RICOH CO (7752) AI Stock Analysis

• Market Cap: ¥906.30B
• Dividend Yield: 2.44%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.11
• Revenue Growth: 7.96%
• EPS Growth: -25.19%
• Country: JP
• Employees: 79,544
• Sector: Industrials
• Sector Strength: 83
• Industry: Business Equipment & Supplies
• EPS (TTM): 31.56
• Shares Outstanding: 569,733,150
• 10 Day Avg. Volume: 1,527,050
• 30 Day Avg. Volume: 2,085,906
• PEG Ratio: 1.79
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.20
• 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: ¥1,466.67
• Price Target Upside: -7.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

RICOH CO demonstrates solid financial performance with strong cash flow generation and a stable balance sheet, which are key strengths for the company. However, the technical analysis indicates a bearish trend, which could pose short-term risks. The valuation is moderate, offering a reasonable dividend yield without showing significant undervaluation. These factors combined lead to an overall score reflecting a stable yet cautious outlook.

RICOH CO Business Overview & Revenue Model

Company Description

Ricoh Co., Ltd. is a global technology company headquartered in Tokyo, Japan. It operates in various sectors, including office imaging equipment, production print solutions, document management systems, and IT services. Ricoh is known for its innovative products and services that facilitate efficient document management and digital transformation for businesses of all sizes. The company provides a wide range of products, from multifunction printers and copiers to software solutions that enhance productivity and streamline workflows.

How the Company Makes Money

Ricoh Co., Ltd. generates revenue through several key streams. The primary source of income is its office imaging business, which includes the sale and leasing of multifunction printers, copiers, and related supplies such as toner and paper. Additionally, Ricoh offers maintenance and support services for these devices, creating a steady stream of recurring revenue. Another significant revenue stream comes from its production printing segment, which serves high-volume printing needs for industries like publishing and marketing. Ricoh also provides IT and document management solutions, including software for workflow automation and cloud-based services, which cater to the growing demand for digital transformation in businesses. The company partners with organizations across various sectors to deliver customized solutions, further enhancing its revenue potential. Strategic acquisitions and collaborations also play a role in expanding Ricoh's market reach and capabilities, contributing to its financial performance.

RICOH CO Financial Statement Overview

Summary

Overall, RICOH CO is financially sound with strengths in revenue growth and cash flow generation, supported by a solid balance sheet. The income statement reflects profitability, yet there is room for improvement in net profit margins and EBIT efficiency. The balance sheet demonstrates stability with a healthy equity ratio and controlled leverage, while the cash flow statement highlights strong cash generation and utilization. The company is well-positioned within the Business Equipment & Supplies industry for continued growth.

Income Statement

RICOH CO shows a solid performance with a TTM (Trailing-Twelve-Months) gross profit margin of 34.8% and a net profit margin of 1.68%, indicating profitability, though the net margin is relatively modest. The company has demonstrated revenue growth of 5.87% from the previous annual report, showcasing a positive growth trajectory. EBIT and EBITDA margins for the TTM are 2.14% and 6.94% respectively, reflecting stable operating efficiency, although the EBIT margin indicates room for improvement.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.51, suggesting a balanced approach to leveraging. The return on equity (ROE) is 4.08%, which indicates reasonable profitability relative to shareholder equity, though there's potential for higher returns. With an equity ratio of 42.70%, RICOH CO demonstrates a strong capital structure and financial stability.

