Japan Aviation Electronics Industry (6807) AI Stock Analysis

• Market Cap: $157.73B
• Dividend Yield: 2.31%
• Average Volume (3M): 160.14K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.88
• Revenue Growth: -3.24%
• EPS Growth: -25.21%
• 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: 1.02
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 4.96
• 1Y Price Target: $2,599.69
• Price Target Upside: 0.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,463.00 ▼(-5.12% Downside)

The stock's overall score is driven primarily by its strong financial performance, characterized by solid profitability and low leverage. However, technical analysis indicates a bearish trend, which tempers the score. The valuation is reasonable, supported by a decent dividend yield, adding to the stock's attractiveness. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Financial Health

The company's strong financial health, characterized by solid profitability and efficient equity use, ensures long-term stability and resilience against market fluctuations.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant debt burden.

Consistent Cash Flow

Consistent positive cash flow supports ongoing operations and strategic investments, providing a stable foundation for future growth and innovation.

Negative Factors

Revenue Growth Challenges

Flat revenue growth suggests difficulties in expanding market presence or product lines, potentially limiting long-term growth prospects and market competitiveness.

Volatile Free Cash Flow

Volatility in free cash flow due to capital expenditures can affect financial planning and investment capacity, posing risks to sustained growth.

Decline in EPS Growth

A significant decline in EPS growth indicates challenges in profitability and efficiency, potentially affecting investor confidence and future earnings potential.

Japan Aviation Electronics Industry Business Overview & Revenue Model

Company Description

Japan Aviation Electronics Industry, Limited designs, manufactures, and sells connectors, user interface solutions, and aerospace and related electronics in Japan. The company offers input/output, board-to-board, board-to-FPC/FFC, board-to-cable, circular, rectangular, fiber optic, coaxial, cable-to-cable, memory card, memory module, high current connector, charging and discharging plug, and tool connectors; and USB, HDMI, thunderbolt, mini card, M.2 (NGFF), MXM3.0, DDR3 SODIMM, SIM card, microSD card, CompactFlash, coaxial, fiber optic, and active optical cable standard connectors. It also provides user interface solutions, such as capacitive touch panels and overlays, panel switches, teaching pendants, medical device panels, and touch panel monitors. In addition, the company offers motion sensor solutions, such as accelerometers, magnetometers, directional modules, inclinometer packages, coil for linear motor, ring lase and fiber gyro, resolver, and inertial measurement units for the aerospace, automobile mobility, railway, construction agricultural equipment, semiconductor, energy, ocean, civil engineering, and camera stabilization sectors. Its products are used in various applications, such as mobile devices, PC/digital consumer electronics/LED lighting products, infrastructure products, factory automation/robots, automotive/electrical vehicles, railway products, and medical systems. Japan Aviation Electronics Industry, Limited was incorporated in 1950 and is headquartered in Tokyo, Japan.

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: 2596.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2596 is above the 20-day moving average (MA) of 2464.95, above the 50-day MA of 2506.78, and above the 200-day MA of 2474.11, indicating a bullish trend. The MACD of 26.54 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 85.48 is Negative, 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
6787	76 Outperform	¥263.24B	16.78	―	0.76%	15.02%	46.62%
6814	76 Outperform	¥260.54B	15.74	―	1.85%	6.56%	106.55%
6957	75 Outperform	¥109.52B	36.26	―	2.12%	3.95%	-32.30%
6908	70 Outperform	¥72.77B	24.61	―	3.04%	10.79%	12.28%
6951	65 Neutral	¥266.99B	13.75	―	2.05%	-0.69%	-29.88%
6807	64 Neutral	$157.73B	19.08	5.91%	2.31%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Japan Aviation Electronics Industry Corporate Events

Japan Aviation Electronics Partners with KYOCERA for Strategic Growth

Japan Aviation Electronics Industry has entered into a capital and business alliance with KYOCERA Corporation, which includes the transfer of shares from NEC to KYOCERA. This alliance aims to accelerate Japan Aviation Electronics’ growth strategies by leveraging KYOCERA’s overseas sales network and production capabilities, addressing challenges in market expansion and product development. The collaboration is expected to enhance the company’s competitiveness in the global connector business, particularly in the automotive and industrial sectors, by creating synergies between the two companies.

Japan Aviation Electronics Reports Decline in Mid-Year Financials

Japan Aviation Electronics Industry reported a decline in its financial performance for the six months ending September 30, 2025, with net sales decreasing by 2.7% and profits showing significant drops compared to the previous year. Despite the challenging financial results, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating stability in shareholder returns.

Japan Aviation Electronics Revises Financial Forecast Amid Market Challenges

Japan Aviation Electronics Industry announced discrepancies between its forecasted and actual financial results for the first half of 2025, leading to a downward revision of its full-year forecast for the fiscal year ending March 31, 2026. The company attributes these changes to increased raw material costs, delays in new product mass production, and declining market demand in several sectors, impacting its profitability and market positioning.