RIVER ELETEC CORPORATION (6666) AI Stock Analysis

• Market Cap: ¥3.87B
• Dividend Yield: 2.33%
• Average Volume (3M): 82.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 7.71%
• EPS Growth: -215.42%
• Country: JP
• Employees: 208
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -6.25
• 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: 46 Neutral
• Price Target: ¥444.00 ▲(0.00% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenue, profitability, and cash flow issues. Technical analysis provides some neutral signals, but the valuation is negatively affected by ongoing losses. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Diverse Revenue Streams

The company's diverse revenue streams provide resilience against market fluctuations, ensuring stability and growth opportunities.

Innovative Product Portfolio

Continuous R&D investment supports long-term competitive advantage by driving product innovation and attracting new clients.

Strategic Alliances

Partnerships enhance market reach and product offerings, strengthening the company's competitive position in the industry.

Negative Factors

Declining Profitability

Eroding profit margins suggest operational inefficiencies and pricing pressures, which could impact long-term financial health.

High Leverage

Increased leverage poses financial risk, potentially limiting the company's ability to invest in growth and navigate economic downturns.

Negative Cash Flow

Negative cash flow growth indicates challenges in generating cash from operations, affecting the company's ability to fund future investments.

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

RIVER ELETEC CORPORATION faces financial challenges with declining profitability and high leverage. While revenue shows modest growth, profitability metrics are under pressure, and cash flow generation is weak. The company must focus on improving operational efficiency and managing debt to enhance financial stability.

Income Statement

The income statement shows a declining trend in profitability with negative net income and EBIT margins in the TTM period. Revenue growth is modest at 3.12% TTM, but gross profit margins have decreased over time, indicating pressure on cost management. The company has experienced significant fluctuations in revenue growth, with a notable decline in the past year.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.16 TTM, indicating significant leverage. Return on equity is negative, reflecting the company's current unprofitability. However, the equity ratio remains stable, suggesting a balanced asset structure despite the high debt levels.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow growth and a negative free cash flow to net income ratio. Operating cash flow is positive but low relative to net income, indicating potential liquidity issues. The company needs to improve cash generation to support operations and reduce debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.82B	5.70B	5.45B	6.86B	7.42B	5.46B
Gross Profit	1.11B	1.26B	1.28B	2.43B	2.50B	1.65B
EBITDA	538.86M	619.60M	575.46M	1.82B	1.89B	1.04B
Net Income	-212.65M	-79.49M	-133.27M	893.97M	1.11B	558.85M
Balance Sheet
Total Assets	10.14B	10.79B	10.18B	10.13B	9.14B	7.90B
Cash, Cash Equivalents and Short-Term Investments	2.75B	2.85B	2.77B	2.53B	1.93B	1.71B
Total Debt	4.39B	4.73B	4.01B	3.78B	3.59B	4.74B
Total Liabilities	5.81B	6.29B	5.73B	5.32B	5.24B	6.27B
Stockholders Equity	4.33B	4.50B	4.45B	4.81B	3.91B	1.63B
Cash Flow
Free Cash Flow	-207.75M	-806.14M	309.40M	286.79M	-21.65M	101.04M
Operating Cash Flow	523.91M	186.04M	973.52M	1.25B	1.11B	591.80M
Investing Cash Flow	-443.69M	-859.31M	-705.48M	-1.03B	-1.17B	-611.11M
Financing Cash Flow	-155.38M	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: Positive
• RSI: Neutral
• 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 447.45, above the 50-day MA of 418.78, and above the 200-day MA of 432.64, indicating a bullish trend. The MACD of 8.42 indicates Positive momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 63.93 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
6787	76 Outperform	¥259.89B	14.41	―	0.76%	15.02%	46.62%
6957	75 Outperform	¥109.98B	33.78	―	2.12%	3.95%	-32.30%
6779	64 Neutral	¥22.10B	19.52	―	2.86%	2.87%	-53.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥18.53B	40.83	1.29%	4.91%	-1.71%	―
6976	54 Neutral	¥427.62B	98.89	―	2.57%	4.81%	-49.43%
6666	46 Neutral	¥3.87B	-17.33	―	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.