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Ryobi
(5851)
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Rating:74Outperform
Price Target:
¥3,105.00
▲(24.65% Upside)
Action:Upgraded
Date:08/10/26
The score is driven primarily by solid overall financial stability (improving leverage and sustained profitability) and strong valuation (low P/E and supportive dividend yield). Technicals also contribute positively with price above key moving averages and a positive MACD, though momentum indicators (RSI/Stoch) are stretched. The main constraint on the score is weak and volatile free cash flow, which reduces financial flexibility despite positive operating cash flow.
Positive Factors
Improving Balance Sheet / Leverage
Leverage has steadily declined and equity has built over multiple years, strengthening capitalization. This improved balance sheet enhances resilience to cyclical downturns, preserves financial flexibility for capex or R&D, and supports sustained access to funding over the medium term.
Negative Factors
Thin and Volatile Free Cash Flow
Free cash flow volatility and a very low FCF-to-net-income ratio reduce the firm's ability to finance growth, absorb shocks, or increase shareholder returns without raising debt or cutting investment. Structural swings constrain long-term financial flexibility and strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet / Leverage
Leverage has steadily declined and equity has built over multiple years, strengthening capitalization. This improved balance sheet enhances resilience to cyclical downturns, preserves financial flexibility for capex or R&D, and supports sustained access to funding over the medium term.
Read all positive factors
Ryobi (5851) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥90.62B
Dividend Yield3.55%
Average Volume (3M)325.32K
Price to Earnings (P/E)8.6
Beta (1Y)1.07
Revenue Growth3.21%
EPS Growth64.77%
CountryJP
Employees7,519
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)335.45
Shares Outstanding31,809,471
10 Day Avg. Volume121,360
30 Day Avg. Volume325,316
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.49
Price to Sales (P/S)0.29
P/FCF Ratio-13.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)333.71
Revenue Forecast (FY)¥323.79B
Ryobi Business Overview & Revenue Model
Company Description
Established in Fuchu, Japan in 1943, Ryobi Limited functions as a leading global manufacturer of die cast products, with operations spanning Japan, the United States, China, and other international territories. The company's business activities ar...
How the Company Makes Money
Ryobi makes money primarily by manufacturing and selling (1) die-cast products and precision components and (2) power tools and building/architectural hardware. In its die-casting and precision components business, revenue is generated from supply...
Ryobi Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 312.14B | 309.11B | 293.31B | 282.69B | 249.52B | 198.07B |
| Gross Profit | 36.70B | 38.85B | 34.23B | 34.48B | 28.23B | 18.46B |
| EBITDA | 30.87B | 32.33B | 28.91B | 30.69B | 25.28B | 15.70B |
| Net Income | 10.76B | 11.18B | 6.93B | 10.12B | 4.79B | -4.40B |
Balance Sheet | ||||||
| Total Assets | 345.61B | 343.73B | 333.19B | 318.84B | 300.29B | 279.42B |
| Cash, Cash Equivalents and Short-Term Investments | 27.62B | 31.80B | 29.92B | 28.29B | 27.99B | 29.28B |
| Total Debt | 69.25B | 74.74B | 62.73B | 70.91B | 74.82B | 74.23B |
| Total Liabilities | 148.02B | 154.18B | 156.21B | 158.12B | 156.56B | 147.70B |
| Stockholders Equity | 187.74B | 179.47B | 167.35B | 151.30B | 134.46B | 122.93B |
Cash Flow | ||||||
| Free Cash Flow | 1.22B | -6.68B | 15.09B | 9.68B | -92.00M | 3.05B |
| Operating Cash Flow | 17.09B | 13.89B | 29.16B | 26.00B | 16.79B | 14.90B |
| Investing Cash Flow | -14.11B | -22.53B | -13.72B | -17.43B | -15.86B | -12.16B |
| Financing Cash Flow | -4.59B | 7.65B | -14.90B | -8.59B | -2.86B | -1.94B |
Ryobi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥361.78B | 15.78 | 11.26% | 2.47% | 12.95% | 66.36% | |
76 Outperform | ¥1.03T | 22.91 | 11.15% | 1.48% | 17.83% | 34.01% | |
74 Outperform | ¥90.62B | 8.57 | 7.01% | 4.09% | 3.21% | 64.77% | |
72 Outperform | ¥1.47T | 17.14 | ― | 2.67% | 6.94% | 3.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥468.34B | 19.17 | 10.72% | 2.77% | 11.79% | 146.87% | |
60 Neutral | ¥138.19B | 18.95 | 3.95% | 2.30% | 3.28% | 58.68% |
* Industrials Sector Average
JP:5851
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Ryobi Corporate Events
Ryobi Launches Share Buyback to Boost Capital Efficiency and Shareholder Returns
Aug 5, 2026
Ryobi Limited has approved a new share repurchase program as part of its Medium-Term Management Plan for 2025–2027, which prioritizes capital policy measures to enhance corporate value. The move is aligned with a concurrent revision to incre...
Ryobi Raises Fiscal 2026 Dividend Forecast on Stronger Earnings
Aug 5, 2026
Ryobi Limited has revised its dividend forecast for fiscal 2026, raising the year-end dividend estimate after an upward revision to its full-year earnings outlook. The company’s Board of Directors approved an increase in the year-end dividen...
Ryobi Lifts Dividend Outlook as First-Half Profit Slides
Aug 5, 2026
Ryobi Limited reported a modest 2.0% year-on-year increase in net sales to ¥156.8 billion for the six months ended June 30, 2026, but operating income fell 25.4% and net income attributable to owners of parent declined 9.6%, reflecting margin...
Ryobi to Book ¥3.55 Billion Dividend From Chinese Die Casting Subsidiary
Jun 11, 2026
Ryobi Limited announced it will receive approximately JPY 3.55 billion in dividends from its consolidated subsidiary, Ryobi Die Casting Dalian Co., Ltd., following a resolution on June 11, 2026. The dividend, denominated at CNY 150 million and sch...
Ryobi Lifts Quarterly Profit Despite Lower Sales, Raises Dividend Outlook
May 12, 2026
Ryobi reported a 2.7% year-on-year decline in net sales to ¥75.9 billion for the quarter ended March 31, 2026, but improved profitability, with operating income up 4.1% and net income attributable to owners of the parent surging 54.6%. The st...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.