Riken Keiki Co., Ltd. (7734) AI Stock Analysis

• Market Cap: ¥145.04B
• Dividend Yield: 1.29%
• Average Volume (3M): 50.29K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.85
• Revenue Growth: 13.27%
• EPS Growth: -1.75%
• Country: JP
• Employees: 1,349
• Sector: Industrials
• Sector Strength: 73
• Industry: Security & Protection Services
• EPS (TTM): 46.55
• Shares Outstanding: 47,322,000
• 10 Day Avg. Volume: 54,390
• 30 Day Avg. Volume: 50,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,333.00
• Price Target Upside: 7.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥3,333.00 ▲(7.86% Upside)

Riken Keiki Co., Ltd. has a strong financial foundation, which is the most significant factor in its overall score. However, technical indicators suggest bearish momentum, which could pose short-term risks. The valuation is reasonable, but not particularly compelling. The absence of recent earnings call data and notable corporate events limits additional insights.

Riken Keiki Co., Ltd. Business Overview & Revenue Model

Company Description

Riken Keiki Co., Ltd. (7734) is a Japanese company specializing in the development, manufacturing, and distribution of gas detection and monitoring equipment. The company operates in sectors such as industrial safety, environmental monitoring, and energy industries. Its core products include gas detectors, sensors, and related systems that are essential for ensuring safety and compliance in various industrial applications.

How the Company Makes Money

Riken Keiki Co., Ltd. generates revenue primarily through the sale of its gas detection and monitoring equipment. The company's key revenue streams include the production and sale of fixed and portable gas detectors, sensors, and integrated systems designed for industrial, commercial, and residential safety applications. Riken Keiki serves a diverse customer base, including companies in the petrochemical, chemical, semiconductor, and energy sectors, where safety and environmental compliance are crucial. Additionally, the company may engage in partnerships or collaborations to expand its product offerings and market reach, further contributing to its earnings.

Riken Keiki Co., Ltd. Financial Statement Overview

Summary

Riken Keiki Co., Ltd. exhibits strong financial health with consistent revenue growth and solid profitability. The company maintains a low debt-to-equity ratio and impressive return on equity. While the financial performance is robust, slight declines in EBIT and EBITDA margins and historical volatility in free cash flow warrant attention.

Income Statement

Riken Keiki Co., Ltd. has shown strong revenue growth over the years, with a notable increase from the previous year. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. However, there was a slight decline in EBIT and EBITDA margins in the latest annual data, suggesting a potential increase in operating expenses or cost of goods sold.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, reflecting strong leverage management. The return on equity is impressive, showing efficient utilization of shareholder funds. The equity ratio indicates a high proportion of assets financed by equity, reinforcing the company's financial stability.

Cash Flow

Riken Keiki's cash flow position is robust, with a significant improvement in free cash flow in the latest period. The operating cash flow to net income ratio signifies effective cash generation from operations. However, historical volatility in free cash flow growth rates suggests potential risks in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.04B	49.04B	45.58B	45.00B	37.36B	32.21B
Gross Profit	24.63B	23.91B	23.43B	23.16B	18.43B	15.38B
EBITDA	13.46B	13.46B	14.31B	13.71B	10.73B	8.22B
Net Income	8.01B	8.01B	8.38B	8.67B	5.96B	4.69B
Balance Sheet
Total Assets	92.76B	92.76B	88.59B	79.75B	71.61B	64.33B
Cash, Cash Equivalents and Short-Term Investments	23.25B	23.25B	21.59B	22.02B	21.50B	15.93B
Total Debt	3.33B	3.33B	3.20B	3.11B	3.56B	3.80B
Total Liabilities	15.26B	15.26B	16.14B	16.36B	14.75B	11.71B
Stockholders Equity	77.50B	77.50B	72.45B	63.38B	56.16B	51.03B
Cash Flow
Free Cash Flow	0.00	5.46B	-416.15M	3.46B	8.18B	1.30B
Operating Cash Flow	0.00	6.30B	2.22B	4.57B	9.03B	4.09B
Investing Cash Flow	0.00	-650.16M	-2.46B	-648.02M	-2.57B	-2.76B
Financing Cash Flow	0.00	-4.17B	-2.46B	-4.26B	-2.95B	-2.47B

Riken Keiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3090.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7734, the sentiment is Negative. The current price of 3090 is below the 20-day moving average (MA) of 3273.00, below the 50-day MA of 3145.06, and above the 200-day MA of 3079.35, indicating a neutral trend. The MACD of -11.94 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 11.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7734.

Riken Keiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6870	77 Outperform	¥9.63B	8.70		4.34%	-0.57%	6.94%
6809	77 Outperform	¥37.26B	13.96		3.47%	2.16%	35.53%
6744	74 Outperform	¥236.69B	21.74		1.95%	11.91%	21.70%
1909	73 Outperform	¥52.23B	11.83		0.76%	4.95%	20.09%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
7734	63 Neutral	¥145.04B	18.12		1.29%	13.27%	-1.75%

Riken Keiki Co., Ltd. Corporate Events

Riken Keiki Completes Treasury Shares Disposal for Stock Compensation

Riken Keiki Co., Ltd. has completed the payment procedures for the disposal of 7,399 treasury shares as part of its restricted stock compensation plan. This move, resolved by the Board of Directors, is aimed at compensating four directors, excluding audit and supervisory committee members and outside directors, and reflects the company’s strategic approach to aligning management interests with shareholder value.

Riken Keiki Implements Restricted Stock Compensation Plan

Riken Keiki Co., Ltd. has announced the disposal of 7,399 treasury shares as part of a restricted stock compensation plan for its directors. This move aims to provide long-term incentives and align the interests of directors with shareholders by imposing a 30-year transfer restriction on the shares, reflecting the company’s commitment to sustainable growth and stakeholder value.

Riken Keiki Announces Corrections to Financial Results

Riken Keiki Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ending March 31, 2025, due to errors in the reported production, orders received, and sales data. These corrections reflect adjustments in the composition ratios and amounts for their gas detection devices and other measurement tools, impacting the company’s financial reporting and potentially influencing stakeholder perceptions.

Riken Keiki Announces Board Changes Ahead of Annual Meeting

Riken Keiki Co., Ltd. announced an informal change in its board of directors, with Shuichi Takemoto being proposed as a new director, replacing the retiring Takehito Miyaguchi. This change, pending approval at the upcoming Annual General Meeting, could bring fresh perspectives to the company’s governance, potentially impacting its strategic direction and stakeholder relations.

Riken Keiki Co., Ltd. Increases Year-End Dividend for FY 2025

Riken Keiki Co., Ltd. announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, raising it to ¥25 per share, up from the previously announced ¥20. This decision reflects the company’s policy of returning profits to shareholders through stable and continuous dividends, considering financial conditions and shareholder equity ratios.

Riken Keiki Co., Ltd. Reports Fiscal Year 2025 Financial Results and Positive Outlook for 2026

Riken Keiki Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 7.6% increase in net sales to 49,038 million yen. However, the company experienced declines in operating and ordinary profits by 7.3% and 11.7%, respectively. The company implemented a 2-for-1 share split effective April 1, 2024, which impacted earnings per share calculations. Despite the profit declines, the company increased its total assets and net assets, reflecting a strong equity ratio of 83.5%. The dividend per share was adjusted to 45 yen, with plans to increase it to 50 yen in the next fiscal year. The financial forecast for the fiscal year ending March 31, 2026, anticipates a 6% rise in net sales and a 12.8% increase in operating profit, indicating a positive outlook for the company.