RIVER ELETEC CORPORATION (6666) AI Stock Analysis

• Market Cap: ¥7.68B
• 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: 57 Neutral
• Price Target: ¥905.00 ▲(103.83% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by weak financial performance: margin compression, losses, and negative free cash flow despite strong revenue growth. Technicals are a key positive, with the stock in a strong uptrend above all major moving averages and positive MACD. Valuation is a headwind given the high P/E and only modest dividend yield.

Positive Factors

Strong revenue rebound

A 42% TTM revenue rebound signals durable market traction and expanding customer demand. Sustained top-line growth can improve operating leverage over months, helping to absorb fixed manufacturing costs and create a path to restored profitability if margins stabilize.

Critical product niche & diversified markets

The firm makes essential frequency-control components used across communications, industrial and consumer electronics. These core parts are mission-critical, have long qualification cycles and foster sticky OEM relationships, providing a stable structural demand base over the medium term.

Positive underlying EBITDA

A positive ~9% EBITDA margin indicates underlying manufacturing and operational capacity to generate cash before non-operating items. This suggests operating fundamentals can support recovery if product mix or pricing improves, limiting downside while management repairs margins.

Negative Factors

Margin compression and operating losses

Significant margin erosion to ~19% and ongoing operating losses point to structural pricing pressure or higher input costs. Persistent losses weaken retained earnings, impair reinvestment capacity, and threaten long-term competitiveness absent sustained margin recovery.

Negative and volatile free cash flow

Negative and volatile free cash flow constrains internal funding for capex, working capital and product development. Over months this limits strategic flexibility, increases reliance on external financing, and raises execution risk if cash generation doesn't normalize.

Elevated leverage and negative returns

Leverage near 1x combined with negative ROE increases financial strain during an earnings downturn. Debt servicing limits the ability to invest or absorb shocks, raising refinancing and covenant risk if profitability and cash flow do not improve over the medium term.

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 makes money primarily by manufacturing and selling frequency-control components—especially quartz crystal units and crystal oscillators—to electronics makers and module/device manufacturers that integrate these parts into their products. Revenue is generated from (1) volume sales of standard catalog parts used broadly across multiple end markets and (2) sales of application-specific or customized parts designed to meet customer requirements (e.g., specific frequencies, packages, tolerances, or operating conditions), which typically command different pricing and margins. The company’s earnings are influenced by production yield and manufacturing efficiency (as with many component manufacturers), product mix between standard and higher-spec/custom parts, and demand cycles in electronics end markets. Specific information on material partnerships, named key customers, or contractual arrangements is null.

RIVER ELETEC CORPORATION Financial Statement Overview

Summary

Despite strong TTM revenue growth (+42%), profitability has weakened (gross margin down to ~19%) with negative EBIT and net income. EBITDA remains positive (~9% margin), but free cash flow is negative and cash conversion has been volatile. Balance sheet leverage is moderate-to-elevated (debt-to-equity ~1.0) with negative returns, limiting flexibility until earnings recover.

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: Negative

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 588.50, below the 50-day MA of 509.28, and below the 200-day MA of 465.00, indicating a bullish trend. The MACD of 66.67 indicates Negative momentum. The RSI at 77.06 is Negative, neither overbought nor oversold. The STOCH value of 83.04 is Negative, 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	¥11.61B	5.54	―	4.44%	1.68%	15.79%
6626	73 Outperform	¥31.93B	7.34	―	1.78%	4.47%	12.28%
6644	72 Outperform	¥82.73B	-34.71	―	2.36%	2.78%	127.66%
6653	72 Outperform	¥30.82B	15.64	―	1.91%	3.14%	11.04%
6817	70 Outperform	¥37.66B	10.06	―	4.53%	-2.57%	3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6666	57 Neutral	¥7.68B	66.90	―	2.33%	7.71%	-215.42%