Rion Co., Ltd. (6823) AI Stock Analysis

• Market Cap: ¥29.81B
• Dividend Yield: 3.06%
• Average Volume (3M): 25.77K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.04
• Revenue Growth: 8.36%
• EPS Growth: 7.74%
• Country: JP
• Employees: 1,026
• Sector: Healthcare
• Sector Strength: 59
• Industry: Medical - Devices
• EPS (TTM): 59.32
• Shares Outstanding: 12,336,700
• 10 Day Avg. Volume: 30,310
• 30 Day Avg. Volume: 25,766
• PEG Ratio: -0.68
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -85.07
• 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: 78 Outperform
• Price Target: ―

Rion Co., Ltd.'s strong financial performance, characterized by high profitability and a debt-free balance sheet, underpins its robust financial health. The main area of concern is the inconsistency in cash flow generation, which poses potential liquidity risks. Technically, the stock is showing balanced momentum with caution towards overbought conditions. Valuation metrics are favorable, making it an attractive prospect for value investors. Overall, the company is well-positioned but must address cash flow stability to maintain its financial strength.

Rion Co., Ltd. Business Overview & Revenue Model

Company Description

Rion Co., Ltd. (6823) is a Japanese company that specializes in the development, manufacturing, and sales of precision equipment and instruments. The company's core sectors include hearing instruments, medical equipment, and environmental measurement instruments. Rion is known for its innovative hearing aids and advanced audiological testing devices, catering to both consumer and professional markets.

How the Company Makes Money

Rion Co., Ltd. generates revenue through the sale of its precision equipment and instruments in various sectors. The company's key revenue streams include the sale of hearing aids and audiological equipment to healthcare providers and consumers, medical devices for hospitals and clinics, and environmental measurement instruments for industrial and governmental clients. Rion's earnings are supported by its strong research and development capabilities, which allow it to maintain a competitive edge in technology and product innovation. Additionally, partnerships with distributors and retailers expand its market reach, further contributing to its revenue.

Rion Co., Ltd. Financial Statement Overview

Summary

Rion Co., Ltd. demonstrates strong financial performance with impressive profitability and revenue growth. The balance sheet is exceptional, characterized by a complete lack of debt and high equity ratio, indicating low financial risk. However, cash flow concerns arise from inconsistent cash generation, potentially impacting liquidity. The company is financially robust but should stabilize cash flow for continued strength.

Income Statement

Rion Co., Ltd. shows robust performance with strong gross profit and net profit margins in TTM (Trailing-Twelve-Months), reflecting efficient cost management. The company has consistently grown its revenue, demonstrating a healthy upward trajectory. EBIT and EBITDA margins are solid, indicating strong operational efficiency. However, the gross profit margin slightly decreased from the previous year, suggesting room for improvement in cost control.

Balance Sheet

Rion Co., Ltd. maintains a very strong balance sheet with no total debt, resulting in an exceptional debt-to-equity ratio. The company has a high equity ratio, indicating financial stability and low leverage risk. Return on Equity (ROE) is commendable, reflecting effective utilization of shareholders' equity. Overall, the balance sheet showcases stability and low financial risk.

Cash Flow

The cash flow statement indicates a positive free cash flow in the annual report but shows zero free cash flow in the TTM period, which raises some concerns about cash generation consistency. The decline in operating cash flow compared to the net income suggests potential liquidity issues. Despite this, the company has previously demonstrated the ability to generate positive free cash flow.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
27.71B	27.88B	25.73B	23.87B	22.64B	20.47B
	Gross Profit
13.95B	13.99B	14.33B	11.70B	11.38B	10.23B
	EBIT
3.92B	4.03B	3.47B	2.84B	3.10B	2.22B
	EBITDA
4.91B	5.14B	4.42B	3.13B	3.89B	3.16B
	Net Income Common Stockholders
2.78B	2.86B	2.65B	1.80B	2.23B	1.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.93B	6.01B	5.03B	5.37B	7.72B	6.44B
	Total Assets
38.30B	39.13B	37.14B	34.56B	33.16B	30.68B
	Total Debt
0.00	0.00	21.88M	28.46M	40.07M	52.95M
	Net Debt
-4.93B	-6.01B	-5.03B	-5.34B	-7.68B	-6.39B
	Total Liabilities
7.78B	7.70B	7.93B	7.95B	7.87B	6.96B
	Stockholders Equity
30.53B	31.44B	29.21B	26.61B	25.29B	23.73B
Cash Flow		Free Cash Flow
0.00	2.14B	166.61M	-279.14M	1.76B	943.08M
	Operating Cash Flow
0.00	3.44B	2.86B	1.78B	2.84B	2.06B
	Investing Cash Flow
0.00	-1.69B	-2.65B	-3.25B	-951.93M	-1.14B
	Financing Cash Flow
0.00	-748.84M	-565.55M	-577.32M	-541.83M	-566.42M

Rion Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2341.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6823, the sentiment is Positive. The current price of 2341 is below the 20-day moving average (MA) of 2403.95, below the 50-day MA of 2365.76, and below the 200-day MA of 2365.63, indicating a bullish trend. The MACD of -2.13 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6823.

Rion Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7735	82 Outperform	¥991.26B	9.95	24.78%	0.02%	23.84%	38.09%
6823	78 Outperform	¥29.81B	10.42		3.06%	8.36%	7.74%
6841	77 Outperform	$985.24B	18.42	11.39%	0.01%	4.12%	-14.50%
7762	75 Outperform	€206.27B	8.64	9.37%	5.50%	1.30%	4.65%
7752	61 Neutral	¥727.26B	16.36	4.42%	2.85%	7.62%	7.88%
7731	60 Neutral	¥438.56B	78.55	0.91%	3.56%	-0.27%	-81.00%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%

Rion Co., Ltd. Corporate Events

Rion Co., Ltd. Announces Key Personnel Change

Rion Co., Ltd. announced a personnel change with the appointment of Shinya Ejima as a new independent outside director, replacing Motonori Tuno, who is retiring. This change is set to be proposed at the upcoming Annual General Meeting, potentially impacting the company’s strategic direction with Ejima’s extensive experience in international cooperation and management.

Rion Co., Ltd. Reports Strong Nine-Month Financial Performance and Announces Revised Dividend Forecast

Rion Co., Ltd. reported a positive financial performance for the first nine months of the fiscal year ending March 31, 2025, with a notable increase in net sales and operating profit compared to the previous year. The company also announced a revised dividend forecast, indicating confidence in its financial stability and commitment to rewarding shareholders.