Rheon Automatic Machinery Co Ltd (JP:6272)
:6272
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Rheon Automatic Machinery Co
(6272)
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Rating:78Outperform
Price Target:
¥1,785.00
▲(23.70% Upside)
Action:Reiterated
Date:05/17/26
The score is driven primarily by strong fundamentals (notably a low-leverage balance sheet and improved profitability) and an attractive valuation (low P/E and solid yield). The main offset is weaker and more volatile cash generation, including negative free cash flow in FY2026, while technicals are moderately supportive with price above major moving averages and neutral momentum.
Positive Factors
Conservative balance sheet / low leverage
Very low leverage (debt-to-equity ~4%) gives the company durable financial flexibility to fund capex, R&D, service expansion or absorb cyclical demand shocks. Over a 2–6 month horizon this conservatism preserves liquidity and strategic optionality for reinvestment or opportunistic moves.
Negative Factors
Weak cash conversion; negative FCF in FY2026
Operating cash covered under half of net income and FCF swung to a sizable negative in FY2026, indicating weak cash conversion or heavy working-capital/capex strain. Persistently weak cash flow can limit reinvestment, constrain dividends, and increase vulnerability to demand or supply shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low leverage (debt-to-equity ~4%) gives the company durable financial flexibility to fund capex, R&D, service expansion or absorb cyclical demand shocks. Over a 2–6 month horizon this conservatism preserves liquidity and strategic optionality for reinvestment or opportunistic moves.
Read all positive factors
Rheon Automatic Machinery Co (6272) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥38.71B
Dividend Yield3.31%
Average Volume (3M)51.57K
Price to Earnings (P/E)10.2
Beta (1Y)0.86
Revenue Growth7.14%
EPS Growth-0.06%
CountryJP
Employees1,078
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)133.55
Shares Outstanding28,392,000
10 Day Avg. Volume45,100
30 Day Avg. Volume51,570
Financial Highlights & Ratios
PEG Ratio-131.46
Price to Book (P/B)0.90
Price to Sales (P/S)0.93
P/FCF Ratio-11.21
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)159.2
Revenue Forecast (FY)¥43.00B
Rheon Automatic Machinery Co Business Overview & Revenue Model
Company Description
Rheon Automatic Machinery Co., Ltd. specializes in the design, manufacturing, and global distribution of a wide array of food processing equipment and integrated factory solutions. Their offerings include specialized encrusting machines, which are...
How the Company Makes Money
The company primarily makes money by selling automated food-processing machinery and production systems to commercial food manufacturers and bakeries. Revenue is generated upfront from equipment sales (including standalone machines and integrated ...
Rheon Automatic Machinery Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.53B | 42.01B | 39.21B | 37.70B | 35.27B | 26.59B |
| Gross Profit | 16.97B | 17.73B | 17.17B | 16.22B | 14.03B | 10.26B |
| EBITDA | 6.45B | 7.11B | 6.81B | 6.27B | 4.40B | 2.58B |
| Net Income | 3.59B | 3.90B | 3.89B | 3.68B | 2.74B | 1.49B |
Balance Sheet | ||||||
| Total Assets | 48.35B | 54.41B | 49.24B | 44.57B | 40.21B | 36.65B |
| Cash, Cash Equivalents and Short-Term Investments | 14.40B | 11.12B | 15.78B | 13.59B | 11.44B | 10.00B |
| Total Debt | 1.15B | 1.74B | 1.42B | 1.63B | 1.94B | 2.07B |
| Total Liabilities | 10.12B | 11.34B | 10.53B | 8.69B | 8.83B | 8.27B |
| Stockholders Equity | 38.24B | 43.06B | 38.72B | 35.88B | 31.38B | 28.38B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.47B | 4.04B | 3.51B | 2.33B | 2.63B |
| Operating Cash Flow | 0.00 | 4.52B | 5.75B | 4.59B | 3.09B | 3.65B |
| Investing Cash Flow | 0.00 | -8.47B | -2.00B | -1.46B | -1.11B | -748.29M |
| Financing Cash Flow | 0.00 | -1.05B | -1.37B | -1.37B | -677.42M | -565.67M |
Rheon Automatic Machinery Co Technical Analysis
Negative
1443.00
Price Trends
1499.10
Negative
1504.47
Negative
1454.18
Negative
Market Momentum
-22.03
Negative
45.27
Neutral
60.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6272, the sentiment is Negative. The current price of 1443 is below the 20-day moving average (MA) of 1446.35, below the 50-day MA of 1499.10, and below the 200-day MA of 1454.18, indicating a bearish trend. The MACD of -22.03 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 60.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6272.
Rheon Automatic Machinery Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥133.90B | 16.98 | ― | 3.24% | 8.95% | 18.54% | |
78 Outperform | ¥38.71B | 10.16 | 9.42% | 3.31% | 7.14% | -0.06% | |
72 Outperform | ¥76.93B | 24.97 | ― | 2.16% | -3.65% | -47.21% | |
71 Outperform | ¥91.69B | 15.22 | 9.39% | 1.68% | 7.26% | 28.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | ¥11.47B | 21.17 | ― | 2.71% | 1.90% | -54.49% | |
52 Neutral | ¥86.59B | 28.68 | 5.02% | 3.23% | -21.03% | -91.77% |
* Industrials Sector Average
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Rheon Automatic Machinery Co Corporate Events
Rheon Automatic Machinery Lifts Sales and Dividends Despite Slight Profit Dip
May 15, 2026
Rheon Automatic Machinery reported consolidated net sales of ¥42.0 billion for the year ended March 31, 2026, up 7.1% year on year, while operating profit slipped 2.3% to ¥5.17 billion but ordinary profit edged up 3.2% to ¥5.59 bill...
Rheon Automatic Machinery Lifts Year-End Dividend and Targets Higher Payout Ratio
May 15, 2026
Rheon Automatic Machinery has approved an increased year-end dividend of 31 yen per share for the fiscal year ended March 31, 2026, raising the total annual dividend to 58 yen per share compared with 44 yen in the previous fiscal year. The move, w...
Rheon Automatic Machinery Overhauls Legal Structure and Refreshes Global Leadership
Mar 6, 2026
Rheon Automatic Machinery is restructuring its administrative organization by creating a new Legal Affairs Department within the Administrative Division, integrating its existing Patent Office into a Patent Division and adding a dedicated Legal Af...
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.