Ryobi (5851) AI Stock Analysis

• Market Cap: ¥90.18B
• Dividend Yield: 3.36%
• Average Volume (3M): 325.32K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.03
• Revenue Growth: 3.80%
• EPS Growth: -15.46%
• Country: JP
• Employees: 7,939
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 41.94
• Shares Outstanding: 31,809,471
• 10 Day Avg. Volume: 121,360
• 30 Day Avg. Volume: 325,316
• PEG Ratio: -0.34
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.88
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,029.00 ▲(11.48% Upside)

Ryobi's stock score is driven by strong technical indicators and reasonable valuation, with a solid dividend yield. Financial performance shows potential for growth, but improvements in profitability and cash flow management are needed to enhance overall financial health.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, which can drive long-term business expansion and stability.

Operational Efficiency

Stable gross profit margins suggest effective cost control, enhancing the company's ability to maintain profitability despite market fluctuations.

Market Position

Ryobi's focus on innovation and quality strengthens its competitive position, fostering customer loyalty and potentially increasing market share.

Negative Factors

Profitability Challenges

Low net profit margins may limit the company's ability to reinvest in growth opportunities and withstand economic downturns, impacting long-term sustainability.

Cash Flow Management

Negative free cash flow growth indicates potential liquidity issues, which could constrain the company's ability to fund operations and invest in future growth.

Return on Equity

A modest return on equity suggests inefficient use of shareholder funds, potentially limiting the company's attractiveness to investors seeking higher returns.

Ryobi Business Overview & Revenue Model

Company Description

Ryobi (5851) is a prominent manufacturer of power tools, outdoor products, and accessories, primarily catering to both professional contractors and DIY enthusiasts. The company operates in the consumer goods sector, focusing on the development and distribution of high-quality, innovative tools that enhance efficiency and productivity. Ryobi's core product offerings include drills, saws, lawn care equipment, and various tool batteries and chargers, which are designed to meet the diverse needs of its customers.

How the Company Makes Money

Ryobi generates revenue through the sale of its power tools and outdoor products, which are distributed through various retail channels, including home improvement stores, specialty tool retailers, and online platforms. Key revenue streams include direct sales of tools and accessories, as well as ongoing sales of replacement parts and batteries. The company also benefits from strategic partnerships with major retailers and distributors, enhancing its market reach and visibility. Additionally, Ryobi's focus on innovation and product development allows it to capture market share and drive customer loyalty, contributing to its overall earnings.

Ryobi Financial Statement Overview

Summary

Ryobi shows 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	305.88B	293.31B	282.69B	249.52B	198.07B	170.97B
Gross Profit	37.56B	34.26B	34.49B	28.25B	18.47B	17.09B
EBITDA	31.79B	33.10B	33.13B	26.31B	13.80B	15.87B
Net Income	7.21B	6.93B	10.12B	4.78B	-4.40B	-697.00M
Balance Sheet
Total Assets	331.06B	333.19B	318.84B	300.29B	279.42B	258.66B
Cash, Cash Equivalents and Short-Term Investments	28.67B	29.92B	28.29B	27.99B	29.28B	27.32B
Total Debt	76.32B	61.96B	70.19B	74.36B	73.77B	72.47B
Total Liabilities	153.51B	156.21B	158.12B	156.56B	147.71B	132.73B
Stockholders Equity	167.70B	167.35B	151.30B	134.46B	122.92B	117.15B
Cash Flow
Free Cash Flow	-3.04B	15.09B	9.68B	-92.00M	3.05B	-8.50B
Operating Cash Flow	17.46B	29.16B	26.00B	16.79B	14.90B	11.79B
Investing Cash Flow	-21.95B	-13.72B	-17.43B	-15.86B	-12.16B	-17.57B
Financing Cash Flow	9.68B	-14.90B	-8.59B	-2.86B	-1.94B	9.72B

Ryobi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2717.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2717 is below the 20-day moving average (MA) of 2750.74, above the 50-day MA of 2684.23, and above the 200-day MA of 2387.10, indicating a bullish trend. The MACD of 43.33 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 93.05 is Negative, 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
6278	76 Outperform	¥166.19B	26.07	―	1.17%	29.51%	48.81%
6474	74 Outperform	¥129.86B	23.39	2.64%	2.30%	-4.11%	46.76%
5851	73 Outperform	¥90.18B	12.84	4.34%	3.36%	3.80%	-15.46%
6480	71 Outperform	¥63.86B	22.58	―	2.82%	8.75%	177.16%
6586	70 Outperform	¥1.37T	16.93	―	2.18%	-1.72%	31.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6472	57 Neutral	¥201.61B	-10.90	-7.84%	3.08%	-3.18%	-531.48%

