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

• Market Cap: ¥290.39B
• Dividend Yield: 3.36%
• Average Volume (3M): 178.46K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.91
• Revenue Growth: 1.36%
• EPS Growth: 139.77%
• Country: JP
• Employees: 20,247
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 89,234,170
• 10 Day Avg. Volume: 119,980
• 30 Day Avg. Volume: 178,456
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥3,878.00 ▲(24.49% Upside)
• Action: Reiterated Date: 11/11/25
• Date: Action: Reiterated 11/11/25

TOKAI RIKA CO., LTD. demonstrates strong financial performance with solid profitability and balance sheet stability. The technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The stock's attractive valuation further enhances its investment appeal, making it a compelling option in the auto parts industry.

Positive Factors

Balance Sheet Strength

Low leverage and a high equity ratio provide durable financial flexibility, supporting investment in program tooling and R&D and insulating the firm during automotive cycles. This capital structure allows TOKAI RIKA to fund new vehicle program launches and sustain dividends or buybacks without stressing liquidity.

Margin Improvement

Consistent margin expansion indicates improving operational efficiency and likely pricing or cost control advantages. Sustained higher margins translate into stronger recurring operating cash generation, enabling reinvestment in product development and cushioning profitability through cyclical downturns.

Stable OEM-Focused Business Model

Dependable per-vehicle revenue from long-term OEM contracts and a diversified product mix (interior, security, safety) create recurring demand and program-level visibility. Close OEM relationships support multi-year supply positions and reduce customer churn versus consumer-facing businesses.

Negative Factors

Cyclicality / OEM Exposure

Revenue and volumes are tightly linked to OEM production schedules and automotive cycle swings. Prolonged declines or model mix shifts at major customers can reduce sales quickly, causing underutilized capacity and margin pressure despite the company's structural strengths.

Free Cash Flow Volatility

Volatile free cash flow reduces predictability for capital allocation and can constrain investment timing, dividend consistency, or debt paydown. FCF swings often reflect capex and working-capital timing tied to program ramp-ups, making long-term planning more complex for management.

Recent Revenue Dip

A recent revenue decline, even amid longer-term growth, signals exposure to program timing, demand shifts, or customer mix changes. If persistent, revenue volatility could blunt operating leverage gains and slow investment in new product development critical for future competitiveness.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	31.90B	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: 3115.00
• 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 3115 is below the 20-day moving average (MA) of 3263.25, below the 50-day MA of 3217.30, and above the 200-day MA of 2701.87, indicating a bullish trend. The MACD of 38.54 indicates Negative momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 65.38 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
6995	81 Outperform	¥290.39B	9.05	―	3.36%	1.36%	139.77%
7283	77 Outperform	¥145.52B	9.89	―	3.30%	0.29%	9.87%
7296	74 Outperform	¥187.16B	12.58	―	4.47%	2.01%	25.09%
7220	71 Outperform	¥204.87B	106.69	―	1.93%	-3.23%	24.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥239.86B	45.93	―	4.77%	-3.71%	-51.81%

TOKAI RIKA CO., LTD. Corporate Events

Tokai Rika Lifts Nine-Month Earnings on Higher Auto Parts Demand and Cost Cuts

Tokai Rika reported consolidated net sales of ¥479.6 billion for the nine months ended December 31, 2025, up 4.4% year on year, driven mainly by higher production volumes and growth in sales to Toyota and Toyota-related customers, as well as increased contributions from HMI, smart system and safety-related products. Operating profit rose 7.2% to ¥29.5 billion as cost reductions and volume growth more than offset higher fixed costs and pressure on selling prices and materials, while profit attributable to owners of the parent increased to ¥25.4 billion, supported in part by gains on sales of investment securities; regionally, sales grew in Japan and the Americas, were flat in Asia, and operating profit gains were led by the Americas and Asia. The balance sheet strengthened with higher cash and deposits, rising shareholders’ equity and lower total liabilities, and the company maintained its full-year forecast of ¥640.0 billion in sales and ¥34.0 billion in operating profit, signaling confidence in continued demand from key automaker clients and sustained capital investment in production capacity and product development, which is likely to support its competitive position in the automotive components market.

The most recent analyst rating on (JP:6995) stock is a Buy with a Yen3490.00 price target. To see the full list of analyst forecasts on TOKAI RIKA CO., LTD. stock, see the JP:6995 Stock Forecast page.

Tokai Rika Lifts Nine-Month Profit and Raises Dividend Forecast for FY2025

Tokai Rika reported consolidated net sales of ¥479.7 billion for the nine months ended December 31, 2025, a 4.4% year-on-year increase, with operating profit up 7.2% to ¥29.6 billion and profit attributable to owners of parent rising 16.9% to ¥26.5 billion, reflecting improved profitability and a more than doubling of comprehensive income. The company strengthened its financial position as total assets and equity both increased, lifting the equity ratio to 65.3%, and it plans to raise the annual dividend from ¥95.00 to a forecast ¥105.00 per share for the year ending March 31, 2026, while slightly revising its full-year outlook to target modest sales growth and higher ordinary profit, signaling continued shareholder returns and stable earnings despite a projected dip in operating profit.

The most recent analyst rating on (JP:6995) stock is a Buy with a Yen3490.00 price target. To see the full list of analyst forecasts on TOKAI RIKA CO., LTD. stock, see the JP:6995 Stock Forecast page.

Tokai Rika Lifts Full-Year Earnings Forecast on Yen Weakness and Price Pass-Through

Tokai Rika revised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, raising projected net sales from 620 billion yen to 640 billion yen and increasing forecasts for operating profit, ordinary profit, and profit attributable to owners of the parent, which lifts expected earnings per share from 305.50 yen to 340.78 yen. The upward revision, approved by the board on February 2, 2026, reflects favorable foreign currency translation from yen depreciation and progress in passing cost increases through to prices, signaling stronger-than-anticipated profitability for the current fiscal year compared with prior guidance and the previous year.

The most recent analyst rating on (JP:6995) stock is a Buy with a Yen3490.00 price target. To see the full list of analyst forecasts on TOKAI RIKA CO., LTD. stock, see the JP:6995 Stock Forecast page.