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

• Market Cap: ¥37.55B
• Dividend Yield: 2.93%
• Average Volume (3M): 26.46K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.10
• Revenue Growth: 6.72%
• EPS Growth: 20.01%
• Country: JP
• Employees: 1,026
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 64.65
• 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): 275.7
• Revenue Forecast (FY): ¥29.50B

• Rating: 69 Neutral
• Price Target: ¥3,334.00 ▲(23.89% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

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

Strong revenue growth

A 61% year-over-year revenue increase demonstrates sustained demand and successful commercial execution in core instrument markets. This scale expansion supports longer-term R&D investment, broader distribution and stronger recurring service revenues, improving resilience over months.

Improved free cash flow and cash generation

Marked improvement in free cash flow and a healthy operating cash flow-to-net-income ratio enhance financial flexibility. Durable cash generation funds capex, maintenance, and R&D without reliance on external financing, supporting sustainable operations and strategic investment over the medium term.

Low leverage and solid capital structure

A very low debt-to-equity ratio and strong equity ratio reduce financial risk and preserve capacity to invest or weather cyclical downturns. The conservative capital structure underpins long-term stability and lowers refinancing risk, a durable strength for multi-quarter planning.

Negative Factors

Slight contraction in gross margin

A slight decline in gross margin, even from a healthy base, could signal rising input costs, pricing pressure, or a less favourable product mix. If persistent, margin erosion would reduce funds available for R&D and capital spending and could pressure long-term profitability unless addressed.

Modest return on equity

An ROE around 9% indicates moderate effectiveness at converting equity into profits. Over multiple quarters this modest return could limit shareholder value creation relative to higher-return peers, requiring improved margins or faster asset turnover to boost long-term returns.

Concentrated product and market exposure

Concentration in specialized measurement and monitoring instruments focuses revenue but creates exposure to cyclical industrial spending and sector-specific technology or regulatory shifts. Limited product diversification can amplify revenue volatility if key end markets soften over several quarters.

Rion Co., Ltd. Business Overview & Revenue Model

Company Description

Rion Co., Ltd. manufactures, sells, and maintains hearing instruments, medical equipment, sound and vibration measuring instruments, particle counters, and related parts and equipment in Japan. The company's audiological equipment includes hearing instruments, such as analog and digital BTE, trimmer digital BTE, in-the-ear ready and custom made, and analog body aid instruments, as well as waterproof hearing instruments; and medical equipment comprising audiometers and OAE screeners. Its sound and vibration measuring instruments include sound level meters, vibration meters, seismometers, frequency analyzers, microphones and accelerometers, recorders, and other products. The company's particle counters comprise air and liquid- borne particle counters, and viable particle counters. Its products are primarily used in the applications of environment-related administration, electronics, semiconductors, pharmaceutical, and food manufacturing industries. The company was formerly known as Kobayashi-Riken Seisakusho Ltd. and changed its name to Rion Co., Ltd. in 1960. Rion Co., Ltd. was incorporated in 1944 and is headquartered in Kokubunji, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2691.00
• 50DMA: Positive
• 100DMA: Positive
• 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 2691 is below the 20-day moving average (MA) of 2912.25, below the 50-day MA of 2791.30, and above the 200-day MA of 2608.04, indicating a bullish trend. The MACD of 70.31 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 67.07 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	78 Outperform	¥22.50B	17.62	―	3.02%	-4.36%	-14.92%
6823	69 Neutral	¥37.55B	12.60	―	2.93%	6.72%	20.01%
4549	68 Neutral	¥103.52B	27.01	―	2.31%	4.36%	79.43%
6849	65 Neutral	¥290.48B	22.94	―	1.92%	4.31%	96.31%
7779	56 Neutral	¥79.60B	-26,549.30	-0.46%	―	-4.30%	82.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥139.40B	39.27	4.32%	3.73%	0.04%	―

Rion Co., Ltd. Corporate Events

Rion Reshapes Executive and Management Ranks Across Group Operations

Rion Co., Ltd. has announced a series of senior personnel changes effective April 1, 2026, including new roles for several executive officers overseeing corporate planning, research and development, personnel and general affairs, and production. These shifts reassign responsibilities among key leaders such as Toshiyuki Hasumi and Tadashi Sozaki, indicating an internal reorganization of strategic and administrative functions.

The company is also restructuring its general manager ranks in core business areas like particle counters, sound and vibration measuring instruments, production control, materials management, and corporate planning, refining leadership in both engineering and sales roles. Additionally, at group company Norsonic AS, governance changes will see Steinar Bøhn become Managing Director and Chairman while Svein Arne Nordby retires, suggesting broader alignment of management structures across the Rion group to support future operational efficiency and market competitiveness.

The most recent analyst rating on (JP:6823) stock is a Buy with a Yen3261.00 price target. To see the full list of analyst forecasts on Rion Co., Ltd. stock, see the JP:6823 Stock Forecast page.

Rion Posts Steady Nine-Month Earnings and Lifts Dividend Forecast for FY2025

Rion Co., Ltd. reported consolidated net sales of ¥20,553 million for the nine months ended December 31, 2025, a slight 0.3% year-on-year increase, with operating profit essentially flat at ¥3,065 million and ordinary profit at ¥3,130 million, while profit attributable to owners of parent rose 5.6% to ¥2,248 million, lifting basic earnings per share to ¥182.42. The company’s financial position strengthened, with total assets of ¥39,581 million, equity of ¥33,072 million and a robust equity ratio of 83.6%, and it raised its annual dividend forecast for the fiscal year ending March 31, 2026 to ¥85 per share (from a prior lower projection implied by the revision notice), aligning with its full-year guidance calling for a 3.7% rise in net sales to ¥28,900 million and a 10.1% increase in profit attributable to owners of parent to ¥3,150 million, signaling continued emphasis on profitability and shareholder returns.

The most recent analyst rating on (JP:6823) stock is a Buy with a Yen3179.00 price target. To see the full list of analyst forecasts on Rion Co., Ltd. stock, see the JP:6823 Stock Forecast page.

Rion Raises Annual Dividend Forecast on Stable Earnings Outlook

Rion Co., Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2026, raising its planned annual dividend from 70 yen to 85 yen per share by increasing the year-end dividend from 35 yen to 50 yen. Management cited a business environment and sales trends that are generally tracking the company’s earlier earnings forecast and reiterated that shareholder returns are a key management priority, noting that the higher payout reflects its progressive dividend policy and confidence in its current fiscal-year outlook compared with the prior year’s 70 yen total dividend.

The most recent analyst rating on (JP:6823) stock is a Buy with a Yen3179.00 price target. To see the full list of analyst forecasts on Rion Co., Ltd. stock, see the JP:6823 Stock Forecast page.

Rion to Deepen Employee Share Ownership with Higher Incentives and Broader Eligibility

Rion Co., Ltd. has resolved to significantly enhance its employee stock ownership plan to strengthen employee engagement and promote long-term corporate value creation by more closely aligning employees’ interests with shareholders. Effective March 2026, the company will raise the incentive grant rate for plan contributions from 3% to 15%, increasing the incentive amount from 30 yen to 150 yen per 1,000 yen unit, and will expand eligibility to include employees of its domestic subsidiaries, supporting broader asset-building opportunities for staff and reinforcing a sense of unity across the group.

The most recent analyst rating on (JP:6823) stock is a Buy with a Yen3179.00 price target. To see the full list of analyst forecasts on Rion Co., Ltd. stock, see the JP:6823 Stock Forecast page.