TSE:5947

Stock Analysis Report

Executive Summary

Rinnai Corporation develops, manufactures, and sells heating products in Japan, the United States, Australia, China, South Korea, Indonesia, and internationally.

Rewards

Trading at 3.7% below its fair value

Earnings are forecast to grow 5.63% per year

Earnings grew by 6.6% over the past year

Risk Analysis

No risks detected for 5947 from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Rinnai's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5947 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.9%

5947

5.7%

JP Consumer Durables

5.1%

JP Market


1 Year Return

-0.4%

5947

4.1%

JP Consumer Durables

-10.9%

JP Market

Return vs Industry: 5947 underperformed the JP Consumer Durables industry which returned 3.1% over the past year.

Return vs Market: 5947 exceeded the JP Market which returned -14.8% over the past year.


Shareholder returns

5947IndustryMarket
7 Day5.9%5.7%5.1%
30 Day14.7%2.9%1.7%
90 Day-9.4%-19.4%-17.6%
1 Year0.9%-0.4%6.4%4.1%-8.6%-10.9%
3 Year-11.4%-14.3%10.2%3.7%4.3%-3.0%
5 Year-12.6%-16.9%9.8%0.3%3.7%-7.5%

Price Volatility Vs. Market

How volatile is Rinnai's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rinnai undervalued compared to its fair value and its price relative to the market?

19.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5947 (¥7760) is trading below our estimate of fair value (¥8061.24)

Significantly Below Fair Value: 5947 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 5947 is poor value based on its PE Ratio (19.2x) compared to the Consumer Durables industry average (8.1x).

PE vs Market: 5947 is poor value based on its PE Ratio (19.2x) compared to the JP market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 5947 is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: 5947 is overvalued based on its PB Ratio (1.3x) compared to the JP Consumer Durables industry average (0.6x).


Next Steps

Future Growth

How is Rinnai forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5947's forecast earnings growth (5.6% per year) is above the savings rate (-0.09%).

Earnings vs Market: 5947's earnings (5.6% per year) are forecast to grow slower than the JP market (9.1% per year).

High Growth Earnings: 5947's earnings are forecast to grow, but not significantly.

Revenue vs Market: 5947's revenue (1.9% per year) is forecast to grow slower than the JP market (3.3% per year).

High Growth Revenue: 5947's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5947's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Rinnai performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5947 has high quality earnings.

Growing Profit Margin: 5947's current net profit margins (6.1%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 5947's earnings have declined by -1.8% per year over the past 5 years.

Accelerating Growth: 5947's earnings growth over the past year (6.6%) exceeds its 5-year average (-1.8% per year).

Earnings vs Industry: 5947 earnings growth over the past year (6.6%) exceeded the Consumer Durables industry 0.9%.


Return on Equity

High ROE: 5947's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Rinnai's financial position?


Financial Position Analysis

Short Term Liabilities: 5947's short term assets (¥287.6B) exceed its short term liabilities (¥85.7B).

Long Term Liabilities: 5947's short term assets (¥287.6B) exceed its long term liabilities (¥22.9B).


Debt to Equity History and Analysis

Debt Level: 5947 is debt free.

Reducing Debt: 5947 has no debt compared to 5 years ago when its debt to equity ratio was 1%.

Debt Coverage: 5947 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 5947 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Rinnai's current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5947's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.76%).

High Dividend: 5947's dividend (1.24%) is low compared to the top 25% of dividend payers in the JP market (4.09%).


Stability and Growth of Payments

Stable Dividend: 5947's dividends per share have been stable in the past 10 years.

Growing Dividend: 5947's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.7%), 5947's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Hiroyasu Naito (64yo)

14.42s

Tenure

Mr. Hiroyasu Naito serves as the President and an Executive Officer of Rinnai Corp. Mr. Naito served as a Managing Director of Rinnai Corp. He serves as a Director at Rinnai Corporation. Mr. Naito Graduate ...


Leadership Team

NamePositionTenureCompensationOwnership
Hiroyasu Naito
President14.42yrsno data15.39% ¥61.0b
Chuji Nakashima
Executive Officer and GM of Technology Administration Division1.25yrsno datano data
Yasuo Koketsu
Managing Exec. Officer & GM of Administration Headquarters4yrsno datano data
Yuji Kondo
Sr. Managing Exe. Officer7yrsno data0.0019% ¥7.7m
Tsunenori Narita
Executive VP & Directorno datano data0.014% ¥54.0m
Masao Kosugi
Sr. Managing Exec. Officer9yrsno data0.0019% ¥7.7m
Terumasa Kaneko
Managing Exec. Officer and GM of Marketing & Sales Headquarters5yrsno datano data
Kinji Mori
Managing Exec. Officer and GM of Quality Assurance Headquarters & Environment Division9.75yrsno datano data
Greg Ellis
Managing Executive Officer2yrsno datano data
Mitsuhiro Hasegawa
President of Rinnai Precision Co.5yrsno datano data

5.0yrs

Average Tenure

64yo

Average Age

Experienced Management: 5947's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hiroyasu Naito
President14.42yrsno data15.39% ¥61.0b
Yuji Kondo
Sr. Managing Exe. Officer7yrsno data0.0019% ¥7.7m
Tsunenori Narita
Executive VP & Directorno datano data0.014% ¥54.0m
Masao Kosugi
Sr. Managing Exec. Officer9yrsno data0.0019% ¥7.7m
Kenji Hayashi
Chairman3yrsno data4.77% ¥18.9b
Katsuhiko Shinji
Standing Audit & Supervisory Board Memberno datano datano data
Haruhiko Ishikawa
Standing Audit & Supervisory Board Member3.83yrsno data0.0019% ¥7.7m
Nobuyuki Matsui
Independent Director5.83yrsno datano data
Takashi Kamio
Independent Director3.83yrsno datano data
Masaaki Matsuoka
Audit & Supervisory Board Member3.83yrsno datano data

4.8yrs

Average Tenure

67yo

Average Age

Experienced Board: 5947's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rinnai Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rinnai Corporation
  • Ticker: 5947
  • Exchange: TSE
  • Founded: 1920
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: JP¥396.286b
  • Shares outstanding: 51.40m
  • Website: https://www.rinnai.co.jp

Number of Employees


Location

  • Rinnai Corporation
  • 2-26, Fukuzumi-cho
  • Nakagawa-ku
  • Nagoya
  • Aichi
  • 454-0802
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RINI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
5947TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992

Biography

Rinnai Corporation develops, manufactures, and sells heating products in Japan, the United States, Australia, China, South Korea, Indonesia, and internationally. The company offers water heaters, including tankless water heaters, bath-filling systems, heating systems, and hybrid water heaters with heating systems, as well as hot-water units, bath hot-water units, hot-water and heating units, gas/solar hybrid hot-water, etc.; and kitchen appliances, such as table top cookers and stoves, built-in-stoves, ovens, dishwashers, food range, and a range of hoods and rice cookers, as well as built-in hobs, such as stovetops. It also provides air conditioning appliances comprising fan heaters, fanned flue heaters, fan-forced heaters, and infrared heaters; commercial-use equipment that include ceramic grillers, gas stoves, ranges, and rice cookers; and others, which comprise clothes dryers, infrared burners, and components. The company was formerly known as Rinnai & Co. and changed its name to Rinnai Corporation in 1971. Rinnai Corporation was founded in 1920 and is headquartered in Nagoya, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 15:15
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.