Ryobi (5851) AI Stock Analysis

• Market Cap: $90.60B
• Dividend Yield: 3.3%
• Average Volume (3M): 153.74K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.04
• Revenue Growth: 1.66%
• EPS Growth: -37.57%
• Country: JP
• Employees: 7,939
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 82.68
• Shares Outstanding: 32,646,145
• 10 Day Avg. Volume: 96,570
• 30 Day Avg. Volume: 153,736
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 3.81
• 1Y Price Target: $2,796.65
• Price Target Upside: -0.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,813.00 ▲(0.50% Upside)

Ryobi's stock is supported by strong technical momentum and a reasonable valuation, despite challenges in financial performance, particularly in cash flow management. The absence of earnings call data and corporate events does not impact the score.

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 demonstrates strong revenue growth and a stable balance sheet, but faces challenges with declining profitability margins and negative free cash flow. The company should focus on improving operational efficiency and managing capital expenditures to enhance cash flow stability.

Income Statement

Ryobi's income statement shows a strong revenue growth trajectory, particularly with a 33.6% increase in the TTM period. Gross profit margins are stable around 11.7%, and net profit margins have improved slightly to 2.17% in the TTM. However, EBIT and EBITDA margins have decreased compared to previous periods, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.43 in the TTM, showing a reduction from previous years, which is a positive sign of financial stability. Return on equity has decreased to 3.99%, suggesting a decline in profitability. The equity ratio remains healthy, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a concerning negative free cash flow growth rate of -492.24% in the TTM, primarily due to increased capital expenditures. The operating cash flow to net income ratio is low at 0.16, indicating potential liquidity issues. However, the company has shown the ability to generate positive operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	302.42B	293.31B	282.69B	249.52B	198.07B	170.97B
Gross Profit	36.22B	34.26B	34.49B	28.25B	18.47B	17.09B
EBITDA	31.17B	33.10B	33.13B	26.31B	13.80B	15.87B
Net Income	6.59B	6.93B	10.12B	4.78B	-4.40B	-697.00M
Balance Sheet
Total Assets	319.04B	333.19B	318.84B	300.29B	279.42B	258.66B
Cash, Cash Equivalents and Short-Term Investments	26.90B	29.92B	28.29B	27.99B	29.28B	27.32B
Total Debt	66.40B	61.96B	70.19B	74.36B	73.77B	72.47B
Total Liabilities	147.00B	156.21B	158.12B	156.56B	147.71B	132.73B
Stockholders Equity	162.25B	167.35B	151.30B	134.46B	122.92B	117.15B
Cash Flow
Free Cash Flow	-3.44B	15.09B	9.68B	-92.00M	3.05B	-8.50B
Operating Cash Flow	15.63B	29.16B	26.00B	16.79B	14.90B	11.79B
Investing Cash Flow	-20.12B	-13.72B	-17.43B	-15.86B	-12.16B	-17.57B
Financing Cash Flow	-1.43B	-14.90B	-8.59B	-2.86B	-1.94B	9.72B

Ryobi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2799.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2799 is above the 20-day moving average (MA) of 2694.55, above the 50-day MA of 2454.32, and above the 200-day MA of 2196.79, indicating a bullish trend. The MACD of 129.68 indicates Positive momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 45.94 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
6586	82 Outperform	1.34T	16.35	8.57%	1.33%	-0.67%	70.49%
5851	74 Outperform	$90.60B	13.71	4.08%	3.30%	1.66%	-37.57%
6278	74 Outperform	140.45B	25.36	7.22%	1.23%	21.67%	40.87%
6474	69 Neutral	87.41B	19.28	2.11%	2.72%	-4.76%	78.57%
6480	65 Neutral	47.47B	23.08	1.29%	2.84%	5.34%	79.88%
6472	58 Neutral	181.59B	-7.97	-9.87%	3.21%	-3.84%	-351.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.