Japan Aviation Electronics Industry (6807) AI Stock Analysis

• Market Cap: ¥165.53B
• Dividend Yield: 2.39%
• Average Volume (3M): 160.14K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.90
• Revenue Growth: -3.24%
• EPS Growth: -25.21%
• Country: JP
• Employees: 9,787
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,420.00
• Price Target Upside: 0.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,788.00 ▲(16.17% Upside)

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

Low leverage / strong balance sheet

Low leverage provides durable financial flexibility: JAE can fund R&D and capital spending, absorb aerospace and automotive cycle volatility, and access credit without stressing cash flows. This structural strength supports investment and resilience over multiple quarters.

Consistent operating cash flow

Consistently positive, growing operating cash flow indicates the core components business reliably converts sales into cash. That underpins multi‑period investments in product development, funds dividends or capex internally, and reduces dependence on external financing.

Established high-reliability product franchise

Focus on mission‑critical connectors and long-term OEM contracts creates a durable competitive moat. Technical certifications and reliability requirements raise switching costs, supporting steadier order flows and pricing power across several quarters and cyclical swings.

Negative Factors

Sluggish / declining revenue

Negative/flat revenue growth (~-3.2%) suggests difficulty expanding sales or gaining share. Over a multi‑quarter horizon this limits operating leverage, constrains reinvestment capacity, and pressures management to pursue cost measures or strategic shifts to restore sustainable top‑line momentum.

Earnings volatility / EPS decline

A sharp EPS contraction (~-25%) indicates earnings volatility, likely from margin pressures or episodic items. Persisting EPS weakness undermines the company's ability to reinvest, sustain dividends, and absorb cyclical shocks in aerospace and automotive end markets over the next several quarters.

Free cash flow volatility from capex swings

Volatile free cash flow relative to net income—driven by capex swings—complicates long‑term planning. Inconsistent FCF can force tradeoffs between growth investments, maintenance spending, and shareholder returns, raising execution risk across multi‑quarter investment cycles.

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: Negative
• Last Price: 2400.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6807, the sentiment is Negative. The current price of 2400 is below the 20-day moving average (MA) of 2545.40, below the 50-day MA of 2521.52, and below the 200-day MA of 2466.10, indicating a bearish trend. The MACD of -17.76 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥316.67B	18.02	―	2.04%	-0.69%	-29.88%
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
6787	74 Outperform	¥327.05B	18.13	―	0.76%	15.02%	46.62%
6908	70 Outperform	¥77.92B	19.74	―	3.05%	10.79%	12.28%
6807	64 Neutral	¥165.53B	21.80	5.91%	2.39%	-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 Profit Slides Despite Stable Sales; Dividend Policy Maintained

Japan Aviation Electronics Industry reported essentially flat consolidated net sales of ¥166.8 billion for the nine months ended December 31, 2025, but saw a sharp deterioration in profitability, with operating profit down 48.3% year on year to ¥5.9 billion and profit attributable to owners of parent falling 47.8% to ¥4.5 billion, leading to a significant drop in earnings per share. Despite the profit squeeze, the company’s financial position remains relatively solid with total assets rising to ¥231.3 billion and an equity ratio of 60.3%, and management is maintaining its dividend stance with an interim ¥30 per share already paid and a full-year forecast of ¥60 unchanged; however, full-year guidance implies continued earnings pressure, with forecast operating profit expected to decline 36% and net profit 48.2% versus the prior year, signaling ongoing margin challenges for shareholders to monitor.

The most recent analyst rating on (JP:6807) stock is a Hold with a Yen2769.00 price target. To see the full list of analyst forecasts on Japan Aviation Electronics Industry stock, see the JP:6807 Stock Forecast page.