FORVAL CORPORATION
8275・Standard Market・Wholesale Trade
Business
A group centered on FORVAL Corporation, comprising 32 subsidiaries and 4 affiliated companies. Its main customers are domestic small and medium-sized enterprises and local governments, to which it provides an integrated range of services spanning OA & Network Equipment Sales, VoIP & Mobile and other communication services, utilities such as retail electricity and insurance, environmental equipment such as All-Electric, solar power, and LED Lighting, as well as Engineer Staffing, IT training, and Health Management Services support. The company name derives from "For Social Value" (a company that creates social value), and it seeks to differentiate itself across five fields: information and communications, overseas, environment, human resource education, and business startups/succession. Consolidated net sales for FY2026 (ending March 2026) were ¥71,524 million.
Business Model
While earning flow-type revenue through sales/agency of OA equipment, communication services, electricity, insurance, etc., the company is transitioning to a structure that accumulates stock-type revenue through monthly-fee communication/electricity contracts and ongoing consulting contracts utilizing "Kizuna PARK." Approximately 20.4% of net sales are collected via leasing companies, reducing credit risk. The company continues to expand its business domains and customer base through the consolidation of group companies via M&A.
Company Strengths
The company has built a structure capable of providing five business areas—information & telecommunications, overseas, environment, human resources education, and business startup/succession—under a single entity. It can offer integrated proposals ranging from OA equipment sales to management consulting, electricity, and insurance, allowing it to meet multiple customer needs through a single point of contact. As of FY2026 (ending March 2026), the group comprises 32 subsidiaries and 4 affiliated companies, with consolidated group net sales reaching ¥71,524 million.
In the FORVAL Telecom Business Group, the number of electricity service contracts grew steadily, and despite a decline in selling prices, net sales remained nearly flat while segment profit rose 8.9% year on year to ¥1,253 million. The accumulation of monthly billing-type contracts, such as telecommunications and electricity, is forming a stable earnings base that is less susceptible to economic fluctuations.
Since 2013, the company has successively made subsidiaries of Appletree, Itec, Elcom, Tanita Health Link, FP Stage, Telect, and others, expanding its business domains into environment, human resources, health management, and finance. In FY2026 (ending March 2026) as well, the company invested ¥424 million in the acquisition of subsidiary shares accompanying changes in the scope of consolidation, reflecting an accumulated track record of continued growth through M&A.
ENVALITH's Perspective
Performance Trend
Net sales continued to grow for four consecutive periods, rising from ¥51,535 million in FY2022 (ended March 2022) to ¥72,629 million in FY2025 (ended March 2025), but in FY2026 (ending March 2026) sales turned to a decline, falling 1.5% year on year to ¥71,524 million. The main causes were the reversal of the temporary surge in demand at Elcom Co., Ltd. related to the new banknote issuance and a decrease in Solar Power Generation System sales. Operating profit was ¥3,724 million (down 0.4% year on year), remaining almost flat, while ordinary profit reached a record high for the third consecutive period at ¥4,045 million (up 1.8% year on year). However, due to the recognition of a ¥740 million valuation loss on investment securities, profit attributable to owners of parent fell sharply to ¥1,477 million (down 31.8% year on year). The gross profit margin improved to 36.9%, but an increase in SG&A expenses (up 5.2% year on year) put pressure on profits. For FY2027 (ending March 2027), the company forecasts net sales of ¥77,000 million, operating profit of ¥4,100 million, and net income of ¥2,200 million, anticipating a return to a growth trajectory.
Growth Strategy
Centering on the F-Japan Strategy, the company pursues both M&A-driven and organic growth across five fields: DX, GX, and Human Capital Management
In line with the government's Basic Policy 2025 (Green, Digital, Regional Creation, and Countermeasures against Declining Birthrate), the company collaborates with local governments, private companies, educational institutions, and financial institutions to build a framework spanning DX/GX talent development, employment, entrepreneurship, and regional economic revitalization, providing hands-on support through digital talent staffing. Management has explicitly identified talent development and quality assurance as issues that must be addressed with a sense of speed.
Through the next-generation data utilization management information analysis platform Kizuna PARK, the company visualizes financial and non-financial information to provide hands-on support for ESG management at small and medium-sized enterprises. Against the backdrop of rising interest in Human Capital Management, the Visualization Companion-type Management Support Service business performed steadily in FY2026 (ending March 2026) as well, underpinning the earnings of the FORVAL Business Group.
In the Human Capital Management segment, a group company newly consolidated during the previous fiscal year contributed for a full year in FY2026 (ending March 2026), achieving net sales growth of 8.7% year on year and segment profit growth of 17.4% year on year. In FY2026 (ending March 2026) as well, the company executed ¥424 million in expenditures for the acquisition of subsidiaries involving changes in the scope of consolidation. The company is pursuing continued expansion of scale through M&A, leveraging its financial base (cash of ¥12,148 million and an equity ratio of 45.2%).
Recurring revenue is being built up through the expansion of the number of contracts for continuous billing-type services such as electricity and telecommunications. In the FORVAL Telecom Business Group, segment profit increased 8.9% year on year, driven by steady growth in the number of electricity service contracts. The fact that profit increased despite the external factor (market environment) of declining selling prices in the Retail Electricity Business (Utility Business) demonstrates the results of the shift in revenue structure.
Last updated: July 19, 2026