FORVAL TELECOM,INC.
9445・Standard Market・Information & Communication
Business
FORVAL TELECOM, INC. is a company listed on the TSE Standard Market (securities code: 9445), established in 1995. Centered on its "fit Call" brand, it has provided communication services to small and medium-sized corporations and individuals. It currently operates three segments: "IP & Mobile Solutions Business" (VoIP, FMC, fiber-optic lines, etc.), "Utility Business" (electricity and city gas retail), and "Consulting Business" (management support, insurance, DX, and security). It has two consolidated subsidiaries: Hoken Station Co., Ltd. and Tact System Co., Ltd. Its main customers are small and medium-sized corporations, to which it provides multiple services collectively through a one-stop, one-billing model. Consolidated net sales for FY2026 (ending March 2026) were ¥23,973 million.
Business Model
The company adopts an asset-light model, procuring most telecommunications facilities on a wholesale basis from telecommunications carriers and others rather than owning them, and reselling these services. It uses its in-house-built customer database and billing/invoicing system (Billing Provider Platform functionality) as its business platform, consolidating multiple services—telecommunications, electricity, gas, insurance, DX Consulting, and others—into a single invoice for customers. Customer acquisition is outsourced to sales agents and wholesale partners, with commissions prepaid at the time of acquisition. Under this recurring-billing revenue model, the accumulation of contract volume translates directly into profit growth.
Company Strengths
The company launched its "One Billing Service" in 1997 and owns an in-house customer database and billing system. The platform, which enables a single invoice covering diverse services such as telecommunications, electricity, gas, and insurance, contributes to improved customer convenience and reduced churn, functioning as a competitive advantage that lowers customer acquisition costs when new services are added.
As of the end of FY2026 (ending March 2026), the company held zero borrowings and cash and cash equivalents of ¥1,176 million. Against equity capital of ¥3,941 million, ROE stood at 27.1% (improved from 23.5% in the previous fiscal year). Net assets increased by ¥620 million from the previous fiscal year-end, maintaining a financial structure in which equity capital steadily accumulates even after dividend payments.
The company obtained certification under the Ministry of Economy, Trade and Industry's "DX Certification System" in August 2021. In April 2023, it established the "Digital Solutions Office" reporting directly to the president, which was elevated to a full department as the "Digital Solutions Promotion Department" in April 2026. The company is promoting the establishment of stable remote work using secure communication networks and cloud systems, as well as business automation through RPA and AI utilization, aiming to contribute to profit.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), revenue decreased to ¥23,973 million (down 6.7% year on year) due to the deconsolidation of two consolidated subsidiaries (including Try-X Corporation), but the company achieved operating income of ¥1,239 million (up 8.4% year on year), ordinary income of ¥1,261 million (up 9.3% year on year, a record high), and net income attributable to owners of the parent of ¥985 million (up 34.5% year on year), driven by an expansion in the number of contracts in the Utility Business and a reduction in SG&A expenses (down ¥592 million year on year). Looking at the operating income trend over the past five fiscal years, it bottomed out at ¥574 million in FY2023 (ended March 2023) and has continued on a recovery trajectory, with FY2026 (ending March 2026) marking the highest level among the five years. As an external factor, a decline in electricity procurement prices led to lower selling prices, which held down Utility Business revenue, but the increase in the number of contracts offset this impact on profit. The company's forecast for FY2027 (ending March 2027) calls for both increased revenue and increased profit, with revenue of ¥26,400 million (up 10.1% year on year) and operating income of ¥1,380 million (up 11.4% year on year).
Growth Strategy
Continued expansion of Utility Business contract volume together with a bottom-up recovery in the IP & Mobile Solutions and Consulting businesses, driving balanced growth across three segments
The company continues to accumulate corporate contracts for electricity and city gas, deepening a stock-type model that achieves profit growth even with flat sales. In FY2026 (ending March 2026), segment profit achieved high growth of 17.2% year-on-year, and it is positioned as a key profit driver again in FY2027 (ending March 2027).
Due to the effect of excluding a consolidated subsidiary, FY2026 (ending March 2026) sales fell to ¥9,378 million (down 11.0% year-on-year) and segment profit fell to ¥1,078 million (down 9.6% year-on-year). The company has clearly stated its policy of driving improvement through expanded sales of the corporate FMC service "Dokodemo Hon" and the fiber-optic line "iSmart Hikari", as well as a recovery in subscriber numbers for the consumer ISP service.
The Consulting Business, which has included Tact System Co., Ltd. since FY2026 (ending March 2026), achieved sales of ¥3,743 million (up 1.1% year-on-year) and segment profit of ¥277 million (up 81.8% year-on-year), a significant profit increase. Insurance Services and Cloud Services grew and offset delays in the sales plan for DX Consulting. The company has explicitly stated a policy of "bottom-up improvement" toward FY2027 (ending March 2027).
The company continues to increase dividends with a target consolidated payout ratio of around 50%. In FY2026 (ending March 2026), the annual dividend was ¥23 (up ¥3 year-on-year, payout ratio 39.1%), and the FY2027 (ending March 2027) forecast maintains the dividend increase policy at an annual ¥25 (up ¥2 year-on-year, payout ratio 46.5%). Total dividends paid increased by ¥50 million year-on-year to ¥385 million.
Last updated: July 19, 2026