NPR-RIKEN CORPORATION (6209) AI Stock Analysis

• Market Cap: ¥119.39B
• Dividend Yield: 3.82%
• Average Volume (3M): 61.71K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.03
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 7,036
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 136.59
• Shares Outstanding: 28,247,910
• 10 Day Avg. Volume: 60,270
• 30 Day Avg. Volume: 61,713
• PEG Ratio: -0.11
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥5,273.00 ▲(45.86% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by strong financial stability (low leverage and high equity ratio) and attractive valuation (low P/E and solid dividend yield). Technicals are supportive due to an established uptrend, but overbought momentum signals (high RSI and stochastic) and the recent drop in net income and free cash flow meaningfully cap the rating.

Positive Factors

Sustained revenue growth

A 22.9% revenue increase year-over-year indicates expanding end-market demand or improved share in auto components. Durable top-line expansion supports scale, absorption of fixed costs, and provides runway for reinvestment in precision manufacturing and R&D over the medium term.

Robust operating margins

Healthy EBITDA and gross margins point to structural operational efficiency and pricing or cost advantages in precision parts. Sustained margin levels support cash generation and buffer cyclicality typical in auto supply chains, aiding multi-quarter financial resilience.

Very low leverage and strong equity base

Low leverage and a high equity ratio denote strong balance sheet flexibility, enabling capital allocation for capex, product development or downturns without heavy refinancing. This structural financial strength reduces solvency risk and supports long-term strategy execution.

Negative Factors

Sharp decline in net profitability

A marked drop in net margin signals volatility in bottom-line performance and potential one-off or structural cost pressures. Persistently lower profitability would limit retained earnings, reduce return metrics, and constrain long-term capital for R&D or dividend coverage.

Declining free cash flow

A sustained fall in free cash flow weakens the company's ability to self-fund capex, pay dividends, or reduce debt. Even with adequate operating cash conversion ratios, persistent FCF declines constrain financial flexibility and heighten vulnerability during industry cyclicality.

Lower return on equity

A reduced ROE reflects diminished profit generation from shareholder capital, signaling lower capital efficiency. If ROE does not recover, it implies weaker shareholder returns and potential challenges in funding growth without diluting capital or increasing leverage.

NPR-RIKEN CORPORATION Business Overview & Revenue Model

Company Description

NPR-Riken Corporation, together with its subsidiaries, manufactures and sells automobile engine parts, marine engine parts, and other products in Japan and internationally. The company offers automobile products, including piston rings for motorcar, motorcycle, and other internal combustion engine use; valve seat inserts; other automobile engine parts, including composite camshafts, cylinder liners, valve lifters/valve guides/rocker bridges, and valve rocker arm and others. It also provides marine and industrial piston rings; sealing rings; and metal injection molding parts for industrial equipment, office automation equipment, leisure goods, etc. In addition, the company offers compressor parts and medical equipment parts, such as dental implants. NPR-Riken Corporation is headquartered in Tokyo, Japan.

How the Company Makes Money

NPR-RIKEN CORPORATION generates revenue through the production and sale of precision components for the automotive and electronics sectors. The company's revenue model is primarily based on direct sales of its products to manufacturers and OEMs (Original Equipment Manufacturers). Key revenue streams include automotive component sales, which account for a significant portion of its income, and electronics components that serve various applications. Additionally, NPR-RIKEN benefits from strategic partnerships with major players in the automotive and electronics industries, enhancing its market reach and enabling collaborative development projects. The company's focus on research and development also allows it to innovate and introduce new products, further driving revenue growth.

NPR-RIKEN CORPORATION Financial Statement Overview

Summary

Strong revenue growth (+22.9% from 2024 to 2025) and solid operational efficiency (EBITDA margin 13.5%) support the score. This is tempered by a sharp decline in net income that reduced profitability (net margin 5.1% vs. 19% in 2024) and weaker free cash flow (-17.6%). Balance sheet strength (low debt-to-equity 0.13; equity ratio 66.3%) remains a key positive.

