Rinnai (5947) AI Stock Analysis

• Market Cap: $485.34B
• Dividend Yield: 2.65%
• Average Volume (3M): 271.58K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.60
• Revenue Growth: 3.33%
• EPS Growth: 9.57%
• Country: JP
• Employees: 10,837
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 66.62
• 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: 0.84
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 6.51
• 1Y Price Target: $4,016.33
• Price Target Upside: 6.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,216.00 ▲(11.33% Upside)

Rinnai's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the primary driver of its stock score. The technical analysis suggests a positive trend, though caution is advised due to potential short-term weakness. The valuation is reasonable, with an attractive dividend yield enhancing the stock's appeal.

Rinnai Business Overview & Revenue Model

Company Description

Rinnai Corporation (5947) is a leading Japanese manufacturer of heating and cooling appliances, specializing in water heaters, boilers, and kitchen appliances. Established in 1920, Rinnai operates primarily in the residential and commercial sectors, providing innovative solutions that enhance energy efficiency and sustainability. The company's core product offerings include gas and electric tankless water heaters, condensing boilers, and various kitchen appliances, which are designed to meet the growing demand for energy-efficient and environmentally friendly products.

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 demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and a high equity ratio, minimizing financial risk. Cash flow generation is strong, though there is room for improvement in free cash flow conversion.

Income Statement

Rinnai has demonstrated consistent revenue growth, with a notable increase of 1.76% in the latest year. The company maintains strong profitability metrics, with a gross profit margin of 32.94% and a net profit margin of 6.45%. EBIT and EBITDA margins are healthy at 10.86% and 14.15%, respectively, indicating efficient operations and cost management.

Balance Sheet

Rinnai's balance sheet is robust, characterized by a very low debt-to-equity ratio of 0.87%, suggesting minimal leverage and financial risk. The return on equity is solid at 7.32%, reflecting effective use of shareholder funds. The equity ratio stands at 66.91%, indicating a strong capital structure with significant equity financing.

Cash Flow

The company shows strong cash flow generation, with a significant increase in free cash flow. The operating cash flow to net income ratio of 0.53 indicates good cash conversion efficiency. However, the free cash flow to net income ratio of 0.71 suggests room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	464.88B	460.32B	430.19B	425.23B	366.19B	344.36B
Gross Profit	158.72B	151.61B	137.84B	138.40B	116.56B	115.33B
EBITDA	62.45B	65.13B	60.88B	58.00B	50.96B	55.47B
Net Income	29.50B	29.69B	26.67B	26.10B	23.75B	27.58B
Balance Sheet
Total Assets	574.59B	606.59B	577.09B	547.11B	512.87B	497.29B
Cash, Cash Equivalents and Short-Term Investments	166.97B	176.81B	155.67B	158.62B	185.49B	204.93B
Total Debt	23.82B	3.53B	3.76B	2.69B	2.06B	1.73B
Total Liabilities	130.84B	144.87B	139.65B	139.92B	134.01B	125.97B
Stockholders Equity	396.86B	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: Positive
• Last Price: 3787.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3787 is above the 20-day moving average (MA) of 3467.20, above the 50-day MA of 3540.48, and above the 200-day MA of 3480.56, indicating a bullish trend. The MACD of 19.14 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 62.12 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	76 Outperform	$485.34B	16.24	8.08%	2.65%	3.33%	9.57%
7955	75 Outperform	¥28.74B	11.38	―	3.95%	3.03%	160.39%
5941	70 Outperform	¥14.99B	8.60	―	2.79%	9.23%	21.85%
5946	69 Neutral	¥65.20B	31.53	1.70%	2.33%	1.82%	-32.79%
7981	68 Neutral	¥165.54B	13.94	―	3.16%	6.17%	61.39%
5909	67 Neutral	¥27.67B	39.52	―	2.98%	0.41%	-51.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Rinnai Corporate Events

Rinnai Completes Share Buyback and Announces Share Cancellation

Rinnai Corporation has completed a share buyback program, acquiring a total of 2,761,800 shares valued at approximately ¥9.999 billion. The company plans to cancel these shares on December 15, 2025, which represents 1.92% of its total shares issued and outstanding before cancellation. This move is part of Rinnai’s strategic financial management to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:5947) stock is a Buy with a Yen3828.00 price target. To see the full list of analyst forecasts on Rinnai stock, see the JP:5947 Stock Forecast page.

Rinnai Corporation Reports Record-High Earnings Growth

Rinnai Corporation is a leading Japanese company specializing in the manufacturing and sale of gas appliances, water heaters, and heating systems, with a strong focus on energy efficiency and environmental sustainability. In its latest earnings report for the first half of the fiscal year ending March 31, 2026, Rinnai Corporation reported record-high net sales and operating income, driven by increased demand for high-value-added products and strategic cost management. Key financial highlights include a 2.0% increase in net sales to ¥216,415 million, an 8.2% rise in operating income to ¥22,725 million, and a significant 30.0% jump in net income attributable to owners of the parent company to ¥15,918 million. Geographically, the company experienced robust sales growth in the United States and Australia, while facing challenges in China due to reduced subsidies and economic conditions. Looking forward, Rinnai Corporation remains committed to its medium-term business plan, New ERA 2025, focusing on addressing social challenges, expanding business scale, and revolutionizing its corporate structure. The company aims to continue its growth trajectory by enhancing its product lineup and expanding its presence in emerging markets.

Rinnai Corporation Reports Strong Financial Performance in First Half of Fiscal Year 2026

Rinnai Corporation reported a positive financial performance for the first half of the fiscal year ending March 31, 2026, with notable increases in net sales, operating income, ordinary income, and net income attributable to owners. The company anticipates continued growth with a forecasted increase in net sales and income for the full fiscal year, reflecting a strong market position and potential benefits for stakeholders.

The most recent analyst rating on (JP:5947) stock is a Buy with a Yen3828.00 price target. To see the full list of analyst forecasts on Rinnai stock, see the JP:5947 Stock Forecast page.

Rinnai Completes Treasury Stock Disposal for Employee Incentive

Rinnai Corporation has completed the payment procedures for the disposal of treasury stock as a restricted stock incentive for its Employee Shareholding Association. The number of shares and total disposition value differed from initial expectations due to a partial loss of rights, impacting the company’s stock management strategy.

The most recent analyst rating on (JP:5947) stock is a Hold with a Yen3726.00 price target. To see the full list of analyst forecasts on Rinnai stock, see the JP:5947 Stock Forecast page.

Rinnai Corporation Updates on Share Buyback Progress

Rinnai Corporation has announced the status of its share buyback program, which was approved by the Board of Directors in May 2025. As of September 30, 2025, the company has acquired 1,994,900 shares worth approximately ¥7.35 billion, as part of a larger plan to buy back up to 4 million shares by November 2025. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:5947) stock is a Hold with a Yen3726.00 price target. To see the full list of analyst forecasts on Rinnai stock, see the JP:5947 Stock Forecast page.

Rinnai Corporation Updates on Share Buyback Progress

Rinnai Corporation has announced the status of its ongoing share buyback program, which was approved by the Board of Directors in May 2025. As of August 31, 2025, the company has acquired 1,665,100 shares worth ¥6,134,560,000, with the acquisition period set to continue until November 28, 2025. This strategic move is part of Rinnai’s efforts to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:5947) stock is a Hold with a Yen4100.00 price target. To see the full list of analyst forecasts on Rinnai stock, see the JP:5947 Stock Forecast page.