Cash Flow

RICOH CO has achieved a significant free cash flow growth rate of 93.62%, reflecting strong cash generation capabilities. The operating cash flow to net income ratio stands at 3.24, indicating healthy cash flow relative to net income, while the free cash flow to net income ratio of 1.73 further demonstrates effective cash management. These metrics suggest robust liquidity and financial health.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.49T	2.35T	2.13T	1.76T	1.68T	2.01T
	Gross Profit
864.42B	820.10B	745.42B	622.67B	572.31B	721.58B
	EBIT
53.29B	62.02B	78.74B	40.05B	-45.43B	79.04B
	EBITDA
172.71B	180.50B	179.38B	115.69B	63.51B	193.54B
	Net Income Common Stockholders
41.75B	44.18B	54.37B	30.37B	-32.73B	39.55B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
187.46B	177.32B	316.00B	332.68B	427.87B	350.11B
	Total Assets
2.40T	2.29T	2.15T	1.85T	1.89T	2.87T
	Total Debt
517.91B	420.08B	427.27B	302.55B	294.62B	245.63B
	Net Debt
332.10B	243.03B	205.38B	62.24B	-40.19B	-17.20B
	Total Liabilities
1.33T	1.22T	1.19T	947.43B	964.02B	1.86T
	Stockholders Equity
1.02T	1.04T	931.56B	902.04B	920.25B	920.37B
Cash Flow		Free Cash Flow
72.07B	37.21B	-13.91B	11.42B	60.03B	2.92B
	Operating Cash Flow
135.15B	125.62B	66.71B	82.46B	126.96B	116.70B
	Investing Cash Flow
-82.22B	-97.82B	-133.94B	-59.35B	-63.56B	-164.59B
	Financing Cash Flow
-59.02B	-82.92B	35.45B	-131.69B	-4.08B	75.76B

RICOH CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1592.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7752, the sentiment is Positive. The current price of 1592 is above the 20-day moving average (MA) of 1480.18, above the 50-day MA of 1539.05, and above the 200-day MA of 1567.01, indicating a bullish trend. The MACD of 8.91 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 94.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7752.

RICOH CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6701	78 Outperform	$5.11T	28.62	8.97%	0.77%	-1.55%	17.24%
6501	77 Outperform	$17.77T	29.06	10.50%	1.06%	0.56%	5.32%
6702	73 Outperform	$6.18T	27.77	11.70%	0.83%	-5.48%	-11.96%
6674	70 Outperform	$255.57B	7.81	10.24%	2.64%	4.27%	13.65%
7752	68 Neutral	¥906.30B	22.66	4.15%	2.44%	7.96%	-25.19%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%
4902	55 Neutral	¥220.73B	―	-5.07%	1.12%	-0.13%	95.46%

RICOH CO Corporate Events

Ricoh Completes Full Acquisition of PFU Limited

Ricoh Company, Ltd. has announced the acquisition of the remaining 20% of shares in PFU Limited from Fujitsu Limited, making PFU a wholly owned subsidiary. This strategic move is expected to have minimal impact on Ricoh’s financial results for the current fiscal year, but it strengthens Ricoh’s market position by fully integrating PFU’s capabilities into its operations.

Ricoh Announces Leadership Change to Enhance Governance

Ricoh Company, Ltd. announced a personnel change in its Board of Directors, with Yoshinori Yamashita transitioning from Representative Director and Chairperson to Director and Chairperson without representation. This change aims to strengthen the supervisory function and enhance corporate value, reflecting Ricoh’s strategic focus on improving governance and operational oversight.

Ricoh Integrates OKI into ETRIA to Boost Market Position

Ricoh Company, Ltd. has announced the integration of Oki Electric Industry Co., Ltd. into its joint venture, ETRIA CO., LTD., which it formed with Toshiba Tec Corporation. This business integration, scheduled for completion by October 2025, involves an absorption-type company split and the transfer of Oki’s multifunction printer business into ETRIA. Post-integration, Ricoh will hold a majority investment in ETRIA, while Toshiba Tec and Oki will have reduced stakes, indicating a strategic consolidation aimed at strengthening ETRIA’s position in the multifunction printer market.

Ricoh and Toshiba Tec Consider New Partnership

Ricoh Company, Ltd. and Toshiba Tec Corporation are considering adding Oki Electric Industry to their joint venture, ETRIA CO., LTD., which focuses on developing and manufacturing multifunction printers. The company has not yet made any formal announcements regarding this potential partnership, and any decisions will be disclosed in a timely manner.