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

• Market Cap: ¥31.34B
• Dividend Yield: 2.78%
• Average Volume (3M): 26.46K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.12
• 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): 276
• Revenue Forecast (FY): ¥29.30B

• Rating: 69 Neutral
• Price Target: ¥2,756.00 ▲(7.49% 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. 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.

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: 2564.00
• 50DMA: Negative
• 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 2564 is above the 20-day moving average (MA) of 2541.45, below the 50-day MA of 2583.19, and above the 200-day MA of 2497.94, indicating a neutral trend. The MACD of -12.77 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 54.34 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	¥16.44B	13.56	―	3.65%	-4.36%	-14.92%
6823	69 Neutral	¥31.34B	10.06	―	2.78%	6.72%	20.01%
4549	66 Neutral	¥81.83B	21.20	―	2.38%	4.36%	79.43%
6849	61 Neutral	¥297.83B	21.71	―	1.89%	4.31%	96.31%
6523	54 Neutral	€130.02B	11.43	4.32%	4.34%	0.04%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7779	45 Neutral	$39.15B	-114.02	-0.46%	―	-4.30%	82.87%

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.

The most recent analyst rating on (JP:6823) stock is a Buy with a Yen2882.00 price target. To see the full list of analyst forecasts on Rion Co., Ltd. stock, see the JP:6823 Stock Forecast page.

Rion Co., Ltd. Advances Clinical Study on PEP-TISSEEL for Chronic Radiation Ulcers

Rion Co., Ltd. (JP:6823) is spearheading a clinical study titled ‘An Adaptive Two-Part, Phase 1/2, Multi-Center, Double-Blinded, Randomized, Controlled Study of the Safety and Efficacy of Topically Applied PEP-TISSEEL in Participants With Chronic Radiation Ulcer.’ This study aims to evaluate the safety, tolerability, and efficacy of PEP-TISSEEL, a combination of Purified Exosome Product (PEP™) and Fibrin Sealant (TISSEEL®), in treating chronic radiation ulcers. The study’s significance lies in its potential to offer a new treatment avenue for patients suffering from this condition.

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.

The most recent analyst rating on (JP:6823) stock is a Hold with a Yen2875.00 price target. To see the full list of analyst forecasts on Rion Co., Ltd. stock, see the JP:6823 Stock Forecast page.

RION Co., Ltd. Completes Payment for New Share Issuance as Restricted Stock Compensation

RION Co., Ltd. has completed the payment procedures for the issuance of 11,000 new shares as restricted stock compensation, with a total issue amount of 28,710,000 yen. This strategic move aims to align the interests of its directors with the company’s long-term performance, potentially enhancing its market position and stakeholder value.