RIX Corporation (7525) AI Stock Analysis

• Market Cap: ¥29.86B
• Dividend Yield: 4.16%
• Average Volume (3M): 23.73K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.85
• Revenue Growth: 5.36%
• EPS Growth: 12.84%
• Country: JP
• Employees: 723
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 95.68
• Shares Outstanding: 8,640,000
• 10 Day Avg. Volume: 15,630
• 30 Day Avg. Volume: 23,726
• PEG Ratio: 4.07
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 16.24
• 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: 80 Outperform
• Price Target: ¥4,238.00 ▲(15.63% Upside)

RIX Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth, stable margins, and effective cash flow management are significant strengths. The technical analysis indicates bullish momentum, though caution is advised due to the RSI nearing overbought levels. The low P/E ratio and high dividend yield further enhance the stock's appeal.

Positive Factors

Revenue Growth

The 10% increase in net sales reflects strong demand for RIX Corporation's products, indicating robust market positioning and potential for sustained revenue growth.

Operational Efficiency

The merger of subsidiaries aims to streamline operations and improve management efficiency, enhancing the company's responsiveness to customer demands and consolidating its industry positioning.

Management Quality

The strategic reshuffling of the board with experienced leaders is likely to positively impact the company's strategic direction, focusing on production, new business development, and global sales.

Negative Factors

Comprehensive Income Decline

The decline in comprehensive income suggests challenges in maintaining profitability, which could affect stakeholder confidence and the company's ability to reinvest in growth.

Asset Utilization

Suboptimal asset utilization indicates inefficiencies that could limit financial leverage and growth potential, necessitating strategic adjustments to optimize asset use.

Comprehensive Income Challenges

The significant drop in comprehensive income highlights potential operational or market challenges, which may require strategic interventions to stabilize and improve financial performance.

RIX Corporation Business Overview & Revenue Model

Company Description

Rix Corporation manufactures and sells machinery equipment and industrial materials in Japan. The company provides rotary joints for applications in general machinery, rubber and tire, machine tool, multi-port type, clearance seal type, paper, and steel industries, as well as for turning machine for chuckinhg and ball screw cooling. It also offers screw type oil skimmers; and hardlock nuts, bearing nuts, and set screws. Rix Corporation was founded in 1907 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

RIX Corporation generates revenue through multiple streams, primarily by selling its core products and services to various industries. Key revenue streams include direct sales of electronic components, contracts for custom manufacturing solutions, and long-term partnerships with major corporations in the automotive and industrial sectors. The company also leverages research and development to create patented technologies that enhance its product offerings, which can lead to premium pricing. Significant partnerships with leading firms in technology and manufacturing further contribute to RIX Corporation's earnings, as these collaborations often result in joint ventures and shared projects that expand their market reach.

RIX Corporation Financial Statement Overview

Summary

RIX Corporation demonstrates a solid financial position with strong revenue growth, stable margins, and effective cash flow management. The company maintains a low leverage and strong equity base, providing a buffer against economic fluctuations. However, there is room for improvement in asset utilization and free cash flow optimization.

Income Statement

RIX Corporation has shown strong revenue growth with a consistent upward trajectory over the years, indicating robust demand for its products. The gross profit margin is healthy, reflecting efficient production processes. Net profit margin and EBIT margin have improved, showcasing enhanced operational efficiency and profitability. However, slight fluctuations in net income margins suggest that there are areas for financial optimization.

Balance Sheet

The company maintains a solid equity base, with a favorable equity ratio indicating financial stability. A low debt-to-equity ratio suggests prudent financial management and lower financial risk. Return on equity is satisfactory, reflecting efficient use of shareholders' funds. However, there is room for improving asset utilization to enhance overall financial leverage.

Cash Flow

RIX Corporation exhibits strong operating cash flows, which have supported its capital expenditures and growth initiatives. The free cash flow growth rate is positive, indicating a healthy cash conversion cycle. While the operating cash flow to net income ratio is robust, suggesting efficient cash generation, there is potential to further optimize free cash flow relative to net income to ensure sustained liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.71B	54.73B	49.75B	45.22B	39.97B	36.02B
Gross Profit	13.64B	13.59B	12.41B	11.49B	9.62B	8.19B
EBITDA	4.57B	4.70B	4.36B	4.12B	3.34B	2.37B
Net Income	2.77B	2.84B	2.78B	2.76B	2.05B	1.36B
Balance Sheet
Total Assets	41.85B	43.81B	41.12B	37.44B	34.19B	30.18B
Cash, Cash Equivalents and Short-Term Investments	7.84B	8.18B	7.90B	8.80B	9.20B	7.74B
Total Debt	1.91B	1.79B	1.88B	1.84B	1.97B	2.01B
Total Liabilities	15.82B	17.76B	17.04B	15.76B	14.69B	12.31B
Stockholders Equity	25.47B	25.50B	23.58B	21.28B	19.14B	17.54B
Cash Flow
Free Cash Flow	664.18M	1.49B	344.37M	1.03B	2.03B	1.94B
Operating Cash Flow	879.09M	3.13B	1.50B	2.13B	2.31B	2.15B
Investing Cash Flow	-363.99M	-2.31B	-1.25B	-1.57B	-764.52M	-466.25M
Financing Cash Flow	-291.58M	-1.07B	-1.24B	-1.08B	-496.86M	-649.45M

RIX Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3665.00
• 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:7525, the sentiment is Positive. The current price of 3665 is below the 20-day moving average (MA) of 3720.00, above the 50-day MA of 3662.20, and above the 200-day MA of 3190.83, indicating a neutral trend. The MACD of 5.34 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 25.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7525.

RIX Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6137	81 Outperform	¥34.21B	12.21	―	2.86%	0.25%	-18.79%
7525	80 Outperform	¥29.86B	10.18	―	4.16%	5.36%	12.84%
6482	74 Outperform	¥24.44B	19.18	―	2.79%	-4.47%	-24.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥28.90B	13.18	―	3.70%	-3.85%	-45.64%
6405	61 Neutral	¥13.71B	22.06	―	2.69%	-6.08%	-56.08%
6279	51 Neutral	¥25.97B	111.75	―	1.11%	9.21%	-46.66%

RIX Corporation Corporate Events

RIX Corporation Reports Resilient Financial Performance for H1 2025

RIX Corporation reported a slight increase in net sales for the six months ended September 30, 2025, with a 0.7% rise compared to the previous year. Despite a minor decline in operating and ordinary profits, the company saw a 5.3% increase in profit attributable to owners of the parent, indicating resilience in its financial performance. The company also announced a dividend increase, reflecting confidence in its future earnings potential. The inclusion of KOUKEN CO., LTD. in the scope of consolidation highlights RIX Corporation’s strategic expansion efforts.