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Avex Inc.
(7860)
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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)
Market Cap
¥58.55B
Dividend Yield3.88%
Average Volume (3M)160.93K
Price to Earnings (P/E)17.0
Beta (1Y)0.08
Revenue Growth7.12%
EPS Growth4609.35%
CountryJP
Employees1,372
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)75.66
Shares Outstanding46,091,600
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)92.2
Revenue Forecast (FY)¥156.22B
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
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 148.77B | 146.57B | 131.69B | 133.39B | 121.56B | 98.44B |
| Gross Profit | 42.14B | 40.81B | 34.93B | 39.29B | 38.99B | 35.23B |
| EBITDA | 5.74B | 5.78B | 5.38B | 4.60B | 7.08B | 4.47B |
| Net Income | 3.22B | 3.55B | 1.14B | 987.00M | 2.74B | 919.00M |
Balance Sheet | ||||||
| Total Assets | 108.83B | 110.79B | 105.96B | 109.89B | 108.92B | 97.80B |
| Cash, Cash Equivalents and Short-Term Investments | 34.01B | 34.30B | 35.69B | 47.08B | 48.14B | 44.67B |
| Total Debt | 665.00M | 243.00M | 258.00M | 200.00M | 206.00M | 107.00M |
| Total Liabilities | 56.41B | 57.90B | 54.85B | 53.79B | 50.08B | 37.10B |
| Stockholders Equity | 51.04B | 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
1250.76
Positive
1221.05
Positive
1201.66
Positive
Market Momentum
7.95
Negative
56.63
Neutral
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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
87 Outperform | ¥182.54B | 13.08 | ― | 1.17% | 29.87% | 22.94% | |
82 Outperform | ¥619.59B | 24.17 | ― | 1.12% | -1.08% | 9.95% | |
76 Outperform | ¥433.93B | 16.19 | ― | 0.33% | 3.44% | 48.68% | |
75 Outperform | ¥15.02B | 13.82 | ― | 1.40% | 7.82% | -52.34% | |
66 Neutral | ¥58.55B | 17.02 | 7.05% | 4.16% | 7.12% | 4609.35% | |
62 Neutral | ¥22.06B | 32.91 | ― | 1.11% | -3.66% | -23.02% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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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.