Ryobi (5851) AI Stock Analysis

• Market Cap: $67.46B
• Dividend Yield: 4.08%
• Average Volume (3M): 97.70K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.12
• Revenue Growth: 3.57%
• EPS Growth: -40.42%
• Country: JP
• Employees: 7,939
• Sector: Industrials
• Sector Strength: 87
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 54.10
• Shares Outstanding: 32,646,145
• 10 Day Avg. Volume: 100,900
• 30 Day Avg. Volume: 97,703
• PEG Ratio: -0.22
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥2,345.00 ▲(12.52%Upside)

Ryobi's overall stock score is supported by its strong valuation, with an attractive P/E ratio and dividend yield. Financial performance shows solid growth but highlights a need for better free cash flow management. Technical analysis reflects mixed signals with potential short-term bearish momentum.

Ryobi Business Overview & Revenue Model

Company Description

Ryobi Limited, together with its subsidiaries, operates as a die casting manufacturer in Japan, the United States, China, and internationally. The company operates through Die Castings, Builders' Hardware, and Printing Equipment segments. It offers die cast products comprising cylinder blocks, transmission cases, sub frames chassis parts, and electric car parts for use in the automobile industry; builders' hardware, such as sliding door closers, floor hinges, and concealed and overhead concealed door closers, as well as architectural hardware, such as door stoppers/door holders, door guards, flush bolts, and door coordinators, as well as automatic door operators; and printing equipment, including offset printing presses, peripherals, etc. The company also manufactures and sells aluminum forged products. Ryobi Limited was incorporated in 1943 and is headquartered in Fuchu, Japan.

How the Company Makes Money

Ryobi makes money through the sale of its power tools and outdoor equipment, which are distributed through retail channels globally. The company's revenue model is primarily based on the manufacturing and selling of these products. Ryobi also generates income from its die-casting business, which supplies components to the automotive and electronics industries. Key revenue streams include sales from its extensive product line of power tools and outdoor equipment, as well as contracts and agreements with automotive and electronics companies for die-casting components. Significant partnerships with major retailers and distributors also contribute to its earnings by expanding its market reach and accessibility to consumers.

Ryobi Financial Statement Overview

Summary

Ryobi showcases solid growth in revenue and maintains a robust financial position with balanced leverage and adequate profitability margins. While the income statement reflects positive trends, the cash flow statement indicates areas for improvement in free cash flow generation. The balance sheet's stability is a significant strength, providing a strong foundation for future growth. Continued focus on enhancing profitability and cash flow efficiency will be crucial for sustaining long-term financial health.

Income Statement

Ryobi has demonstrated strong revenue growth over recent years, with a notable increase in total revenue from 2021 to 2025. The gross profit margin for the TTM period is 11.66%, and the net profit margin is 2.17%, indicating moderate profitability. The EBIT margin for TTM is 3.17%, and the EBITDA margin is 10.27%, showing efficient operational management. The revenue growth rate from 2024 to TTM is 2.76%, reflecting steady growth. Overall, the income statement indicates a healthy upward trend with room for improvement in profitability.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.43 for the TTM period, suggesting a balanced leverage strategy. The return on equity (ROE) is 4.03%, indicating moderate returns on shareholders' investments. The equity ratio stands at 50.39%, reflecting a strong equity position relative to total assets. The company maintains a stable financial position with manageable liabilities, though there is potential to enhance equity returns.

Cash Flow

Ryobi's cash flow statements reveal a mixed performance, with a decline in free cash flow from the previous period yet maintaining positive operating cash flow. The operating cash flow to net income ratio is 2.67 for the TTM period, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio of 0.13 suggests limited free cash flow relative to earnings. The free cash flow growth rate is negative, highlighting the need for improved cash management and capital investment efficiency.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
301.41B	293.31B	282.69B	249.52B	198.07B	170.97B
	Gross Profit
35.16B	34.26B	34.49B	28.25B	18.47B	17.09B
	EBIT
9.56B	9.49B	12.21B	6.97B	947.00M	1.03B
	EBITDA
30.95B	33.10B	33.13B	25.28B	13.80B	15.87B
	Net Income Common Stockholders
6.54B	6.93B	10.12B	4.78B	-4.36B	-823.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.19B	29.92B	28.29B	27.99B	29.28B	27.32B
	Total Assets
322.00B	333.19B	318.84B	300.29B	279.42B	258.66B
	Total Debt
69.29B	61.96B	70.19B	74.36B	73.77B	72.47B
	Net Debt
42.74B	33.94B	42.55B	47.02B	45.23B	45.91B
	Total Liabilities
150.03B	156.21B	158.12B	156.56B	147.71B	132.73B
	Stockholders Equity
162.28B	167.35B	151.30B	134.46B	122.92B	117.15B
Cash Flow		Free Cash Flow
876.00M	15.09B	9.68B	-92.00M	3.05B	-8.50B
	Operating Cash Flow
17.43B	29.16B	26.00B	16.79B	14.90B	11.79B
	Investing Cash Flow
-18.90B	-13.72B	-17.43B	-15.86B	-12.16B	-17.57B
	Financing Cash Flow
-2.90B	-14.90B	-8.59B	-2.86B	-1.94B	9.72B

Ryobi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2084.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5851, the sentiment is Negative. The current price of 2084 is below the 20-day moving average (MA) of 2130.95, above the 50-day MA of 2055.76, and above the 200-day MA of 2077.01, indicating a neutral trend. The MACD of 9.68 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 23.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5851.

Ryobi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5851	75 Outperform	$67.46B	10.32	3.98%	4.08%	3.57%	-40.42%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
NTN		€670.20M	28.02	-9.65%	5.34%	―	―
8UM		€428.55M	15.16	2.66%	3.49%	―	―
6586	76 Outperform	¥1.17T	14.59		0.93%	1.58%	81.90%
6278	69 Neutral	¥80.16B	14.12		1.94%	28.68%	71.70%
6480	65 Neutral	¥37.11B	36.91		3.63%	-1.21%	-62.46%

Ryobi Corporate Events

Ryobi Limited Reports Q1 2025 Financial Results with Mixed Performance

Ryobi Limited reported its consolidated financial results for the first quarter of 2025, showing an increase in net sales by 11.6% year-over-year to 78,012 million yen. However, the company experienced a decline in ordinary income and net income attributable to owners of the parent, with decreases of 23.4% and 18.5%, respectively. Despite these declines, Ryobi maintains a stable financial position with a shareholders’ equity ratio of 50.4%. The company forecasts a full-year net sales increase of 4.0% and a significant rise in net income by 29.8%, indicating a positive outlook for the remainder of the year.