Forval Corporation (8275) AI Stock Analysis

Forval Corporation

(TSE/TYO:8275)

Select Model

Rating:70Outperform

Price Target:JPY 1,220.00▲(16.97% Upside)

Action:reiterated

Date:08/18/26

The overall score is driven primarily by a solid financial profile, featuring a strong balance sheet, growing equity base, and positive, if somewhat volatile, cash flows, tempered by recent softness in revenue, margins, and cash generation. Neutral-to-slightly-bearish technicals, with the stock trading below longer-term moving averages and showing mild negative momentum, cap near-term upside conviction. A reasonable valuation with a mid-teen P/E and around 3% dividend yield supports the stock but does not fully offset the recent operational and cash flow headwinds.

Positive Factors

Conservative and improving leverageConservative and improving leverage strengthens financial resilience by reducing fixed financial obligations and preserving borrowing capacity. This gives Forval greater flexibility to withstand operating volatility, fund selected investments, and maintain stability over the next several quarters.

Negative Factors

Recent revenue contractionThe latest revenue decline interrupts the company’s earlier expansion trend and signals weaker near-term demand or business momentum. If this pattern persists, slower top-line growth could limit operating leverage, reduce investment capacity, and make earnings recovery more difficult.

Forval Corporation (8275) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 27.76B
Dividend Yield: 2.92%
Average Volume (3M): 36.78K
Price to Earnings (P/E): 18.1
Beta (1Y): 0.77
Revenue Growth: -0.57%
EPS Growth: -25.02%
Country: Japan
Employees: 2,530
Sector: Technology
Sector Strength: 61
Industry: Technology Distributors

Forval Corporation Business Overview & Revenue Model

Company Description

Forval Corporation engages in the provision of information telecommunications consulting services to small-and medium-sized companies in Japan. The company also offers management consulting services, including consulting, overseas expansion, human re...

Forval Corporation Financial Statement Overview

Summary

Score reflects a conservative balance sheet with low and declining leverage, steady growth in assets and equity, and consistently healthy returns on equity, offset by recent revenue and profit softness and a downturn in operating and free cash flows despite overall positive cash generation.

Income Statement

72Positive

Balance Sheet

82Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	71.52B	71.52B	72.63B	63.53B	59.54B	51.54B
Gross Profit	26.36B	26.36B	25.25B	22.46B	20.36B	19.05B
EBITDA	5.87B	5.79B	6.22B	5.44B	4.45B	4.66B
Net Income	1.48B	1.48B	2.17B	2.01B	1.68B	1.84B
Balance Sheet
Total Assets	41.83B	41.83B	42.25B	40.92B	36.15B	32.77B
Cash, Cash Equivalents and Short-Term Investments	12.43B	12.43B	11.41B	11.93B	11.16B	10.17B
Total Debt	2.35B	2.35B	2.73B	4.54B	2.50B	2.63B
Total Liabilities	20.44B	20.44B	22.54B	23.17B	20.52B	18.40B
Stockholders Equity	18.91B	18.91B	17.54B	16.50B	14.65B	13.45B
Cash Flow
Free Cash Flow	-398.54M	2.77B	3.93B	2.24B	2.47B	1.72B
Operating Cash Flow	-316.50M	3.07B	4.14B	3.17B	3.28B	2.59B
Investing Cash Flow	-278.39M	-769.36M	-1.36B	-1.06B	-912.71M	-912.68M
Financing Cash Flow	-605.28M	-1.53B	-3.31B	-1.45B	-1.39B	-2.67B

Forval Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price1043.00

Price Trends

50DMA1031.54Positive

100DMA1018.41Positive

200DMA1054.02Positive

Market Momentum

MACD9.47Positive

RSI51.62Neutral

STOCH16.74Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8275, the sentiment is Positive. The current price of 1043.00 is below the 20-day moving average (MA) of 1070.15, above the 50-day MA of 1031.54, and below the 200-day MA of 1054.02, indicating a neutral trend. The MACD of 9.47 indicates Positive momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 16.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8275.

Forval Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:8275 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3837	86Outperform	JPY 22.65B	14.85	―	3.95%	8.49%	26.09%
JP:9709	84Outperform	JPY 18.40B	8.62	―	4.68%	2.95%	-8.61%
JP:2349	83Outperform	JPY 27.59B	10.79	―	1.17%	5.65%	7.73%
JP:3393	71Outperform	JPY 31.07B	12.12	―	5.04%	7.10%	31.29%
JP:8275	70Outperform	JPY 27.25B	18.13	―	2.92%	-0.57%	-25.02%
JP:5574	66Neutral	JPY 22.68B	20.73	―	―	27.68%	126.99%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:8275 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8275	Forval Corporation	1043.00	-114.50	-9.89%
JP:2349	Nippon Information Development Co., Ltd.	2500.00	266.01	11.91%
JP:3393	Startia Holdings,Inc.	3020.00	427.39	16.49%
JP:3837	Ad-Sol Nissin Corp.	1292.00	-73.19	-5.36%
JP:5574	ABEJA,Inc.	2154.00	-719.00	-25.03%
JP:9709	NCS&A Co., Ltd.	1184.00	-383.43	-24.46%

Forval Corporation Corporate Events

Forval posts sharp profit rebound in Q1 and lifts full-year earnings outlook

Aug 17, 2026

Forval Corporation reported consolidated net sales of ¥16.87 billion for the three months ended June 30, 2026, a 5.4% year-on-year increase, with operating profit surging 67.4% to ¥344 million and ordinary profit climbing 80.3% to ¥444...

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: Aug 18, 2026

Forval Corporation AI Stock Analysis