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

• Market Cap: €85.48B
• Dividend Yield: 0.12%
• Average Volume (3M): 223.67K
• Price to Earnings (P/E): 33.4
• Beta (1Y): 1.80
• 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

• Rating: 73 Outperform
• Price Target: ¥6,135.00 ▲(12.57% Upside)

Nippon Avionics' strong technical indicators and solid financial performance are the primary drivers of its score. Despite a high P/E ratio, the stock's robust dividend yield and bullish momentum support its attractiveness. However, past fluctuations in profitability and cash flow generation warrant cautious optimism.

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 the sale of its specialized electronic and optical products, catering to both domestic and international markets. The company's primary revenue streams include direct sales of avionics systems and components to aircraft manufacturers, defense contractors, and government agencies. Additionally, Nippon Avionics may engage in long-term contracts and partnerships with key players in the aerospace sector, which provide a steady flow of income. The company also invests in research and development to create cutting-edge technologies, which can lead to new product lines and applications, thereby enhancing its market position and profitability.

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 been volatile, 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: Positive
• Last Price: 5450.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 5450 is above the 20-day moving average (MA) of 4892.50, above the 50-day MA of 4610.40, and above the 200-day MA of 3539.21, indicating a bullish trend. The MACD of 187.44 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 62.78 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6763	―	¥23.78B	14.04	―	3.44%	13.05%	14.25%
6617	―	¥51.42B	11.88	―	1.54%	-3.41%	13.78%
6946	―	€85.48B	33.37	19.52%	0.12%	28.27%	27.15%
6637	―	¥49.71B	11.47	―	0.85%	5.57%	0.99%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	―	¥50.18B	48.46	―	4.47%	-39.89%	-110.22%
6993	―	¥8.02B	-5.56	―	―	-6.70%	-17.49%