RIVER ELETEC CORPORATION (6666) AI Stock Analysis

• Market Cap: ¥5.87B
• Dividend Yield: 2.33%
• Average Volume (3M): 82.61K
• Price to Earnings (P/E): 66.9
• Beta (1Y): 0.88
• Revenue Growth: 7.71%
• EPS Growth: -215.42%
• Country: JP
• Employees: 208
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.66
• Shares Outstanding: 8,692,652
• 10 Day Avg. Volume: 20,100
• 30 Day Avg. Volume: 82,613
• PEG Ratio: 1.04
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -4.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥694.00 ▲(56.31% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak financial performance: margin compression, operating/net losses, and negative/volatile free cash flow despite strong TTM revenue growth. Technicals are a key offset with a clear uptrend and positive momentum, though overbought RSI adds near-term risk. Valuation is mixed—reasonable dividend yield, but negative P/E reflects loss-making results.

Positive Factors

Revenue Rebound

A 42% TTM revenue rebound indicates recovering end-market demand and improved product uptake. Sustained top-line growth helps absorb fixed costs, supports scale economics and provides a base to restore margins and profitability over several quarters if demand stability continues.

Business Model Diversification

A two-pronged revenue model—high-volume standard parts plus higher-spec custom designs—provides resilience across cycles. Custom work can command better margins and creates customer stickiness, while catalog volumes smooth demand swings and leverage manufacturing capacity long-term.

Positive Operating Cash & EBITDA

Positive operating cash flow and a positive EBITDA margin signal core operating viability despite accounting losses. This cash generation capacity supports working capital and selective investment, giving the company time to fix margin drivers without immediate solvency pressure.

Negative Factors

Margin Compression & Losses

Sharp margin erosion to ~19% (from much higher prior levels) and persistent operating/net losses indicate structural pricing pressure or rising costs. Unless product mix or cost structure improves, the company may struggle to convert revenue growth into sustainable profitability over the medium term.

Elevated Leverage

Debt at about parity with equity reduces financial flexibility and increases interest burden risk while profits are negative. Higher leverage constrains strategic options, increases refinancing risk, and limits the firm's ability to invest or absorb further operating volatility without deleveraging.

Volatile Free Cash Flow

Inconsistent and sometimes negative free cash flow (positive FY2024 vs deeply negative FY2025) hampers the company’s ability to fund capex, service debt or sustain dividends. Volatility in cash conversion raises execution risk and could force financing or cutbacks if margins don't recover.

RIVER ELETEC CORPORATION Business Overview & Revenue Model

Company Description

River Eletec Corporation, together with its subsidiaries, develops, produces, and sells quartz crystal units, crystal oscillators, resistors, and other components. The company offers AT-cut, tuning fork, and KoT-cut OPAW crystal units; and KoT-cut OPAW, MHz, and kHz crystal oscillators. Its products are used in smartphones, in-vehicle, wireless communication/IoT, audiovisual equipment, and medical/healthcare fields. The company was formerly known as Fuji Sangyo Company and changed its name to River Eletec Corporation in October 1991. River Eletec Corporation was founded in 1949 and is headquartered in Nirasaki, Japan.

How the Company Makes Money

RIVER ELETEC CORPORATION generates revenue through multiple channels, primarily by selling its electronic components and systems to manufacturers across various industries, including consumer electronics and telecommunications. The company benefits from a tiered pricing model, offering standard products at competitive prices while also providing premium customized solutions that command higher margins. Key revenue streams include direct sales to original equipment manufacturers (OEMs), partnerships with distributors, and long-term contracts with major corporations for bulk supply. Additionally, RIVER ELETEC invests in research and development to innovate and create high-demand products, which helps sustain its competitive edge and attract new clients. Strategic alliances with technology firms and participation in industry trade shows further bolster its market presence and sales opportunities.

RIVER ELETEC CORPORATION Financial Statement Overview

Summary

Revenue rebounded strongly in TTM (+42%), but profitability is weak with negative EBIT and net income alongside notable margin compression (gross margin ~19%). Operating cash flow is positive, yet free cash flow is negative and volatile, while leverage is moderate-to-elevated (debt-to-equity ~1.0) with negative returns on equity.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (+42%), but profitability has deteriorated: gross margin fell to ~19% (from ~22% in FY2025 and ~35% in FY2023), and the company is loss-making at the operating and net levels (TTM EBIT and net income both negative). EBITDA remains positive (~9% margin), suggesting some underlying operating capacity, but the mix/price pressure and cost structure are currently overwhelming reported earnings.