Income Statement

NPR-RIKEN CORPORATION has demonstrated strong revenue growth, with a 22.9% increase from 2024 to 2025. The gross profit margin is robust at 23.9% for 2025, though down from previous years. The net profit margin for 2025 is 5.1%, indicating profitability but a decline from 19% in 2024 due to a sharp decrease in net income. EBITDA margin for 2025 is impressive at 13.5%, suggesting strong operational efficiency despite the drop in net income.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.13 in 2025, indicating low leverage. The return on equity (ROE) for 2025 is 6%, which is lower than the previous year due to reduced net income. The equity ratio of 66.3% reflects a strong equity base relative to assets, enhancing financial stability.

Cash Flow

Free cash flow decreased by 17.6% from 2024 to 2025, reflecting reduced liquidity. The operating cash flow to net income ratio is high at 1.99 for 2025, indicating effective cash generation relative to net income. The free cash flow to net income ratio stands at 1.17, suggesting adequate free cash flow coverage despite the decline in net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	168.97B	170.34B	138.59B	86.38B	78.37B	69.72B
Gross Profit	41.59B	40.79B	29.98B	17.24B	17.45B	14.55B
EBITDA	21.66B	23.07B	36.69B	9.48B	10.16B	7.65B
Net Income	9.54B	8.76B	26.32B	4.32B	4.33B	1.88B
Balance Sheet
Total Assets	211.46B	219.04B	218.58B	123.73B	115.71B	110.54B
Cash, Cash Equivalents and Short-Term Investments	26.71B	28.02B	24.44B	23.82B	16.21B	12.61B
Total Debt	18.68B	19.34B	19.79B	10.00B	10.00B	10.00B
Total Liabilities	60.87B	64.37B	69.41B	28.75B	28.63B	30.40B
Stockholders Equity	142.28B	145.25B	140.55B	88.57B	81.22B	74.92B
Cash Flow
Free Cash Flow	0.00	10.22B	12.40B	8.30B	4.01B	4.13B
Operating Cash Flow	0.00	17.48B	18.50B	10.96B	6.42B	7.39B
Investing Cash Flow	0.00	-7.08B	-13.55B	-3.85B	-3.82B	-2.91B
Financing Cash Flow	0.00	-8.40B	-8.62B	-1.45B	-1.52B	-1.51B

NPR-RIKEN CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3615.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6209, the sentiment is Positive. The current price of 3615 is below the 20-day moving average (MA) of 4013.75, below the 50-day MA of 3783.90, and above the 200-day MA of 3063.20, indicating a bullish trend. The MACD of 193.94 indicates Negative momentum. The RSI at 84.98 is Negative, neither overbought nor oversold. The STOCH value of 93.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6209.

NPR-RIKEN CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6209	81 Outperform	¥119.39B	10.36	―	3.82%	―	―
6463	80 Outperform	¥93.79B	11.06	―	3.85%	-4.47%	29.68%
7292	72 Outperform	¥74.71B	11.57	―	3.21%	4.44%	14.91%
7231	71 Outperform	¥85.87B	7.70	―	3.66%	-6.79%	303.74%
7241	68 Neutral	¥104.97B	7.32	―	3.88%	-7.35%	43.31%
5988	66 Neutral	¥44.37B	77.23	―	5.35%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

NPR-RIKEN CORPORATION Corporate Events

NPR-RIKEN Lifts Profit Outlook and Dividend Despite Lower Sales

NPR-RIKEN reported consolidated net sales of ¥121.36 billion for the nine months to December 31, 2025, down 5% year on year, but achieved operating profit of ¥9.87 billion and ordinary profit of ¥13.51 billion, rising 6.1% and 14.4% respectively, with profit attributable to owners of parent jumping 41.1% to ¥10.62 billion. Earnings per share climbed to ¥395.05, net assets increased to ¥160.82 billion with an equity ratio of 68.3%, and the company raised its full-year dividend forecast to ¥165 per share alongside an upward revision to full-year profit guidance, signaling stronger profitability and enhanced shareholder returns despite softer top-line growth.

