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

• Market Cap: ¥32.42B
• Dividend Yield: 2.44%
• Average Volume (3M): 25.54K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.02
• Revenue Growth: 7.99%
• EPS Growth: 28.81%
• Country: JP
• Employees: 1,026
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 48.31
• Shares Outstanding: 12,347,700
• 10 Day Avg. Volume: 18,990
• 30 Day Avg. Volume: 25,536
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,875.00
• Price Target Upside: 9.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥2,875.00 ▲(9.36% Upside)

Rion Co., Ltd. has a strong financial foundation with robust revenue growth and cash flow generation. However, technical indicators suggest short-term bearish momentum, which tempers the overall score. The stock is reasonably valued with an attractive dividend yield, making it a balanced investment opportunity.

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 medical devices and scientific instruments. The company earns significant income from its hearing aid division, which includes both sales and service revenues. Additionally, Rion benefits from government contracts and collaborations with healthcare institutions for diagnostic equipment. The company also invests in research and development to innovate and expand its product offerings, which further supports its revenue growth. Strategic partnerships with healthcare providers and distribution networks enhance its market reach and contribute to its earnings.

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, positioning the company well for future growth.

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	27.88B	27.88B	25.73B	23.87B	22.64B	20.47B
Gross Profit	14.03B	13.99B	14.33B	11.70B	11.38B	10.23B
EBITDA	5.07B	5.14B	4.42B	3.13B	3.89B	3.16B
Net Income	2.86B	2.86B	2.65B	1.80B	2.23B	1.64B
Balance Sheet
Total Assets	39.13B	39.13B	37.14B	34.56B	33.16B	30.68B
Cash, Cash Equivalents and Short-Term Investments	6.01B	6.01B	5.03B	5.37B	7.72B	6.44B
Total Debt	11.73M	11.73M	21.88M	28.46M	40.07M	52.95M
Total Liabilities	7.70B	7.70B	7.93B	7.95B	7.87B	6.96B
Stockholders Equity	31.44B	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: 2629.00
• 50DMA: Positive
• 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:6823, the sentiment is Positive. The current price of 2629 is below the 20-day moving average (MA) of 2658.70, below the 50-day MA of 2638.98, and above the 200-day MA of 2508.71, indicating a bullish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 62.07 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
6849	76 Outperform	285.39B	21.15	7.85%	1.81%	4.43%	-1.39%
6678	74 Outperform	17.47B	16.92	0.00%	3.32%	-8.07%	-38.21%
6823	69 Neutral	¥32.42B	10.73		2.44%	7.99%	28.81%
6523	66 Neutral	128.50B	11.33	8.21%	4.14%	0.70%	0.00%
4549	63 Neutral	78.28B	35.45	5.11%	2.16%	3.80%	6.68%
7779	54 Neutral	40.88B	-119.03	-0.85%	―	-5.24%	81.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.