Revenue GrowthSustained high revenue growth (41.7%) indicates strong demand for Nippon Avionics' avionics and electronic systems. Over 2–6 months this supports scalable sales momentum, strengthens bargaining power with suppliers/customers, and funds R&D and product expansion without relying solely on external financing.

Margin StrengthRobust gross and EBIT margins reflect efficient manufacturing and pricing power in specialized avionics and defense electronics. Durable operating margins give the company flexibility to invest in new programs, absorb cyclical cost swings, and sustain profitability even if net margins fluctuate.

Balance Sheet HealthA solid equity base and manageable leverage provide long-term financial stability, enabling Nippon Avionics to fund capital expenditure and bid on multi-year government and OEM contracts. Low structural leverage reduces refinancing risk and preserves strategic optionality over the medium term.

Bears Say

Cash Flow VolatilityHistoric negative cash flow followed by a one-time return to positive free cash flow suggests cash generation is not yet consistently reliable. For capital-intensive, contract-driven aerospace work, inconsistent cash flows can strain working capital, delay investments, and increase reliance on credit during program ramps.

Inconsistent Profitability MetricsInconsistent ROE and volatile net margins indicate uneven translation of sales into shareholder returns. This signals potential variability from contract mix, pricing pressure, or one-off items, making long-term earnings power and capital allocation outcomes less predictable for investors.

Customer Concentration / Sector ExposureHeavy dependence on government, military and aerospace OEM contracts concentrates revenue risk. Structural shifts in defense budgets, procurement cycles, or OEM orderbooks could materially affect sales visibility and growth, limiting diversification and increasing sensitivity to policy/geopolitical changes.

6946 FAQ

What was Nippon Avionics Co., Ltd.’s price range in the past 12 months?

Nippon Avionics Co., Ltd. lowest stock price was ¥1961.00 and its highest was ¥8390.00 in the past 12 months.

What is Nippon Avionics Co., Ltd.’s market cap?

Nippon Avionics Co., Ltd.’s market cap is ¥133.58B.

When is Nippon Avionics Co., Ltd.’s upcoming earnings report date?

Nippon Avionics Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 61 days.

How were Nippon Avionics Co., Ltd.’s earnings last quarter?

Nippon Avionics Co., Ltd. released its earnings results on Jan 30, 2026. The company reported ¥62.37 earnings per share for the quarter, beating the consensus estimate of N/A by ¥62.37.

Is Nippon Avionics Co., Ltd. overvalued?

According to Wall Street analysts Nippon Avionics Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nippon Avionics Co., Ltd. pay dividends?

Nippon Avionics Co., Ltd. pays a Annually dividend of ¥10 which represents an annual dividend yield of 0.13%. See more information on Nippon Avionics Co., Ltd. dividends here

What is Nippon Avionics Co., Ltd.’s EPS estimate?

Nippon Avionics Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nippon Avionics Co., Ltd. have?

Nippon Avionics Co., Ltd. has 16,764,810 shares outstanding.

What happened to Nippon Avionics Co., Ltd.’s price movement after its last earnings report?

Nippon Avionics Co., Ltd. reported an EPS of ¥62.37 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -3.396%.

Which hedge fund is a major shareholder of Nippon Avionics Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6946

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Nippon Avionics Co., Ltd.

Nippon Avionics Co., Ltd. manufactures and sells micro joining equipment in Japan. The company offers resistance, laser, and seam welders; ultrasonic equipment; pulse heat unit; and high-frequency induction heaters and pulse heat fusing units, as well as joining monitors. It also offers infrared thermal imaging cameras and radiation hardened point of load DC/DC converters. The company was formerly known as Nippon Aviotronics Co., Ltd. and changed its name to Nippon Avionics Co., Ltd. in April 1980. Nippon Avionics Co., Ltd. was incorporated in 1960 and is headquartered in Yokohama, Japan.