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Nippon Avionics Co., Ltd.
(6946)
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Rating:69Neutral
Price Target:
¥6,669.00
▲(49.53% Upside)
Action:Reiterated
Date:08/06/26
Overall score reflects a strong improvement in profitability and trend support from positive technicals, offset by weak and volatile cash flow (including negative OCF/FCF in 2026) alongside rising leverage. Valuation is reasonable on P/E, but the very low dividend yield provides limited additional support.
Positive Factors
Margin and revenue upswing
The company delivered a material earnings inflection with strong top-line growth and notably higher gross and EBIT margins. Sustained margin expansion implies durable operating leverage, better profit conversion on new wins, and more internal cash for reinvestment or deleveraging if maintained.
Negative Factors
Weak, volatile cash generation
Negative and inconsistent operating and free cash flow undermines the company’s ability to fund growth, service debt, or return capital without external financing. Over the medium term this increases refinancing and liquidity risk, especially if capex or working capital needs persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and revenue upswing
The company delivered a material earnings inflection with strong top-line growth and notably higher gross and EBIT margins. Sustained margin expansion implies durable operating leverage, better profit conversion on new wins, and more internal cash for reinvestment or deleveraging if maintained.
Read all positive factors
Nippon Avionics Co., Ltd. (6946) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥89.00B
Dividend Yield0.19%
Average Volume (3M)223.67K
Price to Earnings (P/E)17.3
Beta (1Y)1.91
Revenue Growth54.05%
EPS Growth121.12%
CountryJP
Employees763
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)254.17
Shares Outstanding16,764,810
10 Day Avg. Volume339,430
30 Day Avg. Volume223,666
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)5.56
Price to Sales (P/S)3.07
P/FCF Ratio-20.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)321.2
Revenue Forecast (FY)¥34.00B
Nippon Avionics Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Avionics Co., Ltd., headquartered in Yokohama, Japan, operates as a Japanese manufacturer and vendor, primarily focusing on micro joining equipment within its domestic market. The company offers a comprehensive range of products, including ...
How the Company Makes Money
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Nippon Avionics Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 29.19B | 20.12B | 18.05B | 17.75B | 19.23B |
| Gross Profit | 9.51B | 6.64B | 5.72B | 5.74B | 6.04B |
| EBITDA | 5.93B | 3.23B | 2.47B | 2.25B | 2.07B |
| Net Income | 3.82B | 1.96B | 2.15B | 1.82B | 1.63B |
Balance Sheet | |||||
| Total Assets | 36.08B | 27.64B | 28.28B | 23.96B | 23.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 1.93B | 2.34B | 2.11B | 3.05B |
| Total Debt | 10.49B | 4.79B | 4.79B | 3.65B | 3.87B |
| Total Liabilities | 19.97B | 13.68B | 13.97B | 11.79B | 12.29B |
| Stockholders Equity | 16.10B | 13.96B | 14.30B | 12.17B | 10.77B |
Cash Flow | |||||
| Free Cash Flow | -4.35B | 1.74B | -706.00M | -1.02B | 3.20B |
| Operating Cash Flow | -3.62B | 2.15B | -206.00M | -860.00M | 3.35B |
| Investing Cash Flow | -864.00M | -471.00M | -517.00M | 151.00M | -263.00M |
| Financing Cash Flow | 3.58B | -2.08B | 956.00M | -230.00M | -2.33B |
Nippon Avionics Co., Ltd. Technical Analysis
Positive
4460.00
Price Trends
5214.80
Positive
5886.36
Positive
5691.19
Positive
Market Momentum
133.45
Negative
61.63
Neutral
86.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6946, the sentiment is Positive. The current price of 4460 is below the 20-day moving average (MA) of 5125.00, below the 50-day MA of 5214.80, and below the 200-day MA of 5691.19, indicating a bullish trend. The MACD of 133.45 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 86.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6946.
Nippon Avionics Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥144.11B | 8.89 | 11.21% | 3.42% | 81.06% | 65.37% | |
69 Neutral | ¥89.00B | 17.32 | 26.55% | 0.13% | 54.05% | 121.12% | |
69 Neutral | ¥208.29B | 18.41 | ― | 1.53% | 16.79% | 100.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥7.32T | 43.95 | 32.23% | 0.82% | 20.73% | 72.44% | |
62 Neutral | ¥51.33B | -15.07 | ― | 5.01% | -7.42% | -4245.20% | |
56 Neutral | ¥2.21T | 30.52 | 19.52% | 0.62% | 8.80% | 117.66% |
* Industrials Sector Average
JP:6946
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.