Rheon Automatic Machinery Co (6272) AI Stock Analysis

• Market Cap: ¥38.97B
• Dividend Yield: 3.24%
• Average Volume (3M): 63.55K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.88
• Revenue Growth: 0.61%
• EPS Growth: 0.47%
• Country: JP
• Employees: 1,078
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 47.33
• Shares Outstanding: 28,392,000
• 10 Day Avg. Volume: 54,720
• 30 Day Avg. Volume: 63,546
• PEG Ratio: 1.53
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 8.37
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 126.3
• Revenue Forecast (FY): ¥40.00B

• Rating: 79 Outperform
• Price Target: ¥1,684.00 ▲(16.70% Upside)

Rheon Automatic Machinery Co's strong financial performance, characterized by robust revenue growth and effective cost management, is the most significant factor driving the stock score. The technical analysis supports a positive outlook with bullish momentum, while the attractive valuation further enhances the stock's appeal. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Rheon Automatic Machinery Co Business Overview & Revenue Model

Company Description

Rheon Automatic Machinery Co (6272) is a leading manufacturer of food processing machinery, specializing in automated systems for the production of various food products. The company operates primarily in the food technology sector, providing innovative solutions that enhance efficiency and quality in food production. Rheon's core products include machines for dough processing, shaping, and packaging, catering to bakeries, snack manufacturers, and other food production companies worldwide.

How the Company Makes Money

Rheon generates revenue primarily through the sale of its automated machinery and systems to food processors and manufacturers. The company offers a range of products that are tailored to meet the specific needs of its clients, which allows it to command competitive pricing. Additionally, Rheon benefits from after-sales services including maintenance, spare parts, and technical support, which provide a recurring revenue stream. Key partnerships with food industry players and distributors enhance its market reach and enable the company to tap into new customer segments, further contributing to its earnings. The focus on innovation and efficiency in food processing also positions Rheon favorably in a market that increasingly values automation and quality, bolstering its financial performance.

Rheon Automatic Machinery Co Financial Statement Overview

Summary

Rheon Automatic Machinery Co displays a strong financial position with impressive revenue and profit growth, alongside effective cost management and cash flow generation. The company maintains a healthy balance sheet with low leverage and strong equity standing. Continued monitoring of liabilities and maintaining cash generation capabilities will be key to sustaining this positive financial trajectory.

Income Statement

Rheon Automatic Machinery Co has demonstrated strong growth in total revenue, increasing from 26.5 billion JPY in 2022 to 39.2 billion JPY in 2025, indicating a robust revenue growth trend. The gross profit margin has also improved, reflecting effective cost management. The net profit margin is healthy, with consistent growth in net income over the years. EBIT and EBITDA margins have shown positive trends, contributing to overall profitability.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio, indicating low financial leverage and reduced risk of financial distress. The equity ratio is high, showing a strong equity base. Return on Equity (ROE) has been solid, reflecting efficient use of equity to generate profits. However, the increasing total liabilities warrant monitoring as they could impact future financial stability.

Cash Flow

Rheon Automatic Machinery Co has shown positive free cash flow growth and a strong operating cash flow to net income ratio, demonstrating efficient cash management and liquidity. The company's ability to generate cash from operations has improved, reducing reliance on external financing. The free cash flow to net income ratio also indicates effective conversion of profits into cash, supporting future investments and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.53B	39.21B	37.70B	35.27B	26.59B	22.28B
Gross Profit	17.29B	17.17B	16.79B	14.57B	10.80B	9.92B
EBITDA	6.11B	6.81B	6.27B	4.40B	2.58B	3.12B
Net Income	3.59B	3.89B	3.68B	2.74B	1.49B	1.61B
Balance Sheet
Total Assets	48.35B	49.24B	44.57B	40.21B	36.65B	34.12B
Cash, Cash Equivalents and Short-Term Investments	14.40B	15.78B	13.59B	11.44B	10.00B	7.48B
Total Debt	1.15B	1.42B	1.63B	1.94B	2.07B	2.14B
Total Liabilities	10.12B	10.53B	8.69B	8.83B	8.27B	7.49B
Stockholders Equity	38.24B	38.72B	35.88B	31.38B	28.38B	26.63B
Cash Flow
Free Cash Flow	0.00	4.04B	3.13B	1.97B	2.62B	940.68M
Operating Cash Flow	0.00	5.75B	4.59B	3.09B	3.65B	2.72B
Investing Cash Flow	0.00	-2.00B	-1.46B	-1.11B	-748.29M	-573.50M
Financing Cash Flow	0.00	-1.37B	-1.37B	-677.42M	-565.67M	380.12M

Rheon Automatic Machinery Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1443.00
• 50DMA: Positive
• 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:6272, the sentiment is Positive. The current price of 1443 is below the 20-day moving average (MA) of 1448.90, above the 50-day MA of 1428.75, and above the 200-day MA of 1289.75, indicating a bullish trend. The MACD of 4.98 indicates Positive momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 27.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6272.

Rheon Automatic Machinery Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6272	79 Outperform	¥38.97B	10.55	9.42%	3.24%	0.61%	0.47%
6223	76 Outperform	¥35.26B	10.50	―	4.00%	-4.79%	2.72%
6145	72 Outperform	¥41.19B	15.09	―	2.15%	20.20%	37.72%
6247	72 Outperform	¥39.85B	9.50	―	3.52%	18.47%	64.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥16.42B	14.61	―	2.29%	-6.08%	-56.08%
6151	59 Neutral	¥32.36B	59.02	―	2.22%	1.13%	-66.14%

Rheon Automatic Machinery Co Corporate Events

Rheon Automatic Machinery Co. Reports Decline in Quarterly Profits but Plans Dividend Increase

Rheon Automatic Machinery Co. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales and profits decreasing compared to the previous year. Despite the downturn, the company maintains a strong capital adequacy ratio and plans to increase its annual dividends, indicating confidence in its long-term financial health.

Rheon Automatic Machinery Completes Treasury Shares Disposal

Rheon Automatic Machinery Co., Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock-based remuneration, a decision made during the Board of Directors meeting on July 11, 2025. This move involves the disposal of 11,745 shares at a price of 1,230 yen per share, totaling 14,446,350 yen, and is aimed at aligning the interests of the company’s board members and operating officers with its long-term performance goals.