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Nippon Avionics Co., Ltd. (JP:6946)
:6946
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Nippon Avionics Co., Ltd. (6946) AI Stock Analysis

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JP:6946

Nippon Avionics Co., Ltd.

(6946)

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Neutral 69 (OpenAI - 5.2)
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)

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
Strong recent earnings inflection (revenue +38.5% YoY with materially higher margins and ~23.7% ROE), but cash conversion is a major concern: operating cash flow and free cash flow turned negative in 2026 after prior volatility, while leverage increased (debt/equity ~0.65).
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue29.19B20.12B18.05B17.75B19.23B
Gross Profit9.51B6.64B5.72B5.74B6.04B
EBITDA5.93B3.23B2.47B2.25B2.07B
Net Income3.82B1.96B2.15B1.82B1.63B
Balance Sheet
Total Assets36.08B27.64B28.28B23.96B23.06B
Cash, Cash Equivalents and Short-Term Investments1.02B1.93B2.34B2.11B3.05B
Total Debt10.49B4.79B4.79B3.65B3.87B
Total Liabilities19.97B13.68B13.97B11.79B12.29B
Stockholders Equity16.10B13.96B14.30B12.17B10.77B
Cash Flow
Free Cash Flow-4.35B1.74B-706.00M-1.02B3.20B
Operating Cash Flow-3.62B2.15B-206.00M-860.00M3.35B
Investing Cash Flow-864.00M-471.00M-517.00M151.00M-263.00M
Financing Cash Flow3.58B-2.08B956.00M-230.00M-2.33B

Nippon Avionics Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4460.00
Price Trends
50DMA
5214.80
Positive
100DMA
5886.36
Positive
200DMA
5691.19
Positive
Market Momentum
MACD
133.45
Negative
RSI
61.63
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥144.11B8.8911.21%3.42%81.06%65.37%
69
Neutral
¥89.00B17.3226.55%0.13%54.05%121.12%
69
Neutral
¥208.29B18.411.53%16.79%100.39%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥7.32T43.9532.23%0.82%20.73%72.44%
62
Neutral
¥51.33B-15.075.01%-7.42%-4245.20%
56
Neutral
¥2.21T30.5219.52%0.62%8.80%117.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6946
Nippon Avionics Co., Ltd.
5,910.00
917.66
18.38%
JP:5801
Furukawa Electric Co
3,909.00
3,008.56
334.12%
JP:6804
Hosiden
2,952.00
585.36
24.73%
JP:5803
Fujikura Ltd
4,596.00
2,698.86
142.26%
JP:6516
Sanyo Denki Co., Ltd.
5,930.00
2,711.47
84.25%
JP:6905
Cosel Co., Ltd.
1,338.00
191.39
16.69%
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.Date of analysis: Aug 06, 2026