Rheon Automatic Machinery Co (6272) AI Stock Analysis

• Market Cap: $37.21B
• Dividend Yield: 3.03%
• Average Volume (3M): 74.43K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.96
• Revenue Growth: -1.43%
• EPS Growth: -6.49%
• Country: JP
• Employees: 1,078
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 16.22
• Shares Outstanding: 28,392,000
• 10 Day Avg. Volume: 100,590
• 30 Day Avg. Volume: 74,426
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: 3.13
• 1Y Price Target: $1,490.71
• Price Target Upside: 7.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,490.00 ▲(6.96% Upside)

Rheon Automatic Machinery Co's strong financial performance, attractive valuation, and positive technical indicators contribute to a solid overall stock score. The company's robust revenue growth and effective cash management are key strengths, while the stock's valuation metrics suggest potential undervaluation. Technical analysis supports a positive outlook, although monitoring of liabilities is advised.

Rheon Automatic Machinery Co Business Overview & Revenue Model

Company Description

Rheon Automatic Machinery Co., Ltd. (6272) is a leading Japanese company specializing in the development and manufacturing of automated food processing machinery. With a strong emphasis on innovation, Rheon provides a wide range of equipment used in the production of bread, confectionery, prepared foods, and other food products. The company's advanced technology and machinery are designed to improve efficiency, consistency, and quality in food production processes, catering to a global clientele across various sectors of the food industry.

How the Company Makes Money

Rheon Automatic Machinery Co. makes money primarily through the sale of its automated food processing machinery. The company offers a diverse portfolio of machines tailored to different aspects of food production, including encrusting, forming, and dough sheeting. Revenue is generated from both direct sales to food manufacturers and distributors as well as through service and maintenance contracts for installed equipment. Rheon also engages in strategic partnerships and collaborations with other companies in the food technology sector to enhance its product offerings and reach new markets. Additionally, the company invests in research and development to innovate and meet the evolving needs of its customers, thereby sustaining and expanding its market share.

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	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: Positive
• Last Price: 1393.00
• 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 1393 is above the 20-day moving average (MA) of 1370.20, above the 50-day MA of 1288.36, and above the 200-day MA of 1302.23, indicating a bullish trend. The MACD of 27.16 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.73 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	$37.21B	10.39	9.67%	3.03%	-1.43%	-6.49%
6247	78 Outperform	¥37.56B	9.67		3.27%	20.08%	67.61%
6223	75 Outperform	¥33.09B	9.55		4.34%	1.33%	15.33%
6145	74 Outperform	¥40.90B	20.95		1.86%	14.09%	-18.06%
Sector *	71 Outperform	¥269.83B	15.10	8.31%	2.77%	6.08%	11.04%
6405	68 Neutral	¥20.56B	18.29		2.09%	2.25%	-17.39%
6151	61 Neutral	¥35.09B	64.01		2.09%	1.69%	-67.19%

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.

Rheon Automatic Machinery Corrects Treasury Share Disposal Notice

Rheon Automatic Machinery Co., Ltd. announced a correction to its previous notice regarding the disposal of treasury shares as restricted stock incentives for its Employee Shareholding Association. The correction clarifies that the disposal does not require an interim report under the Financial Instruments and Exchange Act, impacting the company’s compliance procedures but not its operational strategy.

Rheon Automatic Machinery Co. Announces Treasury Shares Disposal for Employee Incentives

Rheon Automatic Machinery Co., Ltd. has announced a plan to dispose of treasury shares as restricted stock incentives for its Employee Shareholding Association. This initiative aims to enhance employee benefits and welfare by allowing eligible employees to acquire company stock, thus aligning their interests with shareholders and promoting sustainable corporate growth. The disposal involves 79,497 shares and is structured to have minimal market impact, with a dilution ratio of 0.28%.

Rheon Automatic Machinery Co. Implements Stock-Based Remuneration Plan

Rheon Automatic Machinery Co., Ltd. announced the disposal of treasury shares as part of a restricted stock-based remuneration plan aimed at incentivizing its Board Members and Operating Officers. This initiative is designed to align the interests of the company’s leadership with those of its shareholders, promoting sustainable growth and enhancing corporate value. The plan involves the allocation of 11,745 shares to eligible officers, with specific conditions for transfer restrictions and removal based on tenure and service period.

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.