Recent Share Price: ¥1,295

Accounting: Japanese GAAP

Fiscal Year: Sept. 30

Market Cap: ¥2.94 billion ($27 million)

Toa Valve Engineering Inc. is 2011-05logo_tcm102-1497677 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.

Sales per Businesses

	2016		2017		Delta
	JPY (in Million)	%	JPY (in Million)	%	Delta
Valve Business	6,559	77%	6,322	78%	-3.61%
Steel Business	1,415	16.6%	1,148	14.2%	-18.85%
Dyeing Business	546.68	6.4%	632.55	7.8%	+15.71%

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

Untitled

Disclosure: We own shares in Toa Valve Engineering Inc (6466:TYO).