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

• Market Cap: ¥198.74B
• Dividend Yield: 4.34%
• Average Volume (3M): 129.57K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.98
• Revenue Growth: -0.95%
• EPS Growth: 21.31%
• Country: JP
• Employees: 20,247
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): 60.39
• Shares Outstanding: 89,234,170
• 10 Day Avg. Volume: 163,980
• 30 Day Avg. Volume: 129,573
• PEG Ratio: 0.07
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.16
• 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: ¥2,474.00
• Price Target Upside: 8.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥2,474.00 ▲(8.80%Upside)

TOKAI RIKA CO., LTD. shows a strong overall stock score driven primarily by its financial performance and attractive valuation. The company's solid financial metrics and low P/E ratio make it an appealing investment in the auto parts industry. Technical indicators present a neutral outlook, suggesting stable market conditions.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	608.12B	617.66B	623.56B	553.12B	487.30B	440.06B
Gross Profit	86.48B	89.66B	91.58B	64.65B	54.97B	52.12B
EBITDA	39.44B	60.81B	48.88B	36.20B	27.38B	32.61B
Net Income	20.55B	27.81B	24.85B	10.90B	3.57B	12.03B
Balance Sheet
Total Assets	515.87B	510.94B	519.72B	456.15B	447.83B	419.26B
Cash, Cash Equivalents and Short-Term Investments	89.44B	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	166.82B	173.06B	180.23B	159.75B	162.30B	148.99B
Stockholders Equity	327.03B	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: 2274.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2274 is above the 20-day moving average (MA) of 2219.90, above the 50-day MA of 2168.10, and above the 200-day MA of 2121.42, indicating a bullish trend. The MACD of 39.78 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 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
6995	81 Outperform	¥198.74B	7.01		4.34%	-0.95%	21.31%
7296	78 Outperform	¥141.89B	8.92		4.36%	6.80%	31.44%
7283	75 Outperform	¥107.62B	8.01		4.36%	7.29%	13.03%
7220	70 Outperform	¥210.03B	26.98		1.56%	-0.78%	-2.01%
5191	69 Neutral	¥179.41B	6.54		4.17%	2.91%	47.09%
7313	67 Neutral	¥204.40B	24.25		5.02%	3.58%	-17.59%
Sector *	63 Neutral	$16.82B	11.32	-7.02%	2.91%	1.72%	-24.85%

TOKAI RIKA CO., LTD. Corporate Events

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.

TOKAI RIKA Announces Share Cancellation to Optimize Capital Structure

TOKAI RIKA CO., LTD. has announced a resolution to cancel 5,000,000 of its common stock shares, which represents 5.3% of the total shares issued before cancellation. This strategic move, scheduled for completion on May 30, 2025, is expected to impact the company’s share structure, potentially enhancing shareholder value and optimizing capital management.

TOKAI RIKA’s Strategic Relationship with Toyota Motor Corporation

TOKAI RIKA CO., LTD. announced its relationship with Toyota Motor Corporation, which holds 34.4% of its voting rights, classifying Toyota as an ‘other affiliated company.’ Despite this significant shareholding, TOKAI RIKA maintains operational independence, conducting its own research, development, production, and sales activities. The company’s substantial sales to the Toyota group highlight both the benefits and potential risks of this relationship, as changes in Toyota’s business could impact TOKAI RIKA’s financial results.

TOKAI RIKA Announces Increased Year-End Dividends

TOKAI RIKA CO., LTD. announced a resolution to pay year-end dividends of 50 yen per share, reflecting an increase from the previous fiscal year’s 39 yen. This decision underscores the company’s policy of balancing earnings with shareholder returns, aiming for a stable dividend payout using a 3% dividend-on-shareholders’ equity ratio as a baseline.