Rinnai Corp
TSE:5947

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Rinnai Corp
TSE:5947
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Price: 3 588 JPY 0.73% Market Closed
Market Cap: ¥506.4B

EV/GP

2.2
Current
6%
Cheaper
vs 3-y average of 2.3

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.2
=
Enterprise Value
¥405.8B
/
Gross Profit
¥161.4B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.2
=
Enterprise Value
¥405.8B
/
Gross Profit
¥161.4B

Valuation Scenarios

Rinnai Corp is trading below its 3-year average

If EV/GP returns to its 3-Year Average (2.3), the stock would be worth ¥3 798.22 (6% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+73%
Average Upside
26%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2.2 ¥3 588
0%
3-Year Average 2.3 ¥3 798.22
+6%
5-Year Average 2.2 ¥3 631.94
+1%
Industry Average 2.6 ¥4 366.93
+22%
Country Average 3.7 ¥6 224.3
+73%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
JP
Rinnai Corp
TSE:5947
495.4B JPY 2.2 14.4
JP
Fujitsu General Ltd
TSE:6755
4 282 616.6T JPY 45 735 393.8 -3 733 754 630.9
CN
Midea Group Co Ltd
SZSE:000333
616.1B CNY 3.7 14.1
CN
Gree Electric Appliances Inc of Zhuhai
SZSE:000651
224.3B CNY 2.9 7.1
CN
Haier Smart Home Co Ltd
SSE:600690
201.9B CNY 2.2 10.3
US
Sharkninja Inc
NYSE:SN
16.3B USD 5.1 23.1
IN
LG Electronics India Ltd
NSE:LGEINDIA
1.1T INR 20.2 109
CN
Hangzhou Greatstar Industrial Co Ltd
SZSE:002444
40.8B CNY 7.6 16.2
IT
De' Longhi SpA
MIL:DLG
4.9B EUR 1.8 15.4
CN
Zhejiang Supor Co Ltd
SZSE:002032
37.8B CNY 6 18
CN
Ecovacs Robotics Co Ltd
SSE:603486
37.7B CNY 3.3 22.3

Market Distribution

Lower than 77% of companies in Japan
Percentile
23rd
Based on 4 798 companies
23rd percentile
2.2
Low
0.1 — 2.6
Typical Range
2.6 — 5.9
High
5.9 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 2.6
Median 3.7
70th Percentile 5.9
Max 45 735 393.8

Rinnai Corp
Glance View

Market Cap
506.4B JPY
Industry
Consumer products

Rinnai Corporation, a name synonymous with innovation and quality in the realm of heating appliances, traces its roots back to 1920 in Japan. From its humble beginnings, Rinnai has evolved into a global leader, specializing in the manufacture of gas appliances. The company's core offering is its range of tankless water heaters, which have garnered widespread acclaim for their efficiency and reliability. By focusing on cutting-edge combustion and heating technology, Rinnai offers products that deliver both performance and energy savings—a key selling point in today’s environmentally conscious market. Alongside water heaters, Rinnai’s product portfolio includes home heating systems, kitchen appliances, and air conditioning units, creating an integrated suite of solutions that cater to the modern household. The company's business model revolves around the principle of sustainability and innovation, which is evident both in its manufacturing processes and its product design. Rinnai invests significantly in research and development to keep its technology at the forefront of the industry, driving consistent product enhancements and maintaining a competitive edge. By expanding its geographical footprint through strategic partnerships and subsidiaries worldwide, Rinnai effectively taps into diverse markets, increasing its revenue streams. Revenue generation stems not only from direct sales of its high-quality, durable appliances but also from service offerings, including installation and maintenance services, which bolster its comprehensive customer-centered approach. Ultimately, Rinnai Corporation stands as a testament to how traditional craftsmanship can be successfully married with modern innovation, ensuring its products remain indispensable in homes across the globe.

Intrinsic Value
3 725.15 JPY
Undervaluation 4%
Intrinsic Value
Price ¥3 588
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