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TOKAI RIKA CO., LTD. (JP:6995)
:6995
Japanese Market
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TOKAI RIKA CO., LTD. (6995) AI Stock Analysis

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JP:6995

TOKAI RIKA CO., LTD.

(6995)

Rating:77Outperform
Price Target:
¥2,764.00
▲(9.60%Upside)
TOKAI RIKA CO., LTD. demonstrates strong financial performance with robust profitability and stability. The technical analysis reflects a bullish trend, although the stock is currently overbought. The valuation indicates the stock is undervalued, providing an attractive opportunity for investors. The absence of significant earnings call guidance or corporate events reduces potential volatility, enhancing the stock's appeal.

TOKAI RIKA CO., LTD. (6995) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionTOKAI RIKA CO., LTD. is a Japanese automotive parts manufacturer specializing in the development and production of control systems and safety equipment for vehicles. The company operates in sectors including automotive electronics, interior systems, and safety systems, providing a wide range of products such as steering wheels, ignition switches, and seat belts.
How the Company Makes MoneyTOKAI RIKA CO., LTD. generates revenue primarily through the manufacturing and sale of automotive components to major automobile manufacturers. The company has established strong partnerships with leading car manufacturers, which serve as key revenue streams. Their product offerings include electronic control devices, switches, and safety systems, which are integral to vehicle functionality and safety. The company's commitment to innovation and quality ensures sustained demand from its clients. Additionally, strategic collaborations and investments in research and development contribute to its earnings by expanding its product lineup and enhancing technological capabilities.

TOKAI RIKA CO., LTD. Financial Statement Overview

Summary
TOKAI RIKA CO., LTD. exhibits strong financial performance with robust profitability, a solid balance sheet indicating financial stability, and efficient cash flow management. The company is well-positioned in the auto parts industry, showing resilience and growth potential.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue617.66B623.56B553.12B487.30B440.06B
Gross Profit89.66B91.58B64.65B54.97B52.12B
EBITDA60.81B48.88B36.20B27.38B32.61B
Net Income27.81B24.85B10.90B3.57B12.03B
Balance Sheet
Total Assets510.94B519.72B456.15B447.83B419.26B
Cash, Cash Equivalents and Short-Term Investments98.27B78.52B70.03B62.78B76.90B
Total Debt11.06B11.25B10.99B10.89B10.97B
Total Liabilities173.06B180.23B159.75B162.30B148.99B
Stockholders Equity316.07B317.87B277.38B268.71B255.25B
Cash Flow
Free Cash Flow8.57B26.40B4.22B-3.40B18.52B
Operating Cash Flow39.31B53.27B26.75B14.68B34.68B
Investing Cash Flow-26.17B-31.47B-8.70B-26.00B-27.50B
Financing Cash Flow-7.98B-22.57B-6.08B-6.44B-4.53B

TOKAI RIKA CO., LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2522.00
Price Trends
50DMA
2247.40
Positive
100DMA
2195.86
Positive
200DMA
2152.83
Positive
Market Momentum
MACD
67.39
Negative
RSI
64.71
Neutral
STOCH
61.45
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 2522 is above the 20-day moving average (MA) of 2367.65, above the 50-day MA of 2247.40, and above the 200-day MA of 2152.83, indicating a bullish trend. The MACD of 67.39 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 61.45 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥142.24B8.86
3.49%2.11%16.65%
77
Outperform
¥213.24B8.24
3.87%-1.35%21.33%
77
Outperform
¥199.14B7.31
2.93%0.49%27.98%
74
Outperform
¥107.49B9.09
4.01%1.71%-11.98%
70
Outperform
¥214.37B27.53
1.53%-0.78%-2.01%
67
Neutral
¥264.20B13.616.49%2.55%5.08%-13.04%
67
Neutral
¥219.07B25.99
4.52%3.58%-17.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6995
TOKAI RIKA CO., LTD.
2,471.00
815.00
49.21%
JP:5191
Sumitomo Riko Company Limited
1,918.00
725.82
60.88%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
3,270.00
1,721.87
111.22%
JP:7283
Aisan Industry Co., Ltd.
1,696.00
535.37
46.13%
JP:7296
F.C.C.Co., Ltd.
2,896.00
1,021.64
54.51%
JP:7313
TS Tech Co., Ltd.
1,837.00
252.33
15.92%

TOKAI RIKA CO., LTD. Corporate Events

TOKAI RIKA Reports Q1 Financial Results with Mixed Performance
Jul 30, 2025

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.

TOKAI RIKA Completes Treasury Shares Disposal for Stock Compensation
Jun 30, 2025

TOKAI RIKA CO., LTD. has completed the payment procedure for the disposal of treasury shares as restricted stock compensation, following a resolution by its Board of Directors. This disposal involves 26,681 shares of common stock, valued at 57,630,960 yen, and is allocated to three directors and six corporate officers, aiming to align their interests with the company’s performance.

The most recent analyst rating on (JP:6995) stock is a Sell with a Yen1800.00 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 Implements Restricted Stock Compensation Plan
Jun 13, 2025

TOKAI RIKA CO., LTD. has announced the disposal of 26,681 treasury shares as part of a restricted stock compensation plan aimed at enhancing corporate value and aligning management interests with shareholders. This initiative, approved by the company’s Board of Directors, is designed to incentivize directors and corporate officers by granting them shares with specific transfer restrictions, thereby promoting long-term commitment and responsibility.

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.

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.Date of analysis: Jul 24, 2025