Nippon Avionics Co., Ltd. (JP:6946)
:6946
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Nippon Avionics Co., Ltd.
(6946)
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Rating:59Neutral
Price Target:
¥5,957.00
▲(33.57% Upside)
Action:Downgraded
Date:05/15/26
The score is supported by a strong earnings inflection with materially improved margins and profitability, but weighed down by weak cash flow conversion (negative operating/free cash flow) and rising debt. Technical signals are bearish (below key moving averages with negative MACD), and valuation offers limited support given the ~23x P/E and very low dividend yield.
Positive Factors
Margin Expansion & Profitability
Material margin improvement and a sharp revenue step-up indicate stronger operating leverage and better unit economics. Sustained mid‑teens operating margins provide room for reinvestment in R&D and service capability, supporting long‑term profitability if revenue momentum endures.
Negative Factors
Weak Cash Flow Conversion
Negative and volatile operating and free cash flow despite reported profits suggests earnings are not converting to liquidity. This raises funding risk for working capital and capex, and could force reliance on external financing or delay shareholder returns if cash conversion does not normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Material margin improvement and a sharp revenue step-up indicate stronger operating leverage and better unit economics. Sustained mid‑teens operating margins provide room for reinvestment in R&D and service capability, supporting long‑term profitability if revenue momentum endures.
Read all positive factors
Nippon Avionics Co., Ltd. (6946) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥96.54B
Dividend Yield0.13%
Average Volume (3M)223.67K
Price to Earnings (P/E)23.4
Beta (1Y)1.79
Revenue Growth45.08%
EPS Growth102.67%
CountryJP
Employees657
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)139.18
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)250.2
Revenue Forecast (FY)¥30.00B
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 ...
How the Company Makes Money
Nippon Avionics makes money primarily by designing, manufacturing, and selling specialized electronic systems and components, with revenue typically generated through a mix of (1) product sales and (2) project/contract-based deliveries for specifi...
Nippon Avionics Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.07B | 29.19B | 20.12B | 18.05B | 17.75B | 19.23B |
| Gross Profit | 6.91B | 9.51B | 6.64B | 5.72B | 5.74B | 6.04B |
| EBITDA | 3.60B | 6.00B | 3.27B | 2.47B | 2.17B | 2.10B |
| Net Income | 2.16B | 3.82B | 1.96B | 2.15B | 1.82B | 1.63B |
Balance Sheet | ||||||
| Total Assets | 26.94B | 36.08B | 27.64B | 28.28B | 23.96B | 23.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.12B | 1.02B | 1.93B | 2.34B | 2.11B | 3.05B |
| Total Debt | 5.79B | 10.49B | 4.79B | 4.79B | 3.65B | 3.87B |
| Total Liabilities | 12.70B | 19.97B | 13.68B | 13.97B | 11.79B | 12.29B |
| Stockholders Equity | 14.24B | 16.10B | 13.96B | 14.30B | 12.17B | 10.77B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -4.35B | 1.74B | -706.00M | -1.02B | 3.20B |
| Operating Cash Flow | 0.00 | -3.62B | 2.15B | -206.00M | -860.00M | 3.35B |
| Investing Cash Flow | 0.00 | -864.00M | -471.00M | -517.00M | 151.00M | -263.00M |
| Financing Cash Flow | 0.00 | 3.58B | -2.08B | 956.00M | -230.00M | -2.33B |
Nippon Avionics Co., Ltd. Technical Analysis
Negative
4460.00
Price Trends
6811.06
Negative
6291.20
Negative
5475.53
Positive
Market Momentum
-244.20
Positive
37.51
Neutral
21.68
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 4460 is below the 20-day moving average (MA) of 6339.50, below the 50-day MA of 6811.06, and below the 200-day MA of 5475.53, indicating a neutral trend. The MACD of -244.20 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 21.68 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥274.18B | 13.32 | ― | 1.53% | 9.71% | 54.82% | |
74 Outperform | ¥130.39B | 7.89 | 8.07% | 2.64% | 81.06% | 65.92% | |
69 Neutral | ¥9.92T | 43.08 | 32.32% | 0.91% | 20.73% | 72.44% | |
68 Neutral | ¥3.86T | 27.94 | 10.06% | 1.21% | 8.80% | 117.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | ¥96.54B | 23.43 | 19.52% | 0.13% | 45.08% | 102.67% | |
59 Neutral | ¥54.38B | -60.12 | ― | 5.01% | -25.54% | -166.77% |
* 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.