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Rheon Automatic Machinery Co
(6272)
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Rating:77Outperform
Price Target:
¥1,740.00
▲(13.21% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong underlying financial quality—especially a conservative, low-debt balance sheet and steady growth—tempered by FY2026 cash flow weakness and negative free cash flow. Valuation is a clear positive (low P/E and solid dividend yield), while technicals are supportive but neutral rather than strongly bullish.
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
¥41.09B
Dividend Yield3.78%
Average Volume (3M)51.57K
Price to Earnings (P/E)10.2
Beta (1Y)0.80
Revenue Growth11.00%
EPS Growth12.94%
CountryJP
Employees1,063
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)144.63
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
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Rheon Automatic Machinery Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
54
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.01B | 39.21B | 37.70B | 35.27B | 26.59B |
| Gross Profit | 17.73B | 17.17B | 16.22B | 14.03B | 10.26B |
| EBITDA | 7.11B | 6.81B | 6.27B | 4.40B | 2.58B |
| Net Income | 3.90B | 3.89B | 3.68B | 2.74B | 1.49B |
Balance Sheet | |||||
| Total Assets | 54.41B | 49.24B | 44.57B | 40.21B | 36.65B |
| Cash, Cash Equivalents and Short-Term Investments | 11.12B | 15.78B | 13.59B | 11.44B | 10.00B |
| Total Debt | 1.74B | 1.42B | 1.63B | 1.94B | 2.07B |
| Total Liabilities | 11.34B | 10.53B | 8.69B | 8.83B | 8.27B |
| Stockholders Equity | 43.06B | 38.72B | 35.88B | 31.38B | 28.38B |
Cash Flow | |||||
| Free Cash Flow | -3.47B | 4.04B | 3.51B | 2.33B | 2.63B |
| Operating Cash Flow | 4.52B | 5.75B | 4.59B | 3.09B | 3.65B |
| Investing Cash Flow | -8.47B | -2.00B | -1.46B | -1.11B | -748.29M |
| Financing Cash Flow | -1.05B | -1.37B | -1.37B | -677.42M | -565.67M |
Rheon Automatic Machinery Co Technical Analysis
Positive
1537.00
Price Trends
1489.44
Positive
1497.54
Positive
1482.07
Positive
Market Momentum
4.68
Positive
55.83
Neutral
48.11
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 1537 is above the 20-day moving average (MA) of 1515.85, above the 50-day MA of 1489.44, and above the 200-day MA of 1482.07, indicating a bullish trend. The MACD of 4.68 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 48.11 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥41.09B | 10.16 | 9.59% | 3.77% | 11.00% | 12.94% | |
75 Outperform | ¥137.85B | 15.81 | ― | 2.17% | 8.83% | 16.00% | |
73 Outperform | ¥78.73B | 32.38 | ― | 2.16% | -0.88% | -59.33% | |
70 Outperform | ¥121.99B | 15.52 | 8.46% | 2.56% | 9.33% | 45.31% | |
65 Neutral | ¥13.02B | 16.93 | ― | 2.71% | 7.41% | -18.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | ¥93.64B | 39.41 | 2.91% | 2.89% | -21.58% | -98.64% |
* Industrials Sector Average
JP:6272
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Rheon Automatic Machinery Co Corporate Events
Rheon Automatic Machinery Launches Up to ¥1 Billion Share Buyback
Aug 6, 2026
Rheon Automatic Machinery has authorized a share buyback of up to 800,000 common shares, representing about 2.96% of its outstanding stock, with a budget ceiling of 1.0 billion yen. The purchases will be conducted on the Tokyo Stock Exchange betwe...
Rheon to Issue Restricted Treasury Shares for Employee Shareholding Plan
Aug 6, 2026
Rheon Automatic Machinery has approved the disposal of up to 64,800 treasury shares as restricted stock to its Employee Shareholding Association, with a notional total value of about ¥98.8 million based on a disposal price of ¥1,525 per ...
Rheon Automatic Machinery Lifts Quarterly Profit and Confirms Full-Year Outlook
Aug 6, 2026
Rheon Automatic Machinery reported consolidated net sales of ¥9.6 billion for the quarter ended June 30, 2026, up 8.6% year on year, with ordinary profit climbing 17.3% to ¥829 million and profit attributable to owners of the parent surg...
Rheon Completes Restricted Stock Remuneration Using Treasury Shares
Aug 6, 2026
Rheon Automatic Machinery Co. has completed the payment procedures for a disposal of treasury shares used as restricted stock-based remuneration, following a July 10, 2026 board resolution. The transaction involved 12,173 common shares at 1,510 ye...
Rheon to Grant Restricted Treasury Shares for Executive and Officer Compensation
Jul 10, 2026
Rheon Automatic Machinery Co., Ltd. has approved the disposal of 12,173 treasury shares as restricted stock-based remuneration to four board members and eight operating officers. The allocation, valued at approximately 18.38 million yen, is part o...
Rheon Sharpens Profit Targets and Shareholder Focus as Valuation Lags
May 20, 2026
Rheon Automatic Machinery has updated its capital-cost-conscious management measures after its return on equity slipped and its price-to-book ratio stayed below 1x, even as sales and profits have grown steadily. The company revised its medium-term...
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.