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

• Market Cap: ¥226.44B
• Dividend Yield: 3.61%
• Average Volume (3M): 156.64K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.97
• Revenue Growth: -1.35%
• EPS Growth: 21.33%
• Country: JP
• Employees: 20,247
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): 60.90
• Shares Outstanding: 89,234,170
• 10 Day Avg. Volume: 152,600
• 30 Day Avg. Volume: 156,640
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,764.00
• Price Target Upside: 4.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥2,764.00 ▲(4.90% 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. Business Overview & Revenue Model

Company Description

TOKAI 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 Money

TOKAI 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	617.66B	623.56B	553.12B	487.30B	440.06B
Gross Profit	89.66B	91.58B	64.65B	54.97B	52.12B
EBITDA	60.81B	48.88B	36.20B	27.38B	32.61B
Net Income	27.81B	24.85B	10.90B	3.57B	12.03B
Balance Sheet
Total Assets	510.94B	519.72B	456.15B	447.83B	419.26B
Cash, Cash Equivalents and Short-Term Investments	98.27B	78.52B	70.03B	62.78B	76.90B
Total Debt	11.06B	11.25B	10.99B	10.89B	10.97B
Total Liabilities	173.06B	180.23B	159.75B	162.30B	148.99B
Stockholders Equity	316.07B	317.87B	277.38B	268.71B	255.25B
Cash Flow
Free Cash Flow	8.57B	26.40B	4.22B	-3.40B	18.52B
Operating Cash Flow	39.31B	53.27B	26.75B	14.68B	34.68B
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 Price: 2635.00
• 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:6995, the sentiment is Positive. The current price of 2635 is above the 20-day moving average (MA) of 2538.15, above the 50-day MA of 2366.76, and above the 200-day MA of 2197.86, indicating a bullish trend. The MACD of 77.00 indicates Negative momentum. The RSI at 72.57 is Negative, neither overbought nor oversold. The STOCH value of 88.52 is Negative, 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	80 Outperform	¥126.63B	10.70		3.42%	1.71%	-11.98%
7296	78 Outperform	¥151.76B	9.45		6.54%	2.11%	16.65%
6995	77 Outperform	¥226.44B	8.76		3.61%	-1.35%	21.33%
5191	77 Outperform	¥220.73B	8.10		2.60%	0.49%	27.98%
7220	70 Outperform	¥203.23B	31.21		1.58%	-4.23%	-28.48%
7313	67 Neutral	¥218.53B	32.83		4.53%	-2.24%	-43.32%
Sector *	66 Neutral	S$1.06B	25.38	6.20%	2.61%	4.19%	-33.09%

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.

TOKAI RIKA Completes Treasury Shares Disposal for Stock Compensation

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

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.