Rhythm Co., Ltd. (JP:7769)
:7769
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Rhythm Co., Ltd.
(7769)
Select Model
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Rating:76Outperform
Price Target:
¥4,092.00
▲(3.73% Upside)
Action:ReiteratedDate:03/01/26
The score is driven primarily by strong financial performance (revenue and margin improvement, low leverage, and robust cash generation). Technicals are supportive but overbought indicators temper the outlook, while valuation appears reasonable with a moderate P/E and modest dividend yield.
Positive Factors
Revenue Growth Trend
Multi-year revenue rise from ¥27.3B (2021) to ¥32.7B (2025) demonstrates sustained demand and broader market penetration. This structural top-line expansion supports scale economies, diversified end-market exposure, and underpins more predictable cash generation over a 2–6 month horizon.
Negative Factors
Recent Revenue Contraction
The most recent fundamentals metric shows a -4.35% revenue change, pointing to near-term demand softness or cyclical headwinds. If this trend persists it can erode margin gains and cash conversion, requiring management actions to stabilize sales within the next few months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Trend
Multi-year revenue rise from ¥27.3B (2021) to ¥32.7B (2025) demonstrates sustained demand and broader market penetration. This structural top-line expansion supports scale economies, diversified end-market exposure, and underpins more predictable cash generation over a 2–6 month horizon.
Read all positive factors
Rhythm Co., Ltd. (7769) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥29.85B
Dividend Yield1.93%
Average Volume (3M)21.02K
Price to Earnings (P/E)18.7
Beta (1Y)0.44
Revenue Growth-2.29%
EPS Growth151.87%
CountryJP
Employees2,486
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)53.10
Shares Outstanding8,385,093
10 Day Avg. Volume28,680
30 Day Avg. Volume21,023
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)0.98
Price to Sales (P/S)0.94
P/FCF Ratio25.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rhythm Co., Ltd. Business Overview & Revenue Model
Company Description
Rhythm Co.,Ltd. manufactures and sells clocks and watches in Japan. It offers electronic parts and equipment, including on-vehicle and audiovisual equipment, as well as information processing equipment and related products; precision products comp...
How the Company Makes Money
null...
Rhythm Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.90B | 32.67B | 32.60B | 31.23B | 30.00B | 27.30B |
| Gross Profit | 6.98B | 6.59B | 6.67B | 6.78B | 6.81B | 6.34B |
| EBITDA | 3.51B | 2.61B | 2.22B | 2.46B | 2.77B | 556.00M |
| Net Income | 2.03B | 758.00M | 477.00M | 794.00M | 1.03B | -1.26B |
Balance Sheet | ||||||
| Total Assets | 45.34B | 45.09B | 43.57B | 39.74B | 38.29B | 35.70B |
| Cash, Cash Equivalents and Short-Term Investments | 13.51B | 13.52B | 11.04B | 9.90B | 9.94B | 10.28B |
| Total Debt | 8.75B | 8.02B | 6.15B | 4.76B | 4.66B | 5.38B |
| Total Liabilities | 14.77B | 13.78B | 12.43B | 10.86B | 11.28B | 10.65B |
| Stockholders Equity | 30.57B | 31.31B | 31.14B | 28.87B | 27.00B | 25.02B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.20B | 710.00M | 94.00M | 300.00M | 1.15B |
| Operating Cash Flow | 0.00 | 2.44B | 2.46B | 1.19B | 1.25B | 1.85B |
| Investing Cash Flow | 0.00 | -1.46B | -2.14B | -1.07B | -876.00M | -585.00M |
| Financing Cash Flow | 0.00 | 1.32B | 150.00M | -467.00M | -1.20B | -686.00M |
Rhythm Co., Ltd. Technical Analysis
Neutral
3945.00
Price Trends
3823.05
Negative
3696.84
Negative
3414.00
Positive
Market Momentum
-71.44
Negative
47.09
Neutral
53.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7769, the sentiment is Neutral. The current price of 3945 is above the 20-day moving average (MA) of 3666.54, above the 50-day MA of 3823.05, and above the 200-day MA of 3414.00, indicating a neutral trend. The MACD of -71.44 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7769.
Rhythm Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥29.85B | 18.74 | ― | 1.93% | -2.29% | 151.87% | |
75 Outperform | ¥10.83B | 13.22 | ― | 5.21% | 6.89% | -1.46% | |
74 Outperform | ¥22.52B | 11.37 | ― | 3.99% | -2.12% | -15.35% | |
68 Neutral | ¥47.58B | 6.98 | 2.46% | 3.50% | 22.68% | -9.41% | |
65 Neutral | ¥2.37B | -6.03 | ― | 1.21% | 1.04% | -66.56% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | ¥3.24B | 42.09 | ― | 0.25% | 18.69% | 5.17% |
* Consumer Cyclical Sector Average
JP:7769
Rhythm Co., Ltd.
3,615.00
308.85
9.34%
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Rhythm Co., Ltd. Corporate Events
Rhythm Revamps Board and Executive Lineup Ahead of 2026 to Strengthen Governance and Operations
Mar 24, 2026
Rhythm Co., Ltd. has announced a broad reshuffle of its leadership, including the appointment and resignation of directors and executive officers, as well as changes to representatives at affiliated companies and internal personnel transfers. The ...
Rhythm to Dispose of Treasury Shares for New ESOP Trust
Feb 13, 2026
Rhythm Co., Ltd. has approved the disposal of 139,600 treasury shares through a third-party allotment to a trust account at Sumitomo Mitsui Trust Bank, with total proceeds of approximately ¥569.6 million, to fund an Employee Stock Ownership P...
Rhythm Co. Launches ESOP Trust to Align Employees With Long-Term Growth
Feb 13, 2026
Rhythm Co., Ltd. has approved the introduction of an Employee Stock Ownership Plan (ESOP) Trust as a new incentive and benefits scheme for employees participating in the Rhythm Group Employee Stock Ownership Association. The initiative is designed...
Rhythm Co. Posts Profit Surge and Raises Dividend on Solid Nine-Month Results
Feb 13, 2026
Rhythm Co., Ltd. reported consolidated net sales of ¥25.77 billion for the nine months to Dec. 31, 2025, up 1.5% year on year, while operating profit surged 132.3% to ¥1.53 billion and profit attributable to owners jumped more than fourf...
Rhythm Co. Merges Hong Kong Units to Drive Global Push in ‘Comfortable Products’
Jan 28, 2026
Rhythm Co., Ltd. has approved the merger of its wholly owned Hong Kong subsidiaries, Rhythm Hong Kong Co., Ltd. and Rhythm Industrial (H.K.) Ltd., in an absorption-type merger that will make Rhythm Hong Kong the surviving entity from June 2026. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.