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Rinnai Corporation (JP:5947)
:5947
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Rinnai (5947) AI Stock Analysis

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JP:5947

Rinnai

(OTC:5947)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
¥3,726.00
▲(9.23% Upside)
Rinnai's strong financial performance is the most significant factor, with robust revenue growth and a solid balance sheet. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is fair, supported by a reasonable P/E ratio and an attractive dividend yield.

Rinnai (5947) vs. iShares MSCI Japan ETF (EWJ)

Rinnai Business Overview & Revenue Model

Company DescriptionRinnai Corporation develops, manufactures, and sells heating products in Japan, the United States, Australia, China, South Korea, Indonesia, and internationally. The company offers water heaters, including tankless water heaters and hybrid water heaters, as well as water heaters with bath-filling systems and heating systems, and hot-water units; and kitchen appliances, such as tabletop cookers and stoves, ovens, dishwashers, and a range of hoods and rice cookers, as well as built-in hobs, such as stovetops. It also provides air conditioning appliances comprising fan heaters, fanned flue heaters, fan-forced heaters, and infrared heaters; commercial-use equipment that include ceramic grillers, commercial-use ranges, and rice cookers; and others, which comprise clothes dryers, infrared burners, and components. The company offers its products under the Rinnai brand name. The company was formerly known as Rinnai & Co. and changed its name to Rinnai Corporation in 1971. Rinnai Corporation was founded in 1920 and is headquartered in Nagoya, Japan.
How the Company Makes MoneyRinnai generates revenue primarily through the sale of its heating and cooling products, which include water heaters, boilers, and kitchen appliances. The company operates a diversified revenue model that includes both direct sales to consumers and partnerships with distributors, retailers, and contractors in the construction and home improvement sectors. Key revenue streams include residential products, commercial heating solutions, and maintenance services. Significant partnerships with home improvement retailers and construction firms enhance Rinnai's market reach and distribution capabilities, contributing to its overall earnings. Additionally, the company invests in research and development to innovate and expand its product lines, which helps to maintain a competitive edge and drive future growth.

Rinnai Financial Statement Overview

Summary
Rinnai exhibits strong financial health with consistent revenue and profit growth, a solid balance sheet free from debt, and good operational efficiency. The cash flow performance has been mixed, but overall financial stability supports future growth opportunities.
Income Statement
85
Very Positive
Rinnai has demonstrated strong revenue growth, particularly in the TTM period with a revenue increase from the previous year. The gross profit margin is consistent, indicating good cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are also strong, showcasing operational efficiency.
Balance Sheet
90
Very Positive
The company maintains a robust balance sheet with no debt, resulting in a very favorable debt-to-equity ratio. ROE has shown improvement over time, indicating effective use of equity to generate profits. The equity ratio is solid, highlighting a strong capital structure with a significant portion of assets financed by equity.
Cash Flow
78
Positive
Rinnai's cash flow from operations has been inconsistent, with fluctuations observed in free cash flow. The operating cash flow to net income ratio is unavailable for the TTM period, limiting analysis. However, historical data shows periods of positive free cash flow, albeit with some volatility.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue452.34B460.32B430.19B425.23B366.19B344.36B
Gross Profit149.11B151.61B137.84B138.40B116.56B115.33B
EBITDA65.37B65.13B60.88B58.00B50.96B55.47B
Net Income32.17B29.69B26.67B26.10B23.75B27.58B
Balance Sheet
Total Assets574.65B606.59B577.09B547.11B512.87B497.29B
Cash, Cash Equivalents and Short-Term Investments149.00B176.81B155.67B158.62B185.49B204.93B
Total Debt0.003.53B3.76B2.69B2.06B1.73B
Total Liabilities131.57B144.87B139.65B139.92B134.01B125.97B
Stockholders Equity391.75B405.85B387.77B364.15B343.12B342.33B
Cash Flow
Free Cash Flow0.0040.66B5.99B-7.32B7.86B36.21B
Operating Cash Flow0.0057.50B43.35B19.39B28.70B49.49B
Investing Cash Flow0.00-22.68B-19.97B-30.09B-25.49B-15.82B
Financing Cash Flow0.00-26.50B-23.66B-21.31B-27.11B-7.27B

Rinnai Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3411.00
Price Trends
50DMA
3644.70
Negative
100DMA
3621.11
Negative
200DMA
3456.05
Negative
Market Momentum
MACD
-62.87
Positive
RSI
35.57
Neutral
STOCH
30.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5947, the sentiment is Negative. The current price of 3411 is below the 20-day moving average (MA) of 3491.15, below the 50-day MA of 3644.70, and below the 200-day MA of 3456.05, indicating a bearish trend. The MACD of -62.87 indicates Positive momentum. The RSI at 35.57 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5947.

Rinnai Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥28.37B13.914.03%2.12%56.08%
70
Outperform
¥14.91B8.552.79%9.23%21.85%
69
Neutral
$63.32B28.381.70%2.40%3.64%-26.54%
67
Neutral
¥26.54B35.043.07%2.68%-42.92%
65
Neutral
¥486.62B16.287.60%2.65%6.01%-0.58%
63
Neutral
¥164.80B13.883.15%5.38%27.34%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5947
Rinnai
3,411.00
76.11
2.28%
JP:5946
Chofu Seisakusho Co
1,919.00
-1.02
-0.05%
JP:5909
Corona Corporation
911.00
-28.33
-3.02%
JP:5941
Nakanishi Mfg. Co., Ltd.
2,366.00
-44.29
-1.84%
JP:7955
Cleanup Corporation
769.00
91.53
13.51%
JP:7981
Takara Standard Co., Ltd
2,480.00
904.59
57.42%

Rinnai Corporate Events

Rinnai Initiates Free Repair Program for Older Bathroom Heaters
Apr 15, 2025

Rinnai Corporation has announced a free inspection and repair program for bathroom heater/dryers manufactured over ten years ago, due to a potential fire risk from deteriorating components. The costs for this program will be recorded as operating expenses for the fiscal year ending March 31, 2025, with the financial impact still being assessed.

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.Date of analysis: Oct 02, 2025