| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4290.96 | 18 |
| Intrinsic value (DCF) | 4318.80 | 19 |
| Graham-Dodd Method | 5132.33 | 41 |
| Graham Formula | 9742.36 | 168 |
NPR-Riken Corporation is a leading Japanese manufacturer specializing in high-precision engine components for automotive, marine, and industrial applications. Headquartered in Tokyo, the company produces critical engine parts such as piston rings, valve seat inserts, cylinder liners, and composite camshafts for internal combustion engines across multiple vehicle segments. With a diversified product portfolio that extends to sealing rings, metal injection molding parts, and medical equipment components like dental implants, NPR-Riken serves both domestic and international markets. Operating in the Auto Parts sector of the Consumer Cyclical industry, the company plays a vital role in Japan's automotive supply chain while expanding its technological expertise into industrial and healthcare applications. NPR-Riken's focus on precision engineering and material science positions it as a key supplier to engine manufacturers seeking high-performance, durable components.
NPR-Riken presents a stable investment profile with its ¥64.75B market cap and low beta (0.162), suggesting lower volatility than the broader market. The company demonstrates solid fundamentals with ¥138.6B in revenue and ¥26.3B net income for FY2024, translating to a healthy diluted EPS of ¥1,088.83. While operating cash flow (¥18.5B) comfortably covers capital expenditures (¥6.1B), investors should note the company's moderate debt position (¥19.8B) against ¥24.4B cash reserves. The ¥130 dividend per share indicates a shareholder-friendly policy, though the company's growth prospects may be constrained by its specialization in internal combustion engine components amid the global transition toward electrification. NPR-Riken's value proposition lies in its technical expertise for conventional powertrains and potential to pivot toward new materials applications.
NPR-Riken maintains competitive advantages through its specialized metallurgical expertise and precision manufacturing capabilities in engine components, particularly piston rings where it holds technical leadership. The company's vertically integrated production allows tight quality control over specialty materials like sintered alloys used in valve seats and rings. However, its position as a mid-tier supplier in Japan's auto parts sector means it competes with both larger conglomerates and specialized component makers. NPR-Riken's marine engine parts business provides diversification, but this segment faces pressure from slower maritime industry growth. While the company has successfully extended its metal injection molding technology to medical and industrial applications, these remain secondary revenue streams. Its R&D focus on wear-resistant materials gives NPR-Riken an edge in conventional engine efficiency improvements, but the lack of substantial exposure to electric vehicle components creates long-term portfolio risk. The company's international presence remains limited compared to global peers, concentrating its exposure to Japanese OEMs and their supply chains.