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TOKAI RIKA CO., LTD.
(6995)
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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)
Market Cap
¥261.05B
Dividend Yield3.93%
Average Volume (3M)120.34K
Price to Earnings (P/E)9.0
Beta (1Y)0.90
Revenue Growth6.29%
EPS Growth21.23%
CountryJP
Employees19,381
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)299.74
Shares Outstanding89,234,170
10 Day Avg. Volume126,250
30 Day Avg. Volume120,340
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)0.72
Price to Sales (P/S)0.39
P/FCF Ratio29.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)291.34
Revenue Forecast (FY)¥665.60B
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
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 618.38B | 644.70B | 617.66B | 623.56B | 553.12B | 487.30B |
| Gross Profit | 90.62B | 91.91B | 89.66B | 91.58B | 64.65B | 54.97B |
| EBITDA | 58.72B | 69.25B | 60.81B | 56.35B | 42.56B | 31.90B |
| Net Income | 25.41B | 29.47B | 27.81B | 24.85B | 10.90B | 3.57B |
Balance Sheet | ||||||
| Total Assets | 514.10B | 548.33B | 510.94B | 519.72B | 456.15B | 447.83B |
| Cash, Cash Equivalents and Short-Term Investments | 113.42B | 117.79B | 98.27B | 78.52B | 70.03B | 62.78B |
| Total Debt | 10.00B | 12.06B | 11.06B | 11.25B | 10.99B | 10.89B |
| Total Liabilities | 175.68B | 176.81B | 173.06B | 180.23B | 159.74B | 162.29B |
| Stockholders Equity | 316.37B | 347.77B | 316.08B | 317.87B | 277.38B | 268.71B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 8.52B | 8.57B | 26.40B | 4.22B | -3.40B |
| Operating Cash Flow | 0.00 | 43.75B | 39.31B | 53.27B | 26.75B | 14.68B |
| Investing Cash Flow | 0.00 | -17.29B | -26.17B | -31.45B | -8.23B | -26.00B |
| Financing Cash Flow | 0.00 | -10.93B | -7.98B | -22.57B | -6.54B | -6.44B |
TOKAI RIKA CO., LTD. Technical Analysis
Positive
3115.00
Price Trends
3064.54
Negative
2990.61
Positive
2997.60
Positive
Market Momentum
-7.71
Positive
48.45
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥620.39B | 9.85 | 11.56% | 16.21% | 12.73% | 81.53% | |
74 Outperform | ¥435.39B | 14.38 | ― | 4.95% | 1.58% | -25.77% | |
73 Outperform | ¥261.05B | 8.99 | ― | 3.93% | 6.29% | 21.23% | |
70 Outperform | ¥58.38B | 5.16 | ― | 1.94% | 2.52% | -4.94% | |
70 Outperform | ¥148.65B | 16.15 | ― | 3.35% | 5.91% | 37.21% | |
64 Neutral | ¥208.90B | 25.65 | ― | 5.18% | 0.39% | 24.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:6995
TOKAI RIKA CO., LTD.
3,055.00
600.96
24.49%
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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.