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

• Market Cap: ¥31.75B
• Dividend Yield: 2.99%
• Average Volume (3M): 26.46K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.11
• Revenue Growth: 6.72%
• EPS Growth: 20.01%
• Country: JP
• Employees: 1,026
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 69.46
• Shares Outstanding: 12,347,700
• 10 Day Avg. Volume: 21,140
• 30 Day Avg. Volume: 26,463
• PEG Ratio: 1.37
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 14.14
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,756.00 ▲(7.03% Upside)

Rion Co., Ltd. has a strong financial foundation with robust revenue growth and cash flow generation. However, the technical indicators suggest a bearish trend, which could pose short-term risks. The stock appears undervalued with a low P/E ratio and an attractive dividend yield, making it a potentially appealing investment for value-oriented investors.

Positive Factors

Revenue Growth

The significant revenue growth reflects robust demand for Rion's products, indicating strong market positioning and potential for continued expansion.

Cash Generation

Strong cash generation enhances Rion's financial flexibility, allowing for reinvestment in growth initiatives and providing a buffer against economic downturns.

Balance Sheet Health

A robust balance sheet with low leverage reduces financial risk and supports sustainable operations and strategic investments.

Negative Factors

Gross Profit Margin Decline

A decline in gross profit margin, even if slight, could indicate rising costs or pricing pressures, potentially impacting long-term profitability if not addressed.

Technical Weakness

While primarily a short-term indicator, persistent technical weakness can affect investor confidence and potentially impact capital raising efforts.

Lack of New Corporate Events

The absence of new corporate events or strategic initiatives may suggest a lack of proactive growth strategies, potentially affecting long-term competitiveness.

Rion Co., Ltd. Business Overview & Revenue Model

Company Description

Rion Co., Ltd. (6823) is a Japanese company specializing in the development, manufacturing, and sales of scientific and industrial instruments. The company operates primarily in the fields of vibration measurement and analysis, environmental monitoring, and healthcare. Its core products include vibration measurement devices, noise measurement systems, and medical instruments, catering to various industries such as construction, manufacturing, and healthcare.

How the Company Makes Money

Rion Co., Ltd. generates revenue through the sale of its scientific and industrial instruments, which are utilized for precise measurement and monitoring in various applications. The company has established key revenue streams from product sales, including its vibration and noise measurement devices, as well as medical diagnostic equipment. Additionally, Rion benefits from service revenues through maintenance and calibration of its instruments. Partnerships with other technology and healthcare companies may also contribute to innovation and market reach, enhancing its revenue potential. The company focuses on research and development to ensure its products meet the evolving needs of its customers, thereby driving sales and increasing market share.

Rion Co., Ltd. Financial Statement Overview

Summary

Rion Co., Ltd. exhibits strong financial performance with impressive revenue growth and stable profitability. The balance sheet is robust with low leverage and efficient equity utilization. The cash flow statement highlights strong cash generation and improved free cash flow.

Income Statement

Rion Co., Ltd. has demonstrated strong revenue growth with a 61% increase in the latest year, indicating robust demand for its products. The gross profit margin remains healthy at approximately 50%, although it has slightly decreased from the previous year. The net profit margin is stable at around 10%, reflecting consistent profitability. EBIT and EBITDA margins are solid, showcasing effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet is strong with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on equity is stable at around 9%, suggesting efficient use of shareholder funds. The equity ratio is healthy, reflecting a solid capital structure. Overall, the balance sheet portrays financial stability and low risk.

Cash Flow

Rion Co., Ltd. has shown significant improvement in free cash flow, with a notable growth rate. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The free cash flow to net income ratio has improved significantly, reflecting enhanced cash flow efficiency. Overall, the cash flow statement indicates strong cash generation and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.15B	27.88B	25.73B	23.87B	22.64B	20.47B
Gross Profit	13.98B	13.99B	14.33B	11.70B	11.38B	10.23B
EBITDA	5.33B	5.14B	4.42B	3.13B	3.89B	3.16B
Net Income	3.05B	2.86B	2.65B	1.80B	2.23B	1.64B
Balance Sheet
Total Assets	38.98B	39.13B	37.14B	34.56B	33.16B	30.68B
Cash, Cash Equivalents and Short-Term Investments	6.16B	6.01B	5.03B	5.37B	7.72B	6.44B
Total Debt	1.73B	11.73M	21.88M	28.46M	40.07M	52.95M
Total Liabilities	7.36B	7.70B	7.93B	7.95B	7.87B	6.96B
Stockholders Equity	31.62B	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: 2575.00
• 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 2575 is above the 20-day moving average (MA) of 2545.55, above the 50-day MA of 2560.82, and above the 200-day MA of 2501.07, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 78.53 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
6678	74 Outperform	¥18.93B	15.61	―	3.06%	-4.36%	-14.92%
6823	69 Neutral	¥31.75B	10.19	―	2.99%	6.72%	20.01%
6523	68 Neutral	¥137.37B	23.49	4.32%	3.87%	0.04%	―
6849	68 Neutral	¥268.69B	14.52	―	1.99%	4.31%	96.31%
4549	66 Neutral	¥81.99B	21.24	―	2.25%	4.36%	79.43%
7779	55 Neutral	¥40.01B	-194.40	-0.46%	―	-4.30%	82.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Rion Co., Ltd. Corporate Events

Rion Co., Ltd. Reports Strong Semi-Annual Financial Results and Positive Outlook

Rion Co., Ltd. reported a positive financial performance for the six months ended September 30, 2025, with net sales increasing by 4.5% and profit attributable to owners rising by 21.2% compared to the previous year. The company also announced a forecast for the fiscal year ending March 31, 2026, projecting a 3.7% increase in net sales and a 10.1% rise in profit attributable to owners, indicating a stable financial outlook and commitment to shareholder value.

Rion Co., Ltd. Announces Key Executive Personnel Change

Rion Co., Ltd. announced a personnel change effective October 1, 2025, with Nobuaki Yamaguchi transitioning to the role of Executive Officer in the Production Division’s Quality Assurance Department. This change is part of the company’s strategic efforts to enhance its operational efficiency and maintain its competitive edge in the industry.