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6462

Riken TSE:6462 Stock Report

Last Price

JP¥2.28k

Market Cap

JP¥22.7b

7D

-0.9%

1Y

-10.1%

Updated

20 May, 2022

Data

Company Financials
6462 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends5/6

6462 Stock Overview

Riken Corporation manufactures and sells automotive and machinery parts in Japan and internationally.

Riken Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Riken
Historical stock prices
Current Share PriceJP¥2,278.00
52 Week HighJP¥3,025.00
52 Week LowJP¥2,237.00
Beta0.59
1 Month Change-4.77%
3 Month Change-12.45%
1 Year Change-10.07%
3 Year Change-50.64%
5 Year Change-52.44%
Change since IPO-64.95%

Recent News & Updates

Shareholder Returns

6462JP Auto ComponentsJP Market
7D-0.9%-0.6%-0.7%
1Y-10.1%-8.9%-4.2%

Return vs Industry: 6462 underperformed the JP Auto Components industry which returned -8.9% over the past year.

Return vs Market: 6462 underperformed the JP Market which returned -4.2% over the past year.

Price Volatility

Is 6462's price volatile compared to industry and market?
6462 volatility
6462 Average Weekly Movement3.8%
Auto Components Industry Average Movement5.0%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.2%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 6462 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6462's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19274,358Kaoru Itohhttps://www.riken.co.jp

Riken Corporation manufactures and sells automotive and machinery parts in Japan and internationally. It offers piston rings; engine parts, such as camshafts, pistons, valve lifters, valve seats and lifters, valve spring retainers, tappets and rocker arms, crankshafts, and others; transmission parts, including seal rings, differential cases, pinion shafts, and others; drive and chassis parts comprising steering knuckles, damper forks, brake calipers, pressure plates, lower arms, and others; and vanes for air compressors and power steering systems, shoes and shoe discs for air conditioning systems, sliders for power steering systems, and others. The company also produces marine and industrial components and parts consisting of a range of parts for engines of various types, sizes, and applications, including aircraft, agricultural machinery, construction equipment, and industrial components, as well as large size piston rings for marine engine applications; other components for use in construction equipment and agricultural machinery; and compressor parts comprising vanes, housings, and cylinders.

Riken Fundamentals Summary

How do Riken's earnings and revenue compare to its market cap?
6462 fundamental statistics
Market CapJP¥22.69b
Earnings (TTM)JP¥4.33b
Revenue (TTM)JP¥78.37b

5.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6462 income statement (TTM)
RevenueJP¥78.37b
Cost of RevenueJP¥60.93b
Gross ProfitJP¥17.45b
Other ExpensesJP¥13.12b
EarningsJP¥4.33b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)432.78
Gross Margin22.26%
Net Profit Margin5.52%
Debt/Equity Ratio11.5%

How did 6462 perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Riken undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


5.26x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 6462 (¥2278) is trading above our estimate of fair value (¥1815.55)

Significantly Below Fair Value: 6462 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6462 is good value based on its PE Ratio (5.3x) compared to the JP Auto Components industry average (8.9x).

PE vs Market: 6462 is good value based on its PE Ratio (5.3x) compared to the JP market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6462's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6462 is good value based on its PB Ratio (0.3x) compared to the JP Auto Components industry average (0.4x).


Future Growth

How is Riken forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.2%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Riken has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Riken performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6462 has high quality earnings.

Growing Profit Margin: 6462's current net profit margins (5.5%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: 6462's earnings have declined by 9.1% per year over the past 5 years.

Accelerating Growth: 6462's earnings growth over the past year (130.3%) exceeds its 5-year average (-9.1% per year).

Earnings vs Industry: 6462 earnings growth over the past year (130.3%) exceeded the Auto Components industry 35.9%.


Return on Equity

High ROE: 6462's Return on Equity (5.3%) is considered low.


Financial Health

How is Riken's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6462's short term assets (¥53.6B) exceed its short term liabilities (¥16.3B).

Long Term Liabilities: 6462's short term assets (¥53.6B) exceed its long term liabilities (¥12.3B).


Debt to Equity History and Analysis

Debt Level: 6462 has more cash than its total debt.

Reducing Debt: 6462's debt to equity ratio has reduced from 14.1% to 11.5% over the past 5 years.

Debt Coverage: 6462's debt is well covered by operating cash flow (64.2%).

Interest Coverage: 6462 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Riken current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6462's dividend (5.27%) is higher than the bottom 25% of dividend payers in the JP market (1.65%).

High Dividend: 6462's dividend (5.27%) is in the top 25% of dividend payers in the JP market (3.69%)


Stability and Growth of Payments

Stable Dividend: 6462's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6462's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.7%), 6462's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.6%), 6462's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Kaoru Itoh (68 yo)

4.08yrs

Tenure

Mr. Kaoru Itoh is the Chairman of Riken Corporation since April 2020. He served as the President and Chief Operating Officer of Riken Corporation since June 2015 until April 2020 and has been its Chief Exe...


Leadership Team

Experienced Management: 6462's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 6462's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Riken Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Riken Corporation
  • Ticker: 6462
  • Exchange: TSE
  • Founded: 1927
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: JP¥22.686b
  • Shares outstanding: 10.00m
  • Website: https://www.riken.co.jp

Number of Employees


Location

  • Riken Corporation
  • 8-1, Sanbancho
  • Chiyoda-ku
  • Tokyo
  • 102-8202
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/20 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.