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

• Market Cap: ¥33.77B
• Dividend Yield: 2.93%
• Average Volume (3M): 26.46K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.16
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥3,117.00 ▲(15.83% 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

Strong Balance Sheet

A very low leverage profile and healthy equity ratio provide long-term financial flexibility and lower solvency risk. Minimal debt reduces interest burden, enables funding of CAPEX and innovation internally, and improves resilience across industry cycles without forcing dilutive financing.

Improved Free Cash Flow

Notable improvement in free cash flow and strong operating cash flow relative to net income point to durable cash generation. Reliable FCF supports ongoing R&D, maintenance/calibration services, dividends, and provides flexibility to weather cyclicality or pursue strategic investments over multiple quarters.

Robust Revenue Growth

A 61% year-over-year revenue increase indicates durable demand and expanding market penetration for measurement and medical instruments. Sustained top-line gains strengthen scale economics, fund R&D and service expansion, and improve the company's ability to invest for long-term market share growth.

Negative Factors

Modest Return on Equity

A stable ROE near 9% reflects modest capital returns relative to higher-growth or higher-margin peers. Over the long run, sub-10% ROE can limit shareholder value creation and may indicate constrained reinvestment opportunities or the need for improved capital allocation to drive higher sustainable returns.

Slight Margin Compression

A small decline in gross margin, despite a ~50% level, suggests emerging pressure from input costs or pricing competition. Persistent margin erosion would reduce operating profitability and free cash flow over time, constraining investment in product development and long-term shareholder returns.

End-market Cyclicality

Concentration in construction and manufacturing end-markets exposes revenue to economic cycles and capex variability. Cyclical demand patterns can produce multi-quarter swings in instrument orders and service revenue, complicating capacity planning and smoothing of long-term revenue and cash flow.

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	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: Neutral
• Last Price: 2691.00
• 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 Neutral. The current price of 2691 is below the 20-day moving average (MA) of 2756.00, above the 50-day MA of 2646.22, and above the 200-day MA of 2550.68, indicating a neutral trend. The MACD of 48.69 indicates Positive momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 58.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥18.97B	15.65	―	3.02%	-4.36%	-14.92%
6823	69 Neutral	¥33.77B	11.33	―	2.93%	6.72%	20.01%
6523	68 Neutral	¥137.37B	23.49	4.32%	3.73%	0.04%	―
6849	68 Neutral	¥285.97B	15.45	―	1.92%	4.31%	96.31%
4549	66 Neutral	¥78.86B	20.58	―	2.31%	4.36%	79.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7779	49 Neutral	¥57.85B	-286.37	-0.46%	―	-4.30%	82.87%

Rion Co., Ltd. Corporate Events

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.

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.