Ryobi (5851) AI Stock Analysis

• Market Cap: ¥68.30B
• Dividend Yield: 5.16%
• Average Volume (3M): 121.46K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.11
• Revenue Growth: 3.57%
• EPS Growth: -40.42%
• Country: JP
• Employees: 7,939
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 54.10
• Shares Outstanding: 32,646,145
• 10 Day Avg. Volume: 107,440
• 30 Day Avg. Volume: 121,456
• PEG Ratio: -0.52
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.65
• 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

Ryobi demonstrates strong financial health with robust revenue growth and cash flow management. However, declining profitability and operational efficiency are areas of concern. The valuation metrics indicate an undervalued stock with a high dividend yield, adding appeal from an investment perspective. Technical indicators present mixed signals, suggesting caution for short-term trading. Overall, Ryobi's solid financial foundation and attractive valuation contribute to a strong stock score, though operational improvements are necessary for a higher rating.

Ryobi Business Overview & Revenue Model

Company Description

Ryobi Limited (5851) is a Japanese manufacturer that operates primarily in the sectors of power tools, outdoor equipment, and builders' hardware. The company is renowned for its extensive range of power tools for both professional and consumer markets, including drills, saws, and other cordless tools. Additionally, Ryobi offers a variety of outdoor products such as lawn mowers, trimmers, and leaf blowers, as well as die-casting products for the automotive and electronics industries.

How the Company Makes Money

Ryobi makes money through the sale of its power tools and outdoor equipment, which are distributed through retail channels globally. The company's revenue model is primarily based on the manufacturing and selling of these products. Ryobi also generates income from its die-casting business, which supplies components to the automotive and electronics industries. Key revenue streams include sales from its extensive product line of power tools and outdoor equipment, as well as contracts and agreements with automotive and electronics companies for die-casting components. Significant partnerships with major retailers and distributors also contribute to its earnings by expanding its market reach and accessibility to consumers.

Ryobi Financial Statement Overview

Summary

Ryobi exhibits a robust financial position with consistent revenue growth and strong cash flow generation. However, the declining net profit and EBIT margins pose some concerns regarding operational efficiency. The company has effectively managed its debt levels, enhancing its financial stability. While the overall financial health is solid, improving profitability and operational efficiency would further strengthen Ryobi's financial standing.

Income Statement

Ryobi's revenue has shown consistent growth over the years, with a notable increase in total revenue from 2020 to 2024. The company has maintained a stable gross profit margin around 11-12% over the recent years, which indicates a consistent cost structure. However, the net profit margin has decreased from 3.58% in 2023 to 2.36% in 2024, due to lower net income despite increased revenue. The EBIT and EBITDA margins have also seen a decline, pointing to potential inefficiencies in operations or increased expenses.

Balance Sheet

The debt-to-equity ratio has improved from 0.46 in 2023 to 0.37 in 2024, indicating better leverage management. The equity ratio has been stable around 50%, showcasing a balanced asset financing structure. Return on equity has decreased from 6.68% in 2023 to 4.14% in 2024, reflecting the reduced profitability. Despite these fluctuations, the company maintains a solid equity base and manageable debt levels, though the profitability aspect shows room for improvement.

Cash Flow

Ryobi has demonstrated strong operating cash flows, with a significant increase in free cash flow from 2023 to 2024. The free cash flow to net income ratio significantly improved in 2024, indicating efficient cash generation relative to reported earnings. The company has managed capital expenditures well, resulting in positive free cash flow growth, which is crucial for future investments and debt management. The operating cash flow to net income ratio remains strong, supporting the sustainability of its operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
293.31B	282.69B	249.52B	198.07B	170.97B
	Gross Profit
34.26B	34.49B	28.25B	18.47B	17.09B
	EBIT
9.49B	12.21B	6.97B	947.00M	1.03B
	EBITDA
33.10B	33.13B	25.28B	13.80B	15.87B
	Net Income Common Stockholders
6.93B	10.12B	4.78B	-4.36B	-823.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.92B	28.29B	27.99B	29.28B	27.32B
	Total Assets
333.19B	318.84B	300.29B	279.42B	258.66B
	Total Debt
61.96B	70.19B	74.36B	73.77B	72.47B
	Net Debt
33.94B	42.55B	47.02B	45.23B	45.91B
	Total Liabilities
156.21B	158.12B	156.56B	147.71B	132.73B
	Stockholders Equity
167.35B	151.30B	134.46B	122.92B	117.15B
Cash Flow		Free Cash Flow
15.09B	9.68B	-92.00M	3.05B	-8.50B
	Operating Cash Flow
29.16B	26.00B	16.79B	14.90B	11.79B
	Investing Cash Flow
-13.72B	-17.43B	-15.86B	-12.16B	-17.57B
	Financing Cash Flow
-14.90B	-8.59B	-2.86B	-1.94B	9.72B

Ryobi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2110.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5851, the sentiment is Positive. The current price of 2110 is above the 20-day moving average (MA) of 2024.75, below the 50-day MA of 2148.56, and above the 200-day MA of 2055.90, indicating a neutral trend. The MACD of -1.88 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 68.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5851.

Ryobi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	80 Outperform	¥4.11T	9.41		4.26%	5.97%	13.78%
6436	80 Outperform	$311.49B	16.87	13.42%	4.04%	14.76%	36.76%
5851	73 Outperform	¥68.30B	10.45	3.98%	5.16%	3.57%	-40.42%
6479	73 Outperform	$864.32B	14.46	8.10%	2.02%	7.44%	-5.08%
6588	68 Neutral	€169.50B	5.45	30.22%	1.51%	8.24%	―
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
6471	52 Neutral	¥305.34B	30.37		5.14%	-3.42%	-35.09%

Ryobi Corporate Events

Ryobi Limited Reports Q1 2025 Financial Results with Mixed Performance

Ryobi Limited reported its consolidated financial results for the first quarter of 2025, showing an increase in net sales by 11.6% year-over-year to 78,012 million yen. However, the company experienced a decline in ordinary income and net income attributable to owners of the parent, with decreases of 23.4% and 18.5%, respectively. Despite these declines, Ryobi maintains a stable financial position with a shareholders’ equity ratio of 50.4%. The company forecasts a full-year net sales increase of 4.0% and a significant rise in net income by 29.8%, indicating a positive outlook for the remainder of the year.