Rheon Automatic Machinery Co (6272) AI Stock Analysis

• Market Cap: ¥41.01B
• Dividend Yield: 3.31%
• Average Volume (3M): 51.57K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.90
• Revenue Growth: 0.61%
• EPS Growth: 0.47%
• Country: JP
• Employees: 1,078
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 38.70
• Shares Outstanding: 28,392,000
• 10 Day Avg. Volume: 45,100
• 30 Day Avg. Volume: 51,570
• 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): 133.3
• Revenue Forecast (FY): ¥40.80B

• Rating: 79 Outperform
• Price Target: ¥1,856.00 ▲(28.62% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

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.

Positive Factors

Revenue Growth

Multi-year revenue expansion to 39.2bn JPY by 2025 shows durable demand for Rheon's equipment. Sustained top-line growth improves scale economics, funds product development and geographic expansion, and increases the installed base that supports recurring service revenue over time.

Margin Improvement

Improving gross and net margins reflect effective cost controls and pricing discipline. Higher margins enhance return on capital, provide buffer against input-cost inflation, and free cash for reinvestment or dividends, supporting sustainable profitability beyond cyclical revenue swings.

Cash Generation & Balance Sheet

Strong operating cash conversion and positive free cash flow, combined with low leverage and a high equity ratio, provide financial flexibility. This supports self-funded capex, stable service operations, lower refinancing risk and capacity to weather demand cyclicality over months to years.

Negative Factors

Rising Liabilities

Reported growth in total liabilities, if sustained, could erode the current low-leverage profile and constrain flexibility. Rising liabilities raise interest and covenant exposure, potentially limiting capacity to invest in new lines or support customers during downturns in equipment orders.

Revenue Concentration / Cyclicality

Heavy reliance on capital equipment sales makes revenue lumpy and sensitive to customer capex cycles. While after-sales services exist, the dominance of one-time equipment contracts increases booking volatility and can compress cash flow and utilization during industry slowdowns.

Limited Forward Visibility

Absence of earnings-call detail and formal guidance reduces transparency into management's near-term demand assumptions and strategy. That limits investors' ability to assess upcoming order trends or margin drivers, making 2–6 month forecasting and risk assessment harder.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.53B	39.21B	37.70B	35.27B	26.59B	22.28B
Gross Profit	16.97B	17.17B	16.22B	14.03B	10.26B	9.42B
EBITDA	6.55B	6.78B	6.15B	4.18B	2.22B	2.52B
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	3.51B	2.33B	2.63B	1.34B
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: Negative
• 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 1540.60, below the 50-day MA of 1543.32, and above the 200-day MA of 1409.23, indicating a neutral trend. The MACD of -14.28 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.54 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
6104	81 Outperform	¥83.95B	136.93	5.02%	3.23%	-10.00%	-51.92%
6272	79 Outperform	¥41.01B	9.39	9.42%	3.31%	0.61%	0.47%
6284	78 Outperform	¥122.05B	12.40	―	3.24%	18.70%	33.93%
6258	74 Outperform	¥80.08B	14.21	9.39%	1.68%	9.27%	69.52%
6277	72 Outperform	¥87.30B	137.67	―	2.16%	-8.71%	-17.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥12.93B	33.09	―	2.71%	-6.08%	-56.08%

Rheon Automatic Machinery Co Corporate Events

Rheon Automatic Machinery Overhauls Legal Structure and Refreshes Global Leadership

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 Affairs Division. This move signals greater emphasis on intellectual property management and legal governance as the company manages its technology portfolio and global operations.

The company also announced a series of officer and executive appointments effective April 1, 2026, including the reappointment of several managing and operating officers and new appointments in development, domestic sales, and key overseas subsidiaries in the U.S. and Germany. By refreshing leadership roles and promoting internal talent to head foreign units and affiliated businesses such as Orange Bakery, Inc., Rheon appears to be strengthening its management structure and overseas business expansion capabilities.

The most recent analyst rating on (JP:6272) stock is a Buy with a Yen1797.00 price target. To see the full list of analyst forecasts on Rheon Automatic Machinery Co stock, see the JP:6272 Stock Forecast page.

Rheon Automatic Machinery Posts Higher Nine-Month Sales and Profit, Raises Dividend Outlook

Rheon Automatic Machinery reported consolidated net sales of ¥29.8 billion for the nine months ended December 31, 2025, up 5.8% year on year, with operating profit edging up 0.5% to ¥3.48 billion and profit attributable to owners of parent rising 6.1% to ¥2.75 billion. The company strengthened its financial position with total assets increasing to ¥52.1 billion and an equity ratio of 79.2%, while maintaining its full-year forecast of modest sales growth but slightly lower profits, and lifted its expected annual dividend to ¥54 per share, signaling confidence in stable shareholder returns.

For the nine months, ordinary profit grew 2.7% to ¥3.80 billion and comprehensive income climbed 19.6% to ¥3.83 billion, reflecting improved earnings quality despite only marginal operating profit growth. Net assets rose to ¥41.3 billion, net assets per share improved to ¥1,528.00, and the company modestly reduced treasury shares, underscoring a solid capital base even as its full-year outlook anticipates a 7.5% decline in profit attributable to owners of parent amid a slower profit trajectory.

The most recent analyst rating on (JP:6272) stock is a Buy with a Yen1830.00 price target. To see the full list of analyst forecasts on Rheon Automatic Machinery Co stock, see the JP:6272 Stock Forecast page.