Riken Technos Corporation (JP:4220)
:4220
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Riken Technos Corporation
(4220)
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Rating:83Outperform
Price Target:
¥2,165.00
▲(41.04% Upside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by strong financial performance (growth, improving margins, low leverage, and rising free cash flow), complemented by attractive valuation (low P/E and solid yield). Technicals add support as the stock trades above key moving averages with positive momentum indicators.
Positive Factors
Strong free cash flow generation
Free cash flow rose materially from ¥1.8B in 2022 to ¥7.2B in 2025, giving the company durable internal funding for capex, product development, dividends or buybacks without heavy borrowing. Consistent cash conversion supports strategic investment and resilience through cycles.
Negative Factors
Moderate net profit margins
Although net margin improved to 5.8% in 2025, profitability remains modest for an engineered materials producer. Limited margin headroom reduces the company's ability to absorb input cost shocks, fund aggressive reinvestment, or outpace higher‑margin competitors over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Free cash flow rose materially from ¥1.8B in 2022 to ¥7.2B in 2025, giving the company durable internal funding for capex, product development, dividends or buybacks without heavy borrowing. Consistent cash conversion supports strategic investment and resilience through cycles.
Read all positive factors
Riken Technos Corporation (4220) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥86.39B
Dividend Yield3.06%
Average Volume (3M)62.37K
Price to Earnings (P/E)8.3
Beta (1Y)0.85
Revenue Growth2.02%
EPS Growth30.10%
CountryJP
Employees1,904
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)52.13
Shares Outstanding51,274,822
10 Day Avg. Volume56,580
30 Day Avg. Volume62,366
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)0.86
Price to Sales (P/S)0.44
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)134.3
Revenue Forecast (FY)¥132.00B
Riken Technos Corporation Business Overview & Revenue Model
Company Description
Riken Technos Corporation engages in compound, film, and food wrapping film businesses in Japan and internationally. It offers polyvinyl chloride compounds, thermoplastic elastomers, electro-conductive compounds, anti-static compounds, biomass pla...
How the Company Makes Money
Riken Technos Corporation generates revenue through multiple streams, primarily by selling its specialty materials to various industries, including automotive and electronics. The company’s revenue model is largely based on direct sales of its pro...
Riken Technos Corporation Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.46B | 128.14B | 125.74B | 123.50B | 109.92B | 88.22B |
| Gross Profit | 24.69B | 24.32B | 21.88B | 20.35B | 18.92B | 16.81B |
| EBITDA | 15.13B | 16.42B | 15.35B | 11.73B | 10.23B | 9.68B |
| Net Income | 6.98B | 7.37B | 6.88B | 4.56B | 3.94B | 3.23B |
Balance Sheet | ||||||
| Total Assets | 114.53B | 116.47B | 115.65B | 112.00B | 102.64B | 95.21B |
| Cash, Cash Equivalents and Short-Term Investments | 23.43B | 24.47B | 21.88B | 23.48B | 20.70B | 21.11B |
| Total Debt | 12.06B | 11.80B | 10.15B | 10.58B | 9.86B | 10.29B |
| Total Liabilities | 41.59B | 40.69B | 41.63B | 39.84B | 37.19B | 34.13B |
| Stockholders Equity | 63.41B | 64.87B | 64.44B | 63.20B | 57.76B | 53.74B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 7.25B | 6.50B | 4.54B | 1.84B | 5.79B |
| Operating Cash Flow | 0.00 | 11.55B | 10.75B | 8.52B | 4.57B | 9.39B |
| Investing Cash Flow | 0.00 | -3.15B | -1.67B | -3.96B | -2.44B | -3.00B |
| Financing Cash Flow | 0.00 | -6.51B | -11.12B | -2.34B | -2.95B | -2.80B |
Riken Technos Corporation Technical Analysis
Neutral
1535.00
Price Trends
1707.52
Negative
1581.45
Positive
1373.34
Positive
Market Momentum
-7.70
Positive
45.07
Neutral
15.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4220, the sentiment is Neutral. The current price of 1535 is below the 20-day moving average (MA) of 1758.60, below the 50-day MA of 1707.52, and above the 200-day MA of 1373.34, indicating a neutral trend. The MACD of -7.70 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4220.
Riken Technos Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥86.39B | 8.29 | ― | 3.06% | 2.02% | 30.10% | |
79 Outperform | ¥41.71B | 9.83 | ― | 0.13% | 9.78% | 40.00% | |
76 Outperform | ¥40.56B | 5.81 | ― | 3.53% | -3.45% | 30.52% | |
67 Neutral | ¥102.84B | 11.35 | ― | 3.88% | 2.61% | 30.29% | |
66 Neutral | ¥26.34B | 10.33 | ― | 3.53% | 6.99% | -0.30% | |
65 Neutral | ¥81.43B | 17.82 | ― | 0.67% | 10.18% | -14.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4220
Riken Technos Corporation
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Riken Technos Corporation Corporate Events
Riken Technos Revamps Executive Lineup to Strengthen Overseas and New Business Strategy
Feb 24, 2026
Riken Technos Corporation announced a series of executive officer changes effective April 1, 2026, reflecting a reorganization of its international and new business leadership. Hiroki Ieda will be promoted to Executive Officer and Managing Directo...
Riken Technos Launches New Shareholder Benefits Program to Reward Long-Term Investors
Jan 30, 2026
Riken Technos Corporation has approved the introduction of a shareholder benefits program aimed at strengthening shareholder returns, deepening understanding of its business, and encouraging medium- to long-term share ownership. From the fiscal pe...
Riken Technos Lifts FY2026 Profit and Dividend Forecasts on Stronger Earnings Outlook
Jan 30, 2026
Riken Technos has revised upward its consolidated and non-consolidated forecasts for the fiscal year ending March 31, 2026, leaving net sales unchanged but raising expected operating and ordinary profits as well as profit attributable to owners of...
Riken Technos Tightens Dividend Policy With New DOE Floor to Boost Shareholder Returns
Jan 30, 2026
Riken Technos Corporation has revised its dividend policy to reinforce shareholder returns and improve capital efficiency by adding a dividend-on-equity (DOE) benchmark to its existing payout framework. While it previously targeted a consolidated ...
Riken Technos Lifts Nine-Month Profit and Ups Dividend and Earnings Forecasts
Jan 30, 2026
Riken Technos reported consolidated net sales of ¥99.2 billion for the nine months ended 31 December 2025, up 3.5% year on year, with operating profit rising 8.2% to ¥8.49 billion and profit attributable to owners of parent jumping 17.4%...
Riken Technos Reshapes Executive Lineup to Bolster Manufacturing and Americas Business
Jan 19, 2026
Riken Technos Corporation has announced a series of senior management changes effective February 1, 2026, aimed at strengthening its manufacturing, procurement, and overseas operations. Director and Managing Executive Officer Tomozo Ogawa will exp...
Riken Technos Completes Near-Maximum ¥2 Billion Share Buyback Program
Dec 19, 2025
Riken Technos Corporation has completed a share buyback program authorized by its board on October 31, 2025, acquiring a total of 1,483,300 common shares for approximately ¥1.9999 billion through market purchases on the Tokyo Stock Exchange. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.