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Rikei Corporation (8226) AI Stock Analysis

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JP:8226

Rikei Corporation

(TSE/TYO:8226)

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Rating:65Neutral
Price Target:JPY 377.00â–²(7.41% Upside)
Action:reiterated
Date:08/30/26

The score is driven primarily by improving profitability/returns and manageable leverage, tempered by the sharp 2026 revenue decline and historically inconsistent cash-flow generation. Technicals are neutral (stabilizing but still below longer-term averages), while the low P/E and dividend yield add meaningful valuation support.

Positive Factors
Improving ProfitabilityThe sustained improvement in net margin, operating margin, and ROE indicates stronger earnings efficiency than in earlier years. If retained, this profitability progress can improve internal funding capacity, support investment in solutions, and strengthen resilience across the next several quarters.
Negative Factors
Sharp Revenue DeclineThe sharp 2026 revenue contraction after two years of growth highlights meaningful demand volatility and weak near-term visibility. A reseller and solutions provider needs consistent customer and project volumes to absorb operating costs, so continued instability could limit the durability of recent profit improvements.

Rikei Corporation (8226) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:8226-35.26%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 5.31B
Dividend Yield
1.99%
Average Volume (3M)
115.60K
Price to Earnings (P/E)
7.1
Beta (1Y)
1.28
Revenue Growth
4.96%
EPS Growth
1.72%
Country
Japan
Employees
179
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

Rikei Corporation Business Overview & Revenue Model

Company Description

Rikei Corporation, along with its group companies, operates across two primary business segments: advanced system and network solutions, and electronic components and sophisticated instruments, catering to both domestic Japanese and international mar...

How the Company Makes Money

Rikei Corporation earns revenue primarily by selling technology products and associated services to corporate and public-sector customers. Key revenue streams typically include (1) product sales as a reseller/distributor—generating gross profit from...

Rikei Corporation Financial Statement Overview

Summary

Profitability and returns improved (net margin up to ~3.8% and operating margin ~6.3% in 2026; ROE ~12% in 2025–2026) and leverage remains manageable (~0.53x debt/equity). Offsetting this, revenue fell sharply in 2026 (about -31%), gross margin trended down to ~19%, and cash flow has been historically volatile despite a strong 2026 rebound.

Income Statement

63Positive

Balance Sheet

70Positive

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue20.57B19.54B18.73B12.13B10.29B10.86B
Gross Profit3.79B3.68B3.49B2.79B2.34B2.33B
EBITDA1.19B1.28B1.05B553.13M195.58M267.48M
Net Income745.25M746.49M661.26M382.77M66.94M139.67M
Balance Sheet
Total Assets13.81B12.94B11.09B10.33B7.31B7.18B
Cash, Cash Equivalents and Short-Term Investments5.50B4.11B3.08B3.06B2.25B2.91B
Total Debt4.80B3.21B3.10B2.60B727.04M369.88M
Total Liabilities7.78B6.89B5.71B5.52B2.87B2.74B
Stockholders Equity6.00B6.03B5.36B4.81B4.45B4.43B
Cash Flow
Free Cash Flow01.03B-353.39M-1.02B-968.56M-141.63M
Operating Cash Flow01.07B-322.07M-983.40M-961.66M-67.27M
Investing Cash Flow0-59.65M-70.33M-33.91M15.00M-65.25M
Financing Cash Flow026.59M405.92M1.83B283.50M16.62M

Rikei Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price351.00

Price Trends

50DMA383.34Negative
100DMA379.83Negative
200DMA434.72Negative

Market Momentum

MACD-9.13Positive
RSI37.01Neutral
STOCH41.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8226, the sentiment is Negative. The current price of 351.00 is below the 20-day moving average (MA) of 370.10, below the 50-day MA of 383.34, and below the 200-day MA of 434.72, indicating a bearish trend. The MACD of -9.13 indicates Positive momentum. The RSI at 37.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8226.

Rikei Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:8226 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4752JP:475283OutperformJPY 7.05B8.55―4.14%7.77%5.97%
JP:2332JP:233265NeutralJPY 9.18B11.69―3.28%15.24%7.17%
JP:8226JP:822665NeutralJPY 5.31B7.12―1.99%4.96%1.72%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:1447JP:144748NeutralJPY 7.79B-9.49―0.63%0.09%-1835.60%
JP:2338JP:233843NeutralJPY 5.27B-1.96――-12.33%-327.26%
JP:5255JP:525542NeutralJPY 4.33B-31.42――-1.67%98.41%

* Technology Sector Average

Performance Comparison

-50%0%50%JP:8226JP:1447JP:2332JP:2338JP:4752JP:5255Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:8226 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:8226Rikei Corporation351.00-190.17-35.14%
JP:1447ITbook Holdings Co., Ltd.319.0073.0029.67%
JP:2332Quest Co., Ltd.1769.00188.5211.93%
JP:2338Quantum Solutions Co.,Ltd.99.00-469.00-82.57%
JP:4752Showa System Engineering Corporation1593.00-97.14-5.75%
JP:5255Monstarlab Holdings Inc.67.00-96.00-58.90%
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 30, 2026