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

JP:7734

Riken Keiki Co., Ltd.

(TSE/TYO:7734)

Select Model
Rating:78Outperform
Price Target:JPY 3,950.00â–²(13.83% Upside)
Action:reiterated
Date:08/17/26

Riken Keiki's strong financial performance, characterized by robust growth, high margins, and a solid balance sheet, is the primary driver of the score. The valuation is attractive given the company's fundamentals, while technical indicators suggest a neutral near-term trend. The overall score of 78 reflects a favorable investment profile with low financial risk and sustainable growth prospects.

Positive Factors
Revenue GrowthSustained revenue expansion indicates durable demand for gas detection and safety monitoring products. Continued growth supports operating scale, customer adoption and replacement-cycle opportunities across industrial applications.
Negative Factors
Cash Flow VolatilityUneven conversion of earnings into operating and free cash flow makes financial planning less predictable and may reflect working-capital or investment swings. Recent improvement is encouraging, but consistency remains an important execution risk.

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

-20%-10%0%10%20%30%JP:7734+1.39%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 158.19B
Dividend Yield
1.73%
Average Volume (3M)
111.77K
Price to Earnings (P/E)
15.5
Beta (1Y)
1.12
Revenue Growth
10.73%
EPS Growth
31.40%
Country
Japan
Employees
1,465
Sector
General
Sector Strength
55
Industry
Security & Protection Services

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

Company Description

Founded in 1939 and headquartered in Tokyo, Japan, Riken Keiki Co., Ltd. is a global manufacturer and distributor of advanced gas detection and monitoring equipment. Their comprehensive product portfolio serves diverse industrial and safety needs, in...

How the Company Makes Money

Riken Keiki makes money primarily by selling gas detection products and associated solutions to organizations that need to monitor for combustible, toxic, or oxygen-deficiency risks. Its core revenue stream is product sales of gas detection instrumen...

Riken Keiki Co., Ltd. Financial Statement Overview

Summary

Riken Keiki exhibits strong revenue growth (5-year CAGR >11%), high profitability (gross margin ~50%, EBIT margin >20%), and a robust balance sheet with minimal debt (D/E 0.045). Cash flow generation is healthy with high conversion of net income. Overall financial health is excellent.

Income Statement

88Very Positive

Balance Sheet

92Very Positive

Cash Flow

84Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue56.86B55.21B49.04B45.58B45.00B37.36B
Gross Profit27.51B26.45B23.91B22.76B22.56B17.85B
EBITDA15.46B15.48B13.46B14.31B13.71B10.73B
Net Income10.23B9.96B8.01B8.38B8.67B5.96B
Balance Sheet
Total Assets105.95B101.05B92.76B88.59B79.75B71.61B
Cash, Cash Equivalents and Short-Term Investments29.21B27.93B23.25B21.59B22.02B21.50B
Total Debt1.98B3.87B3.33B3.20B3.11B3.56B
Total Liabilities18.57B15.67B15.26B16.14B16.36B14.75B
Stockholders Equity87.37B85.38B77.50B72.45B63.38B56.16B
Cash Flow
Free Cash Flow09.62B5.46B460.10M4.14B8.45B
Operating Cash Flow011.13B6.30B2.61B5.19B9.25B
Investing Cash Flow0-1.81B-650.16M-2.46B-648.02M-2.57B
Financing Cash Flow0-4.59B-4.17B-2.46B-4.26B-2.95B

Riken Keiki Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price3470.00

Price Trends

50DMA3436.52Positive
100DMA3466.36Positive
200DMA3404.80Positive

Market Momentum

MACD-2.74Positive
RSI48.83Neutral
STOCH77.16Neutral

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 3470.00 is below the 20-day moving average (MA) of 3520.00, above the 50-day MA of 3436.52, and above the 200-day MA of 3404.80, indicating a neutral trend. The MACD of -2.74 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 77.16 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7734 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6744JP:674484OutperformJPY 268.05B18.45―2.79%6.33%33.61%
JP:7734JP:773478OutperformJPY 163.34B15.50―1.73%10.73%31.40%
JP:9735JP:973576OutperformJPY 3.02T24.678.70%1.62%4.15%5.56%
JP:2331JP:233170OutperformJPY 610.76B16.63―2.60%6.69%18.88%
JP:6870JP:687066NeutralJPY 10.93B11.60―4.09%4.70%-27.90%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7734JP:9735JP:2331JP:6744JP:6870Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7734 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7734Riken Keiki Co., Ltd.3470.00-45.83-1.30%
JP:9735Secom Co 6807.001734.1934.19%
JP:2331Sohgo Security Services Co., Ltd.1195.00164.1915.93%
JP:6744Nohmi Bosai Ltd.4450.00684.6118.18%
JP:6870Fenwal Controls of Japan, Ltd.1906.00220.1213.06%

Riken Keiki Co., Ltd. Corporate Events

Riken Keiki Posts Strong Q1 Results and Lifts Dividend Outlook

Aug 10, 2026

Riken Keiki Co., Ltd. reported consolidated net sales of ¥15,203 million for the three months ended June 30, 2026, up 12.2% year-on-year, with operating profit rising to ¥3,083 million. Profit attributable to owners of parent climbed 13.0%...

Riken Keiki Completes Treasury Share Disposal for Restricted Stock Plan

Jul 21, 2026

Riken Keiki Co., Ltd. has completed the payment procedures for a disposal of treasury shares under its restricted stock compensation program approved by the board on June 25, 2026. The transaction reflects the company’s ongoing use of share-bas...

Riken Keiki Grants Treasury Shares as Long-Term Restricted Stock to Directors

Jun 25, 2026

Riken Keiki will dispose of 4,977 treasury shares by granting them as restricted stock compensation to three internal directors, at a price of ¥3,615 per share for a total of ¥17,991,855. The shares, subject to a 30-year transfer restrictio...

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: Aug 17, 2026