ScoreWhy is Rinnai Corp. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Operating profit has grown by an annual rate 5.86% of over the last 5 years
3
Flat results in Dec 25
- INTEREST(Q) At JPY 22 MM has Grown at 69.23%
- DEBT-EQUITY RATIO (HY) Highest at -29.78 %
4
With ROE of 9.39%, it has a very attractive valuation with a 1.28 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 3.76%, its profits have risen by 10% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 3.76% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Rinnai Corp. should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rinnai Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Rinnai Corp.
-100.0%
221.25
24.03%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.22%
EBIT Growth (5y)
5.86%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.44
Sales to Capital Employed (avg)
1.14
Tax Ratio
25.45%
Dividend Payout Ratio
38.16%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
21.74%
ROE (avg)
9.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.28
EV to EBIT
7.46
EV to EBITDA
5.61
EV to Capital Employed
1.49
EV to Sales
0.74
PEG Ratio
1.12
Dividend Yield
0.01%
ROCE (Latest)
19.98%
ROE (Latest)
9.39%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
ROCE(HY)
Highest at 8.58%
RAW MATERIAL COST(Y)
Fallen by -0.18% (YoY
OPERATING PROFIT(Q)
Highest at JPY 18,284 MM
PRE-TAX PROFIT(Q)
Highest at JPY 16,551 MM
NET PROFIT(Q)
Highest at JPY 11,023.63 MM
EPS(Q)
Highest at JPY 84.16
-6What is not working for the Company
INTEREST(Q)
At JPY 22 MM has Grown at 69.23%
DEBT-EQUITY RATIO
(HY)
Highest at -29.78 %
Here's what is working for Rinnai Corp.
Operating Profit
Highest at JPY 18,284 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 16,551 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 11,023.63 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 84.16
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -0.18% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Rinnai Corp.
Interest
At JPY 22 MM has Grown at 69.23%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at -29.78 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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