Valqua Ltd. (7995) AI Stock Analysis

• Market Cap: ¥70.73B
• Dividend Yield: 3.86%
• Average Volume (3M): 48.00K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.88
• Revenue Growth: -4.31%
• EPS Growth: -4.04%
• Country: JP
• Employees: 1,670
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 73.21
• Shares Outstanding: 18,688,732
• 10 Day Avg. Volume: 62,450
• 30 Day Avg. Volume: 48,003
• PEG Ratio: -2.39
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -35.04
• 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: 70 Neutral
• Price Target: ¥4,143.00 ▲(13.98% Upside)

Valqua Ltd.'s stock score is driven by strong valuation metrics and positive technical indicators, despite financial performance challenges. The attractive P/E ratio and dividend yield provide a solid foundation, while technical momentum supports a positive outlook. However, operational inefficiencies and liquidity risks temper the overall score.

Valqua Ltd. Business Overview & Revenue Model

Company Description

Valqua, Ltd. designs, manufactures, processes, and sells fiber, fluorocarbon resin, high-functional rubber, and other materials in Japan and internationally. The company provides various seal products, including soft gaskets, metallic/semi-metallic gaskets, molded and gland packing products, metallic bellows, and other seals, as well as supplement products for seals. It also offers resin products comprising materials and blocks, films/tapes/sheets, tubes, processed and molded products, lining pipes and tank parts, and substrates; and heat insulation materials, such as flame-resistant cabonized and head resistant fiber textile products, bearings, and lubricants. In addition, the company provides piping products and lined devices/equipment. It serves industrial equipment, chemical, machinery, energy, communication equipment, semiconductor, automobile, aerospace, and other industries. The company was formerly known as Nippon Valqua Industries and changed its name to Valqua, Ltd. in October 2018. Valqua, Ltd. was founded in 1927 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Valqua Ltd. generates revenue primarily through the sale of its sealing products and fluid control solutions to various industries, including manufacturing, automotive, and energy. The company utilizes a direct sales model, supplemented by a network of distributors, to reach its customer base. Key revenue streams include custom sealing solutions tailored to specific client needs, standard product sales, and long-term supply agreements with major industrial players. Additionally, Valqua benefits from strategic partnerships with other manufacturing firms, enhancing its product offerings and market reach, which further contributes to its earnings.

Valqua Ltd. Financial Statement Overview

Summary

Valqua Ltd. has strong gross profit margins and a stable equity base, but recent declines in revenue, operational inefficiencies, and negative free cash flow present challenges.

Income Statement

Valqua Ltd. demonstrated strong gross profit margins over the years, with a recent figure of 39.66% for 2025. However, a declining revenue trend from 2024 to 2025, and a decrease in EBIT margin to 9.43% in 2025, indicate challenges in maintaining operational efficiency. The net profit margin slightly decreased to 7.78% in 2025, reflecting pressure on profitability.

Balance Sheet

The company's balance sheet shows a stable equity base with an equity ratio of 64.88% in 2025, indicating financial stability. However, the increase in debt levels, leading to a debt-to-equity ratio of 0.29 in 2025, suggests rising leverage. The return on equity declined to 9.26% in 2025, which could impact shareholder returns.

Cash Flow

Valqua Ltd.'s cash flow statements reveal challenges with free cash flow, which remained negative in 2025. Despite a strong operating cash flow to net income ratio of 1.04, the inability to convert earnings into positive free cash flow indicates potential liquidity and investment constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.83B	60.11B	61.74B	62.18B	53.17B	44.72B
Gross Profit	23.81B	23.84B	25.31B	25.74B	21.50B	17.52B
EBITDA	8.95B	9.23B	9.90B	11.55B	9.68B	7.04B
Net Income	4.64B	4.68B	4.91B	6.75B	4.84B	3.09B
Balance Sheet
Total Assets	77.02B	77.82B	74.49B	68.51B	60.20B	52.69B
Cash, Cash Equivalents and Short-Term Investments	7.26B	7.97B	6.39B	8.19B	8.14B	8.10B
Total Debt	13.54B	14.51B	11.01B	6.72B	5.67B	4.68B
Total Liabilities	27.39B	27.30B	25.76B	22.83B	19.22B	15.42B
Stockholders Equity	49.59B	50.49B	48.22B	45.19B	39.73B	35.65B
Cash Flow
Free Cash Flow	0.00	-1.56B	-3.06B	1.72B	2.08B	907.00M
Operating Cash Flow	0.00	4.87B	1.76B	4.40B	5.23B	4.59B
Investing Cash Flow	0.00	-4.89B	-4.75B	-1.33B	-3.69B	-2.32B
Financing Cash Flow	0.00	1.57B	923.00M	-3.40B	-1.81B	-803.00M

Valqua Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7995, the sentiment is Positive. The current price of 3635 is below the 20-day moving average (MA) of 3766.25, below the 50-day MA of 3743.58, and above the 200-day MA of 3247.21, indicating a bullish trend. The MACD of 51.83 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 81.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7995.

Valqua Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6496	76 Outperform	¥22.50B	16.20	―	1.60%	34.70%	-8.44%
6490	75 Outperform	¥121.53B	14.42	―	2.48%	-0.98%	-18.48%
7995	70 Neutral	¥70.73B	15.18	―	3.86%	-4.31%	-4.04%
6486	69 Neutral	¥136.61B	24.01	―	3.84%	>-0.01%	-26.82%
6363	69 Neutral	¥54.71B	22.42	―	2.91%	9.31%	-62.88%
6469	67 Neutral	¥24.00B	28.09	―	0.52%	13.61%	94.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Valqua Ltd. Corporate Events

Valqua Ltd. Reports Q2 2025 Financial Results with Increased Operating Profit

Valqua Ltd. reported its consolidated financial results for the three months ending June 30, 2025, showing a decrease in net sales by 8.4% compared to the previous year. Despite this, the company achieved a 24.6% increase in operating profit, indicating improved operational efficiency. The company maintains a stable financial position with a shareholders’ equity ratio of 64.4%. The forecast for the fiscal year ending March 31, 2026, anticipates a modest growth in net sales and a significant increase in operating profit, reflecting a positive outlook for the company’s future performance.