Forval Corp. (8275) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanshin Electronics Co., Ltd.

Takachiho Koheki Co., Ltd.

Tomen Devices Corp.

Daitron Co., Ltd.

Sun-Wa Technos Corp.

Tokyo Electron Device Ltd.

Marubun Corp.

Satori Electric Co., Ltd.

Forval Corp.

TOYO Corp.

Shinko Shoji Co., Ltd.

Why is Forval Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.34%

Company has very low debt and has enough cash to service the debt requirements

Flat results in Jun 25

INTEREST(9M) At JPY 36.61 MM has Grown at 63.86%
ROCE(HY) Lowest at 12.44%
NET PROFIT(Q) At JPY 64.72 MM has Fallen at -66.8%

With ROE of 14.29%, it has a very attractive valuation with a 2.01 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.23%, its profits have risen by 11.4% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -10.23% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Forval Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Forval Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Forval Corp.

-10.23%

-0.41

35.79%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.87%

EBIT Growth (5y)

3.42%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

3.49

Tax Ratio

40.25%

Dividend Payout Ratio

36.12%

Pledged Shares

Institutional Holding

ROCE (avg)

41.81%

ROE (avg)

13.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.01

EV to EBIT

7.07

EV to EBITDA

4.52

EV to Capital Employed

3.03

EV to Sales

0.36

PEG Ratio

1.24

Dividend Yield

0.04%

ROCE (Latest)

42.92%

ROE (Latest)

14.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.37% (YoY

-20What is not working for the Company

INTEREST(9M)

At JPY 36.61 MM has Grown at 63.86%

ROCE(HY)

Lowest at 12.44%

NET PROFIT(Q)

At JPY 64.72 MM has Fallen at -66.8%

DEBT-EQUITY RATIO (HY)

Highest at -45.31 %

OPERATING PROFIT(Q)

Lowest at JPY 728.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.55 %

PRE-TAX PROFIT(Q)

Lowest at JPY 278.5 MM

EPS(Q)

Lowest at JPY 2.48

Here's what is working for Forval Corp.

Raw Material Cost

Fallen by -2.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Forval Corp.

Interest

At JPY 23.13 MM has Grown at 29.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 278.5 MM has Fallen at -47.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 64.72 MM has Fallen at -66.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Operating Profit

Lowest at JPY 728.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 278.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 64.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 2.48

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -45.31 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at JPY 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income