Rheon Automatic Machinery Co (6272) AI Stock Analysis

• Market Cap: ¥32.73B
• Dividend Yield: 3.43%
• Average Volume (3M): 61.65K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.00
• Revenue Growth: 4.01%
• EPS Growth: 5.67%
• Country: JP
• Employees: 1,078
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 48.14
• Shares Outstanding: 28,392,000
• 10 Day Avg. Volume: 58,400
• 30 Day Avg. Volume: 61,653
• PEG Ratio: 0.63
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 81 Outperform
• Price Target: ¥1,410.00 ▲(15.10%Upside)

Rheon Automatic Machinery Co's stock is favorably positioned with strong financial performance and attractive valuation metrics. Its robust revenue and profit growth, along with a low P/E ratio and high dividend yield, are significant strengths. Stable technical indicators further support a positive outlook.

Rheon Automatic Machinery Co Business Overview & Revenue Model

Company Description

Rheon Automatic Machinery Co., Ltd. (6272) is a leading Japanese manufacturer specializing in the design and production of high-quality food processing machinery. The company operates primarily in the food industry, offering a range of equipment solutions that include encrusting machines, dough sheeters, and production lines for bread, pastries, and other baked goods. With a strong emphasis on innovation and technology, Rheon provides automated solutions that enhance productivity and efficiency for food manufacturers worldwide.

How the Company Makes Money

Rheon Automatic Machinery Co. makes money through the sale of its advanced food processing machinery and equipment to food manufacturers globally. The company's key revenue streams include direct sales of machinery, maintenance services, and spare parts. Rheon also generates income through custom solutions for clients, adapting its machinery to meet specific production needs. Additionally, the company benefits from long-term relationships and partnerships with food production companies, which contribute to consistent revenue through repeat business and service contracts. Rheon's focus on technological innovation and quality ensures a strong market presence and sustained demand for its products.

Rheon Automatic Machinery Co Financial Statement Overview

Summary

Rheon Automatic Machinery Co demonstrates strong financial performance with robust revenue and profit growth. Effective cost management and positive cash flow generation sustain a healthy balance sheet with low leverage and strong equity standing.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.21B	37.70B	35.27B	26.59B	22.28B
Gross Profit	17.17B	16.79B	14.57B	10.80B	9.92B
EBITDA	6.81B	6.27B	4.40B	2.58B	3.12B
Net Income	3.89B	3.68B	2.74B	1.49B	1.61B
Balance Sheet
Total Assets	49.24B	44.57B	40.21B	36.65B	34.12B
Cash, Cash Equivalents and Short-Term Investments	15.78B	13.59B	11.44B	10.00B	7.48B
Total Debt	1.42B	1.63B	1.94B	2.07B	2.14B
Total Liabilities	10.53B	8.69B	8.83B	8.27B	7.49B
Stockholders Equity	38.72B	35.88B	31.38B	28.38B	26.63B
Cash Flow
Free Cash Flow	4.04B	3.13B	1.97B	2.62B	940.68M
Operating Cash Flow	5.75B	4.59B	3.09B	3.65B	2.72B
Investing Cash Flow	-2.00B	-1.46B	-1.11B	-748.29M	-573.50M
Financing Cash Flow	-1.37B	-1.37B	-677.42M	-565.67M	380.12M

Rheon Automatic Machinery Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1225.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 1225 is above the 20-day moving average (MA) of 1220.35, above the 50-day MA of 1199.94, and below the 200-day MA of 1305.55, indicating a neutral trend. The MACD of 10.99 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	81 Outperform	¥32.73B	8.44	10.31%	3.43%	4.01%	5.67%
6247	81 Outperform	¥37.34B	10.09		3.50%	12.21%	60.18%
6223	77 Outperform	¥31.69B	8.38		4.53%	―	―
6405	71 Outperform	¥22.40B	15.32		2.04%	7.26%	28.17%
6145	66 Neutral	¥35.28B	26.42		2.24%	8.00%	-50.92%
Sector *	65 Neutral	$10.75B	15.69	5.29%	1.89%	3.09%	-27.41%
6151	63 Neutral	¥33.72B	25.06		1.99%	0.68%	-22.82%

Rheon Automatic Machinery Co Corporate Events

Rheon Automatic Machinery Co. Announces Corrections to Financial Results

Rheon Automatic Machinery Co., Ltd. announced corrections to its previously released consolidated financial results for the fiscal year ending March 31, 2025. The corrections involve minor adjustments to the comprehensive income figures, reflecting a slight decrease in the reported comprehensive income for 2025. These corrections are not expected to significantly impact the company’s operations or its positioning in the industry.

Rheon Automatic Machinery Co. Updates Management Strategy for Growth and Sustainability

Rheon Automatic Machinery Co., Ltd. has announced updates to its management strategies, focusing on improving profitability and shareholder returns. The company plans to construct a new factory in the US, aiming to enhance its operating profit margin and ROE. By investing in growth areas and promoting sustainability, Rheon seeks to reduce capital costs and improve its PBR, while revising its dividend policy to ensure stable and progressive shareholder returns.

Rheon Automatic Machinery Reports Strong Financial Results for FY 2025

Rheon Automatic Machinery Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 4% increase in net sales to ¥39,214 million and an 8.5% rise in operating profit to ¥5,298 million. The company also announced a dividend increase, reflecting its strong financial performance and commitment to returning value to shareholders.

Rheon Automatic Machinery Co. Adjusts Timeline for New US Plant Construction

Rheon Automatic Machinery Co., Ltd. announced a change in the timeline for constructing a new plant in Irvine, California, due to uncertainties from US policy shifts. The plant aims to serve as a model for smart factories and strengthen production capacity, with an estimated investment of about 60 million US dollars. The project is now scheduled to commence operations in April 2027, and the impact on the company’s current fiscal performance is expected to be minimal.

Rheon Automatic Machinery Co. Announces Dividend Policy Change to Enhance Shareholder Returns

Rheon Automatic Machinery Co., Ltd. has announced a change in its dividend policy, effective from the fiscal year ending March 2026. The company aims to enhance shareholder returns by increasing its consolidated payout ratio target to 40% or more, while maintaining stable dividends as part of its medium-term management plan. This strategic shift reflects Rheon’s commitment to aligning its management practices with capital costs and stock price considerations, potentially strengthening its market position and investor relations.

Rheon Automatic Machinery Co. Increases Year-End Dividend Amid Strong Performance

Rheon Automatic Machinery Co., Ltd. announced an increase in its year-end dividend to 23 yen per share, reflecting a total annual dividend of 44 yen per share for the fiscal year ended March 31, 2025. This decision aligns with the company’s policy to return profits to shareholders based on business performance, supported by higher-than-expected profits attributable to owners of the parent.