RIVER ELETEC CORPORATION (6666) AI Stock Analysis

RIVER ELETEC CORPORATION

(TSE/TYO:6666)

Select Model

Rating:45Neutral

Price Target:JPY 648.00▼(-2.56% Downside)

Action:reiterated

Date:08/19/26

The score is held down primarily by weak financial quality—near break-even operating profitability, volatile multi-year earnings, and negative free cash flow despite positive net income—along with elevated valuation (P/E 90.2). Technical indicators are broadly neutral (RSI ~50, slightly negative MACD), offering limited offset to the fundamental and valuation risks.

Positive Factors

Revenue StabilizationModest top-line growth alongside a stable gross margin indicates that the business is maintaining its underlying commercial base. If this stability persists, it can support gradual operational improvement and provide a platform for rebuilding more consistent profitability over coming quarters.

Negative Factors

Near-Break-Even ProfitabilityNear-break-even operating profitability leaves little buffer against revenue pressure, cost increases, or execution setbacks. Thin earnings also limit internally funded growth and make it difficult for the company to demonstrate that its recent return to positive net income is durable.

RIVER ELETEC CORPORATION (6666) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.47B
Dividend Yield: 1.50%
Average Volume (3M): 59.63K
Price to Earnings (P/E): 70.8
Beta (1Y): 0.80
Revenue Growth: 2.57%
EPS Growth: ―
Country: Japan
Employees: 217
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

RIVER ELETEC CORPORATION Business Overview & Revenue Model

Company Description

River Eletec Corporation, alongside its subsidiaries, specializes in the design, manufacture, and distribution of diverse electronic components. Their offerings encompass a variety of quartz crystals, oscillators, and resistors. Specifically, the com...

RIVER ELETEC CORPORATION Financial Statement Overview

Summary

Mixed fundamentals: revenue is modestly higher (+4.2%) and net income is slightly positive in TTM, but operating profitability is near break-even (slightly negative EBIT margin) and results have been volatile. The biggest drag is cash conversion, with negative free cash flow (about -¥402M) despite positive net income, raising near-term funding/reinvestment risk. Balance sheet is acceptable but leverage has risen (debt-to-equity ~1.0) and returns are low (TTM ROE ~1.7%).

Income Statement

46Neutral

Balance Sheet

52Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.03B	5.78B	5.70B	5.45B	6.86B	7.42B
Gross Profit	1.29B	1.24B	1.25B	1.27B	2.41B	2.48B
EBITDA	570.65M	545.59M	554.53M	583.63M	1.70B	1.83B
Net Income	77.30M	-12.17M	-79.49M	-133.27M	893.97M	1.11B
Balance Sheet
Total Assets	10.79B	10.71B	10.79B	10.18B	10.13B	9.14B
Cash, Cash Equivalents and Short-Term Investments	2.89B	2.81B	2.85B	2.77B	2.53B	1.93B
Total Debt	4.59B	4.76B	4.84B	4.01B	3.78B	3.43B
Total Liabilities	6.20B	6.12B	6.29B	5.73B	5.32B	5.24B
Stockholders Equity	4.59B	4.59B	4.50B	4.45B	4.81B	3.91B
Cash Flow
Free Cash Flow	-401.55M	-122.38M	-806.14M	310.94M	286.79M	-16.40M
Operating Cash Flow	155.07M	315.20M	186.04M	973.52M	1.25B	1.11B
Investing Cash Flow	-275.53M	-128.20M	-859.31M	-705.48M	-1.03B	-1.17B
Financing Cash Flow	-300.29M	-175.76M	722.97M	-160.50M	219.03M	153.92M

RIVER ELETEC CORPORATION Technical Analysis

Technical Analysis SentimentNegative

Last Price665.00

Price Trends

50DMA775.90Negative

100DMA817.88Negative

200DMA786.30Negative

Market Momentum

MACD-37.79Positive

RSI35.54Neutral

STOCH47.87Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6666, the sentiment is Negative. The current price of 665.00 is below the 20-day moving average (MA) of 744.20, below the 50-day MA of 775.90, and below the 200-day MA of 786.30, indicating a bearish trend. The MACD of -37.79 indicates Positive momentum. The RSI at 35.54 is Neutral, neither overbought nor oversold. The STOCH value of 47.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6666.

RIVER ELETEC CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6666 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6644	83Outperform	JPY 60.69B	8.75	―	3.16%	4.18%	96.20%
JP:6653	82Outperform	JPY 23.57B	9.43	―	3.13%	16.37%	46.28%
JP:6626	68Neutral	JPY 26.31B	7.91	―	2.03%	3.68%	-4.84%
JP:6658	66Neutral	JPY 7.94B	8.27	―	6.67%	-0.76%	-53.43%
JP:6817	64Neutral	JPY 36.49B	16.73	―	4.78%	9.71%	23.67%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6666	45Neutral	JPY 5.74B	70.82	―	1.50%	2.57%	―

* General Sector Average

Performance Comparison

JP:6666 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6666	RIVER ELETEC CORPORATION	665.00	225.69	51.37%
JP:6626	Semitec Corporation	2314.00	-12.57	-0.54%
JP:6644	Osaki Electric Co., Ltd.	1297.00	91.44	7.58%
JP:6653	Seiko Electric Co., Ltd.	1756.00	-406.09	-18.78%
JP:6658	Shirai Electronics Industrial Co., Ltd.	525.00	-111.00	-17.45%
JP:6817	Sumida Corporation	1109.00	32.79	3.05%

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 19, 2026

RIVER ELETEC CORPORATION AI Stock Analysis