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TOKAI RIKA CO., LTD. (JP:6995)
:6995
Japanese Market
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TOKAI RIKA CO., LTD. (6995) AI Stock Analysis

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JP:6995

TOKAI RIKA CO., LTD.

(6995)

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Outperform 73 (OpenAI - Gpt-5.6Sol)
Rating:73Outperform
Price Target:
¥3,401.00
▲(9.18% Upside)
Action:Reiterated
Date:09/11/26
The score is driven primarily by solid financial performance (low leverage and improving margins) and attractive valuation (low P/E and strong dividend yield). These positives are tempered by weaker near-term technicals (price below 20/50-day averages and subdued momentum) and cash-flow consistency risk due to volatile free cash flow.
Positive Factors
Conservative balance sheet
Very low leverage gives TOKAI RIKA substantial financial flexibility as an automotive supplier. The expanding equity base further strengthens its capital position, supporting investment, resilience through industry cycles, and the ability to pursue growth without relying heavily on external debt.
Negative Factors
Volatile free cash flow
Free cash flow has not followed the improvement in operating cash flow consistently, with large swings across recent years. Such variability can reflect working-capital movements or elevated investment needs, making discretionary spending, shareholder distributions, and cash planning less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives TOKAI RIKA substantial financial flexibility as an automotive supplier. The expanding equity base further strengthens its capital position, supporting investment, resilience through industry cycles, and the ability to pursue growth without relying heavily on external debt.
Read all positive factors

TOKAI RIKA CO., LTD. (6995) vs. iShares MSCI Japan ETF (EWJ)

TOKAI RIKA CO., LTD. Business Overview & Revenue Model

Company Description
Tokai Rika Co., Ltd., established in 1948 and based in Niwa-gun, Japan, develops and markets a wide array of systems and devices. The company's primary product lines encompass human interface and control systems, security solutions, and safety com...
How the Company Makes Money
TOKAI RIKA primarily makes money by supplying automotive components to vehicle OEMs and their supply chains under production programs tied to specific vehicle models and platforms. Revenue is largely generated from (1) mass-production sales of HMI...

TOKAI RIKA CO., LTD. Financial Statement Overview

Summary
Overall financials are solid, supported by a very conservative balance sheet (debt-to-equity ~0.03–0.04) and improving profitability (net margin rising from ~0.7% in 2022 to ~4.5% in 2025; EBIT margin up to ~6.5%). Offsetting this, revenue growth has been uneven and free cash flow is volatile and relatively low in 2025–2026 (~8.5B), indicating some cash-conversion and cyclicality risk.
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue618.38B644.70B617.66B623.56B553.12B487.30B
Gross Profit90.62B91.91B89.66B91.58B64.65B54.97B
EBITDA58.72B69.25B60.81B56.35B42.56B31.90B
Net Income25.41B29.47B27.81B24.85B10.90B3.57B
Balance Sheet
Total Assets514.10B548.33B510.94B519.72B456.15B447.83B
Cash, Cash Equivalents and Short-Term Investments113.42B117.79B98.27B78.52B70.03B62.78B
Total Debt10.00B12.06B11.06B11.25B10.99B10.89B
Total Liabilities175.68B176.81B173.06B180.23B159.74B162.29B
Stockholders Equity316.37B347.77B316.08B317.87B277.38B268.71B
Cash Flow
Free Cash Flow0.008.52B8.57B26.40B4.22B-3.40B
Operating Cash Flow0.0043.75B39.31B53.27B26.75B14.68B
Investing Cash Flow0.00-17.29B-26.17B-31.45B-8.23B-26.00B
Financing Cash Flow0.00-10.93B-7.98B-22.57B-6.54B-6.44B

TOKAI RIKA CO., LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3115.00
Price Trends
50DMA
3064.54
Negative
100DMA
2990.61
Positive
200DMA
2997.60
Positive
Market Momentum
MACD
-7.71
Positive
RSI
48.45
Neutral
STOCH
28.31
Neutral
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 3115 is above the 20-day moving average (MA) of 3077.10, above the 50-day MA of 3064.54, and above the 200-day MA of 2997.60, indicating a neutral trend. The MACD of -7.71 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥620.39B9.8511.56%16.21%12.73%81.53%
74
Outperform
¥435.39B14.38―4.95%1.58%-25.77%
73
Outperform
¥261.05B8.99―3.93%6.29%21.23%
70
Outperform
¥58.38B5.16―1.94%2.52%-4.94%
70
Outperform
¥148.65B16.15―3.35%5.91%37.21%
64
Neutral
¥208.90B25.65―5.18%0.39%24.56%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6995
TOKAI RIKA CO., LTD.
3,055.00
600.96
24.49%
JP:7282
Toyoda Gosei Co
1,067.00
376.43
54.51%
JP:7280
Mitsuba Corporation
1,290.00
396.45
44.37%
JP:7287
Nippon Seiki Co., Ltd.
2,538.00
905.97
55.51%
JP:7313
TS Tech Co., Ltd.
1,777.00
68.63
4.02%
JP:7988
Nifco Inc.
2,546.50
438.75
20.82%

TOKAI RIKA CO., LTD. Corporate Events

Tokai Rika Grows Quarterly Sales But Suffers Profit Decline on Cost and Pricing Pressures
Jul 30, 2026
Tokai Rika reported consolidated net sales of ¥165.2 billion for the three months ended June 30, 2026, up 8.2% year on year, driven by higher production volumes, favorable foreign exchange and cost reductions across regions. Despite revenue g...
Tokai Rika Extends Employee Share-Based Remuneration Trust and Adds ¥4.3 Billion in Shares
Jul 30, 2026
Tokai Rika has decided to amend its share-based remuneration system for employees, extending the duration of the associated trust and revising share delivery rules. The board-approved changes aim to continue the Share Delivery Trust for Employees,...
Tokai Rika to Dispose of Treasury Shares for Employee Stock Remuneration Trust
Jul 30, 2026
Tokai Rika has approved the disposal of 1.3 million treasury shares as part of its continuation of a share-based remuneration system for employees, with the shares to be transferred to a trust managed by Sumitomo Mitsui Trust Bank. The disposal, p...
Tokai Rika Sees Profit Decline Amid Sales Growth, Raises Dividend Outlook
Jul 30, 2026
Tokai Rika reported consolidated net sales of ¥165.3 billion for the three months ended June 30, 2026, up 8.2% year on year, while operating profit and ordinary profit declined 2.0% and 5.9% respectively, and profit attributable to owners of ...
Tokai Rika Completes Treasury Share Disposal for Executive Restricted Stock
Jun 30, 2026
Tokai Rika Co., Ltd. has completed payment procedures for the disposal of treasury shares used in its restricted stock compensation program for executives, following a board resolution adopted earlier in June 2026. The transaction involved issuing...
Tokai Rika Allocates Treasury Shares for Executive Restricted Stock Plan
Jun 12, 2026
Tokai Rika will dispose of 37,158 treasury shares as restricted stock compensation for three internal directors and seven corporate officers, with a total value of about ¥106 million at ¥2,864 per share. The move forms part of a broader ...
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: Sep 11, 2026