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

• Market Cap: ¥149.73B
• Dividend Yield: 1.41%
• Average Volume (3M): 58.42K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.85
• Revenue Growth: 13.27%
• EPS Growth: -1.75%
• Country: JP
• Employees: 1,349
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 46.55
• Shares Outstanding: 47,322,000
• 10 Day Avg. Volume: 73,540
• 30 Day Avg. Volume: 58,423
• 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: ¥3,592.00
• Price Target Upside: 16.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥3,592.00 ▲(16.06% Upside)

Riken Keiki Co., Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and solid profitability. The technical analysis indicates mixed momentum, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events does not impact the score.

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 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: Neutral
• Last Price: 3095.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7734, the sentiment is Neutral. The current price of 3095 is below the 20-day moving average (MA) of 3099.74, below the 50-day MA of 3169.16, and above the 200-day MA of 3013.33, indicating a neutral trend. The MACD of -23.35 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥9.70B	8.75	8.21%	4.31%	-0.57%	6.94%
6809	77 Outperform	¥38.99B	14.61	4.78%	3.30%	2.16%	35.53%
1909	77 Outperform	¥55.24B	12.51	15.44%	0.96%	4.95%	20.09%
7734	76 Outperform	¥149.73B	18.71	―	1.41%	13.27%	-1.75%
6744	74 Outperform	¥231.57B	21.27	―	1.98%	11.91%	21.70%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Riken Keiki Co., Ltd. Corporate Events

Riken Keiki Updates Strategy for Corporate Value Enhancement

Riken Keiki Co., Ltd. has announced an update on its initiative aimed at sustainable enhancement of corporate value by implementing management strategies that are conscious of cost of capital and stock price. This update reflects the company’s ongoing commitment to align its operations with market expectations and improve its financial performance, which could have significant implications for its stakeholders.

Riken Keiki Reports Increased Sales but Faces Profitability Challenges

Riken Keiki Co., Ltd. reported a significant increase in net sales by 20.6% for the three months ended June 30, 2025, compared to the previous year. However, the company experienced a decline in ordinary profit and net profit attributable to owners of the parent, indicating challenges in maintaining profitability despite increased sales. The financial forecast for the fiscal year ending March 31, 2026, projects continued growth in net sales and operating profit, suggesting a positive outlook for the company’s future performance.

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.