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Stock Analysis Report

Nippon Avionics

Executive Summary

Nippon Avionics Co., Ltd. manufactures and sells micro joining equipment in Japan.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Nippon Avionics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6NA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.9%

6NA

-6.6%

DE Electronic

-5.7%

DE Market


1 Year Return

12.5%

6NA

-0.6%

DE Electronic

6.1%

DE Market

Return vs Industry: 6NA exceeded the German Electronic industry which returned -0.6% over the past year.

Return vs Market: 6NA exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

6NAIndustryMarket
7 Day-0.9%-6.6%-5.7%
30 Day-11.1%1.2%-5.7%
90 Day28.7%-0.2%-3.6%
1 Year12.5%12.5%1.5%-0.6%9.3%6.1%
3 Year-46.1%-46.1%36.1%31.6%8.9%-0.7%
5 Year-25.7%-25.7%103.1%88.5%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Nippon Avionics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nippon Avionics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6NA (€11.2) is trading below our estimate of fair value (€34.94)

Significantly Below Fair Value: 6NA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6NA is good value based on its PE Ratio (8.1x) compared to the Electronic industry average (26x).

PE vs Market: 6NA is good value based on its PE Ratio (8.1x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6NA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6NA is good value based on its PB Ratio (0.5x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Nippon Avionics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.9%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nippon Avionics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nippon Avionics performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6NA has a large one-off gain of ¥1.9B impacting its December 31 2019 financial results.

Growing Profit Margin: 6NA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 6NA has become profitable over the past 5 years, growing earnings by 2.8% per year.

Accelerating Growth: 6NA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 6NA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: 6NA's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nippon Avionics's financial position?


Financial Position Analysis

Short Term Liabilities: 6NA's short term assets (¥16.0B) exceed its short term liabilities (¥8.1B).

Long Term Liabilities: 6NA's short term assets (¥16.0B) exceed its long term liabilities (¥7.1B).


Debt to Equity History and Analysis

Debt Level: 6NA's debt to equity ratio (62.1%) is considered high.

Reducing Debt: 6NA's debt to equity ratio has reduced from 157.2% to 62.1% over the past 5 years.

Debt Coverage: 6NA's debt is well covered by operating cash flow (27.9%).

Interest Coverage: 6NA's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 6NA has a high level of physical assets or inventory.

Debt Coverage by Assets: 6NA's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is Nippon Avionics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.8%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6NA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6NA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6NA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6NA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6NA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6NA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average board tenure


CEO

Masato Takeuchi 0

0.6yrs

Tenure

0

Masato Takeuchi had been Associate Senior Vice President and Director of Nippon Avionics Co., Ltd. since June 2018 until July 2019 and has been its President since July 2019. Masato Takeuchi served as an E ...


Board Members

NamePositionTenureCompensationOwnership
Katsuhiko Akitsu
Associate Senior VP & Member of the Board7.7yrsno data0.12% ¥39.8k
Isamu Ueda
Associate Senior VP & Director2.7yrsno data0.028% ¥9.4k
Hiroyuki Sekizawa
Part-Time Corporate Auditor4.7yrsno datano data
Tomoo Suzuki
Full-Time External Corporate Auditor7.7yrsno datano data
Kentaro Nobeoka
Part-Time External Director0yrsno data0.014% ¥4.7k
Aiko Mochizuki
Part-Time External Director5.7yrsno data0.014% ¥4.7k
Maiko Chihara
Part-Time External Corporate Auditor4.7yrsno datano data
Toru Shinoda
Full-Time External Corporate Auditor0yrsno datano data

5.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 6NA's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nippon Avionics Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nippon Avionics Co., Ltd.
  • Ticker: 6NA
  • Exchange: BST
  • Founded: 1960
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥3.962b
  • Listing Market Cap: JP¥33.073m
  • Shares outstanding: 2.82m
  • Website: https://www.avio.co.jp

Number of Employees


Location

  • Nippon Avionics Co., Ltd.
  • Gotanda Kowa Building
  • 1-5, Nishi-Gotanda 8-chome
  • Tokyo
  • 141-0031
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6946TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
6NABST (Boerse-Stuttgart)YesCommon StockDEEURJan 1992

Biography

Nippon Avionics Co., Ltd. manufactures and sells micro joining equipment in Japan. The company’s micro joining equipment include resistance, laser, and seam welders; ultrasonic equipment; and high-frequency induction heater and pulse heat units, as well as joining monitors. It also provides 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. The company was incorporated in 1960 and is headquartered in Tokyo, Japan. Nippon Avionics Co., Ltd. is a former subsidiary of NEC Corporation.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:38
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.