Want to see JP:7769 full AI Analyst Report?
Top Page
Rhythm Co., Ltd.
(7769)
Select Model
Select Model
Rating:70Outperform
Price Target:
¥3,982.00
▲(0.94% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by improving financial performance with low leverage, supported by attractive valuation (moderate P/E and strong dividend yield). Offsetting this is a mixed technical picture, with negative MACD and trend signals that are not uniformly bullish.
Positive Factors
Conservative balance sheet / low leverage
Low leverage (debt-to-equity ~0.24) and rising equity (25.0B to 33.9B, 2021–2026) create a durable capital cushion. Conservative financing preserves flexibility for capex, dividends, or opportunistic M&A and helps the company absorb demand shocks without stressing liquidity.
Negative Factors
Modest historical ROE
Persistently low ROE through most of the period (including a negative year) signals limited capital efficiency. Even with recent improvement, historically weak returns constrain long-term shareholder value creation and suggest structural limits to margin or asset productivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Low leverage (debt-to-equity ~0.24) and rising equity (25.0B to 33.9B, 2021–2026) create a durable capital cushion. Conservative financing preserves flexibility for capex, dividends, or opportunistic M&A and helps the company absorb demand shocks without stressing liquidity.
Read all positive factors
Rhythm Co., Ltd. (7769) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥31.75B
Dividend Yield1.93%
Average Volume (3M)21.02K
Price to Earnings (P/E)13.6
Beta (1Y)0.49
Revenue Growth6.40%
EPS Growth210.55%
CountryJP
Employees2,432
SectorGeneral
Sector StrengthN/A
IndustryLuxury Goods
Share Statistics
EPS (TTM)285.80
Shares Outstanding8,385,093
10 Day Avg. Volume28,680
30 Day Avg. Volume21,023
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.83
Price to Sales (P/S)0.81
P/FCF Ratio13.79
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
Operating from its Saitama, Japan headquarters since its establishment in 1946, Rhythm Co.,Ltd. is a Japanese enterprise primarily known for manufacturing and marketing clocks and watches. The company's diverse offerings also encompass electronic ...
How the Company Makes Money
Rhythm Co., Ltd. generates revenue primarily by selling manufactured products under its brands and through OEM/contract manufacturing for other companies where applicable. Key revenue streams typically include (1) sales of consumer products (e.g.,...
Rhythm Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 34.76B | 32.67B | 32.60B | 31.23B | 30.00B |
| Gross Profit | 7.99B | 6.59B | 6.67B | 6.78B | 6.81B |
| EBITDA | 3.04B | 2.61B | 2.22B | 2.46B | 2.77B |
| Net Income | 2.31B | 758.00M | 477.00M | 794.00M | 1.03B |
Balance Sheet | |||||
| Total Assets | 48.96B | 45.09B | 43.57B | 39.74B | 38.29B |
| Cash, Cash Equivalents and Short-Term Investments | 14.31B | 13.52B | 11.04B | 9.90B | 9.94B |
| Total Debt | 8.22B | 8.02B | 6.15B | 4.76B | 4.66B |
| Total Liabilities | 15.02B | 13.78B | 12.43B | 10.86B | 11.28B |
| Stockholders Equity | 33.94B | 31.31B | 31.14B | 28.87B | 27.00B |
Cash Flow | |||||
| Free Cash Flow | 2.04B | 1.20B | 710.00M | 94.00M | 300.00M |
| Operating Cash Flow | 3.37B | 2.44B | 2.46B | 1.19B | 1.25B |
| Investing Cash Flow | -1.86B | -1.46B | -2.14B | -1.07B | -876.00M |
| Financing Cash Flow | -1.06B | 1.32B | 150.00M | -467.00M | -1.20B |
Rhythm Co., Ltd. Technical Analysis
Positive
3945.00
Price Trends
3659.50
Positive
3681.15
Positive
3589.24
Positive
Market Momentum
57.10
Positive
61.43
Neutral
51.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7769, the sentiment is Positive. The current price of 3945 is above the 20-day moving average (MA) of 3798.50, above the 50-day MA of 3659.50, and above the 200-day MA of 3589.24, indicating a bullish trend. The MACD of 57.10 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7769.
Rhythm Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥40.86B | 11.17 | 2.46% | 3.50% | 41.84% | 85.85% | |
70 Outperform | ¥31.75B | 13.59 | ― | 1.93% | 6.40% | 210.55% | |
65 Neutral | ¥2.49B | 30.44 | ― | 1.21% | 5.56% | -57.40% | |
64 Neutral | ¥21.94B | 11.66 | ― | 3.99% | -1.95% | -25.07% | |
61 Neutral | ¥6.21B | 19.63 | ― | 5.21% | 18.80% | -43.41% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
43 Neutral | ¥2.79B | 20.94 | ― | 0.25% | 47.30% | ― |
* General Sector Average
JP:7769
Rhythm Co., Ltd.
3,870.00
990.92
34.42%
JP:7937
Tsutsumi Jewelry Co
2,614.00
452.31
20.92%
JP:2736
Festaria Holdings Company Limited
677.00
-11.88
-1.72%
JP:7810
Crossfor Co. Ltd.
161.00
-1.65
-1.01%
JP:9904
Verite Co., Ltd.
241.00
-113.94
-32.10%
JP:9990
SAC'S BAR HOLDINGS INC.
762.00
-9.26
-1.20%
Rhythm Co., Ltd. Corporate Events
Rhythm Co. Profit Jumps Over 200% as Dividend Payouts Climb Despite Softer Outlook
May 14, 2026
Rhythm Co., Ltd. reported solid results for the fiscal year ended March 31, 2026, with net sales rising 6.4% to ¥34.76 billion and operating profit nearly doubling, while profit attributable to owners of parent surged 204.6%, lifting EPS to &...
Rhythm Books Impairment but Lifts Dividend on Stronger Results
May 14, 2026
Rhythm Co., Ltd. said it will book a total impairment loss of ¥247 million for the fiscal year ended March 31, 2026, mainly on business assets in its Livingware and precision parts operations at its Chinese subsidiary, reflecting a reassessme...
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 ...
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.