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Riken Keiki Co., Ltd. (JP:7734)
:7734
Japanese Market
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Riken Keiki Co., Ltd. (7734) AI Stock Analysis

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JP:7734

Riken Keiki Co., Ltd.

(7734)

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Outperform 82 (OpenAI - 5.2)
Rating:82Outperform
Price Target:
¥4,217.00
▲(31.78% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial quality (robust growth, resilient profitability, and very low leverage), supported by bullish technicals (price above major moving averages and positive MACD). Valuation is reasonable (P/E ~13.4) with a modest yield, while the main offset is historical cash-flow volatility despite a recent rebound.
Positive Factors
Multi-year revenue growth
Sustained revenue expansion since 2022 demonstrates underlying demand for gas detection solutions and supports durable top-line momentum. For an industrial safety vendor, multi-year growth reflects widening product adoption, steady new system installs and recurring aftermarket replacement cycles that underpin revenue visibility.
Negative Factors
Volatile cash conversion
Inconsistent conversion of earnings to free cash flow creates uncertainty about sustainable internal funding for capex, dividends and working capital. Volatility in cash generation can force reliance on cash reserves and constrain strategic initiatives despite strong reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Sustained revenue expansion since 2022 demonstrates underlying demand for gas detection solutions and supports durable top-line momentum. For an industrial safety vendor, multi-year growth reflects widening product adoption, steady new system installs and recurring aftermarket replacement cycles that underpin revenue visibility.
Read all positive factors

Riken Keiki Co., Ltd. (7734) vs. iShares MSCI Japan ETF (EWJ)

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 exp...
How the Company Makes Money
Riken Keiki primarily makes money by selling gas detection products and associated solutions to industrial and institutional customers that need to prevent accidents and comply with safety regulations. Key revenue streams typically include (1) sal...

Riken Keiki Co., Ltd. Financial Statement Overview

Summary
Strong multi-year revenue growth with consistently high margins (gross ~48–51%, net ~18% in 2026) and a very conservative balance sheet (debt-to-equity ~0.04–0.07). Main risk is uneven cash conversion (notably weak/negative FCF vs. net income in 2024) and some operating margin normalization after 2023–2024 peaks.
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue51.35B55.21B49.04B45.58B45.00B37.36B
Gross Profit25.12B26.45B23.91B22.76B22.56B17.85B
EBITDA13.02B14.48B12.70B13.45B13.47B10.26B
Net Income7.91B9.96B8.01B8.38B8.67B5.96B
Balance Sheet
Total Assets93.83B101.05B92.76B88.59B79.75B71.61B
Cash, Cash Equivalents and Short-Term Investments22.93B27.93B23.25B21.59B22.02B21.50B
Total Debt2.00B3.87B3.33B3.20B3.11B3.56B
Total Liabilities15.44B15.67B15.26B16.14B16.36B14.75B
Stockholders Equity78.39B85.38B77.50B72.45B63.38B56.16B
Cash Flow
Free Cash Flow0.009.62B5.46B460.10M4.14B8.45B
Operating Cash Flow0.0011.13B6.30B2.61B5.19B9.25B
Investing Cash Flow0.00-1.81B-650.16M-2.46B-648.02M-2.57B
Financing Cash Flow0.00-4.59B-4.17B-2.46B-4.26B-2.95B

Riken Keiki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3200.00
Price Trends
50DMA
3378.09
Positive
100DMA
3348.08
Positive
200DMA
3296.48
Positive
Market Momentum
MACD
90.71
Positive
RSI
55.32
Neutral
STOCH
37.44
Neutral
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 3200 is below the 20-day moving average (MA) of 3571.75, below the 50-day MA of 3378.09, and below the 200-day MA of 3296.48, indicating a bullish trend. The MACD of 90.71 indicates Positive momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 37.44 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥171.32B16.731.39%12.59%26.31%
82
Outperform
¥106.76B19.730.82%8.60%28.39%
75
Outperform
¥297.30B21.262.42%4.46%23.01%
72
Outperform
¥13.80B12.633.98%4.54%-17.09%
65
Neutral
¥573.58B16.452.14%8.18%23.30%
64
Neutral
¥2.82T22.848.35%1.77%4.75%6.22%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7734
Riken Keiki Co., Ltd.
3,650.00
774.97
26.96%
JP:9735
Secom Co
6,350.00
1,123.97
21.51%
JP:1909
Nippon Dry-Chemical Co., Ltd.
3,740.00
2,566.41
218.68%
JP:2331
Sohgo Security Services Co., Ltd.
1,126.00
145.04
14.79%
JP:6744
Nohmi Bosai Ltd.
4,930.00
1,310.79
36.22%
JP:6870
Fenwal Controls of Japan, Ltd.
2,443.00
789.04
47.71%

Riken Keiki Co., Ltd. Corporate Events

Riken Keiki Sets 2026–2028 Plan to Drive Global Safety Growth and Boost Shareholder Returns
May 13, 2026
Riken Keiki has unveiled a new medium-term management plan covering fiscal 2026 to 2028 that aims to shift the company from a traditional detector manufacturer to a global partner delivering safety solutions. The plan emphasizes opening up oversea...
Riken Keiki Lifts Year-End Dividend, Boosting Shareholder Payout for FY2026
May 13, 2026
Riken Keiki Co., Ltd., listed on the Tokyo Stock Exchange Prime, has approved an increase in its year-end dividend for the fiscal year ended March 31, 2026. The board resolved to raise the fiscal year-end dividend to ¥30 per share from the pr...
Riken Keiki Lifts Earnings and Dividend, Foresees Moderate Growth in FY 2027
May 13, 2026
Riken Keiki reported consolidated net sales of ¥55.2 billion for the year ended March 31, 2026, up 12.6% year-on-year, with operating profit climbing 16.8% to ¥12.4 billion and net profit attributable to owners of parent rising 24.3% to ...
Riken Keiki Tightens Internal Controls and Governance Framework Across Group
Mar 13, 2026
Riken Keiki has revised its Basic Policy for the Internal Control System following a board resolution on March 13, 2026, strengthening its framework for legal compliance, ethics, and governance across the group. The company emphasizes a code of co...
Riken Keiki Restructures Global Sales and Revamps Executive Lineup
Mar 2, 2026
Riken Keiki will reorganize its Global Sales Department into two units, Global Sales Department 1 and Global Sales Department 2, from April 1, 2026, in a move aimed at refining its overseas sales structure. The reshuffle is accompanied by changes ...
Riken Keiki Completes ¥562.7 Million Treasury Share Buyback
Feb 17, 2026
Riken Keiki Co., Ltd. has completed a share buyback of 170,000 common shares for a total of ¥562.7 million through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction repurchase system. The transaction, executed on February 17, 2026, fulfi...
Riken Keiki Launches Targeted Share Buyback to Boost Capital Efficiency
Feb 16, 2026
Riken Keiki Co., Ltd. has authorized the acquisition of up to 170,000 of its own common shares, representing about 0.37% of its outstanding stock, for a maximum total of ¥562.7 million. The buyback, to be executed via the Tokyo Stock Exchange...
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: May 15, 2026