Nippon Avionics Co., Ltd. Fundamental Analysis (JPX: 6946.T)
Nippon Avionics Co., Ltd. Fundamental Analysis (JPX: 6946.T)
Nippon Avionics Co., Ltd. (JPX: 6946.T) shows strong financial fundamentals with a PE ratio of 23.81, profit margin of 14.11%, and ROE of 30.34%. The company generates $32.5B in annual revenue with strong year-over-year growth of 45.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 6946.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent6946.T demonstrates superior asset utilization.
Valuation Score
Excellent6946.T trades at attractive valuation levels.
Growth Score
Moderate6946.T shows steady but slowing expansion.
Financial Health Score
Excellent6946.T maintains a strong and stable balance sheet.
Profitability Score
Weak6946.T struggles to sustain strong margins.
Key Financial Metrics
Is 6946.T Expensive or Cheap?
P/E Ratio
6946.T trades at 23.81 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6946.T's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Nippon Avionics Co., Ltd. at 6.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.24 times EBITDA. This signals the market has high growth expectations.
How Well Does 6946.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Avionics Co., Ltd. keeps $14.11 as profit after all expenses.
Operating Margin
Core operations generate 20.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.34 in profit for every $100 of shareholder equity.
ROA
Nippon Avionics Co., Ltd. generates $11.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Avionics Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nippon Avionics Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
6946.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How 6946.T Stacks Against Its Sector Peers
| Metric | 6946.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.81 | 28.27 | Better (Cheaper) |
| ROE | 30.34% | 1119.00% | Weak |
| Net Margin | 14.11% | -20989.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.80 | Neutral |
| Current Ratio | 1.57 | 21.75 | Neutral |
| ROA | 11.31% | -1330684.00% (disorted) | Strong |
6946.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Avionics Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.43%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
247.44%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-494.90%
Industry Style: Cyclical, Value, Infrastructure
Declining