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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

(5947)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥3,826.00
▼(-5.76% Downside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by strong financial strength (especially a very conservative balance sheet) and supportive valuation (low P/E with a solid dividend yield). These positives are tempered by weaker technicals, with the stock trading below key moving averages and negative MACD indicating subdued momentum.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity create durable financial flexibility. With minimal interest burden and a large equity base, Rinnai can fund capex, sustain dividends, or pursue M&A without stressing liquidity, supporting stability across 2–6 months.
Negative Factors
Free cash flow volatility
Wide swings in FCF reflect exposure to capex and working-capital cycles. This variability makes forecasting shareholder returns and funding discretionary investments harder and can force conservative capital policies during down cycles, a structural risk to predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity create durable financial flexibility. With minimal interest burden and a large equity base, Rinnai can fund capex, sustain dividends, or pursue M&A without stressing liquidity, supporting stability across 2–6 months.
Read all positive factors

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

Rinnai Business Overview & Revenue Model

Company Description
Rinnai Corporation, established in Nagoya, Japan in 1920 (and known as Rinnai & Co. until its name change in 1971), is a global leader in the development, manufacturing, and sales of a wide array of heating and kitchen appliances. The company dist...
How the Company Makes Money
Rinnai primarily makes money by selling gas-fired appliances and related equipment, with water heaters (including tankless/continuous-flow systems) as its core product category. Revenue is generated through (1) product sales to wholesalers, instal...

Rinnai Financial Statement Overview

Summary
Strong overall fundamentals: steady multi-year revenue growth and solid, fairly consistent profitability, supported by a very conservatively financed balance sheet (minimal leverage and rising equity). The main offset is historically volatile free cash flow (including negative FCF in 2023), though recent operating/FCF levels recovered.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
68
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue464.88B470.39B460.32B430.19B425.23B366.19B
Gross Profit158.39B159.04B151.61B133.79B135.02B113.69B
EBITDA65.02B74.70B65.44B60.88B58.00B50.96B
Net Income29.50B36.16B29.69B26.67B26.10B23.75B
Balance Sheet
Total Assets574.59B649.57B606.59B577.09B547.11B512.87B
Cash, Cash Equivalents and Short-Term Investments166.97B185.12B176.81B155.67B158.62B185.49B
Total Debt23.82B12.80B3.53B3.76B2.69B2.06B
Total Liabilities130.83B155.44B144.87B139.65B139.91B134.01B
Stockholders Equity396.87B437.25B405.85B387.77B364.15B343.12B
Cash Flow
Free Cash Flow0.0034.41B40.66B6.60B-6.56B8.47B
Operating Cash Flow0.0049.30B57.50B43.35B19.39B28.70B
Investing Cash Flow0.00-30.91B-22.68B-19.97B-30.09B-25.49B
Financing Cash Flow0.00-21.93B-26.50B-23.66B-21.31B-27.11B

Rinnai Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4060.00
Price Trends
50DMA
3496.24
Positive
100DMA
3669.89
Negative
200DMA
3696.58
Negative
Market Momentum
MACD
20.01
Negative
RSI
56.89
Neutral
STOCH
75.77
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 4060 is above the 20-day moving average (MA) of 3504.80, above the 50-day MA of 3496.24, and above the 200-day MA of 3696.58, indicating a neutral trend. The MACD of 20.01 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 75.77 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥192.38B13.213.41%3.85%41.80%
73
Outperform
¥499.45B13.858.51%2.25%2.19%23.97%
71
Outperform
¥18.99B12.612.30%0.91%29.68%
67
Neutral
¥65.63B27.951.61%2.27%0.39%-21.22%
67
Neutral
¥19.10B8.683.46%4.06%3.43%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
¥29.16B29.562.94%0.15%-10.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5947
Rinnai
3,570.00
38.12
1.08%
JP:5946
Chofu Seisakusho Co
1,989.00
187.49
10.41%
JP:5909
Corona Corporation
1,001.00
106.31
11.88%
JP:5951
Dainichi Co., Ltd.
1,173.00
493.60
72.65%
JP:6484
KVK Corporation
2,370.00
511.37
27.51%
JP:7981
Takara Standard Co., Ltd
3,075.00
754.13
32.49%

Rinnai Corporate Events

Rinnai Board Rejects Shareholder Proposals on Director Stock Compensation
May 12, 2026
Rinnai’s board has decided to oppose shareholder proposals submitted by DALTON KIZUNA (MASTER) FUND LP ahead of the company’s June 26, 2026 annual general meeting. The proposals seek approval for a higher compensation cap under a restr...
Rinnai Lifts Profit, Strengthens Balance Sheet and Ups Dividend Payout
May 12, 2026
Rinnai reported fiscal 2026 consolidated net sales of ¥470.4 billion, up 2.2%, with operating income rising 9.8% and net income attributable to owners of the parent jumping 21.8% to ¥36.2 billion, lifting margins and returns on equity an...
Rinnai Revamps Board and Audit Leadership Ahead of June 2026 Meeting
Mar 5, 2026
Rinnai Corporation has announced a slate of executive personnel changes, including the planned appointment of Senior Managing Executive Officer Hirohisa Ooi as a new director and the addition of outside director Nobuaki Kato, subject to approval a...
Rinnai Plans Leadership Transition as Representative Director Narita to Retire
Mar 5, 2026
Rinnai Corporation has announced a planned change in its leadership, with Representative Director Tsunenori Narita set to retire following the conclusion of the company’s 76th Ordinary General Shareholders’ Meeting in late June 2026. T...
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: May 13, 2026