Aval Data Corporation (6918) AI Stock Analysis

• Market Cap: ¥17.84B
• Dividend Yield: 2.91%
• Average Volume (3M): 40.99K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.07
• Revenue Growth: -17.73%
• EPS Growth: -83.81%
• Country: JP
• Employees: 175
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 19.86
• Shares Outstanding: 6,367,842
• 10 Day Avg. Volume: 34,430
• 30 Day Avg. Volume: 40,993
• 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): 105.4
• Revenue Forecast (FY): ¥9.10B

• Rating: 56 Neutral
• Price Target: ¥2,689.00 ▲(14.82% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held back primarily by weak cash flow generation and recent top-line/profitability deterioration, partially offset by a very strong, low-debt balance sheet. Technicals are mixed with soft near-term momentum, while valuation is reasonable and supported by the dividend yield.

Positive Factors

Balance Sheet Strength

A strong, low-risk balance sheet with no debt enhances financial stability and resilience, crucial for navigating cyclical industry challenges.

Profitability Margins

Consistent operating and EBITDA margins indicate efficient cost management and operational strength, supporting long-term profitability.

Equity Base

A large equity base relative to assets provides a buffer against financial volatility, enhancing the company's ability to invest in growth opportunities.

Negative Factors

Revenue Decline

Continued revenue decline indicates potential challenges in market demand or competitive positioning, impacting future growth prospects.

Cash Flow Weakness

Persistent negative cash flow limits financial flexibility and investment capacity, posing risks to long-term operational sustainability.

Net Profitability Volatility

Significant volatility in net profitability suggests earnings instability, which can undermine investor confidence and strategic planning.

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

Strong, low-risk balance sheet (no debt and high equity base) supports stability, but overall fundamentals are pressured by revenue contraction, a sharp drop in net profitability versus the prior year, and persistently weak cash generation (negative operating cash flow in most recent years and negative free cash flow in FY2024–FY2025).

Income Statement

Profitability is solid with healthy operating and EBITDA margins across the period (TTM (Trailing-Twelve-Months) operating margin ~14.6% and EBITDA margin ~16.4%). However, the growth profile has weakened materially: revenue declined in the last two annual periods (FY2025 ~-16.4% after a slight decline in FY2024), and net margin fell sharply in FY2025 (~10.4%) versus the unusually high FY2024 level (~41.8%), pointing to earnings volatility and/or non-recurring benefits in the prior year.

Balance Sheet

The balance sheet is very conservative with effectively no debt in recent years (debt-to-equity at 0.0), which lowers financial risk and improves resilience in a cyclical hardware environment. Equity remains large relative to assets (FY2025 equity ~¥20.1B vs. assets ~¥22.2B). The main weakness is profitability consistency on shareholder capital: return on equity dropped to ~5.7% in FY2025 from much higher levels in FY2023–FY2024, indicating weaker earnings power despite the strong capital position.

Cash Flow

Cash generation is the key concern. Operating cash flow has been negative in three of the last four annual periods (including FY2024 and FY2025), and free cash flow is also negative in FY2024 and FY2025, with a very large deterioration in FY2025 (free cash flow growth ~-584.7%). This weak conversion of accounting profit into cash raises questions around working-capital swings and/or investment intensity, and it reduces financial flexibility despite the low-debt structure.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 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 3010.95, below the 50-day MA of 2892.86, and below the 200-day MA of 2458.59, indicating a bullish trend. The MACD of 31.50 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 46.06 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	¥16.19B	25.08	―	0.86%	27.84%	15.69%
6862	71 Outperform	¥20.69B	12.76	―	1.03%	17.06%	30.17%
6597	67 Neutral	¥8.77B	16.09	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5871	58 Neutral	¥7.33B	-216.71	―	3.12%	13.88%	-155.89%
6918	56 Neutral	¥17.84B	29.28	―	2.91%	-17.73%	-83.81%
6836	55 Neutral	¥4.30B	128.02	―	―	17.29%	―