# RHYTHM CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第6期(2025/04/01－2026/03/31) (S100YFZJ)
> Page: https://vizora.meequs.com/en/company/rhythm
> Retrieved: 2026-09-30T18:10:40.525Z

## Company

Rhythm, founded in 1950, is a company in Auto Parts listed on TSE Prime. It has 2,432 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | RHYTHM CO.,LTD. |
| Ticker | 7769 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/7769.T) |
| Listing | TSE Prime |
| Head office | 埼玉県さいたま市大宮区北袋町一丁目299番地12 |
| Representative (per filing) | 代表取締役社長 湯本 武夫 |
| Founded | Nov 1950 |
| Share capital | ¥12.4B |
| Employees (consolidated) | 2,432 |
| Average salary (parent only) | ¥5.1M |
| Fiscal year end | March |
| Website | www.rhythm.co.jp (https://www.rhythm.co.jp/) |
| Corporate number | 9030001010524 |
| EDINET | E02294 |
| Industries (Vizora) | Auto Parts, Electronic Components, Home Appliances, Watches, Jewelry & Eyewear |

> Profile source: annual securities report (S100YFZJ, filed 2026-06-22). As of filing

## Five-axis industry profile

Primary industry: Auto Parts (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 25.9 | 110 |
| Profitability | 45.5 | 111 |
| Cash conversion | 70.8 | 108 |
| Efficiency | 18.5 | 111 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 77% of Rhythm's sales come from Precision Products, with Daily commodities and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥5 is left as operating profit.
- Revenue changed +6.4% from the prior year, operating profit +94.1%.

## Company structure

- Segment revenue mix: Precision Products 76.8%、Daily commodities 21.8%、Other 1.4%
- Revenue → net income: ¥34755000000 → ¥2311000000
- Net income → operating cash flow: ¥2311000000 → ¥3373000000（difference ¥1062000000）
- Main uses of operating cash flow: CapEx ¥1556000000 / dividends ¥602000000 / buybacks ¥1572000000
- Change in cash: ¥793000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥34.8B |  |
| Operating income | ¥1.59B | Margin 4.6% |
| Net income | ¥2.31B | Margin 6.6% |
| Free cash flow | ¥1.82B |  |
| Largest business | Precision Products | of segment revenue 76.8% |
| Employees (consolidated) | 2,432 |  |
| EPS | ¥201.5 |  |
| Book value per share | ¥3072.8 |  |
| Equity ratio | 69.3% |  |
| Shares outstanding | 8,385,093 |  |
| Treasury shares | 283,800 |  |
| Shareholders | 23,227 |  |
| Average salary (parent only) | ¥5.1M | Filing company only |
| Cash ratio | 28.6% | Cash ÷ revenue 40.3% |
| Vs. industry median margin | -0.2 pp | Auto Parts |
| ROE | 9.2% | Derived from disclosed figures |
| ROA | 4.9% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 2.6× dividends
- FY2026, one segment accounts for 97% of positive segment profit
- FY2026, employees -1% while operating income rose 94%

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥27304000000 | ¥34755000000 | +27.3% |
| Operating income | ¥318000000 | ¥1586000000 | +398.7% |
| Operating margin | 1.2% | 4.6% | +3.4 pp |
| Employees | 2,571 people | 2,432 people | -5.4% |
| Cash and equivalents | ¥10276000000 | ¥14013000000 | +36.4% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 精密部品事業 → 精密部品事業 | 33.3% |
| 時計事業 → 事業再編・廃止 | 16.1% |
| 生活用品事業 → 生活用品事業 | 16.1% |
| 接続端子事業 → 事業再編・廃止 | 15.0% |
| その他 → その他 | 1.2% |
| プレシジョン事業 → 事業再編・廃止 | 18.3% |
| 新設・再編 → 精密部品事業 | 43.5% |
| 新設・再編 → 生活用品事業 | 5.7% |
| 新設・再編 → その他 | 0.3% |

