Avex Inc. (JP:7860)
:7860
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Avex Inc.
(7860)
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Rating:68Neutral
Price Target:
¥1,288.00
▲(2.55% Upside)
Action:Reiterated
Date:05/15/26
The score is driven by attractive valuation (low P/E and strong dividend yield) and a very strong, low-debt balance sheet. These positives are tempered by uneven cash flow generation and volatile profitability, while technical signals are largely neutral with a slight bearish tilt (negative MACD).
Positive Factors
Very low leverage / strong balance sheet
Near-zero leverage and a sizable equity base provide durable financial resilience, lowering bankruptcy risk and preserving capacity for strategic investment, M&A, or shareholder returns during downturns. This structural strength supports long-term operational flexibility and creditor confidence.
Negative Factors
Uneven cash generation
Recurrent negative operating cash flow and volatile free cash flow reflect working capital swings and timing mismatches that can constrain reinvestment and dividend stability. Over months to years, weak cash reliability limits strategic options and raises financing or liquidity risk despite low debt.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Near-zero leverage and a sizable equity base provide durable financial resilience, lowering bankruptcy risk and preserving capacity for strategic investment, M&A, or shareholder returns during downturns. This structural strength supports long-term operational flexibility and creditor confidence.
Read all positive factors
Avex Inc. (7860) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥53.64B
Dividend Yield4.16%
Average Volume (3M)160.93K
Price to Earnings (P/E)14.2
Beta (1Y)0.32
Revenue Growth11.30%
EPS Growth245.85%
CountryJP
Employees1,538
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)N/A
Shares Outstanding45,919,300
10 Day Avg. Volume155,170
30 Day Avg. Volume160,933
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.98
Price to Sales (P/S)0.35
P/FCF Ratio185.42
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)N/A
Revenue Forecast (FY)N/A
Avex Inc. Business Overview & Revenue Model
Company Description
Avex Inc., an entertainment company, engages in music, anime, digital, and other businesses in Japan. The company plans, produces, and sells musical content, including sound sources and images; publishes and distributes music; and plans, produces,...
How the Company Makes Money
Avex Inc. generates revenue through several key streams. One of the primary sources is music sales, including physical and digital distribution of songs and albums from its managed artists. The company also earns income from live events and concer...
Avex Inc. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 138.88B | 146.57B | 131.69B | 133.39B | 121.56B | 98.44B |
| Gross Profit | 38.48B | 40.81B | 34.93B | 39.29B | 38.99B | 35.23B |
| EBITDA | 8.03B | 5.78B | 5.38B | 4.60B | 7.08B | 4.47B |
| Net Income | 67.00M | 3.55B | 1.14B | 987.00M | 2.74B | 919.00M |
Balance Sheet | ||||||
| Total Assets | 102.14B | 110.79B | 105.96B | 109.89B | 108.92B | 97.80B |
| Cash, Cash Equivalents and Short-Term Investments | 28.36B | 34.30B | 35.69B | 47.08B | 48.14B | 44.67B |
| Total Debt | 1.75B | 0.00 | 258.00M | 200.00M | 206.00M | 107.00M |
| Total Liabilities | 51.35B | 57.90B | 54.85B | 53.79B | 50.08B | 37.10B |
| Stockholders Equity | 49.74B | 51.57B | 50.11B | 55.19B | 58.07B | 57.87B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 273.00M | -7.37B | 133.00M | 5.61B | -7.42B |
| Operating Cash Flow | 0.00 | 2.08B | -4.67B | 3.69B | 9.19B | -4.46B |
| Investing Cash Flow | 0.00 | -665.00M | 928.00M | -2.40B | -3.13B | -3.39B |
| Financing Cash Flow | 0.00 | -2.91B | -7.01B | -2.36B | -2.49B | -314.00M |
Avex Inc. Technical Analysis
Positive
1256.00
Price Trends
1188.07
Positive
1187.07
Positive
1197.71
Positive
Market Momentum
-1.00
Negative
59.92
Neutral
75.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7860, the sentiment is Positive. The current price of 1256 is above the 20-day moving average (MA) of 1187.75, above the 50-day MA of 1188.07, and above the 200-day MA of 1197.71, indicating a bullish trend. The MACD of -1.00 indicates Negative momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7860.
