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Rhythm Co., Ltd. (7769) AI Stock Analysis

JP:7769

Rhythm Co., Ltd.

(TSE/TYO:7769)

Select Model
Rating:83Outperform
Price Target:JPY 4,643.00â–²(24.48% Upside)
Action:reiterated
Date:08/17/26

Rhythm Co. achieves a high overall score driven primarily by exceptional financial growth, highlighted by a tripling of net income and expanding margins. Technical momentum is strongly bullish, with the stock maintaining a solid uptrend across all major moving averages. Although the P/E ratio is slightly elevated, the compelling 4.2% dividend yield provides significant shareholder value. Earnings call and corporate events were excluded from this calculation due to lack of data.

Positive Factors
Steady Revenue ExpansionMulti-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 ProfitabilityHistorical 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.

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

-5%0%5%10%15%20%25%30%JP:7769+18.13%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 29.70B
Dividend Yield
6.64%
Average Volume (3M)
18.32K
Price to Earnings (P/E)
25.1
Beta (1Y)
0.61
Revenue Growth
7.58%
EPS Growth
-40.23%
Country
Japan
Employees
2,432
Sector
General
Sector Strength
55
Industry
Luxury Goods

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 com...

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., cl...

Rhythm Co., Ltd. Financial Statement Overview

Summary

Strong financial health characterized by tripled net income and consistent revenue growth. The balance sheet is conservatively financed with a low debt-to-equity ratio of 0.24, and strong cash flow generation provides ample operational flexibility.

Income Statement

85Very Positive

Balance Sheet

82Very Positive

Cash Flow

84Very Positive
Financial statement breakdown
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 Flow02.04B1.20B710.00M94.00M300.00M
Operating Cash Flow03.37B2.44B2.46B1.19B1.25B
Investing Cash Flow0-1.86B-1.46B-2.14B-1.07B-876.00M
Financing Cash Flow0-1.06B1.32B150.00M-467.00M-1.20B

Rhythm Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price3730.00

Price Trends

50DMA3803.51Negative
100DMA3764.43Negative
200DMA3702.83Positive

Market Momentum

MACD-13.54Positive
RSI43.18Neutral
STOCH20.45Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7769, the sentiment is Negative. The current price of 3730.00 is below the 20-day moving average (MA) of 3769.25, below the 50-day MA of 3803.51, and above the 200-day MA of 3702.83, indicating a neutral trend. The MACD of -13.54 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 20.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7769.

Rhythm Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7769 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7769JP:776983OutperformJPY 30.80B25.15―6.64%7.58%-40.23%
JP:7937JP:793771OutperformJPY 38.61B10.835.17%4.86%39.41%127.01%
JP:9990JP:999067NeutralJPY 21.65B11.21―4.70%0.30%-18.45%
JP:9904JP:990462NeutralJPY 5.64B13.80―6.49%23.28%-15.32%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2736JP:273648NeutralJPY 2.16B18.88―1.17%9.71%-35.71%
JP:7810JP:781043NeutralJPY 2.56B94.74―0.44%47.35%26.49%

* General Sector Average

Performance Comparison

0%50%100%JP:7769JP:7937JP:2736JP:7810JP:9904JP:9990Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7769 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7769Rhythm Co., Ltd.3730.00591.1318.83%
JP:7937Tsutsumi Jewelry Co 2471.00299.5213.79%
JP:2736Festaria Holdings Company Limited599.0043.917.91%
JP:7810Crossfor Co. Ltd.144.00-5.39-3.61%
JP:9904Verite Co., Ltd.208.00-149.81-41.87%
JP:9990SAC'S BAR HOLDINGS INC.745.00-6.14-0.82%

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 attr...

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 termina...

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 strengthe...

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 post...

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 emphasized...

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