Aval Data Corporation (6918) AI Stock Analysis

• Market Cap: ¥14.54B
• Dividend Yield: 2.94%
• Average Volume (3M): 31.84K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.12
• Revenue Growth: -17.73%
• EPS Growth: -83.81%
• Country: JP
• Employees: 175
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 30.93
• Shares Outstanding: 6,367,842
• 10 Day Avg. Volume: 42,830
• 30 Day Avg. Volume: 31,840
• PEG Ratio: -0.15
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -12.54
• 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): 105.5
• Revenue Forecast (FY): ¥10.00B

• Rating: 67 Neutral
• Price Target: ―

Aval Data Corporation's overall stock score is 67, reflecting strong financial performance with a robust balance sheet and high profitability. However, technical indicators show negative momentum, and recent revenue declines and negative cash flow trends raise concerns. Valuation metrics suggest potential undervaluation with a low P/E ratio and a solid dividend yield, providing a balanced view of risk and opportunity.

Positive Factors

Balance Sheet Health

A strong balance sheet with no debt and high equity ratio ensures financial stability and provides flexibility for future investments or downturns.

Profitability

Significant improvement in net profit margin reflects enhanced operational efficiency and strong pricing power, supporting long-term profitability.

Return on Equity

Improved return on equity indicates effective use of shareholder funds, enhancing investor confidence and potential for reinvestment in growth opportunities.

Negative Factors

Revenue Decline

Recent revenue decline suggests potential challenges in market demand or competitive pressures, which could impact future growth prospects.

Negative Cash Flow

Negative cash flow indicates potential cash management issues, which could constrain operational flexibility and investment capacity if not addressed.

Revenue Growth

Sustained negative revenue growth raises concerns about the company's ability to maintain its market position and adapt to industry changes.

Aval Data Corporation Business Overview & Revenue Model

Company Description

Aval Data Corporation (6918) is a Japanese company operating primarily in the electronics and technology sectors. The company specializes in the design, development, and manufacturing of advanced electronic systems and components. Its core products include industrial computers, embedded systems, and various electronic instruments, which serve a wide range of industries, including automotive, telecommunications, healthcare, and industrial automation.

How the Company Makes Money

Aval Data Corporation generates revenue through the sale of its electronic products and systems. The company earns money by providing customized solutions and products tailored to the specific needs of its clients across various industries. Key revenue streams include the sale of industrial computers and embedded systems, which are integral to numerous applications in sectors like automotive and telecommunications. Additionally, Aval Data may engage in strategic partnerships or collaborations that enhance its market reach and technological capabilities, further contributing to its revenue.

Aval Data Corporation Financial Statement Overview

Summary

Aval Data Corporation displays strong profitability and a robust balance sheet with zero debt, indicating low financial risk. However, recent declines in revenue and negative cash flow trends present areas of concern. The company’s high return on equity and past growth track record provide confidence in its ability to address current challenges.

Income Statement

Aval Data Corporation has shown strong profitability with a consistent gross profit margin around 33% over the years. The net profit margin increased significantly from 11.5% in 2020 to 41.8% in 2024, indicating excellent profitability improvements. However, the revenue growth rate has been negative recently, with a decline of 12.6% from 2023 to 2024, which is a concern despite past growth trends.

Balance Sheet

The company maintains a robust balance sheet with no debt and a high equity ratio of 82.8% in 2024, indicating financial stability and low leverage. The return on equity has improved significantly to 23.1% in 2024 from 9.2% in 2020, showcasing strong shareholder returns. Overall, the company's balance sheet is strong with minimal risk.

Cash Flow

Despite strong operating cash flows in prior years, the company faced challenges in 2024 with negative operating and free cash flows. Free cash flow has significantly decreased, highlighting potential cash management issues. However, the company previously demonstrated good cash generation capabilities, which may help recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.13B	10.98B	12.58B	14.39B	9.80B	8.54B
Gross Profit	4.29B	3.33B	4.07B	4.22B	3.49B	3.24B
EBITDA	2.44B	1.81B	2.22B	2.50B	2.03B	1.96B
Net Income	5.41B	1.14B	5.26B	4.27B	1.49B	1.36B
Balance Sheet
Total Assets	26.45B	22.24B	27.50B	27.95B	24.40B	20.23B
Cash, Cash Equivalents and Short-Term Investments	9.20B	6.22B	9.04B	8.99B	5.90B	6.64B
Total Debt	0.00	0.00	0.00	0.00	0.00	4.45M
Total Liabilities	4.75B	2.18B	4.72B	7.08B	6.00B	4.29B
Stockholders Equity	21.70B	20.06B	22.78B	20.87B	18.41B	15.94B
Cash Flow
Free Cash Flow	227.37M	-1.10B	-3.38B	176.92M	-366.31M	1.94B
Operating Cash Flow	227.37M	-522.70M	-2.35B	454.28M	-323.02M	1.99B
Investing Cash Flow	0.00	-516.59M	3.94B	3.31B	-21.08M	-129.14M
Financing Cash Flow	0.00	-1.87B	-1.54B	-565.80M	-502.64M	-405.76M

Aval Data Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2342.00
• 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:6918, the sentiment is Positive. The current price of 2342 is below the 20-day moving average (MA) of 2492.25, below the 50-day MA of 2438.40, and above the 200-day MA of 2244.80, indicating a bullish trend. The MACD of 89.30 indicates Negative momentum. The RSI at 64.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6918.

Aval Data Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5885	78 Outperform	¥13.70B	24.26	―	0.79%	27.84%	15.69%
6862	75 Outperform	¥6.47B	16.44	―	1.32%	17.06%	30.17%
6597	68 Neutral	¥8.04B	18.46	―	1.67%	3.70%	107.81%
6918	67 Neutral	¥14.54B	20.62	―	2.94%	-17.73%	-83.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5871	58 Neutral	¥8.20B	-675.81	―	2.88%	13.88%	-155.89%
6836	42 Neutral	¥4.83B	169.83	―	―	17.29%	―