For the full year ending March 31, 2026, the company now projects net sales of ¥160 billion, down 6.1% from the prior year, but expects ordinary profit to edge up 2.2% to ¥15 billion and profit attributable to owners of parent to surge 25.6% to ¥11 billion, implying further EPS gains to ¥409.06. The improved earnings outlook, coupled with the dividend increase and a modest rise in equity and reduced treasury share balance, underscores management’s confidence in profit resilience, more efficient capital use, and an ongoing commitment to shareholder-friendly policies in a challenging demand environment.

The most recent analyst rating on (JP:6209) stock is a Buy with a Yen4427.00 price target. To see the full list of analyst forecasts on NPR-RIKEN CORPORATION stock, see the JP:6209 Stock Forecast page.

NPR-RIKEN Lifts Earnings and Dividend Forecasts on Weaker Yen and Efficiency Gains

NPR-RIKEN CORPORATION has raised its full-year consolidated earnings forecast for the fiscal year ending March 2026, citing a weaker-than-expected yen, progress in productivity-driven rationalization and synergies from management integration. The company now expects higher net sales, operating profit, ordinary profit and profit attributable to owners of the parent, with basic earnings per share revised upward from 334.77 yen to 409.06 yen.

In tandem with stronger earnings expectations, the company also increased its fiscal year-end dividend forecast, lifting the planned year-end dividend from 85 yen to 115 yen per share. As a result, the total annual dividend forecast rises from 135 yen to 165 yen, underscoring NPR-RIKEN’s emphasis on stable and enhanced shareholder returns while balancing growth investment, capital efficiency and financial soundness.

The most recent analyst rating on (JP:6209) stock is a Buy with a Yen4427.00 price target. To see the full list of analyst forecasts on NPR-RIKEN CORPORATION stock, see the JP:6209 Stock Forecast page.

NPR-RIKEN Renames and Relocates Key Subsidiaries in Group Reorganization

NPR-RIKEN CORPORATION has approved the renaming and head office relocation of its wholly owned subsidiaries Riken Corporation and Nippon Piston Ring Co., Ltd., effective April 1, 2026. Riken will become NPR-RIKEN NIIGATA CORPORATION and move its head office to Kashiwazaki, Niigata, while Nippon Piston Ring will be renamed NPR-RIKEN PRECISION CORPORATION with its head office relocated to Nogi-machi, Tochigi. These changes support the group’s shift to a business holding company structure organized by strategic business units, intended to dismantle legacy vertical business lines, strengthen integration between the two operations, and enhance synergy creation and overall corporate value within the NPR-RIKEN group.

The most recent analyst rating on (JP:6209) stock is a Buy with a Yen4163.00 price target. To see the full list of analyst forecasts on NPR-RIKEN CORPORATION stock, see the JP:6209 Stock Forecast page.

NPR-RIKEN Revamps Top Management Ahead of 2026 Group Restructuring

NPR-RIKEN CORPORATION announced a major overhaul of its top management alongside its planned transition to a business holding company with a divisional structure in April 2026, part of a broader group restructuring designed to accelerate proactive business development, enhance synergies and streamline governance. Effective April 1, 2026, Motonori Wakabayashi, currently Director and Executive Vice President and a former senior executive at Mizuho Financial Group and Mizuho Bank, will be promoted to Representative Director, President and COO, replacing Teruo Takahashi, who will remain on the board until retiring at the June 2026 shareholders’ meeting, while Director Masaaki Fujita will resign from the board on April 1, 2026 but continue as a managing executive officer, underscoring a reshaping of leadership to support the company’s next phase of growth and restructuring.

The most recent analyst rating on (JP:6209) stock is a Buy with a Yen3569.00 price target. To see the full list of analyst forecasts on NPR-RIKEN CORPORATION stock, see the JP:6209 Stock Forecast page.