TOKAI RIKA CO., LTD. (6995) AI Stock Analysis

• Market Cap: ¥243.18B
• Dividend Yield: 3.57%
• Average Volume (3M): 129.38K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.94
• Revenue Growth: -1.35%
• EPS Growth: 21.33%
• Country: JP
• Employees: 20,247
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 156.58
• Shares Outstanding: 89,234,170
• 10 Day Avg. Volume: 118,480
• 30 Day Avg. Volume: 129,376
• PEG Ratio: 0.37
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 22.07
• 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

• Rating: 72 Outperform
• Price Target: ¥2,918.00 ▲(10.07% Upside)

The stock's overall score is driven primarily by its strong financial performance, characterized by profitability and balance sheet stability. While the valuation suggests the stock may be undervalued, technical indicators reveal some bearish momentum. The absence of recent earnings call insights or notable corporate events means these factors do not influence the score.

TOKAI RIKA CO., LTD. Business Overview & Revenue Model

Company Description

Tokai Rika Co., Ltd. produces and sells human interface systems and controls, security systems, safety systems, electronics, ornaments, and home devices. The company offers human interface systems and controls, including touchpads; multi-function, power window, steering, heater control, push start, fog lamp, power outer mirror, defogger, rheostat light control, and seat switches, as well as neutral start, parking brake, engine oil pressure, door lock, brake lamp, courtesy lamp, and buckup light sensing switches; and shift levers. It also provides security systems, such as smart key portable device and emergency keys, electronic key systems, powered/mechanical steering lock assemblies, immobilizers, remote keys, and key sets; and safety systems comprising seatbelts, steering wheels, door mirrors, and digital outer mirrors. In addition, the company offers electronic systems, such as power supply ECUs, immobilizer ECUs, speed and steering angle sensors, and custom ICs; and wheel covers, center caps, and emblems. Further, it provides entrance electric door locks and window lock monitoring systems; SMT and board lock connectors; and auto alarms. Tokai Rika Co., Ltd. was founded in 1948 and is headquartered in Niwa-gun, Japan.

How the Company Makes Money

TOKAI RIKA generates revenue primarily through the sale of its automotive components to major automotive manufacturers. The company has established long-term partnerships with several global automakers, which serve as key customers for its products. Revenue streams include direct sales of automotive parts, as well as potential royalties from proprietary technologies developed for automotive safety and security applications. The growing demand for electric vehicles and advanced driver-assistance systems (ADAS) also contributes to the company's earnings, as TOKAI RIKA continues to innovate and expand its product offerings in these areas.

TOKAI RIKA CO., LTD. Financial Statement Overview

Summary

TOKAI RIKA CO., LTD. exhibits a solid financial footing with consistent profitability, strong balance sheet stability, and efficient cash flow management. The company is well-positioned in the auto parts industry, showing resilience and growth potential in its financial metrics.

Income Statement

The company has demonstrated strong performance with increasing EBIT and EBITDA margins over the years, supported by a rising net profit margin. While there was a slight dip in revenue recently, overall revenue growth has been positive, indicating robust operational efficiency and profitability in the auto parts industry.

Balance Sheet

The balance sheet reflects strong financial health with a low debt-to-equity ratio and a high equity ratio, indicating solid financial stability. The return on equity has shown improvement, which highlights efficient use of equity to generate profits. Overall, the company maintains a healthy balance sheet with good leverage management.

Cash Flow

The cash flow statement reveals a mixed picture with strong operating cash flows but fluctuating free cash flow growth. Despite the decrease in free cash flow in the latest year, the company's ability to generate cash remains robust, supporting its operations and financial obligations effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	618.38B	617.66B	623.56B	553.12B	487.30B	440.06B
Gross Profit	90.62B	89.66B	91.58B	64.65B	54.97B	52.12B
EBITDA	63.28B	60.81B	48.88B	42.56B	27.38B	37.75B
Net Income	25.41B	27.81B	24.85B	10.90B	3.57B	12.03B
Balance Sheet
Total Assets	514.10B	510.94B	519.72B	456.15B	447.83B	419.26B
Cash, Cash Equivalents and Short-Term Investments	113.42B	98.27B	78.52B	70.03B	62.78B	76.90B
Total Debt	10.00B	11.06B	11.25B	10.99B	10.89B	10.97B
Total Liabilities	175.68B	173.06B	180.23B	159.75B	162.30B	148.99B
Stockholders Equity	316.37B	316.07B	317.87B	277.38B	268.71B	255.25B
Cash Flow
Free Cash Flow	0.00	8.57B	26.40B	4.22B	-3.40B	18.52B
Operating Cash Flow	0.00	39.31B	53.27B	26.75B	14.68B	34.68B
Investing Cash Flow	0.00	-26.17B	-31.47B	-8.70B	-26.00B	-27.50B
Financing Cash Flow	0.00	-7.98B	-22.57B	-6.08B	-6.44B	-4.53B

TOKAI RIKA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2651.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6995, the sentiment is Positive. The current price of 2651 is below the 20-day moving average (MA) of 2656.70, below the 50-day MA of 2657.61, and above the 200-day MA of 2298.16, indicating a bullish trend. The MACD of 23.13 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6995.

TOKAI RIKA CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7283	―	¥130.88B	10.85	―	3.53%	1.71%	-11.98%
5191	―	¥221.15B	8.00	―	3.34%	0.49%	27.98%
6995	―	¥243.18B	8.89	―	3.57%	-1.35%	21.33%
7296	―	¥149.63B	9.28	―	5.26%	2.11%	16.65%
7313	―	¥224.92B	33.85	―	4.71%	-2.24%	-43.32%
7220	―	¥214.70B	32.97	―	1.50%	-4.23%	-28.48%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

TOKAI RIKA CO., LTD. Corporate Events

TOKAI RIKA Reports Q1 Financial Results with Mixed Performance

TOKAI RIKA CO., LTD. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 0.5% compared to the previous year. However, the company experienced a significant decline in profit attributable to owners of the parent, dropping by 31.6%. The company’s forecast for the fiscal year ending March 31, 2026, anticipates a decrease in net sales and profits, indicating potential challenges ahead. Despite these financial results, the company maintains its dividend forecast, reflecting a commitment to shareholder returns.

The most recent analyst rating on (JP:6995) stock is a Sell with a Yen1900.00 price target. To see the full list of analyst forecasts on TOKAI RIKA CO., LTD. stock, see the JP:6995 Stock Forecast page.