Ryobi Corporate Events

Ryobi Completes ¥1.5 Billion Share Repurchase Program

Ryobi Limited has completed a share repurchase program authorized by its board on October 14, 2025, buying back 147,300 shares of its common stock for a total of ¥399.5 million through market purchases on the Tokyo Stock Exchange between December 1 and December 31, 2025. Under the broader authorization, the company repurchased an aggregate 558,700 shares for approximately ¥1.5 billion by December 31, 2025, close to the approved financial ceiling and within the 670,000-share cap, with a portion of these shares scheduled for cancellation, underscoring Ryobi’s ongoing efforts to optimize its capital structure and potentially support shareholder returns.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen3029.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi to Cancel All Treasury Shares, Reducing Total Shares Outstanding

Ryobi Limited’s board of directors has approved the cancellation of all 836,672 treasury shares held by the company, representing 2.56% of its issued shares prior to cancellation. Following the cancellation, scheduled for December 30, 2025, the total number of issued shares will decrease to 31,809,471, a move that will modestly tighten the company’s share float and can be seen as a shareholder-friendly capital measure that may enhance earnings per share and equity value over the long term.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen3029.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Announces Change in Corporate Auditors

Ryobi Limited has announced the passing of its outside corporate auditor, Mr. Takashi Hirano, on December 2, 2025. To fill the vacancy, Mr. Takashi Shigezaki, previously appointed as a substitute corporate auditor, has been appointed as the new outside corporate auditor on the same day. This change in the auditing team is expected to maintain the company’s governance and oversight functions.

The most recent analyst rating on (JP:5851) stock is a Hold with a Yen2773.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Reports Growth in Sales and Income for Nine Months Ending September 2025

Ryobi Limited reported a 5.8% increase in net sales for the nine months ending September 30, 2025, compared to the previous year. The company also saw significant growth in operating income, which rose by 32.8%, and ordinary income, which increased by 13.9%. Despite these positive results, comprehensive income decreased by 59.5%. The company’s financial position remains stable with a slight increase in net assets and shareholders’ equity ratio. Ryobi has also announced an increase in annual dividends, reflecting confidence in its continued financial performance.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen2813.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Announces Share Repurchase Status

Ryobi Limited announced the status of its share repurchase program, which was resolved by the Board of Directors on October 14, 2025. The company repurchased 67,100 shares for a total of 186,418,597 yen between October 28 and October 31, 2025, through market purchases on the Tokyo Stock Exchange. The repurchase is part of a larger plan to buy back up to 670,000 shares, with a maximum budget of 1.5 billion yen, and includes plans to cancel a portion of the repurchased shares by the end of December 2025.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen2813.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Announces Strategic Share Repurchase Plan

Ryobi Limited has announced a share repurchase plan, authorized by its Board of Directors, to buy back up to 670,000 shares, which is 2.07% of its total outstanding shares, with a maximum budget of 1.5 billion yen. The repurchase will occur between October 28, 2025, and April 30, 2026, through market purchases on the Tokyo Stock Exchange, and a portion of these shares will be canceled by the end of December 2025, potentially impacting the company’s stock value and shareholder equity.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen2813.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Announces Secondary Offering Pricing

Ryobi Limited has announced the determination of the offer price for a secondary offering of its common stock, set at 2,638 yen per share, with a total offer price of 5,248,828,600 yen. This move is part of a strategic decision by the Board of Directors to enhance the company’s capital structure and potentially improve its market positioning.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen2813.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Announces Share Repurchase Plan

Ryobi Limited has announced a board resolution to repurchase up to 670,000 shares of its common stock, representing 2.07% of its total outstanding shares, with a maximum expenditure of 1.5 billion yen. This strategic move, set to occur between late October 2025 and April 2026, aims to enhance shareholder value and optimize capital structure, with plans to cancel a portion of the repurchased shares by the end of December 2025.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen2813.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.

Ryobi Limited Announces Secondary Offering of Shares

Ryobi Limited has announced a secondary offering of 1,989,700 shares of its common stock, with several major banks and insurance companies acting as selling shareholders. The offering aims to optimize the company’s capital structure and potentially enhance its market position, with the offer price to be determined based on market demand.

The most recent analyst rating on (JP:5851) stock is a Buy with a Yen2813.00 price target. To see the full list of analyst forecasts on Ryobi stock, see the JP:5851 Stock Forecast page.