Ryobi (5851) AI Stock Analysis

• Market Cap: ¥64.15B
• Dividend Yield: 5.16%
• Average Volume (3M): 130.67K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.12
• Revenue Growth: 3.76%
• EPS Growth: -31.44%
• Country: JP
• Employees: 7,939
• Sector: Industrials
• Sector Strength: 65
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 214.25
• Shares Outstanding: 32,646,145
• 10 Day Avg. Volume: 92,310
• 30 Day Avg. Volume: 130,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Ryobi's strong financial performance, particularly in cash flow management, supports a solid foundation. However, the declining profit margins and bearish technical indicators suggest caution. The company's valuation is attractive with a low P/E ratio and high dividend yield, offering potential upside for value-focused investors. Overall, while Ryobi's fundamentals are robust, improvements in profitability and operational efficiency are needed to bolster growth prospects.

Ryobi Business Overview & Revenue Model

Company Description

Ryobi Limited (5851) is a Japanese manufacturer that operates primarily in the sectors of power tools, outdoor equipment, and builders' hardware. The company is renowned for its extensive range of power tools for both professional and consumer markets, including drills, saws, and other cordless tools. Additionally, Ryobi offers a variety of outdoor products such as lawn mowers, trimmers, and leaf blowers, as well as die-casting products for the automotive and electronics industries.

How the Company Makes Money

Ryobi makes money through the sale of its power tools and outdoor equipment, which are distributed through retail channels globally. The company's revenue model is primarily based on the manufacturing and selling of these products. Ryobi also generates income from its die-casting business, which supplies components to the automotive and electronics industries. Key revenue streams include sales from its extensive product line of power tools and outdoor equipment, as well as contracts and agreements with automotive and electronics companies for die-casting components. Significant partnerships with major retailers and distributors also contribute to its earnings by expanding its market reach and accessibility to consumers.

Ryobi Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
293.31B	282.69B	249.52B	198.07B	170.97B
	Gross Profit
34.26B	34.49B	28.25B	18.47B	17.09B
	EBIT
9.49B	12.21B	6.97B	947.00M	1.03B
	EBITDA
28.91B	33.13B	25.28B	13.80B	15.87B
	Net Income Common Stockholders
6.93B	10.12B	4.78B	-4.36B	-823.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.92B	28.29B	27.99B	29.28B	27.32B
	Total Assets
333.19B	318.84B	300.29B	279.42B	258.66B
	Total Debt
61.96B	70.19B	74.36B	73.77B	72.47B
	Net Debt
33.94B	42.55B	47.02B	45.23B	45.91B
	Total Liabilities
156.21B	158.12B	156.56B	147.71B	132.73B
	Stockholders Equity
167.35B	151.30B	134.46B	122.92B	117.15B
Cash Flow		Free Cash Flow
15.09B	9.68B	-92.00M	3.05B	-8.50B
	Operating Cash Flow
29.16B	26.00B	16.79B	14.90B	11.79B
	Investing Cash Flow
-13.72B	-17.43B	-15.86B	-12.16B	-17.57B
	Financing Cash Flow
-14.90B	-8.59B	-2.86B	-1.94B	9.72B

Ryobi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1959.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5851, the sentiment is Negative. The current price of 1959 is below the 20-day moving average (MA) of 2043.25, below the 50-day MA of 2192.80, and below the 200-day MA of 2066.32, indicating a bearish trend. The MACD of -82.12 indicates Negative momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 89.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5851.

Ryobi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	79 Outperform	¥3.58T	9.08		4.29%	5.86%	1.40%
6436	74 Outperform	¥294.72B	17.55	12.78%	3.54%	15.27%	16.51%
6479	73 Outperform	$792.45B	12.48	8.72%	2.37%	7.44%	-5.08%
5851	71 Outperform	¥64.15B	9.25	4.27%	5.16%	3.76%	-31.44%
6588	68 Neutral	€139.01B	3.80	38.15%	1.76%	8.24%	―
Sector *	62 Neutral	$4.16B	11.31	5.46%	215.65%	4.12%	-8.47%
6471	52 Neutral	¥269.24B	36.97		5.83%	-3.42%	-35.09%

Ryobi Corporate Events

Ryobi Limited Unveils Strategic Medium-Term Management Plan

Ryobi Limited has announced a Medium-Term Management Plan for 2025-2027 to achieve its vision for FY2035. The plan includes financial targets to increase net sales and ordinary income, a progressive dividend policy, and strategic share buybacks, aiming to enhance shareholder value and optimize its capital structure.

Ryobi Board Opposes Shareholder Proposal, Prioritizes Growth and Stability

Ryobi Limited’s Board of Directors has opposed a shareholder proposal that pertains to the appropriation of surplus and amending the Articles of Incorporation to optimize prices for Japanese business. The company emphasizes its commitment to growth investments, financial stability, and shareholder returns, planning significant investments over the next three years under its Medium-Term Management Plan. The Board argues that the proposal could jeopardize financial stability and long-term shareholder interests by allocating too much profit to dividends, thus reducing growth investment funds.

Ryobi Limited Proposes Amendments to Directors’ Terms

Ryobi Limited has announced a proposal to amend its Articles of Incorporation, which will be presented at the upcoming Annual General Meeting of Shareholders. The key change proposed is to shorten the term of office for directors from two years to one year, aiming to enhance management’s ability to quickly adapt to changes in the business environment.

Ryobi Limited Reports Mixed Fiscal 2024 Results and Positive 2025 Outlook

Ryobi Limited reported a mixed financial performance for the fiscal year ended December 31, 2024, with a 3.8% increase in net sales but a notable decline in operating and ordinary income by 22.3% and 16.7% respectively. The company projects growth for the fiscal year ending December 31, 2025, with an expected 4% increase in net sales and a 23.2% rise in operating income, indicating a positive outlook despite past challenges.