDINGS Co., Ltd.	1051.00	99.11	10.41%
JP:4396	System Support, Inc.	1315.00	-48.60	-3.56%

VALTES HOLDINGS CO. LTD. Corporate Events

VALTES Holdings Reports 8.1% Sales Growth and Lower Operating Profit

Nov 13, 2026

For the six months ended September 30, 2026, consolidated net sales rose 8.1% year over year to ¥6,097 million, while operating profit fell 61.0% to ¥104 million and ordinary profit fell 63.0% to ¥97 million. Profit attributable to owners of the pare...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 24, 2026

VALTES HOLDINGS CO. LTD. AI Stock Analysis