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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 70 (OpenAI - 5.2)
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)

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 revenue growth with a notable profitability inflection in 2026 (net margin up to 6.6%, EBIT margin 4.6%) and a conservatively financed balance sheet (debt-to-equity ~0.24). Offsetting factors include historically modest ROE and uneven cash conversion/free-cash-flow consistency, which reduces confidence in durability of the improved earnings profile.
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue34.76B32.67B32.60B31.23B30.00B
Gross Profit7.99B6.59B6.67B6.78B6.81B
EBITDA3.04B2.61B2.22B2.46B2.77B
Net Income2.31B758.00M477.00M794.00M1.03B
Balance Sheet
Total Assets48.96B45.09B43.57B39.74B38.29B
Cash, Cash Equivalents and Short-Term Investments14.31B13.52B11.04B9.90B9.94B
Total Debt8.22B8.02B6.15B4.76B4.66B
Total Liabilities15.02B13.78B12.43B10.86B11.28B
Stockholders Equity33.94B31.31B31.14B28.87B27.00B
Cash Flow
Free Cash Flow2.04B1.20B710.00M94.00M300.00M
Operating Cash Flow3.37B2.44B2.46B1.19B1.25B
Investing Cash Flow-1.86B-1.46B-2.14B-1.07B-876.00M
Financing Cash Flow-1.06B1.32B150.00M-467.00M-1.20B

Rhythm Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3945.00
Price Trends
50DMA
3659.50
Positive
100DMA
3681.15
Positive
200DMA
3589.24
Positive
Market Momentum
MACD
57.10
Positive
RSI
61.43
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥40.86B11.172.46%3.50%41.84%85.85%
70
Outperform
¥31.75B13.591.93%6.40%210.55%
65
Neutral
¥2.49B30.441.21%5.56%-57.40%
64
Neutral
¥21.94B11.663.99%-1.95%-25.07%
61
Neutral
¥6.21B19.635.21%18.80%-43.41%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
43
Neutral
¥2.79B20.940.25%47.30%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: May 16, 2026