Rion Co., Ltd. (6823) AI Stock Analysis

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Rion Co., Ltd.

(TSE/TYO:6823)

Select Model

Rating:73Outperform

Price Target:JPY 3,092.00▲(4.18% Upside)

Action:reiterated

Date:11/07/26

The company's fundamental strength is the primary driver of the score, anchored by a pristine, debt-free balance sheet and strong cash generation. This is significantly offset by extremely weak technicals, with the stock in a clear downtrend and deeply oversold. Attractive valuation and a high dividend yield provide a cushion and potential for long-term value, but near-term price momentum is a major headwind.

Positive Factors

Conservative balance sheetRion’s negligible leverage provides resilience through changing business conditions and reduces interest and refinancing exposure. The conservative balance sheet also preserves flexibility to fund product development, maintain operations, and pursue opportunities without relying heavily on external capital.

Negative Factors

Free cash flow volatilityAlthough recent cash generation improved, the pronounced free-cash-flow swings show that earnings conversion can vary materially across periods. Such volatility may complicate reinvestment and distribution planning and makes the durability of near-term cash performance less certain.

Rion Co., Ltd. (6823) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 36.60B
Dividend Yield: 3.20%
Average Volume (3M): 54.38K
Price to Earnings (P/E): 10.5
Beta (1Y): 1.11
Revenue Growth: 2.48%
EPS Growth: 11.44%
Country: Japan
Employees: 1,003
Sector: General
Sector Strength: 55
Industry: Medical - Specialties

Rion Co., Ltd. Business Overview & Revenue Model

Company Description

Rion Co., Ltd. develops, manufactures, sells, and services particle counters, medical equipment, and environmental equipment in Japan. The company’s audiological equipment includes hearing instruments, such as analog and digital BTE, trimmer digital...

How the Company Makes Money

Rion generates revenue primarily from the sale of its products in two core areas: (1) acoustic/vibration measurement instruments and related systems, and (2) hearing and audiology-related equipment. In the measurement domain, the company sells instru...

Rion Co., Ltd. Financial Statement Overview

Summary

The company demonstrates excellent financial health with a debt-free balance sheet, robust cash flow exceeding net income, and consistent revenue growth. The only minor concern is a recent gross margin contraction, which has been effectively offset by strong cost controls leading to improved net margins.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

90Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	29.17B	28.50B	27.88B	25.73B	23.87B	22.64B
Gross Profit	14.19B	13.98B	15.35B	14.33B	12.69B	12.22B
EBITDA	5.92B	5.78B	5.14B	4.42B	3.13B	3.89B
Net Income	3.47B	3.35B	2.86B	2.65B	1.80B	2.23B
Balance Sheet
Total Assets	43.16B	41.78B	39.13B	37.40B	34.81B	33.42B
Cash, Cash Equivalents and Short-Term Investments	10.65B	8.56B	6.01B	5.03B	5.37B	7.72B
Total Debt	0	0	11.73M	21.88M	28.46M	40.07M
Total Liabilities	7.12B	6.98B	7.70B	8.19B	8.20B	8.14B
Stockholders Equity	36.04B	34.80B	31.44B	29.21B	26.61B	25.29B
Cash Flow
Free Cash Flow	0	3.56B	2.14B	725.98M	473.30M	2.31B
Operating Cash Flow	0	4.17B	3.44B	2.86B	1.78B	2.84B
Investing Cash Flow	0	-753.08M	-1.69B	-2.65B	-3.25B	-951.93M
Financing Cash Flow	0	-954.63M	-748.84M	-565.55M	-577.32M	-541.83M

Rion Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2968.00

Price Trends

50DMA3234.00Negative

100DMA3359.07Negative

200DMA3217.89Negative

Market Momentum

MACD-114.29Positive

RSI39.79Neutral

STOCH67.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6823, the sentiment is Negative. The current price of 2968.00 is below the 20-day moving average (MA) of 3106.65, below the 50-day MA of 3234.00, and below the 200-day MA of 3217.89, indicating a bearish trend. The MACD of -114.29 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 67.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6823.

Rion Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6823 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6678	82Outperform	JPY 18.31B	12.39	―	6.00%	17.11%	23.02%
JP:6823	73Outperform	JPY 36.93B	10.54	―	3.20%	2.48%	11.44%
JP:6849	63Neutral	JPY 248.95B	20.53	―	2.11%	-0.18%	-33.38%
JP:6523	61Neutral	JPY 163.49B	10.86	5.56%	3.41%	2.74%	145.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4549	50Neutral	JPY 73.62B	40.03	―	2.58%	3.92%	-52.01%
JP:7600	45Neutral	JPY 8.30B	-5.42	―	5.40%	-8.68%	-75.03%

* General Sector Average

Performance Comparison

JP:6823 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6823	Rion Co., Ltd.	2968.00	505.65	20.54%
JP:6523	PHC Holdings Corp.	1230.00	311.93	33.98%
JP:4549	Eiken Chemical Co., Ltd.	2250.00	-71.60	-3.08%
JP:6678	Techno Medica Co., Ltd.	2167.00	284.95	15.14%
JP:6849	Nihon Kohden Corporation	1516.50	-29.11	-1.88%
JP:7600	Japan Medical Dynamic Marketing, Inc.	320.00	-162.41	-33.67%

Rion Co., Ltd. Corporate Events

Rion Co. Posts Higher Interim Profits and Confirms Dividend Growth

Oct 29, 2026

Rion Co., Ltd. reported consolidated net sales of ¥14.28 billion for the six months ended Sept. 30, 2026, up 4.9% year on year, with operating profit rising 8.3% to ¥2.15 billion and profit attributable to owners of parent climbing 8.7% to ¥1.58 bill...

Rion Completes Restricted Stock Issuance to Directors

Aug 14, 2026

Rion Co., Ltd. has completed payment procedures for the issuance of 7,900 shares of common stock as restricted stock compensation to four internal directors, following an earlier announcement in July 2026. The shares, issued at 3,440 yen per share fo...

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.

Date of analysis: Nov 07, 2026

Rion Co., Ltd. AI Stock Analysis