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

• Market Cap: ¥152.08B
• Dividend Yield: 1.39%
• Average Volume (3M): 84.77K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.85
• Revenue Growth: 11.23%
• EPS Growth: 16.49%
• Country: JP
• Employees: 1,349
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 43.73
• Shares Outstanding: 47,322,000
• 10 Day Avg. Volume: 121,570
• 30 Day Avg. Volume: 84,773
• PEG Ratio: -3.46
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 2.44
• P/FCF Ratio: 21.93
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,958.00 ▲(22.16% Upside)

Riken Keiki Co., Ltd. scores well due to its strong financial performance, characterized by solid revenue growth and financial stability. However, technical indicators suggest bearish momentum, and the valuation is fair with moderate dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product demand, supporting long-term business expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, enhancing the company's ability to invest in growth opportunities and withstand economic downturns.

Cash Generation Ability

Strong cash generation supports operational flexibility and the ability to fund strategic initiatives without relying on external financing.

Negative Factors

Earnings Growth

Declining EBIT and EBITDA margins may indicate rising operational costs, potentially impacting profitability if not addressed.

Operating Margin Concerns

Sustained pressure on operating margins could affect the company's ability to maintain profitability, necessitating cost management efforts.

Cash Flow Volatility

Volatile cash flow growth can challenge financial planning and investment strategies, possibly affecting long-term financial stability.

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

Company Description

Riken Keiki Co., Ltd. manufactures and sells gas detection and monitoring equipment worldwide. It offers gas detection and indicator alarm systems for continuous monitoring; portable/personal gas monitors; portable gas leak checkers; entrusted experiment for measurement of leaked gas diffusion; toxic gas monitors/indicator alarm units; oxygen monitor alarm systems; portable combination gas monitors; optical gas indicator gas detection tubes; auto-emission and surface analyzers; gas indicators for medical use; and SALCON, a portable salinity analyzer. Riken Keiki Co., Ltd. was founded in 1939 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Riken Keiki generates revenue primarily through the sales of its gas detection and measurement instruments. The company has a diversified revenue model that includes direct sales to end-users, partnerships with distributors, and servicing contracts for maintenance and calibration of its devices. Key revenue streams include the sale of portable and fixed gas detectors, as well as related accessories and consumables. Additionally, Riken Keiki benefits from long-term contracts with industrial clients and government entities, which provide a stable income source. The company also invests in research and development to innovate and expand its product offerings, which helps to attract new customers and retain existing ones, further contributing to its earnings.

Riken Keiki Co., Ltd. Financial Statement Overview

Summary

Riken Keiki Co., Ltd. demonstrates strong financial health with consistent revenue growth, solid profitability, and prudent financial management. The company maintains a solid balance sheet with low debt and impressive return on equity. However, attention to operating margins and cash flow consistency is advisable.

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	51.35B	49.04B	45.58B	45.00B	37.36B	32.21B
Gross Profit	25.12B	23.91B	23.43B	23.16B	18.43B	15.38B
EBITDA	13.22B	13.46B	14.31B	13.71B	10.73B	8.22B
Net Income	7.91B	8.01B	8.38B	8.67B	5.96B	4.69B
Balance Sheet
Total Assets	93.83B	92.76B	88.59B	79.75B	71.61B	64.33B
Cash, Cash Equivalents and Short-Term Investments	22.93B	23.25B	21.59B	22.02B	21.50B	15.93B
Total Debt	2.00B	3.33B	3.20B	3.11B	3.56B	3.80B
Total Liabilities	15.44B	15.26B	16.14B	16.36B	14.75B	11.71B
Stockholders Equity	78.39B	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: Positive
• Last Price: 3240.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7734, the sentiment is Positive. The current price of 3240 is above the 20-day moving average (MA) of 3142.25, below the 50-day MA of 3299.30, and above the 200-day MA of 3021.84, indicating a neutral trend. The MACD of -9.72 indicates Negative momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 92.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6809	78 Outperform	¥56.97B	15.50	―	3.69%	4.46%	127.52%
1909	78 Outperform	¥63.78B	13.21	―	0.82%	7.10%	36.47%
6870	77 Outperform	¥10.46B	8.13	―	3.98%	4.35%	7.25%
6744	74 Outperform	¥237.30B	21.72	―	2.42%	9.55%	9.52%
7734	73 Outperform	¥152.08B	17.47	―	1.39%	11.23%	16.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Riken Keiki Co., Ltd. Corporate Events

Riken Keiki Reports Strong Financial Growth for First Half of 2025

Riken Keiki Co., Ltd. reported a significant increase in net sales and net profit for the six months ended September 30, 2025, with net sales rising by 12.8% year-on-year to 26,997 million yen and net profit attributable to owners of the parent increasing by 15.8% to 4,147 million yen. The company also announced a forecasted increase in annual dividends per share, indicating a strong financial position and commitment to shareholder returns.