Recent Share Price: ¥1,295
Accounting: Japanese GAAP
Fiscal Year: Sept. 30
Market Cap: ¥2.94 billion ($27 million)
Toa Valve Engineering Inc. is 
a company mainly engaged in the development, manufacture, sale, and maintenance of various industrial valves. The Company operates in mainly two business segments.
- The Valve segment is engaged in the manufacture and sale of high-temperature and pressure valves for power plant use, as well as valves for ships, petrochemistry plants, and other various industrial uses. This segment is also engaged in the provision of maintenance services such as disassembly, inspection and repair services, as well as the development of construction methods and the provision of construction works.
- The Steelmaking segment is involved in the manufacture and sale of cast steel products.
The company listed in 2000 and is headquartered in Amagasaki, Japan.
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Recent History
In 2016, Kitz Corporation purchased shares of Toa Valve from Mitsubishi in hopes of building a better business alliance in the expansion of sales in foreign markets. This goal has seemingly yet to pan out for Toa Valve; the company has yet to show material international sales.
Other
- Defined benefit and defined contribution pension plans. 2017 Report shows a liability of ¥780 million ($6.9 million), which is included on the balance sheet.
- At Sept 2017, the company had tax loss carryforwards of ¥391 million ($3.5 million); the majority of which expire after 2023
- No stock options
Equity Holdings
Common stock holdings are valued at ~$5.8 million, over 1/5th of market cap.
| Holdings | ||
| Name | Equities | Valuation |
| Mitsubishi Corp (8058) | 103,000 | $2,858,147 |
| SEIKA CORPORATION (8061) | 54,000 | $1,374,195 |
| Mitsubishi Heavy Industries Ltd (7011) | 23,000 | $912,114 |
| MEIWA CORPORATION (8103) | 76,000 | $368,557 |
| Kansai Electric Power Co Inc (9503) | 12,000 | $168,309 |
| NIPPON GEAR CO., LTD. (6356) | 25,000 | $110,235 |
| Ichiyoshi Securities Co Ltd (8624) | 4,620 | $56,745 |
| Kobe Steel, Ltd. (5406) | 1,000 | $10,345 |
| Tokyo Electric Power Company Holding Inc(9501) | 2,000 | $9,552 |
| Sumitomo Mitsui Financial Group, Inc. (8316) | 144 | $6,006 |
| $5,874,205 |
| In Millions | 9/30/15 | 9/30/16 | 9/30/17 | 3/31/18 |
| Cash and Short-term Investments | ¥4,636 | ¥3,653 | ¥4,109 | ¥2,974 |
| (0.85 * Accounts Receivable) | ¥2,212 | ¥2,678 | ¥2,055 | ¥1,775 |
| (0.60 * Inventory) | ¥1,250 | ¥1,108 | ¥1,036 | ¥1,119 |
| (0.25 * Other Current) | ¥18 | ¥20 | ¥18 | ¥24 |
| Total Liabilities | ¥4,500 | ¥3,718 | ¥3,426 | ¥2,737 |
| Preferred Stock | ¥- | ¥- | ¥- | ¥- |
| NNWC | ¥3,616 | ¥3,740 | ¥3,792 | ¥3,131 |
| NCAV | ¥4,893 | ¥5,011 | ¥4,899 | ¥4,939 |
| NCAV + LT Investments | ¥5,455 | ¥5,557 | ¥5,626 | ¥5,659 |
| TBV | ¥6,903 | ¥6,941 | ¥7,142 | ¥7,064 |
| Enterprise Value | ¥1,382 | ¥642 | ¥134 | ¥1,032 |
| Retained Earnings | ¥3,754 | ¥3,857 | ¥3,973 | ¥3,912 |
| Dividends Paid | ¥(36) | ¥(128) | ¥(68) | ¥- |
| Sale or Purchase of Stock | ¥(0) | ¥(67) | ¥(0) | ¥- |
| Shares Outstanding | 2,334,457 | 2,329,202 | 2,267,525 | 2,270,555 |
| P / NNWC | 97% | 64% | 76% | 81% |
| P / NCAV | 72% | 48% | 58% | 60% |
| P / NCAV + LT Investments | 64% | 43% | 51% | 52% |
| P / TBV | 51% | 35% | 40% | 42% |
| NCAV Burn Rate | 24.3% | 2.4% | -2.2% | 0.8% |
| Debt / Equity | 22.8% | 14.2% | 6.0% | 1.9% |
| Sloan Accrual Ratio | -4.2% | 3.0% | -8.3% | |
| F-Score | 8 | 5 | 7 | |
| FS-Score | 9 | 4 | 8 | |
| Z-Score | 2.6 | 2.5 | 2.5 | |
| Beneish M-Score | (3.0) | |||
| EV / EBITDA | 1.18 | 1.23 | 0.26 | |
| EV / Operating Income (5yr) | 0.86 | 0.69 | 1.74 | |
| EV / Operating Income (10yr) | 0.03 | |||
| EV / FCF (3yr) | 1.56 | 1.04 | 0.06 | |
| EV / FCF (5yr) | 1.93 | 0.58 | 0.07 | |
| EV / FCF (10yr) | 0.03 | |||
| EBITDA (FY) | ¥1,172 | ¥522 | ¥512 | |
| Operating Income (5yr) | ¥1,613 | ¥928 | ¥77 | |
| Operating Income (10yr) | ¥5,044 | |||
| FCF (3yr) | ¥887 | ¥618 | ¥2,148 | |
| FCF (5yr) | ¥716 | ¥1,116 | ¥1,861 | |
| FCF (10yr) | ¥4,535 | |||
| In Reporting Shares | 1,000,000 |
Disclosure: We own shares in Toa Valve Engineering Inc (6466:TYO).
Leaven Partners 