Avex Inc. (7860) AI Stock Analysis

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Avex Inc.

(TSE/TYO:7860)

Select Model

Rating:66Neutral

Price Target:JPY 1,441.00▲(8.02% Upside)

Action:reiterated

Date:11/14/26

The score is primarily driven by mixed financial performance: a very strong, low-debt balance sheet and improving revenue are offset by volatile profitability and inconsistent operating/free cash flow. Valuation is supportive (moderate P/E and solid dividend yield), while technicals are modestly positive due to price above key moving averages but tempered by neutral-to-soft momentum indicators.

Positive Factors

Diversified IP monetizationAvex uses a multi-channel entertainment model that monetizes artists and intellectual property through recorded music, royalties, live events, audiovisual content, merchandise, and licensing. This creates several complementary revenue streams and allows successful content to support earnings across multiple channels.

Negative Factors

Profitability volatilityAvex's operating profitability has fluctuated sharply, including a loss in 2025 before recovering in 2026. Such swings indicate that reported revenue growth does not consistently translate into earnings and may make future profit performance more sensitive to content and operating costs.

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

Market Cap: JPY 60.92B
Dividend Yield: 3.75%
Average Volume (3M): 136.40K
Price to Earnings (P/E): 13.2
Beta (1Y): 0.21
Revenue Growth: 11.80%
EPS Growth: 1055.20%
Country: Japan
Employees: 1,372
Sector: Communication Services
Sector Strength: 60
Industry: Entertainment

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 the...

How the Company Makes Money

Avex makes money by monetizing entertainment content and related IP across several complementary revenue streams: 1) Recorded music and music distribution - Revenue is generated from producing, marketing, and distributing music releases (physical and...

Avex Inc. Financial Statement Overview

Summary

Strong balance sheet with near-zero leverage and stable equity supports resilience, and revenue has expanded over the cycle with a 2026 rebound. However, profitability has been volatile (EBIT turning negative in 2025 before recovering in 2026) and cash-flow quality is weak with multiple years of negative operating cash flow and inconsistent free cash flow, which meaningfully limits the overall financial performance score.

Income Statement

66Positive

Balance Sheet

88Very Positive

Cash Flow

45Neutral

Financial statement breakdown
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	4.54B	7.01B	4.41B
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	273.00M	-7.37B	133.00M	5.61B	-7.42B
Operating Cash Flow	0	2.08B	-4.67B	3.69B	9.19B	-4.46B
Investing Cash Flow	0	-665.00M	928.00M	-2.40B	-3.13B	-3.39B
Financing Cash Flow	0	-2.91B	-7.01B	-2.36B	-2.49B	-314.00M

Avex Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price1334.00

Price Trends

50DMA1241.08Positive

100DMA1233.56Positive

200DMA1197.47Positive

Market Momentum

MACD6.01Negative

RSI67.71Neutral

STOCH58.06Neutral

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 1334.00 is above the 20-day moving average (MA) of 1247.75, above the 50-day MA of 1241.08, and above the 200-day MA of 1197.47, indicating a bullish trend. The MACD of 6.01 indicates Negative momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.06 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:7860 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4816	82Outperform	JPY 697.72B	28.45	―	1.32%	-1.55%	-1.56%
JP:5032	82Outperform	JPY 193.68B	14.12	―	2.24%	10.40%	-5.83%
JP:9605	80Outperform	JPY 443.22B	16.62	―	0.58%	0.54%	-3.50%
JP:4712	76Outperform	JPY 20.46B	18.63	―	0.93%	7.82%	-52.34%
JP:7860	66Neutral	JPY 60.92B	13.24	8.43%	3.75%	11.80%	1055.20%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:3791	59Neutral	JPY 21.12B	28.01	―	0.81%	8.53%	-8.74%

* Communication Services Sector Average

Performance Comparison

JP:7860 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7860	Avex Inc.	1334.00	181.86	15.78%
JP:3791	IG Port, Inc.	1050.00	-360.66	-25.57%
JP:4712	KeyHolder, Inc.	1080.00	382.94	54.94%
JP:4816	Toei Animation Co., Ltd.	3340.00	443.86	15.33%
JP:5032	ANYCOLOR Inc.	3170.00	-3116.82	-49.58%
JP:9605	Toei Company, Ltd.	6200.00	315.62	5.36%

Avex Inc. Corporate Events

Avex Reports Interim Sales and Profit Growth

Nov 12, 2026

Avex Inc., listed on the Tokyo Stock Exchange’s Prime Market under code 7860, reported net sales of ¥73,520 million for the six months ended September 30, 2026, up 14.8% year on year. Operating profit increased 210.8% to ¥3,478 million, ordinary prof...

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: Nov 14, 2026

Avex Inc. AI Stock Analysis