Rinnai (5947) AI Stock Analysis

• Market Cap: ¥530.56B
• Dividend Yield: 2.16%
• Average Volume (3M): 286.23K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.60
• Revenue Growth: 6.01%
• EPS Growth: -0.58%
• Country: JP
• Employees: 10,837
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 47.15
• Shares Outstanding: 143,888,570
• 10 Day Avg. Volume: 356,170
• 30 Day Avg. Volume: 286,230
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,500.74
• Price Target Upside: 21.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ―

Rinnai's strong financial performance, highlighted by robust revenue growth and a debt-free balance sheet, supports a solid overall score. The valuation is fair, adding stability to the investment case. However, technical indicators signal short-term bearish momentum, which tempers the overall outlook.

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 Corporation generates revenue primarily through the sale of its gas appliances and energy-efficient products. The company's key revenue streams include the sale of water heaters, heating systems, and kitchen appliances, all of which are designed to meet the demands of both residential and commercial customers. Rinnai leverages its extensive distribution network and strategic partnerships with dealers and retailers to reach a broad customer base. Additionally, the company invests in research and development to innovate and enhance its product offerings, ensuring they meet evolving consumer needs and regulatory standards, which in turn supports sustained revenue 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	460.32B	430.19B	425.23B	366.19B	344.36B
Gross Profit	151.61B	137.84B	138.40B	116.56B	115.33B
EBITDA	65.13B	60.88B	58.00B	50.96B	55.47B
Net Income	29.69B	26.67B	26.10B	23.75B	27.58B
Balance Sheet
Total Assets	606.59B	577.09B	547.11B	512.87B	497.29B
Cash, Cash Equivalents and Short-Term Investments	176.81B	155.67B	158.62B	185.49B	204.93B
Total Debt	0.00	0.00	2.69B	2.06B	1.73B
Total Liabilities	144.87B	139.65B	139.92B	134.01B	125.97B
Stockholders Equity	405.85B	387.77B	364.15B	343.12B	342.33B
Cash Flow
Free Cash Flow	40.66B	5.99B	-7.32B	7.86B	36.21B
Operating Cash Flow	57.50B	43.35B	19.39B	28.70B	49.49B
Investing Cash Flow	-22.68B	-19.97B	-30.09B	-25.49B	-15.82B
Financing Cash Flow	-26.50B	-23.66B	-21.31B	-27.11B	-7.27B

Rinnai Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3719.00
• 50DMA: Negative
• 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:5947, the sentiment is Positive. The current price of 3719 is below the 20-day moving average (MA) of 3829.55, below the 50-day MA of 3743.56, and above the 200-day MA of 3445.71, indicating a neutral trend. The MACD of -27.15 indicates Positive momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 25.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5947.

Rinnai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5947	74 Outperform	¥530.56B	17.66	7.60%	2.16%	6.01%	-0.58%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
CFSKF	―	$415.53M	23.08	1.70%	3.50%	―	―
7955	75 Outperform	¥27.85B	13.66		4.12%	2.12%	56.08%
7981	71 Outperform	¥176.04B	14.82		2.91%	5.38%	27.34%
5941	70 Outperform	¥15.31B	8.78		2.72%	9.23%	21.85%
5909	67 Neutral	¥27.44B	36.24		2.97%	2.68%	-42.92%

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.