Balance Sheet

Leverage is moderate-to-elevated with debt roughly in line with equity (TTM debt-to-equity ~1.0), and equity remains sizable versus assets. However, returns on equity are negative in TTM and recent annual periods, indicating the balance sheet is not currently generating adequate shareholder returns. Debt has also trended higher versus FY2024, reducing flexibility if the earnings downturn persists.

Cash Flow

Cash generation is mixed: TTM operating cash flow is positive, but free cash flow is negative, implying elevated investment needs or weaker cash conversion. Recent annual results show volatility (positive free cash flow in FY2024 vs deeply negative in FY2025), and TTM operating cash flow covers only a modest portion of debt, which limits balance-sheet de-risking capacity until profitability improves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.84B	5.70B	5.45B	6.86B	7.42B	5.46B
Gross Profit	1.18B	1.26B	1.28B	2.43B	2.50B	1.65B
EBITDA	589.80M	619.60M	575.46M	1.82B	1.89B	1.04B
Net Income	-120.00M	-79.49M	-133.27M	893.97M	1.11B	558.85M
Balance Sheet
Total Assets	10.49B	10.79B	10.18B	10.13B	9.14B	7.90B
Cash, Cash Equivalents and Short-Term Investments	3.00B	2.85B	2.77B	2.53B	1.93B	1.71B
Total Debt	4.82B	4.73B	4.01B	3.78B	3.59B	4.74B
Total Liabilities	6.15B	6.29B	5.73B	5.32B	5.24B	6.27B
Stockholders Equity	4.34B	4.50B	4.45B	4.81B	3.91B	1.63B
Cash Flow
Free Cash Flow	-214.94M	-806.14M	309.40M	286.79M	-21.65M	101.04M
Operating Cash Flow	352.30M	186.04M	973.52M	1.25B	1.11B	591.80M
Investing Cash Flow	-261.28M	-859.31M	-705.48M	-1.03B	-1.17B	-611.11M
Financing Cash Flow	145.43M	722.97M	-160.50M	219.03M	153.92M	78.24M

RIVER ELETEC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 444.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6666, the sentiment is Positive. The current price of 444 is below the 20-day moving average (MA) of 550.20, below the 50-day MA of 491.82, and below the 200-day MA of 459.55, indicating a bullish trend. The MACD of 42.87 indicates Negative momentum. The RSI at 70.56 is Negative, neither overbought nor oversold. The STOCH value of 66.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6666.

RIVER ELETEC CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6658	76 Outperform	¥12.00B	5.54	―	4.44%	1.68%	15.79%
6626	73 Outperform	¥32.31B	7.34	―	1.78%	4.47%	12.28%
6653	72 Outperform	¥32.26B	15.64	―	1.91%	3.14%	11.04%
6817	70 Outperform	¥38.64B	10.46	―	4.53%	-2.57%	3.43%
6644	68 Neutral	¥78.56B	-34.71	―	2.36%	2.78%	127.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6666	54 Neutral	¥5.87B	66.90	―	2.33%	7.71%	-215.42%

RIVER ELETEC CORPORATION Corporate Events

River Eletec Unveils Ultra-Low Jitter Oscillator for AI Data Centers

River Eletec Corporation has announced the launch of the KCRO-05, an ultra-low phase noise crystal oscillator designed for AI servers and 1.6T optical transceivers. This product utilizes the company’s patented KoT Cut® technology to achieve a fundamental oscillation at 625 MHz, eliminating the need for PLLs and significantly reducing phase jitter. This advancement is crucial for maintaining signal integrity in high-speed data centers, addressing the critical bottleneck in AI infrastructure. The KCRO-05 is expected to enhance throughput and minimize bit error rates, with mass production scheduled for 2026 to meet the growing demand in the optical transceiver market.

The most recent analyst rating on (JP:6666) stock is a Hold with a Yen425.00 price target. To see the full list of analyst forecasts on RIVER ELETEC CORPORATION stock, see the JP:6666 Stock Forecast page.