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Rhythm Co., Ltd. (JP:7769)
:7769
Japanese Market
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Rhythm Co., Ltd. (7769) AI Stock Analysis

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JP:7769

Rhythm Co., Ltd.

(7769)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥4,403.00
▲(11.61% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving financial performance (especially the 2026 margin and cash flow improvement) and a conservative balance sheet with low leverage. Technicals add support due to a clear uptrend and positive momentum indicators. Valuation tempers the result: despite a strong dividend yield, the P/E is relatively elevated, and financial consistency (margin and cash conversion variability) remains a key risk.
Positive Factors
Steady Revenue Expansion
Multi-year revenue expansion indicates sustained demand for the company’s products and manufacturing capabilities. Re-acceleration in 2026 supports a stronger base for future operating leverage, provided distribution and production relationships remain stable.
Negative Factors
Volatile Profitability
Historical earnings volatility indicates that revenue growth does not consistently translate into stable profits. Moderate margins may leave limited protection against pricing pressure, weaker product mix, or higher production costs, reducing earnings predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Expansion
Multi-year revenue expansion indicates sustained demand for the company’s products and manufacturing capabilities. Re-acceleration in 2026 supports a stronger base for future operating leverage, provided distribution and production relationships remain stable.
Read all positive factors

Rhythm Co., Ltd. (7769) vs. iShares MSCI Japan ETF (EWJ)

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
Steady multi-year revenue growth with a notable profitability inflection in 2026 (net margin up to 6.6%, EBIT margin 4.6%) and low leverage support the score. Offsetting factors include historically volatile profitability (including a 2021 loss) and only moderate/uneven cash conversion (FCF ~60% of net income in 2026 and weaker in prior years).
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue35.39B34.76B32.67B32.60B31.23B30.00B
Gross Profit7.98B7.99B6.59B6.67B6.78B6.81B
EBITDA3.06B3.04B2.61B2.22B2.46B2.77B
Net Income1.18B2.31B758.00M477.00M794.00M1.03B
Balance Sheet
Total Assets50.12B48.96B45.09B43.57B39.74B38.29B
Cash, Cash Equivalents and Short-Term Investments12.98B14.31B13.52B11.04B9.90B9.94B
Total Debt7.85B8.22B8.02B6.15B4.76B4.66B
Total Liabilities15.81B15.02B13.78B12.43B10.86B11.28B
Stockholders Equity34.31B33.94B31.31B31.14B28.87B27.00B
Cash Flow
Free Cash Flow0.002.04B1.20B710.00M94.00M300.00M
Operating Cash Flow0.003.37B2.44B2.46B1.19B1.25B
Investing Cash Flow0.00-1.86B-1.46B-2.14B-1.07B-876.00M
Financing Cash Flow0.00-1.06B1.32B150.00M-467.00M-1.20B

Rhythm Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3945.00
Price Trends
50DMA
3885.90
Positive
100DMA
3720.95
Positive
200DMA
3702.80
Positive
Market Momentum
MACD
39.74
Positive
RSI
62.13
Neutral
STOCH
78.48
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 below the 20-day moving average (MA) of 3966.75, above the 50-day MA of 3885.90, and above the 200-day MA of 3702.80, indicating a bullish trend. The MACD of 39.74 indicates Positive momentum. The RSI at 62.13 is Neutral, neither overbought nor oversold. The STOCH value of 78.48 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥33.07B27.141.93%7.58%-40.23%
71
Outperform
¥41.68B11.715.39%4.37%39.41%127.01%
67
Neutral
¥22.29B11.473.99%0.30%-18.45%
62
Neutral
¥6.70B16.525.21%23.28%-15.32%
59
Neutral
¥2.28B27.291.06%5.56%-57.40%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
45
Neutral
¥3.05B22.500.25%47.30%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7769
Rhythm Co., Ltd.
4,025.00
843.61
26.52%
JP:7937
Tsutsumi Jewelry Co
2,671.00
499.65
23.01%
JP:2736
Festaria Holdings Company Limited
614.00
8.44
1.39%
JP:7810
Crossfor Co. Ltd.
171.00
7.67
4.69%
JP:9904
Verite Co., Ltd.
249.00
-104.02
-29.47%
JP:9990
SAC'S BAR HOLDINGS INC.
762.00
4.16
0.55%

Rhythm Co., Ltd. Corporate Events

Rhythm Co. lifts sales but quarterly profit slumps, keeps full-year outlook and dividend intact
Aug 7, 2026
Rhythm Co., Ltd. reported consolidated net sales of ¥9.0 billion for the quarter ended June 30, 2026, up 7.5% year on year, while operating profit slipped 4.2% to ¥564 million and ordinary profit fell 14.7% to ¥629 million. Profit a...
Rhythm Co. to Acquire New Plating Subsidiary to Bolster Precision Parts Supply Chain
Jul 24, 2026
Rhythm Co., Ltd. has agreed to acquire shares in RHYTHM TOHTEC Co., Ltd., a new plating-processing company to be established by TOHTEC Co., Ltd. in Chiba, Japan, consolidating a critical tin and nickel plating step used in its Precision Parts term...
Rhythm Refines Capital-Efficient Strategy as PBR Dips Below Book Value
Jun 24, 2026
Rhythm Co., Ltd. reported that under its Medium-Term Management Plan 2027, in place since the fiscal year ended March 31, 2026, it achieved year-on-year growth in both sales and profit, raising return on equity to 7.1%. The company has also streng...
Rhythm Co. Streamlines Hong Kong Operations With Subsidiary Merger
Jun 4, 2026
Rhythm Co., Ltd. has completed an absorption-type merger of two Hong Kong-based consolidated subsidiaries, with RHYTHM HONG KONG CO., LTD. remaining as the surviving entity and RHYTHM INDUSTRIAL (H.K.) LTD. being absorbed as of May 31, 2026. The p...
Rhythm Corrects Operating Margin Disclosure for FY2026 Results
May 25, 2026
Rhythm Co., Ltd. announced a correction to its consolidated financial results disclosure for the year ended March 31, 2026, clarifying that a planned operating profit margin figure was mistakenly presented as an actual result. The company emphasiz...
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: Aug 17, 2026