Segment revenue source references: 9 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Precision Products | 5 years | +8.2% | ¥26679000000 | 9.5% | 2 |
| Daily commodities | 5 years | -2.8% | ¥7581000000 | -1.0% | 2 |
| Other | 5 years | -4.7% | ¥494000000 | 16.0% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 34,755 | 100.0% | S100YFZJ |
| Cost of revenue | 26,763 | 77.0% | S100YFZJ |
| Gross profit | 7,991 | 23.0% | S100YFZJ |
| SG&A | 6,404 | 18.4% | S100YFZJ |
| Operating income | 1,586 | 4.6% | S100YFZJ |
| Ordinary income | 1,979 | 5.7% | S100YFZJ |
| Pretax income | 2,485 | 7.2% | S100YFZJ |
| Income tax | 173 | 0.5% | S100YFZJ |
| Net income | 2,311 | 6.6% | S100YFZJ |
| Net income attributable to owners | 2,311 | 6.6% | S100YFZJ |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 77 |
| SG&A | 18 |
| Operating income | 5 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 23.0% → Operating margin 4.6% → Net margin 6.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +6.4%; Core profit growth: +94.1%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 14.72×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 32,666 | 34,755 | 2,089 | +6.4% |
| Gross profit | 6,594 | 7,991 | 1,397 | +21.2% |
| Operating income | 817 | 1,586 | 769 | +94.1% |
| Net income attributable to owners | 758 | 2,311 | 1,553 | +204.9% |
| Operating cash flow | 2,441 | 3,373 | 932 | +38.2% |
| Free cash flow | 923 | 1,817 | 894 | +96.9% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 29,911 | -234 | -0.8% | -1,139 | 1,675 | -1,134 | S100LN7N |
| FY ending Mar 2021 | 27,304 | 318 | 1.2% | -1,262 | 1,849 | 1,152 | S100OM95 |
| FY ending Mar 2022 | 29,999 | 892 | 3.0% | 1,031 | 1,245 | 300 | S100R06N |
| FY ending Mar 2023 | 31,231 | 886 | 2.8% | 794 | 1,185 | 94 | S100TOMT |
| FY ending Mar 2024 | 32,602 | 730 | 2.2% | 477 | 2,459 | 710 | S100VZ0N |
| FY ending Mar 2025 | 32,666 | 817 | 2.5% | 758 | 2,441 | 923 | S100YFZJ |
| FY ending Mar 2026 | 34,755 | 1,586 | 4.6% | 2,311 | 3,373 | 1,817 | S100YFZJ |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥14.3M |
| Operating income per employee (consolidated) | ¥652.1K |
| Net income per employee (consolidated) | ¥950.2K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 2,720 | 2,482 | 2,486 | 2,449 | 2,432 |
| Average salary (parent company) | ¥5M | ¥5.1M | ¥4.7M | ¥4.9M | ¥5.1M |
| Average age (parent company) | 43.3 years | 43.3 years | 43.2 years | 42.9 years | 43.2 years |
| Average tenure (parent company) | 17.3 years | 16.9 years | 16.1 years | 15.2 years | 15.5 years |

Year over year: Employees (consolidated) -0.7% · Revenue (consolidated) +6.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Precision Products | 26,679 | 76.8% | 2,536 | 9.5% |
| Daily commodities | 7,581 | 21.8% | -78 | -1.0% |
| Other | 494 | 1.4% | 79 | 16.0% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Precision Products | 76.8% | 97.0% | 20.2 | 9.5% |
| Daily commodities | 21.8% | — | — | -1.0% |
| Other | 1.4% | 3.0% | 1.6 | 16.0% |

Loss-making segment (excluded from profit shares): Daily commodities -78 JPY mn

Segment → industry: Precision Products → Auto Parts / Precision Products → Electronic Components / Daily commodities → Home Appliances / Daily commodities → Watches, Jewelry & Eyewear

