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7860

Avex TSE:7860 Stock Report

Last Price

JP¥1.09k

Market Cap

JP¥49.0b

7D

-5.6%

1Y

-27.7%

Updated

21 May, 2022

Data

Company Financials +
7860 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends3/6

7860 Stock Overview

Avex Inc., an entertainment company, engages in music, anime, digital, and other businesses in Japan.

Avex Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Avex
Historical stock prices
Current Share PriceJP¥1,089.00
52 Week HighJP¥1,884.00
52 Week LowJP¥1,083.00
Beta0.41
1 Month Change-23.95%
3 Month Change-19.09%
1 Year Change-27.74%
3 Year Change-20.86%
5 Year Change-23.36%
Change since IPO24.18%

Recent News & Updates

Shareholder Returns

7860JP EntertainmentJP Market
7D-5.6%4.2%0.7%
1Y-27.7%-0.7%-2.9%

Return vs Industry: 7860 underperformed the JP Entertainment industry which returned -0.7% over the past year.

Return vs Market: 7860 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7860's price volatile compared to industry and market?
7860 volatility
7860 Average Weekly Movement5.9%
Entertainment Industry Average Movement6.0%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.1%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 7860 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 7860's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19881,549Katsumi Kuroiwahttps://avex.com

Avex Inc., an entertainment company, engages in music, anime, digital, and other businesses in Japan. The company plans, produces, and sells musical content, including sound sources and images; publishes and distributes music; and plans, produces, and manages live concerts, special events, stage performances/musicals, and various featuring artists. It also manages artists, celebrities, creators, athletes, intellectuals, and others; operates fan clubs; and sells tickets.

Avex Fundamentals Summary

How do Avex's earnings and revenue compare to its market cap?
7860 fundamental statistics
Market CapJP¥49.04b
Earnings (TTM)JP¥919.00m
Revenue (TTM)JP¥98.44b

53.4x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7860 income statement (TTM)
RevenueJP¥98.44b
Cost of RevenueJP¥63.21b
Gross ProfitJP¥35.23b
Other ExpensesJP¥34.31b
EarningsJP¥919.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)20.41
Gross Margin35.79%
Net Profit Margin0.93%
Debt/Equity Ratio0.03%

How did 7860 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

241%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 7860 (¥1089) is trading below our estimate of fair value (¥5496.12)

Significantly Below Fair Value: 7860 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7860 is poor value based on its PE Ratio (53.4x) compared to the JP Entertainment industry average (17.6x).

PE vs Market: 7860 is poor value based on its PE Ratio (53.4x) compared to the JP market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: 7860 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 7860 is good value based on its PB Ratio (0.8x) compared to the JP Entertainment industry average (1.8x).


Future Growth

How is Avex forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


69.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7860's forecast earnings growth (69% per year) is above the savings rate (0.02%).

Earnings vs Market: 7860's earnings (69% per year) are forecast to grow faster than the JP market (8.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 7860's revenue (19.2% per year) is forecast to grow faster than the JP market (4% per year).

High Growth Revenue: 7860's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 7860's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Avex performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


43.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7860 has a high level of non-cash earnings.

Growing Profit Margin: 7860's current net profit margins (0.9%) are lower than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: 7860's earnings have grown significantly by 43.1% per year over the past 5 years.

Accelerating Growth: 7860's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7860 had negative earnings growth (-92.8%) over the past year, making it difficult to compare to the Entertainment industry average (12.2%).


Return on Equity

High ROE: 7860's Return on Equity (1.8%) is considered low.


Financial Health

How is Avex's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7860's short term assets (¥75.3B) exceed its short term liabilities (¥35.5B).

Long Term Liabilities: 7860's short term assets (¥75.3B) exceed its long term liabilities (¥1.7B).


Debt to Equity History and Analysis

Debt Level: 7860 has more cash than its total debt.

Reducing Debt: 7860's debt to equity ratio has reduced from 35.8% to 0.03% over the past 5 years.

Debt Coverage: 7860's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 7860 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Avex current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7860's dividend (4.59%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 7860's dividend (4.59%) is in the top 25% of dividend payers in the JP market (3.69%)


Stability and Growth of Payments

Stable Dividend: 7860's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7860's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (240.9%), 7860's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 7860 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.9yrs

Average management tenure


CEO

Katsumi Kuroiwa

3.92yrs

Tenure

JP¥124,000,000

Compensation

Mr. Katsumi Kuroiwa has been the President and Representative Director of Avex Inc. (formerly, Avex Group Holdings Inc.) since June 2018 and has been its Chief Executive Officer since June 2020. Mr. Kuroiw...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Katsumi's total compensation is reasonable compared to companies of similar size in the JP market.

Compensation vs Earnings: Katsumi's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 7860's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: 7860's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 8.7%.


Top Shareholders

Company Information

Avex Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Avex Inc.
  • Ticker: 7860
  • Exchange: TSE
  • Founded: 1988
  • Industry: Movies and Entertainment
  • Sector: Media
  • Implied Market Cap: JP¥49.038b
  • Shares outstanding: 45.03m
  • Website: https://avex.com

Number of Employees


Location

  • Avex Inc.
  • Avex Building
  • 3-1-30, Minami-Aoyama
  • Tokyo
  • 107-8577
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.