Avex Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥418.91B | 15.76 | ― | 0.33% | 3.01% | 47.38% | |
77 Outperform | ¥168.98B | 16.53 | ― | 1.17% | 48.80% | 57.67% | |
73 Outperform | ¥543.14B | 21.16 | ― | 1.12% | -7.11% | 6.18% | |
68 Neutral | ¥53.64B | 14.25 | 4.10% | 4.16% | 11.30% | 245.85% | |
68 Neutral | ¥15.13B | 11.28 | ― | 1.40% | 11.61% | -64.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | ¥27.63B | 9.01 | ― | 1.11% | -2.51% | -0.60% |
* Communication Services Sector Average
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Avex Inc. Corporate Events
Avex Swings Back to Strong Profit on Higher Sales and Group Restructuring
May 14, 2026
Avex Inc. reported consolidated net sales of ¥146.6 billion for the fiscal year ended March 31, 2026, up 11.3% year on year, with operating profit recovering to ¥4.1 billion and profit attributable to owners of parent surging 212.1% to &...
Avex Swings Back to Profit on Strong Live Events and Anime Exports
May 14, 2026
Avex Inc. reported a solid rebound in its consolidated results for the fiscal year ended March 31, 2026, driven by an 11.3% rise in net sales to 146.6 billion yen and a swing in ordinary profit from a loss of 1.7 billion yen to a profit of 4.3 bil...
Avex Returns to Profit, Keeps Dividend as It Recasts Group Structure
May 14, 2026
Avex Inc. reported a strong rebound for the fiscal year ended March 31, 2026, with consolidated net sales rising 11.3% to ¥146.6 billion and a swing back to profitability, posting operating profit of ¥4.1 billion and profit attributable ...
Avex Returns to Profit on Strong Live Music and Overseas Anime Sales
May 14, 2026
Avex Inc. reported an 11.3% year-on-year increase in consolidated net sales to ¥146.6 billion for the fiscal year ended March 31, 2026, driven by higher live performance-related revenue in its Music Business and strong overseas demand for ani...
Avex Lifts Full-Year Profit Forecast on Strong Anime Exports and Live Music
Apr 27, 2026
Avex Inc. has raised its consolidated earnings forecast for the fiscal year ended March 31, 2026, projecting operating profit of 4 billion yen and profit attributable to owners of parent of 3.5 billion yen, up 33.3% and 25.0% respectively from its...
Avex Sets Up USD 50 Million U.S. Music Catalog Loan Facility With Tight Covenants
Mar 31, 2026
Avex Inc. has approved a plan for newly established U.S. subsidiary Avex Song Fund 1 LLC to enter into a senior secured credit facility of up to USD 50 million with City National Bank. The non-recourse loan, secured by shares of the music-rights h...
Avex Sets Up U.S. Music Catalog Funds to Drive Global Rights Expansion
Mar 31, 2026
Avex Inc. has approved the creation of two U.S.-based special purpose companies, Avex Catalog Fund 1 LLC and Avex Song Fund 1 LLC, both in Delaware and led by Avex Music Group CEO Brandon Silverstein, to manage and operate music-related rights as ...
Avex Subsidiary Signs U.S. Loan Deal With Financial Covenants
Mar 31, 2026
Avex Inc. announced that a U.S. consolidated subsidiary has executed a loan agreement that includes financial covenants, indicating the use of covenant-linked financing to support its overseas operations. The company has released details of this a...
Avex to Establish Special Purpose Companies, Details to Follow in English
Mar 31, 2026
Avex Inc. said it has approved the establishment of special purpose companies, signaling a potential new financial or structural vehicle for its entertainment operations. The company released only a summary in English and directed investors to Jap...
Avex to Absorb Loss-Making Healthcare Subsidiary in Streamlining Move
Mar 5, 2026
Avex Inc. will absorb its wholly owned subsidiary Avex Healthcare Empower LLC in a short-form merger effective April 1, 2026, dissolving the smaller unit without issuing new shares or paying consideration. The move, approved by the board on Februa...
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.