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 3,373 | 9.7% | S100YFZJ |
| Capital expenditure | 1,556 | 4.5% | S100YFZJ |
| Free cash flow | 1,817 | 5.2% | 算出 |
| Investing cash flow | -1,862 | -5.4% | S100YFZJ |
| Financing cash flow | -1,057 | -3.0% | S100YFZJ |
| Dividends paid | 602 | 1.7% | S100YFZJ |
| Share buyback | 1,572 | 4.5% | S100YFZJ |
| Change in cash | 793 | 2.3% | S100YFZJ |
| Cash and equivalents | 14,013 | 40.3% | S100YFZJ |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 9,941 | 9,899 | 11,043 | 13,219 | 14,013 | S100TOMT, S100VZ0N, S100YFZJ |
| Total assets | 38,293 | 39,738 | 43,573 | 45,093 | 48,961 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Net assets | 27,006 | 28,873 | 31,145 | 31,308 | 33,937 | S100TOMT, S100VZ0N, S100YFZJ |
| Share capital | 12,372 | 12,372 | 12,372 | 12,372 | 12,372 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Trade receivables | 4,107 | 4,115 | 5,511 | 4,930 | 4,891 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Inventories | 7,397 | 8,345 | 7,980 | 7,438 | 7,818 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Property, plant and equipment | 9,864 | 9,902 | 11,092 | 11,031 | 10,969 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Intangible assets excluding goodwill | 458 | 533 | 205 | 491 | 656 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Goodwill | 213 | 46 | — | — | — | S100R06N, S100TOMT |
| Investment securities | 2,067 | 2,585 | 3,405 | 3,512 | 5,926 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Current assets | 24,069 | 25,171 | 27,076 | 28,363 | 29,332 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Current liabilities | 9,178 | 6,344 | 6,924 | 6,351 | 6,781 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Trade payables | 3,563 | 3,293 | 3,400 | 2,996 | 2,737 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Short-term borrowings | 70 | — | — | — | — | S100R06N |
| Long-term borrowings | 1,074 | 2,257 | 1,955 | 2,374 | 2,746 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Bonds | — | 1,500 | 2,500 | 4,000 | 4,000 | S100TOMT, S100VZ0N, S100YFZJ |
| Total liabilities | 11,286 | 10,865 | 12,427 | 13,784 | 15,024 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Non-controlling interests | 6 | — | — | — | — | S100R06N |
| Equity attributable to owners of parent | 23,780 | 24,219 | 24,292 | 24,645 | 25,352 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Retained earnings | 4,100 | 4,584 | 4,662 | 5,020 | 6,729 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |
| Treasury stock | -276 | -278 | -283 | -287 | -1,434 | S100R06N, S100TOMT, S100VZ0N, S100YFZJ |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 29% | S100YFZJ |
| Receivables | 10% | S100YFZJ |
| Inventories | 16% | S100YFZJ |
| Property, plant and equipment | 22% | S100YFZJ |
| Intangibles and goodwill | 1% | S100YFZJ |
| Investment securities | 12% | S100YFZJ |
| Other assets | 10% | S100YFZJ |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 6% | S100YFZJ |
| Other liabilities | 25% | S100YFZJ |
| Equity | 69% | S100YFZJ |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 38,293 | 39,738 | 43,573 | 45,093 | 48,961 |
| Equity | 27,006 | 28,873 | 31,145 | 31,308 | 33,937 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 9,941 | 9,899 | 11,043 | 13,219 | 14,013 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 31.6% | S100YFZJ |
| Fixed assets ÷ total assets | 22.4% | S100YFZJ |
| Goodwill ÷ parent equity | — | —, S100YFZJ |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 28.6% |
| Cash ÷ revenue | 40.3% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 212.7% |
| Cash vs. profit gap | 1,062 JPY mn (of net income 46.0%) |
| Shareholder returns / net income | 94.1% |
| Shareholder returns / FCF | 119.6% |
| Shareholder payments — dividends / net income | 26.0% |
| Shareholder payments — dividends / FCF | 33.1% |
| CapEx intensity (capex ÷ revenue) | 4.5% |
| Investing CF relative to operating CF | 55.2% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 3.4% | 0.78× | 2.7% | 1.61× | 4.3% | S100R06N |
| 2023 | 2.5% | 0.80× | 2.0% | 1.63× | 3.3% | S100TOMT |
| 2024 | 1.5% | 0.78× | 1.1% | 1.72× | 2.0% | S100VZ0N |
| 2025 | 2.3% | 0.74× | 1.7% | 1.81× | 3.1% | S100YFZJ |
| 2026 | 6.6% | 0.74× | 4.9% | 1.88× | 9.2% | S100YFZJ |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| シチズン時計株式会社 | Major shareholder | 7.4% | 2026-03-31 |
| 日本生命保険相互会社 | Major shareholder | 5.8% | 2026-03-31 |
| 植島 幹九郎 | Major shareholder | 5.4% | 2026-03-31 |
| 株式会社埼玉りそな銀行 | Major shareholder | 4.4% | 2026-03-31 |
| 株式会社三井住友銀行 | Major shareholder | 4.2% | 2026-03-31 |
| 三井住友信託銀行株式会社 | Major shareholder | 3.7% | 2026-03-31 |
| 共栄火災海上保険株式会社 | Major shareholder | 3.1% | 2026-03-31 |
| 株式会社武蔵野銀行 | Major shareholder | 2.7% | 2026-03-31 |
| 株式会社タムロン | Major shareholder | 2.1% | 2026-03-31 |
| 佐藤和子 | Major shareholder | 2.0% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第6期(2025/04/01－2026/03/31) | S100YFZJ | 2026-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YFZJ,, |
| 有価証券報告書－第5期(2024/04/01－2025/03/31) | S100VZ0N | 2025-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VZ0N,, |
| 有価証券報告書－第4期(2023/04/01－2024/03/31) | S100TOMT | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TOMT,, |
| 有価証券報告書－第3期(2022/04/01－2023/03/31) | S100R06N | 2023-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R06N,, |
| 訂正有価証券報告書－第2期(令和3年4月1日－令和4年3月31日) | S100OM95 | 2022-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OM95,, |
| 有価証券報告書－第1期(令和2年4月1日－令和3年3月31日) | S100LN7N | 2021-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LN7N,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).