Why Forval's (TSE:8275) Earnings Are Better Than They Seem

Forval Corporation's recent earnings report revealed a negative accrual ratio of -0.12, indicating strong free cash flow exceeding reported profits. With free cash flow of JP¥3.4b against a profit of JP¥2.17b, the results suggest that the company's earnings potential may be understated. Additionally, Forval's EPS has increased by 16% annually over the past three years, highlighting positive performance despite unchanged share prices. Investors are encouraged to consider balance sheet strength and other financial metrics for a comprehensive analysis.