Rinnai (5947) AI Stock Analysis

• Market Cap: ¥464.94B
• Dividend Yield: 2.33%
• Average Volume (3M): 324.63K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.61
• Revenue Growth: 7.37%
• EPS Growth: 48.51%
• Country: JP
• Employees: 10,837
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 226.46
• Shares Outstanding: 143,888,570
• 10 Day Avg. Volume: 211,090
• 30 Day Avg. Volume: 324,633
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,655.99
• Price Target Upside: 42.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Rinnai's strong financial performance, highlighted by robust revenue growth and a debt-free balance sheet, supports a solid overall score. The valuation is fair, adding stability to the investment case. However, technical indicators signal short-term bearish momentum, which tempers the overall outlook.

Rinnai Business Overview & Revenue Model

Company Description

Rinnai Corporation, headquartered in Nagoya, Japan, is a leading manufacturer of home appliances and energy-efficient products. The company specializes in designing, manufacturing, and selling gas appliances, including water heaters, heating systems, kitchen appliances, and air conditioning units. With a strong emphasis on innovation and sustainability, Rinnai has established itself as a key player in the energy solutions sector, offering products that cater to residential and commercial markets worldwide.

How the Company Makes Money

Rinnai Corporation generates revenue primarily through the sale of its gas appliances and energy-efficient products. The company's key revenue streams include the sale of water heaters, heating systems, and kitchen appliances, all of which are designed to meet the demands of both residential and commercial customers. Rinnai leverages its extensive distribution network and strategic partnerships with dealers and retailers to reach a broad customer base. Additionally, the company invests in research and development to innovate and enhance its product offerings, ensuring they meet evolving consumer needs and regulatory standards, which in turn supports sustained revenue growth.

Rinnai Financial Statement Overview

Summary

Rinnai exhibits strong financial health with consistent revenue and profit growth, a solid balance sheet free from debt, and good operational efficiency. The cash flow performance has been mixed, but overall financial stability supports future growth opportunities.

Income Statement

Rinnai has demonstrated strong revenue growth, particularly in the TTM period with a revenue increase from the previous year. The gross profit margin is consistent, indicating good cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are also strong, showcasing operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with no debt, resulting in a very favorable debt-to-equity ratio. ROE has shown improvement over time, indicating effective use of equity to generate profits. The equity ratio is solid, highlighting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Rinnai's cash flow from operations has been inconsistent, with fluctuations observed in free cash flow. The operating cash flow to net income ratio is unavailable for the TTM period, limiting analysis. However, historical data shows periods of positive free cash flow, albeit with some volatility.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
430.19B	425.23B	366.19B	344.36B	340.46B
	Gross Profit
137.84B	138.40B	116.56B	115.33B	112.58B
	EBIT
39.03B	41.42B	35.86B	40.69B	34.42B
	EBITDA
60.88B	58.00B	50.96B	55.47B	47.36B
	Net Income Common Stockholders
26.67B	26.10B	23.75B	27.58B	21.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
155.67B	158.62B	185.49B	204.93B	173.45B
	Total Assets
577.09B	547.11B	512.87B	497.29B	450.49B
	Total Debt
0.00	2.69B	2.06B	1.73B	1.77B
	Net Debt
-147.60B	-148.19B	-171.18B	-184.69B	-165.32B
	Total Liabilities
139.65B	139.92B	134.01B	125.97B	109.53B
	Stockholders Equity
387.77B	364.15B	343.12B	342.33B	315.61B
Cash Flow		Free Cash Flow
5.99B	-7.32B	7.86B	36.21B	27.30B
	Operating Cash Flow
43.35B	19.39B	28.70B	49.49B	37.69B
	Investing Cash Flow
-19.97B	-30.09B	-25.49B	-15.82B	-7.12B
	Financing Cash Flow
-23.66B	-21.31B	-27.11B	-7.27B	-6.44B

Rinnai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3259.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5947, the sentiment is Negative. The current price of 3259 is above the 20-day moving average (MA) of 3157.60, below the 50-day MA of 3331.70, and below the 200-day MA of 3316.73, indicating a neutral trend. The MACD of -35.83 indicates Negative momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 89.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5947.

Rinnai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	77 Outperform	¥21.42B	9.64		3.36%	5.20%	28.05%
5947	74 Outperform	¥464.94B	14.39	8.24%	2.33%	7.37%	48.51%
5945	74 Outperform	¥18.59B	10.70		3.90%	11.71%	54.61%
5967	73 Outperform	¥11.98B	10.71		2.00%	10.47%	48.78%
5943	62 Neutral	¥76.58B	18.44	3.43%	3.72%	0.16%	402.60%
Sector *	61 Neutral	$6.65B	11.64	3.00%	3.98%	2.61%	-21.41%
5938	58 Neutral	$470.01B	234.86	0.35%	5.22%	1.45%	―

Rinnai Corporate Events

Rinnai Initiates Free Repair Program for Older Bathroom Heaters

Rinnai Corporation has announced a free inspection and repair program for bathroom heater/dryers manufactured over ten years ago, due to a potential fire risk from deteriorating components. The costs for this program will be recorded as operating expenses for the fiscal year ending March 31, 2025, with the financial impact still being assessed.