Goldman Sachs Downgrades Rinnai Corporation Rating to Sell
January 13, 2023
Trending News 🌥️
Rinnai Corporation Intrinsic Value – Rinnai Corporation ($TSE:5947) is a Japanese company specializing in the production of energy and lifestyle products such as home appliances, plumbing equipment, and food service equipment. Recently, the Goldman Sachs Group has downgraded Rinnai’s stock rating from “Neutral” to “Sell”. The downgrade also reflects Goldman Sachs’ assessment of the potential risks associated with Rinnai’s current business model.
Additionally, the company has been investing heavily in research and development, which has led to an increase in operating costs. Despite the downgrade, analysts have noted that Rinnai still has strong fundamentals and is well-positioned to take advantage of opportunities in the future. The company has a strong balance sheet and a good track record of profitability. Additionally, the company has been able to increase its market share in recent years, which is a sign of its competitive advantage. Overall, Goldman Sachs’ downgrade of Rinnai’s stock rating to Sell reflects the company’s current business model and the potential risks associated with it. Nevertheless, analysts believe that Rinnai still has strong fundamentals and is well-positioned to benefit from future opportunities.
Price History
On Tuesday, Goldman Sachs downgraded the rating of Rinnai Corporation to sell. This came as RINNAI CORPORATION stock opened at JP¥9740.0 and closed at JP¥9600.0, down by 1.9% from last closing price of 9790.0. This marks a significant decrease in the share price of the company, which had been steadily increasing since March. The downgrade by Goldman Sachs is likely due to a combination of factors, such as the current weak economic climate, a decrease in consumer demand for RINNAI CORPORATION products, and increasing competition from other companies in the same industry.
Additionally, the company has had to make significant cost-cutting measures due to the pandemic, which could have had an impact on their profits and share price. Analysts are now speculating whether the share price will continue to drop or if it will recover in the near future. Meanwhile, investors are advised to exercise caution when investing in RINNAI CORPORATION stock, as it may not be a sound investment at this time. Goldman Sachs has also advised investors to review their portfolio and consider other investments that may be more suitable for the current market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rinnai Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 380.81k | 23.88k | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rinnai Corporation. More…
| Operations | Investing | Financing |
| 27.18k | -41.95k | -20.75k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rinnai Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 544.29k | 145.56k | 7.32k |
Key Ratios Snapshot
Some of the financial key ratios for Rinnai Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | 3.1% | 10.4% |
| FCF Margin | ROE | ROA |
| 1.1% | 7.0% | 4.6% |
VI Analysis – Rinnai Corporation Intrinsic Value
The Value Investor (VI) app provides an easy way to analyse the company’s performance. According to the app, the intrinsic value of RINNAI CORPORATION share is JP¥12295.8. At the moment, the stock is traded at JP¥9600.0, which is 22% lower than its intrinsic value. This indicates that the stock is currently undervalued and may be a good option for investors looking for a long-term return on their investments. The VI app provides a comprehensive analysis of the company’s financials, including its balance sheets, income statement, cash flow statement and other key documents. Furthermore, the app provides up-to-date information on the company’s performance and evaluates its future prospects. The app’s easy-to-use interface and intuitive visuals make it a great tool for understanding a company’s financials. By using the VI app, investors can gain insight into RINNAI CORPORATION’s financials and understand why the stock is currently undervalued. With this knowledge, investors can make more informed decisions when investing in the company. Furthermore, they can use the app to monitor the company’s performance over time and make adjustments to their investments accordingly. As such, the VI app provides investors with an invaluable tool for assessing the long-term potential of RINNAI CORPORATION and making informed investment decisions. More…
VI Peers
The competition between Rinnai Corp and its competitors, Vatti Corp Ltd, Guangdong Vanward New Electric Co Ltd, and Gorani Industries Ltd, is fierce. With each company striving to produce innovative solutions and superior products, the competition is driving all to continually strive for excellence. The result is a better experience for customers around the world.
– Vatti Corp Ltd ($SZSE:002035)
Vatti Corp Ltd is a leading global provider of industrial and consumer products. Founded in 1998, the company has grown to become a major player in the industry with a market cap of 4.98B as of 2023. Vatti Corp Ltd is also renowned for its strong performance, evidenced by its impressive Return on Equity (ROE) of 4.4%. This demonstrates the company’s ability to generate superior returns on its invested capital, making it an attractive investment opportunity.
– Guangdong Vanward New Electric Co Ltd ($SZSE:002543)
Guangdong Vanward New Electric Co Ltd is a Chinese-based company that manufactures and distributes a wide range of electric appliances and equipment. As of 2023, the company has a market capitalization of 6.68 billion and a Return on Equity of 6.79%. Market capitalization is a measure of the value of a company and is calculated by multiplying the number of outstanding shares by the current stock price. Return on Equity (ROE) is a measure of how efficiently a company is using its assets to generate profits and is calculated by dividing net income by shareholders’ equity. As of 2023, Guangdong Vanward New Electric Co Ltd has a relatively high Return on Equity indicating that the company is utilizing its assets efficiently to generate profits.
– Gorani Industries Ltd ($BSE:531608)
Gorani Industries Ltd is a multinational manufacturer of several industrial products. With a market cap of 997.98M as of 2023, the company has grown significantly since its inception in 2019. Its Return on Equity (ROE) of 26.19%, which is indicative of the company’s financial health and performance, demonstrates its commitment to growth and success. The company is committed to providing the highest quality products to its customers and strives to maintain a competitive edge in the marketplace.
Summary
Investment analysts at Goldman Sachs have downgraded their rating for Rinnai Corporation from Neutral to Sell. This decision is based on the company’s recent performance, which has been underwhelming for a number of reasons. Rinnai Corporation’s stock has been trending downwards, and it has failed to report any major successes in terms of its financials.
The company is also facing increased competition in its sector, and the industry is becoming more volatile. As such, Goldman Sachs suggests that investors sell their shares in Rinnai Corporation and look for better options in the market.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
