Rinnai (5947) AI Stock Analysis

• Market Cap: ¥486.62B
• Dividend Yield: 2.65%
• Average Volume (3M): 271.58K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.62
• Revenue Growth: 6.01%
• EPS Growth: -0.58%
• Country: JP
• Employees: 10,837
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 47.15
• Shares Outstanding: 143,888,570
• 10 Day Avg. Volume: 269,030
• 30 Day Avg. Volume: 271,580
• PEG Ratio: 1.22
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 12.04
• 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: ¥4,099.40
• Price Target Upside: 20.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• 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 Business Overview & Revenue Model

Company Description

Rinnai 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 Money

Rinnai 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	452.34B	460.32B	430.19B	425.23B	366.19B	344.36B
Gross Profit	149.11B	151.61B	137.84B	138.40B	116.56B	115.33B
EBITDA	65.37B	65.13B	60.88B	58.00B	50.96B	55.47B
Net Income	32.17B	29.69B	26.67B	26.10B	23.75B	27.58B
Balance Sheet
Total Assets	574.65B	606.59B	577.09B	547.11B	512.87B	497.29B
Cash, Cash Equivalents and Short-Term Investments	149.00B	176.81B	155.67B	158.62B	185.49B	204.93B
Total Debt	0.00	3.53B	3.76B	2.69B	2.06B	1.73B
Total Liabilities	131.57B	144.87B	139.65B	139.92B	134.01B	125.97B
Stockholders Equity	391.75B	405.85B	387.77B	364.15B	343.12B	342.33B
Cash Flow
Free Cash Flow	0.00	40.66B	5.99B	-7.32B	7.86B	36.21B
Operating Cash Flow	0.00	57.50B	43.35B	19.39B	28.70B	49.49B
Investing Cash Flow	0.00	-22.68B	-19.97B	-30.09B	-25.49B	-15.82B
Financing Cash Flow	0.00	-26.50B	-23.66B	-21.31B	-27.11B	-7.27B

Rinnai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3411.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	75 Outperform	¥28.37B	13.91	―	4.03%	2.12%	56.08%
5941	70 Outperform	¥14.91B	8.55	―	2.79%	9.23%	21.85%
5946	69 Neutral	$63.32B	28.38	1.70%	2.40%	3.64%	-26.54%
5909	67 Neutral	¥26.54B	35.04	―	3.07%	2.68%	-42.92%
5947	65 Neutral	¥486.62B	16.28	7.60%	2.65%	6.01%	-0.58%
7981	63 Neutral	¥164.80B	13.88	―	3.15%	5.38%	27.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Rinnai Corporate Events

Rinnai Initiates Free Repair Program for Older Bathroom Heaters

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.