Ryobi (5851) AI Stock Analysis

• Market Cap: ¥74.16B
• Dividend Yield: 4.04%
• Average Volume (3M): 102.61K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.04
• Revenue Growth: 3.57%
• EPS Growth: -40.42%
• Country: JP
• Employees: 7,939
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 54.10
• Shares Outstanding: 32,646,145
• 10 Day Avg. Volume: 86,820
• 30 Day Avg. Volume: 102,610
• PEG Ratio: -1.93
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 82.44
• 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: ¥2,345.22
• Price Target Upside: 2.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥2,667.00 ▲(16.41%Upside)

Ryobi's stock score is driven by strong technical momentum and solid financial performance. The stock's valuation is attractive with a healthy dividend yield. The stability of the balance sheet provides a strong foundation for future growth. However, improvement in free cash flow generation could enhance future financial health.

Ryobi Business Overview & Revenue Model

Company Description

Ryobi, listed under ticker 5851, is a diversified manufacturing company that specializes in the production of die-cast products, power tools, and outdoor equipment. The company operates across several sectors, including automotive, construction, and consumer goods, delivering innovative and durable products designed to meet the needs of both professional and consumer markets.

How the Company Makes Money

Ryobi generates revenue primarily through the sale of its wide range of products, including power tools, outdoor equipment, and die-cast components. The company's revenue streams are diversified across different sectors, with significant contributions from the automotive industry, where its die-cast products are used in the manufacturing of vehicle components. Additionally, the company's power tools and outdoor equipment are sold to both professional tradespeople and consumers, contributing to its earnings. Ryobi also benefits from strategic partnerships and collaborations with retailers and distributors, extending its market reach and enhancing its sales channels.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	293.31B	282.69B	249.52B	198.07B	170.97B
Gross Profit	34.26B	34.49B	28.25B	18.47B	17.09B
EBITDA	33.10B	33.13B	25.28B	13.80B	15.87B
Net Income	6.93B	10.12B	4.78B	-4.36B	-823.00M
Balance Sheet
Total Assets	333.19B	318.84B	300.29B	279.42B	258.66B
Cash, Cash Equivalents and Short-Term Investments	29.92B	28.29B	27.99B	29.28B	27.32B
Total Debt	61.96B	70.19B	74.36B	73.77B	72.47B
Total Liabilities	156.21B	158.12B	156.56B	147.71B	132.73B
Stockholders Equity	167.35B	151.30B	134.46B	122.92B	117.15B
Cash Flow
Free Cash Flow	15.09B	9.68B	-92.00M	3.05B	-8.50B
Operating Cash Flow	29.16B	26.00B	16.79B	14.90B	11.79B
Investing Cash Flow	-13.72B	-17.43B	-15.86B	-12.16B	-17.57B
Financing Cash Flow	-14.90B	-8.59B	-2.86B	-1.94B	9.72B

Ryobi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2291.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2291 is above the 20-day moving average (MA) of 2236.45, above the 50-day MA of 2142.83, and above the 200-day MA of 2075.92, indicating a bullish trend. The MACD of 45.23 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 77.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5851.

Ryobi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5851	82 Outperform	¥74.16B	11.34	3.98%	4.04%	3.57%	-40.42%
6586	82 Outperform	¥1.28T	15.29		1.40%	-0.67%	70.49%
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
6474	69 Neutral	€76.94B	16.75	2.79%	3.09%	-4.76%	78.57%
6278	69 Neutral	¥109.18B	19.23		1.67%	28.68%	71.70%
6480	65 Neutral	¥42.86B	42.62		3.15%	-1.21%	-62.52%
6472	54 Neutral	€136.01B	30.58	-9.65%	4.29%	-1.28%	-325.82%

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.