Aval Data Corporation (6918) AI Stock Analysis

• Market Cap: ¥16.10B
• Dividend Yield: 2.91%
• Average Volume (3M): 40.99K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 1.06
• 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

Very conservative balance sheet (no debt)

A near-zero debt load and large equity base materially reduce financial risk and insolvency probability. This durable strength improves resilience through industry cycles, preserves strategic optionality for capex or M&A, and lowers financing costs over the medium term.

Sustainably healthy operating and EBITDA margins

Relatively strong operating and EBITDA margins indicate structural pricing power or efficient cost base. These margins provide a stable earnings buffer that can support reinvestment or dividends if revenue stabilizes, making profitability less sensitive to modest top-line swings.

High equity relative to assets

A large equity cushion versus assets strengthens solvency metrics and enables long-term strategic moves without adding leverage. This capitalization supports funding of working capital needs, selective investments, and preserves credibility with suppliers and customers.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flows erode liquidity and reduce internal funding for capex, R&D, or dividends. Over months, weak cash conversion forces reliance on cash reserves or equity, constraining strategic investments and heightening risk if top-line pressure continues.

Material revenue contraction

Sustained top-line declines shrink scale and can erode gross margins and market relevance. A structural revenue downtrend impairs long-term growth prospects, raises per-unit costs, and makes sustaining fixed-cost infrastructure and R&D investments more difficult.

Earnings volatility and quality concerns

A large, rapid swing in net margin suggests reliance on one-offs or irregular items, reducing predictability of profits. This volatility complicates capital allocation, undermines confidence in recurring earnings, and raises the risk that payouts or reinvestment plans are unsustainable.

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	3.30B	4.07B	4.21B	3.48B	3.14B
EBITDA	2.44B	1.62B	2.22B	2.50B	2.03B	1.87B
Net Income	5.41B	1.14B	5.26B	4.27B	1.49B	1.36B
Balance Sheet
Total Assets	26.45B	22.38B	27.75B	28.19B	24.56B	20.39B
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	2.32B	4.97B	7.32B	6.15B	4.45B
Stockholders Equity	21.70B	20.06B	22.78B	20.87B	18.41B	15.94B
Cash Flow
Free Cash Flow	0.00	-1.10B	-3.38B	197.40M	-351.44M	1.95B
Operating Cash Flow	0.00	-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: Negative
• Last Price: 2342.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2342 is below the 20-day moving average (MA) of 2844.20, below the 50-day MA of 2906.58, and below the 200-day MA of 2512.00, indicating a neutral trend. The MACD of -49.75 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥15.06B	10.94	―	0.86%	27.84%	15.69%
4832	76 Outperform	¥64.96B	13.11	―	2.65%	3.62%	8.01%
3021	71 Outperform	¥11.65B	8.19	―	2.47%	20.51%	42.33%
6597	67 Neutral	¥7.50B	13.29	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6918	56 Neutral	¥16.10B	36.09	―	2.91%	-17.73%	-83.81%
6836	55 Neutral	¥3.94B	-92.18	―	―	17.29%	―