RIX Corporation (7525) AI Stock Analysis

• Market Cap: ¥30.48B
• Dividend Yield: 4.08%
• Average Volume (3M): 22.67K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.80
• Revenue Growth: 7.91%
• EPS Growth: 4.05%
• Country: JP
• Employees: 723
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 62.09
• Shares Outstanding: 8,640,000
• 10 Day Avg. Volume: 22,060
• 30 Day Avg. Volume: 22,666
• 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

• Rating: 80 Outperform
• Price Target: ¥4,238.00 ▲(13.77% 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.

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 characterized by strong revenue growth, stable margins, and effective cash flow management. The company's low leverage and strong equity base provide a buffer against economic fluctuations, while positive cash flow dynamics support ongoing investments and expansion.

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: 3725.00
• 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:7525, the sentiment is Positive. The current price of 3725 is above the 20-day moving average (MA) of 3567.50, above the 50-day MA of 3418.24, and above the 200-day MA of 3042.57, indicating a bullish trend. The MACD of 101.21 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 42.85 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	―	¥30.71B	8.84	―	2.75%	5.98%	-0.49%
7525	―	¥30.48B	10.91	―	4.08%	7.91%	4.05%
6482	―	¥19.81B	11.92	―	3.10%	5.39%	-0.34%
6125	―	¥32.75B	13.36	―	3.33%	-2.14%	-47.09%
6405	―	¥19.22B	16.87	―	2.29%	2.25%	-17.39%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6279	―	¥25.24B	108.58	―	1.15%	9.21%	-46.66%

RIX Corporation Corporate Events

RIX Corporation Faces Profit Decline Amid Growth Investments

RIX Corporation reported a decrease in profits due to increased SG&A expenses driven by growth investments, including a new R&D facility and the relocation of its head office. Despite a decline in the automobile segment’s profits due to lower sales of original products, the company expects sales and profits to stabilize in the coming quarters as product sales are anticipated to recover.

RIX Corporation Reports Q2 2025 Financial Results with Strategic Expansion

RIX Corporation reported a slight decline in net sales and significant drops in operating and ordinary profits for the three months ending June 30, 2025, compared to the same period in 2024. Despite these declines, the company forecasts growth in net sales and a slight increase in profit attributable to owners for the fiscal year ending March 31, 2026. The inclusion of KOUKEN CO., LTD. in the consolidation scope indicates strategic expansion, which may impact future financial performance.

RIX Corporation Finalizes Treasury Share Disposal for Remuneration

RIX Corporation has completed the payment procedures for the disposal of treasury shares as restricted share-based remuneration, following a resolution by its Board of Directors. This move involves the disposal of 7,604 shares at a price of ¥3,050 per share, with a total value of ¥23,192,200, allocated to directors and executive officers, potentially impacting the company’s financial strategies and stakeholder interests.