JVCKENWOOD Corporation (6632) AI Stock Analysis

• Market Cap: ¥182.12B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.95
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,304.00 ▲(13.34% Upside)

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

Revenue Growth

Sustained TTM revenue growth indicates expanding product adoption across Automotive, Communications and Media segments. Durable top-line expansion supports reinvestment in R&D and distribution, strengthens OEM/channel negotiating position, and underpins medium-term organic growth.

Free Cash Flow Generation

Nearly 20% FCF growth demonstrates strong operational cash conversion, enabling internal funding for capex, product development and potential debt repayment. Robust cash generation reduces reliance on external financing and supports sustained strategic investments over the next several quarters.

Efficient Capital Use

ROE near 15% and a healthy equity ratio reflect effective use of equity capital and a stable capital structure. Combined with moderate leverage, this supports funding of initiatives and resilience to shocks, aiding long-term shareholder returns if maintained.

Negative Factors

Rising Debt Levels

Although leverage remains moderate (D/E ~0.43), an upward debt trend raises refinancing and interest-cost risk. If revenue or margins weaken, higher debt could constrain flexibility for capex or M&A and heighten balance-sheet sensitivity across the next several quarters.

Margin Pressure

A modest deterioration in gross and net margins suggests mounting cost pressures or mix shifts. Persistent margin erosion would reduce retained earnings available for reinvestment and slow profitability improvement even with revenue growth, challenging medium-term earnings resilience.

Hardware-centric Revenue Exposure

Dependence on hardware sales and OEM auto production ties revenue to vehicle cycles and replacement demand. Limited recurring-service revenue increases cyclicality and competitive pricing risk, potentially amplifying revenue and margin volatility over a 2-6 month horizon if end-market demand softens.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	370.31B	359.46B	336.91B	282.09B	273.61B
Gross Profit	118.94B	103.82B	95.20B	75.79B	74.56B
EBITDA	40.25B	37.91B	39.70B	26.52B	24.78B
Net Income	20.28B	13.02B	16.23B	5.87B	2.15B
Balance Sheet
Total Assets	313.34B	316.82B	299.36B	280.81B	264.33B
Cash, Cash Equivalents and Short-Term Investments	48.60B	57.87B	56.19B	48.71B	59.64B
Total Debt	50.37B	57.30B	62.48B	69.84B	75.59B
Total Liabilities	181.93B	195.60B	195.63B	196.85B	195.80B
Stockholders Equity	125.10B	114.80B	98.81B	79.50B	64.64B
Cash Flow
Free Cash Flow	18.74B	12.16B	10.79B	-8.90B	21.92B
Operating Cash Flow	31.45B	33.17B	26.61B	7.06B	35.83B
Investing Cash Flow	-21.55B	-16.06B	-7.33B	-9.80B	-11.80B
Financing Cash Flow	-18.79B	-19.35B	-14.03B	-11.27B	-5.34B

JVCKENWOOD Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1150.50
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1150.5 is below the 20-day moving average (MA) of 1267.52, below the 50-day MA of 1215.28, and below the 200-day MA of 1187.84, indicating a neutral trend. The MACD of 1.61 indicates Positive momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 25.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6632.

JVCKENWOOD Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6952	74 Outperform	¥358.98B	18.77	5.53%	3.55%	-5.43%	55.21%
6752	73 Outperform	$5.12T	24.67	6.73%	1.99%	-6.96%	-7.22%
6758	73 Outperform	¥20.44T	18.00	14.45%	0.55%	-2.86%	5.93%
6632	66 Neutral	¥182.12B	9.85	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥93.69B	18.88	―	1.99%	3.71%	-3.32%
6971	64 Neutral	¥3.60T	34.81	1.37%	2.29%	-0.51%	-45.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%