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Rinnai
(5947)
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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)
Market Cap
¥499.45B
Dividend Yield2.25%
Average Volume (3M)271.58K
Price to Earnings (P/E)13.9
Beta (1Y)0.52
Revenue Growth2.19%
EPS Growth23.97%
CountryJP
Employees10,837
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)209.46
Shares Outstanding141,126,770
10 Day Avg. Volume269,030
30 Day Avg. Volume271,580
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)1.16
Price to Sales (P/S)1.08
P/FCF Ratio14.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)255.12
Revenue Forecast (FY)¥497.06B
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
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 464.88B | 470.39B | 460.32B | 430.19B | 425.23B | 366.19B |
| Gross Profit | 158.39B | 159.04B | 151.61B | 133.79B | 135.02B | 113.69B |
| EBITDA | 65.02B | 74.70B | 65.44B | 60.88B | 58.00B | 50.96B |
| Net Income | 29.50B | 36.16B | 29.69B | 26.67B | 26.10B | 23.75B |
Balance Sheet | ||||||
| Total Assets | 574.59B | 649.57B | 606.59B | 577.09B | 547.11B | 512.87B |
| Cash, Cash Equivalents and Short-Term Investments | 166.97B | 185.12B | 176.81B | 155.67B | 158.62B | 185.49B |
| Total Debt | 23.82B | 12.80B | 3.53B | 3.76B | 2.69B | 2.06B |
| Total Liabilities | 130.83B | 155.44B | 144.87B | 139.65B | 139.91B | 134.01B |
| Stockholders Equity | 396.87B | 437.25B | 405.85B | 387.77B | 364.15B | 343.12B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 34.41B | 40.66B | 6.60B | -6.56B | 8.47B |
| Operating Cash Flow | 0.00 | 49.30B | 57.50B | 43.35B | 19.39B | 28.70B |
| Investing Cash Flow | 0.00 | -30.91B | -22.68B | -19.97B | -30.09B | -25.49B |
| Financing Cash Flow | 0.00 | -21.93B | -26.50B | -23.66B | -21.31B | -27.11B |
Rinnai Technical Analysis
Positive
4060.00
Price Trends
3496.24
Positive
3669.89
Negative
3696.58
Negative
Market Momentum
20.01
Negative
56.89
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥192.38B | 13.21 | ― | 3.41% | 3.85% | 41.80% | |
73 Outperform | ¥499.45B | 13.85 | 8.51% | 2.25% | 2.19% | 23.97% | |
71 Outperform | ¥18.99B | 12.61 | ― | 2.30% | 0.91% | 29.68% | |
67 Neutral | ¥65.63B | 27.95 | 1.61% | 2.27% | 0.39% | -21.22% | |
67 Neutral | ¥19.10B | 8.68 | ― | 3.46% | 4.06% | 3.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | ¥29.16B | 29.56 | ― | 2.94% | 0.15% | -10.33% |
* Consumer Cyclical Sector Average
JP:5947
Rinnai
3,570.00
38.12
1.08%
JP:5946
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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.