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Japan Aviation Electronics Industry
(6807)
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Rating:49Neutral
Price Target:
¥2,574.00
▲(6.32% Upside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by weakened financial momentum, especially the negative free cash flow and lower cash conversion alongside margin compression, despite a manageable leverage profile. Technically, the stock is trading below key moving averages, suggesting a softer trend, while valuation is only moderately supportive (mid-20s P/E with a ~2.5% yield).
Positive Factors
High-reliability connector franchise
JAE serves multiple demanding end markets with connectors and interconnect products where reliability and qualification requirements matter. This application breadth and technical positioning can support recurring customer programs and reduce dependence on any single industry over the medium term.
Negative Factors
Sharp margin compression
The steep decline in gross and net margins reduces the earnings generated from each unit of revenue and weakens operating resilience. Unless profitability recovers, lower margins can constrain reinvestment, reduce returns on capital, and make earnings more sensitive to changes in product mix or demand.
Read all positive and negative factors
Positive Factors
Negative Factors
High-reliability connector franchise
JAE serves multiple demanding end markets with connectors and interconnect products where reliability and qualification requirements matter. This application breadth and technical positioning can support recurring customer programs and reduce dependence on any single industry over the medium term.
Read all positive factors
Japan Aviation Electronics Industry (6807) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥178.42B
Dividend Yield2.13%
Average Volume (3M)291.21K
Price to Earnings (P/E)26.6
Beta (1Y)0.91
Revenue Growth7.73%
EPS Growth-29.74%
CountryJP
Employees11,908
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)97.11
Shares Outstanding70,302,605
10 Day Avg. Volume295,070
30 Day Avg. Volume291,209
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)1.05
Price to Sales (P/S)0.66
P/FCF Ratio-22.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,700.00Price Target Upside11.52% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)108.58
Revenue Forecast (FY)¥243.77B
Japan Aviation Electronics Industry Business Overview & Revenue Model
Company Description
Japan Aviation Electronics Industry, Limited provides connectors, user interface solutions, and aerospace electronics in Japan. The company offers input/output, board-to-board, board-to-FPC/FFC, board-to-cable, circular, rectangular, fiber optic, ...
How the Company Makes Money
JAE makes money mainly by designing, manufacturing, and selling electronic components—especially connectors—used to electrically and mechanically connect devices and subsystems in customer products. Its revenue model is largely B2B: it supplies co...
Japan Aviation Electronics Industry Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 234.52B | 227.87B | 221.64B | 225.78B | 235.86B | 225.08B |
| Gross Profit | 35.93B | 36.43B | 50.69B | 48.29B | 51.78B | 51.42B |
| EBITDA | 29.74B | 30.70B | 36.69B | 37.09B | 39.75B | 39.12B |
| Net Income | 6.55B | 7.07B | 11.59B | 12.24B | 14.64B | 14.32B |
Balance Sheet | ||||||
| Total Assets | 237.05B | 232.14B | 215.44B | 236.04B | 226.63B | 225.34B |
| Cash, Cash Equivalents and Short-Term Investments | 43.82B | 48.50B | 52.87B | 68.30B | 63.02B | 65.56B |
| Total Debt | 40.00B | 41.75B | 37.41B | 65.01B | 10.29B | 17.66B |
| Total Liabilities | 92.94B | 87.78B | 81.75B | 109.23B | 55.34B | 67.45B |
| Stockholders Equity | 144.12B | 144.36B | 133.70B | 126.81B | 171.28B | 157.89B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -6.76B | 18.29B | 14.49B | 9.88B | 5.47B |
| Operating Cash Flow | 0.00 | 16.99B | 36.34B | 34.86B | 32.45B | 24.43B |
| Investing Cash Flow | 0.00 | -24.39B | -19.20B | -20.31B | -23.43B | -20.29B |
| Financing Cash Flow | 0.00 | 454.00M | -31.57B | -11.90B | -11.64B | -9.98B |
Japan Aviation Electronics Industry Technical Analysis
Neutral
2421.00
Price Trends
2528.56
Positive
2444.24
Positive
2440.84
Positive
Market Momentum
40.25
Positive
44.26
Neutral
8.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6807, the sentiment is Neutral. The current price of 2421 is below the 20-day moving average (MA) of 2706.84, below the 50-day MA of 2528.56, and below the 200-day MA of 2440.84, indicating a neutral trend. The MACD of 40.25 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 8.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6807.
Japan Aviation Electronics Industry Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥741.47B | 23.32 | 8.79% | 2.22% | 15.94% | 6.46% | |
69 Neutral | ¥4.98T | 21.22 | ― | 1.52% | 21.98% | 57.54% | |
68 Neutral | ¥402.64B | 15.78 | 5.95% | 3.12% | 2.28% | -22.89% | |
67 Neutral | ¥1.05T | 32.44 | 3.97% | 1.95% | -2.45% | -1.11% | |
65 Neutral | ¥11.57T | 43.15 | 9.94% | 1.12% | 10.31% | 24.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥178.42B | 26.64 | 4.63% | 2.13% | 7.73% | -29.74% |
* Technology Sector Average
JP:6807
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Japan Aviation Electronics Industry Corporate Events
Japan Aviation Electronics Sees Profit Slide Despite Higher Sales, Cuts Dividend Outlook
Jul 29, 2026
Japan Aviation Electronics Industry reported consolidated net sales of ¥58.25 billion for the three months ended June 30, 2026, a 12.9% increase year on year, reflecting solid demand for its electronic components. Despite higher revenue, oper...
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.