Japan Aviation Electronics Industry (6807) AI Stock Analysis

• Market Cap: $180.63B
• Dividend Yield: 2.12%
• Average Volume (3M): 160.14K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.90
• Revenue Growth: -5.19%
• EPS Growth: -10.59%
• Country: JP
• Employees: 9,787
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 33.53
• Shares Outstanding: 70,302,605
• 10 Day Avg. Volume: 215,670
• 30 Day Avg. Volume: 160,140
• PEG Ratio: 0.59
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 9.61
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 4.96
• 1Y Price Target: $2,584.49
• Price Target Upside: -7.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ¥3,156.00 ▲(12.43% Upside)

The overall stock score of 67 reflects strong financial health and positive technical momentum. However, valuation concerns and potential overbought conditions temper the outlook. The company's stable margins and low leverage are significant strengths, but challenges in revenue growth and high P/E ratio warrant caution.

Japan Aviation Electronics Industry Business Overview & Revenue Model

Company Description

Japan Aviation Electronics Industry, Ltd. (JAE) is a leading manufacturer of electronic components and devices primarily for the aerospace, automotive, and industrial sectors. Established in 1953, the company specializes in connectors, cable assemblies, and other electronic solutions that cater to high-reliability applications. JAE is recognized for its innovative products that enhance connectivity and performance in critical systems, playing a pivotal role in the advancement of technology in aviation and beyond.

How the Company Makes Money

Japan Aviation Electronics generates revenue primarily through the sale of its electronic components, including connectors and cable assemblies, which are essential for various applications in the aerospace, automotive, and industrial markets. The company benefits from long-term contracts and partnerships with major manufacturers in these sectors, ensuring a steady demand for its high-quality products. Additionally, JAE invests in research and development to create advanced technologies, allowing it to maintain a competitive edge and expand its product offerings. The company also explores international markets, which contributes to its revenue growth by tapping into global demand for reliable electronic components.

Japan Aviation Electronics Industry Financial Statement Overview

Summary

Japan Aviation Electronics Industry shows strong financial health with solid profitability, efficient use of equity, and robust cash flow generation. While the company faces challenges in revenue growth, its stable margins and low leverage position it well in the industry. Continuous monitoring of cash flow and strategic investments will be crucial for sustained growth.

Income Statement

The company demonstrates consistent profitability with a healthy Gross Profit Margin of around 19% and a Net Profit Margin of approximately 5% over the years. However, the Revenue Growth Rate has been relatively flat, with fluctuations indicating potential challenges in expanding market share or product offerings. The EBITDA Margin is solid, reflecting good operational efficiency.

Balance Sheet

The company maintains a strong financial position with low leverage, evidenced by a Debt-to-Equity Ratio well below 1. The Equity Ratio is robust, indicating a high proportion of assets financed by shareholders' equity. Return on Equity (ROE) is stable, showcasing efficient use of equity to generate profits.

Cash Flow

Operating Cash Flow is consistently positive and growing, indicating good cash generation capability. However, the Free Cash Flow to Net Income Ratio suggests some volatility in capital expenditures, impacting overall cash flow stability. The Free Cash Flow Growth Rate indicates a positive trend, but the fluctuations warrant close monitoring.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	217.69B	221.64B	225.78B	235.86B	225.08B	209.71B
Gross Profit	39.59B	42.06B	39.78B	42.21B	41.94B	29.32B
EBITDA	32.28B	36.69B	35.06B	38.12B	38.47B	29.21B
Net Income	9.31B	11.59B	12.24B	14.64B	14.32B	5.69B
Balance Sheet
Total Assets	215.43B	215.44B	236.04B	226.63B	225.34B	220.07B
Cash, Cash Equivalents and Short-Term Investments	48.54B	52.87B	68.30B	63.02B	65.56B	70.09B
Total Debt	35.50B	37.00B	64.50B	9.80B	17.42B	24.63B
Total Liabilities	82.40B	81.75B	109.23B	55.34B	67.46B	78.01B
Stockholders Equity	133.03B	133.70B	126.81B	171.28B	157.89B	142.06B
Cash Flow
Free Cash Flow	0.00	18.29B	14.49B	9.88B	5.47B	10.93B
Operating Cash Flow	0.00	36.34B	34.86B	32.45B	24.43B	29.11B
Investing Cash Flow	0.00	-19.20B	-20.31B	-23.43B	-20.29B	-18.80B
Financing Cash Flow	0.00	-31.57B	-11.90B	-11.64B	-9.98B	15.45B

Japan Aviation Electronics Industry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2807.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6807, the sentiment is Positive. The current price of 2807 is above the 20-day moving average (MA) of 2637.25, above the 50-day MA of 2567.63, and above the 200-day MA of 2521.82, indicating a bullish trend. The MACD of 79.14 indicates Negative momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 68.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6807.

Japan Aviation Electronics Industry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6951	―	¥271.22B	13.56	―	1.96%	10.15%	-18.57%
6814	―	¥255.17B	15.42	―	1.54%	6.56%	106.55%
6957	―	¥109.21B	36.16	―	2.12%	4.48%	-39.40%
6787	―	¥250.37B	15.42	―	0.87%	15.13%	31.79%
6908	―	¥69.38B	23.47	―	3.27%	6.60%	-36.94%
6807	―	$180.63B	18.60	7.13%	2.12%	-5.19%	-10.59%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%