RIX Corporation (7525) AI Stock Analysis

• Market Cap: ¥27.58B
• Dividend Yield: 4.18%
• Average Volume (3M): 10.23K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.79
• 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: 8,420
• 30 Day Avg. Volume: 10,233
• 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: ¥3,780.00
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥3,780.00 ▲(12.00% Upside)

RIX Corporation's strong financial performance, characterized by robust revenue growth and effective cash flow management, significantly contributes to its high score. The attractive valuation with a low P/E ratio and high dividend yield further bolsters the stock's appeal. While technical indicators show bullish trends, caution is advised due to overbought signals in the short term.

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 the sale and distribution of industrial machinery and equipment as well as providing maintenance and support services to its clients. The company has established a strong network of suppliers and partners, which allows it to offer a broad range of products to meet the diverse needs of its customers. Key revenue streams include the sale of air compression systems, industrial gases, and energy solutions, as well as aftermarket services such as equipment maintenance and repair. Strategic partnerships and collaborations with leading manufacturers enhance its product offerings and market reach, contributing to its earnings.

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	54.73B	54.73B	49.75B	45.22B	39.97B	36.02B
Gross Profit	13.59B	13.59B	12.41B	11.49B	9.62B	8.19B
EBITDA	4.53B	4.70B	4.36B	4.12B	3.34B	2.37B
Net Income	2.84B	2.84B	2.78B	2.76B	2.05B	1.36B
Balance Sheet
Total Assets	43.81B	43.81B	41.12B	37.44B	34.19B	30.18B
Cash, Cash Equivalents and Short-Term Investments	8.18B	8.18B	7.90B	8.80B	9.20B	7.74B
Total Debt	1.79B	1.79B	1.88B	1.84B	1.97B	2.01B
Total Liabilities	17.76B	17.76B	17.04B	15.76B	14.69B	12.31B
Stockholders Equity	25.50B	25.50B	23.58B	21.28B	19.14B	17.54B
Cash Flow
Free Cash Flow	1.33B	1.49B	344.37M	1.03B	2.03B	1.94B
Operating Cash Flow	1.76B	3.13B	1.50B	2.13B	2.31B	2.15B
Investing Cash Flow	-728.00M	-2.31B	-1.25B	-1.57B	-764.52M	-466.25M
Financing Cash Flow	-584.00M	-1.07B	-1.24B	-1.08B	-496.86M	-649.45M

RIX Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3375.00
• 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 3375 is above the 20-day moving average (MA) of 3369.00, above the 50-day MA of 3290.00, and above the 200-day MA of 2985.60, indicating a bullish trend. The MACD of 33.59 indicates Positive momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 34.33 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
7525	81 Outperform	¥27.58B	9.87		4.18%	7.91%	4.05%
6137	79 Outperform	31.33B	9.20	8.54%	3.13%	5.98%	-0.49%
6482	68 Neutral	21.03B	12.66	4.82%	3.24%	5.39%	-0.34%
6405	68 Neutral	20.06B	17.84	9.18%	2.13%	2.25%	-17.39%
6125	64 Neutral	33.01B	13.47	4.99%	3.24%	-2.14%	-47.09%
6279	53 Neutral	26.37B	-371.58	-2.30%	1.30%	-1.44%	-108.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

RIX Corporation Corporate Events

RIX Corporation Streamlines Operations with Subsidiary Merger

RIX Corporation announced that its subsidiary, RIXTECHNO Co., Ltd., will absorb its sub-subsidiary, CEM Corporation, to streamline operations and improve management efficiency. This merger, effective December 1, 2025, aims to enhance the company’s responsiveness to customer demands and consolidate its industry positioning.

RIX Corporation Announces Treasury Share Disposal for Executive Remuneration

RIX Corporation has announced the disposal of 7,604 treasury shares as part of a restricted share-based remuneration plan for its directors and executive officers. This move is aimed at motivating these individuals to contribute to the company’s share price growth and corporate value. The plan, approved by shareholders, involves a total monetary remuneration of ¥23,192,200 and sets conditions for share transfer restrictions to ensure alignment with company goals.

RIX Corporation Announces New Board Appointments

RIX Corporation has announced changes to its Board of Directors following its Annual General Meeting of Shareholders. The company has appointed several directors, including Takashi Yasui as Representative Director, President, and Executive Officer, and Hideaki Kakimori as Vice President and Executive Officer. This reshuffling of the board is likely to impact the company’s strategic direction, particularly in production, new business development, and global sales, as the company positions itself for future growth.

RIX Corporation Proposes Increased Year-End Dividend

RIX Corporation announced a proposal for dividends of surplus, with a year-end dividend of ¥88 per share for the fiscal year ended March 31, 2025, resulting in an annual dividend of ¥141 per share. This decision aligns with the company’s policy of returning profits to shareholders and maintaining a stable dividend payout, with future plans to target a consolidated dividend on equity of 4.5% or more.

RIX Corporation Reports Steady Growth Amidst Challenges

RIX Corporation reported a 10% increase in net sales for the fiscal year ending March 31, 2025, with operating profit rising by 9.5% and ordinary profit by 6.7%. Despite these gains, comprehensive income decreased by 18.2%. The company plans to maintain a stable dividend payout, with a slight increase forecasted for the next fiscal year. These results indicate a steady growth trajectory but also highlight challenges in maintaining comprehensive income, impacting stakeholders’ expectations.