JVCKENWOOD Corporation (6632) AI Stock Analysis

• Market Cap: ¥196.15B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.91
• Revenue Growth: 0.48%
• EPS Growth: -1.86%
• Country: JP
• Employees: 15,880
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Consumer Electronics
• EPS (TTM): 34.07
• Shares Outstanding: 164,000,200
• 10 Day Avg. Volume: 741,280
• 30 Day Avg. Volume: 1,162,860
• PEG Ratio: 0.15
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 10.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 106.4
• Revenue Forecast (FY): ¥364.50B

• Rating: 66 Neutral
• Price Target: ¥1,304.00 ▲(13.34% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven mainly by improved underlying profitability and healthier leverage versus prior years, tempered by recent softening in TTM revenue and declining free cash flow. Valuation is a positive contributor (low P/E), while technical signals are weaker with the stock trading below key short-term moving averages and subdued RSI.

Positive Factors

Improved Profitability

Sustained margin expansion and higher gross margin signal stronger earnings power and better cost or product mix control. That improved profitability provides a durable buffer against revenue softness, supports reinvestment in R&D/OEM integration and underpins returns to shareholders over the medium term.

Multi-year Deleveraging

Material reduction in leverage over several years improves financial flexibility, lowers interest burden and increases capacity for capex, M&A or cyclical stress. A healthier balance sheet supports sustained investment in automotive OEM relationships and system solutions.

Positive Cash Generation

Meaningful positive free cash flow and strong conversion from earnings indicate the business converts profits into cash reliably. This underpins funding for repairs, software updates, service contracts and aftermarket support that sustain long-term customer relationships and recurring revenue.

Negative Factors

Revenue Softness TTM

A recent turn to negative revenue growth weakens scale economics for hardware and systems businesses that rely on OEM volume and aftermarket replacement cycles. Continued top-line pressure would erode operating leverage, constrain reinvestment and risk margin backsliding over the medium term.

Declining Free Cash Flow Trend

A meaningful decline in FCF and historical volatility reduce predictability of internal funding for capital and services. If the FCF trend continues, the company may need to curb investments, slow deleveraging or rely on external funding, weakening long-term operational resilience.

Recent Uptick in Leverage

An increase in leverage after prior improvement raises financial risk if earnings or cash flow soften. Higher leverage reduces buffer for cyclical downturns, increases interest exposure and could limit strategic flexibility for OEM partnerships or system investments if the trend persists.

JVCKENWOOD Corporation Business Overview & Revenue Model

Company Description

JVCKENWOOD Corporation (6632) is a Japanese multinational corporation specializing in the manufacturing of electronic products and systems. The company operates in various sectors, primarily focusing on automotive, communication, and entertainment industries. JVCKENWOOD develops a range of products including audio and video equipment, professional communication systems, and automotive infotainment systems, catering to both consumer and professional markets.

How the Company Makes Money

JVCKENWOOD generates revenue through multiple channels, primarily from the sale of its diverse product offerings in automotive, communications, and entertainment sectors. Key revenue streams include the sale of automotive infotainment systems and components, professional radio communication systems for businesses and public safety, as well as consumer electronics such as audio and video equipment. The company also benefits from partnerships with automotive manufacturers and communication service providers, enhancing its market reach and solidifying its position in the industry. Additionally, JVCKENWOOD may generate income from service and support contracts related to its products, contributing further to its overall earnings.

JVCKENWOOD Corporation Financial Statement Overview

Summary

Fundamentals have improved versus earlier years (higher net/gross margins and solid ROE, with leverage much lower than FY2021–FY2022). Offsetting this, TTM revenue has turned slightly negative and free cash flow is down meaningfully, with a modest recent uptick in leverage.

Income Statement

Profitability has improved meaningfully versus earlier years, with net margin rising from ~0.8% (FY2021) to ~5.5% (FY2025) and TTM (Trailing-Twelve-Months) holding near ~5.2%. Gross margin also expanded from the high-20%s to ~31% in FY2025, supporting stronger earnings power. The main offset is growth: revenue growth turned negative in TTM (Trailing-Twelve-Months) (-1.3%) after positive growth in prior fiscal years, suggesting momentum has recently softened even as margins remain healthier.

Balance Sheet

Leverage has improved over the multi-year period, with debt relative to equity declining from elevated levels in FY2021 (~1.17x) to a more moderate level in FY2025 (~0.40x), though TTM (Trailing-Twelve-Months) ticked higher (~0.52x). Returns on equity are solid (low-to-mid teens in recent periods), indicating decent capital efficiency. The key risk is the recent re-leveraging trend from FY2025 to TTM (Trailing-Twelve-Months), which bears watching if earnings or cash flow weaken.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) free cash flow of ~¥18.0B and conversion from earnings to free cash flow at ~67%, indicating generally decent cash quality. However, free cash flow declined in TTM (Trailing-Twelve-Months) (-15.9%) after improvements in prior years, signaling some near-term pressure. Operating cash flow relative to revenue remains modest (~23–27% in recent periods), and cash flow has shown volatility historically (including negative free cash flow in FY2022).

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	358.46B	370.31B	359.46B	336.91B	282.09B	273.61B
Gross Profit	110.00B	118.94B	103.82B	95.20B	75.79B	74.56B
EBITDA	37.97B	40.25B	37.91B	39.70B	26.52B	24.78B
Net Income	18.68B	20.28B	13.02B	16.23B	5.87B	2.15B
Balance Sheet
Total Assets	343.95B	313.34B	316.82B	299.36B	280.81B	264.33B
Cash, Cash Equivalents and Short-Term Investments	66.09B	48.60B	57.87B	56.19B	48.71B	59.64B
Total Debt	73.60B	50.37B	57.30B	62.48B	69.84B	75.59B
Total Liabilities	197.38B	181.93B	195.60B	195.63B	196.85B	195.80B
Stockholders Equity	140.37B	125.10B	114.80B	98.81B	79.50B	64.64B
Cash Flow
Free Cash Flow	18.02B	18.74B	12.16B	10.79B	-8.90B	21.92B
Operating Cash Flow	26.84B	31.45B	33.17B	26.61B	7.06B	35.83B
Investing Cash Flow	-21.96B	-21.55B	-16.06B	-7.33B	-9.80B	-11.80B
Financing Cash Flow	4.06B	-18.79B	-19.35B	-14.03B	-11.27B	-5.34B

JVCKENWOOD Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1150.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6632, the sentiment is Positive. The current price of 1150.5 is below the 20-day moving average (MA) of 1275.97, below the 50-day MA of 1257.11, and below the 200-day MA of 1204.64, indicating a bullish trend. The MACD of 11.84 indicates Positive momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 31.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6632.

JVCKENWOOD Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	73 Outperform	¥69.65B	17.44	―	2.73%	6.41%	16.71%
6632	66 Neutral	¥196.15B	10.26	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥98.73B	20.05	―	1.99%	3.71%	-3.32%
6752	62 Neutral	¥5.92T	29.16	6.73%	1.99%	-6.96%	-7.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6758	56 Neutral	¥22.26T	-100.09	14.45%	0.55%	-2.86%	5.93%
6694	54 Neutral	¥2.77B	-1.63	―	4.68%	3.64%	37.31%