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

• Market Cap: €73.83B
• Dividend Yield: 0.13%
• Average Volume (3M): 223.67K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.81
• Revenue Growth: 28.27%
• EPS Growth: 27.15%
• Country: JP
• Employees: 657
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 59.73
• Shares Outstanding: 16,764,810
• 10 Day Avg. Volume: 339,430
• 30 Day Avg. Volume: 223,666
• PEG Ratio: -3.68
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 23.70
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥5,039.00 ▲(14.39% Upside)

The overall stock score reflects strong financial performance and a stable balance sheet, which are offset by valuation concerns and technical indicators suggesting potential short-term weakness. The absence of earnings call and corporate events data limits the analysis to financial and market metrics.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, enhancing long-term business sustainability.

Balance Sheet Health

A strong balance sheet with manageable leverage levels provides financial stability and flexibility for future investments.

Cash Flow Improvement

Positive free cash flow reflects efficient operations and enhances the company's ability to fund growth and manage debt.

Negative Factors

Profitability Volatility

Volatile profitability can hinder long-term financial planning and investor confidence, impacting the company's valuation.

Cash Flow Volatility

Inconsistent cash flows can limit the company's ability to invest in growth opportunities and meet financial obligations.

Return on Equity Inconsistency

Inconsistent ROE indicates potential inefficiencies in generating shareholder returns, which could affect investor sentiment and capital allocation.

Nippon Avionics Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Nippon Avionics generates revenue through multiple key streams, primarily by selling advanced electronic systems and components to the aerospace and defense industries. The company benefits from long-term contracts with government and military agencies, which provide a stable income base. Additionally, partnerships with major aircraft manufacturers and defense contractors contribute significantly to its earnings. The growing demand for sophisticated avionics and communication systems, along with ongoing investments in research and development, further supports the company's revenue growth as it expands its product offerings and enhances its technological capabilities.

Nippon Avionics Co., Ltd. Financial Statement Overview

Summary

Nippon Avionics shows strong financial health with consistent revenue growth and a stable balance sheet. However, profitability and cash flow generation have shown past fluctuations, indicating areas for cautious management.

Income Statement

Nippon Avionics has demonstrated strong revenue growth over the past few years, with a notable increase from 2024 to 2025. The company maintains robust gross and EBIT margins, indicating efficient cost management and operational profitability. However, the net profit margin has experienced volatility, and despite recent improvements, the previous year's decline in net income suggests potential challenges in maintaining bottom-line growth.

Balance Sheet

The company has a solid equity base with a favorable equity ratio, reflecting financial stability. The debt-to-equity ratio is reasonable, indicating manageable leverage levels. However, the return on equity has been inconsistent, highlighting potential inefficiencies in generating shareholder returns. Despite these challenges, the balance sheet remains strong overall.

Cash Flow

Nippon Avionics has shown improvement in free cash flow, turning positive in the latest fiscal year after a period of negative cash flows. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings, but past volatility in cash flows suggests potential liquidity management issues. Continued focus on cash flow stability will be crucial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.07B	20.12B	18.05B	17.75B	19.23B	20.20B
Gross Profit	6.91B	6.64B	5.72B	5.74B	6.04B	5.36B
EBITDA	3.53B	3.21B	2.47B	2.17B	2.07B	1.28B
Net Income	2.16B	1.96B	2.15B	1.82B	1.63B	1.03B
Balance Sheet
Total Assets	26.94B	26.91B	27.53B	23.96B	23.06B	26.22B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.93B	2.34B	2.11B	3.05B	2.29B
Total Debt	5.79B	4.79B	4.79B	3.65B	3.87B	5.20B
Total Liabilities	12.70B	12.95B	13.22B	11.80B	12.29B	15.92B
Stockholders Equity	14.24B	13.96B	14.30B	12.17B	10.77B	10.29B
Cash Flow
Free Cash Flow	0.00	1.74B	-726.00M	-1.06B	3.08B	565.00M
Operating Cash Flow	0.00	2.15B	-206.00M	-860.00M	3.35B	859.00M
Investing Cash Flow	0.00	-471.00M	-517.00M	151.00M	-263.00M	-300.00M
Financing Cash Flow	0.00	-2.08B	956.00M	-230.00M	-2.33B	-617.00M

Nippon Avionics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4405.00
• 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:6946, the sentiment is Negative. The current price of 4405 is below the 20-day moving average (MA) of 4627.00, below the 50-day MA of 4813.80, and above the 200-day MA of 4022.57, indicating a neutral trend. The MACD of -78.62 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6946.

Nippon Avionics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6617	80 Outperform	¥61.02B	12.33	―	1.61%	-3.41%	13.79%
6763	80 Outperform	¥25.58B	14.46	―	3.16%	12.72%	53.85%
6637	72 Outperform	¥55.83B	11.62	―	0.91%	5.28%	18.38%
6946	64 Neutral	€73.83B	26.72	19.52%	0.13%	28.27%	27.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥44.05B	-110.59	―	5.01%	-32.74%	-117.06%
6993	47 Neutral	¥47.42B	-12.11	―	―	-2.35%	16.12%