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Avex Inc. (JP:7860)
:7860
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Avex Inc. (7860) AI Stock Analysis

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JP:7860

Avex Inc.

(7860)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥1,341.00
▲(6.77% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily driven by solid financial resilience from a strong, low-debt balance sheet and meaningful revenue growth, but held back by inconsistent cash generation and volatile profitability. Valuation is supportive (P/E ~16.4 and ~4.0% dividend yield), while technical indicators are mixed with softer near-term momentum.
Positive Factors
Long-term revenue expansion
Sustained multi-year revenue expansion indicates broader monetization of Avex’s entertainment portfolio and improving market reach. The 2026 rebound after a 2025 dip suggests the business can continue growing despite periodic content or demand fluctuations.
Negative Factors
Unreliable cash conversion
Repeated negative operating cash flow and only marginally positive recent free cash flow show that reported earnings do not consistently convert into cash. Working-capital swings or cash costs may constrain reinvestment and make funding needs less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term revenue expansion
Sustained multi-year revenue expansion indicates broader monetization of Avex’s entertainment portfolio and improving market reach. The 2026 rebound after a 2025 dip suggests the business can continue growing despite periodic content or demand fluctuations.
Read all positive factors

Avex Inc. (7860) vs. iShares MSCI Japan ETF (EWJ)

Avex Inc. Business Overview & Revenue Model

Company Description
Avex Inc., an entertainment conglomerate headquartered in Tokyo, Japan, specializes in a broad range of activities across its music, anime, and digital divisions. Established in 1988, the company is deeply involved in the music industry, handling ...
How the Company Makes Money
Avex makes money by monetizing entertainment IP and talent across several revenue streams. Recorded music and video/content distribution generates revenue through sales and licensing of music and video works across physical and digital channels, i...

Avex Inc. Financial Statement Overview

Summary
Top-line growth is strong over the cycle (81.5B in 2021 to 146.6B in 2026) and the balance sheet is conservatively financed with near-zero leverage (Balance Sheet Score 88). Offsetting this, profitability has been volatile (EBIT negative in 2025 before recovering in 2026) and cash flow reliability is weak (Cash Flow Score 45) with multiple years of negative operating cash flow and only slightly positive free cash flow in 2026.
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue148.77B146.57B131.69B133.39B121.56B98.44B
Gross Profit42.14B40.81B34.93B39.29B38.99B35.23B
EBITDA5.74B5.78B5.38B4.60B7.08B4.47B
Net Income3.22B3.55B1.14B987.00M2.74B919.00M
Balance Sheet
Total Assets108.83B110.79B105.96B109.89B108.92B97.80B
Cash, Cash Equivalents and Short-Term Investments34.01B34.30B35.69B47.08B48.14B44.67B
Total Debt665.00M243.00M258.00M200.00M206.00M107.00M
Total Liabilities56.41B57.90B54.85B53.79B50.08B37.10B
Stockholders Equity51.04B51.57B50.11B55.19B58.07B57.87B
Cash Flow
Free Cash Flow0.00273.00M-7.37B133.00M5.61B-7.42B
Operating Cash Flow0.002.08B-4.67B3.69B9.19B-4.46B
Investing Cash Flow0.00-665.00M928.00M-2.40B-3.13B-3.39B
Financing Cash Flow0.00-2.91B-7.01B-2.36B-2.49B-314.00M

Avex Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1256.00
Price Trends
50DMA
1250.76
Positive
100DMA
1221.05
Positive
200DMA
1201.66
Positive
Market Momentum
MACD
7.95
Negative
RSI
56.63
Neutral
STOCH
81.64
Negative
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 below the 20-day moving average (MA) of 1264.55, above the 50-day MA of 1250.76, and above the 200-day MA of 1201.66, indicating a bullish trend. The MACD of 7.95 indicates Negative momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 81.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7860.

Avex Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
87
Outperform
¥182.54B13.081.17%29.87%22.94%
82
Outperform
¥619.59B24.171.12%-1.08%9.95%
76
Outperform
¥433.93B16.190.33%3.44%48.68%
75
Outperform
¥15.02B13.821.40%7.82%-52.34%
66
Neutral
¥58.55B17.027.05%4.16%7.12%4609.35%
62
Neutral
¥22.06B32.911.11%-3.66%-23.02%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7860
Avex Inc.
1,288.00
59.38
4.83%
JP:3791
IG Port, Inc.
1,091.00
-364.09
-25.02%
JP:4712
KeyHolder, Inc.
801.00
69.44
9.49%
JP:4816
Toei Animation Co., Ltd.
3,060.00
-65.50
-2.10%
JP:5032
ANYCOLOR Inc.
3,030.00
-1,645.31
-35.19%
JP:9605
Toei Company, Ltd.
6,040.00
842.02
16.20%

Avex Inc. Corporate Events

Avex Q1 Profit Slumps Despite Higher Sales, Keeps Dividend and Targets Stronger Operating Earnings
Aug 6, 2026
Avex Inc. reported consolidated net sales of ¥34.93 billion for the first quarter ended June 30, 2026, up 6.7% year on year, while operating profit fell 12.4% to ¥1.28 billion and profit attributable to owners of parent dropped 44.2% to ...
Avex Issues Restricted Stock to Align Executive Pay With Shareholder Value
Jun 26, 2026
Avex Inc. has approved the issuance of 172,300 new common shares as restricted stock compensation, valued at approximately ¥203.8 million, to three executive directors and 12 executive officers and subsidiary directors. The shares, priced at ...
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.Date of analysis: Aug 17, 2026