RIVER ELETEC CORPORATION (6666) AI Stock Analysis

• Market Cap: ¥3.56B
• Dividend Yield: 2.23%
• Average Volume (3M): 82.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥425.00 ▲(2.91% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining profitability and high leverage. Technical analysis indicates a bearish trend, while valuation is weak due to negative earnings. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Despite financial challenges, the company maintains a modest revenue growth rate, indicating resilience in its market position and demand for its products.

Market Position

RIVER ELETEC's strong market position in electronics manufacturing provides a competitive edge, supporting long-term growth and stability.

Product Innovation

Ongoing investment in R&D ensures a pipeline of innovative products, sustaining competitive advantage and attracting new clients.

Negative Factors

Profitability Challenges

Negative net income and declining profitability metrics indicate operational inefficiencies, potentially impacting long-term financial health.

High Leverage

Significant leverage poses risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Issues

Weak cash flow generation raises concerns about liquidity and the company's ability to fund operations and reduce debt sustainably.

RIVER ELETEC CORPORATION Business Overview & Revenue Model

Company Description

RIVER ELETEC CORPORATION (6666) is a leading player in the electronics manufacturing sector, specializing in the design and production of high-performance electronic components and systems. The company operates primarily in the sectors of consumer electronics, telecommunications, and industrial automation, providing innovative solutions that enhance connectivity and efficiency. RIVER ELETEC offers a diverse portfolio of products, including semiconductors, circuit boards, and integrated systems, catering to both domestic and international markets.

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

The company faces financial challenges with declining profitability and high leverage. Revenue growth is modest, but 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	5.88B	5.70B	5.45B	6.86B	7.42B	5.46B
Gross Profit	1.21B	1.26B	1.28B	2.43B	2.50B	1.65B
EBITDA	492.07M	619.60M	575.46M	1.82B	1.89B	1.04B
Net Income	-235.22M	-79.49M	-133.27M	893.97M	1.11B	558.85M
Balance Sheet
Total Assets	10.69B	10.79B	10.18B	10.13B	9.14B	7.90B
Cash, Cash Equivalents and Short-Term Investments	3.17B	2.85B	2.77B	2.53B	1.93B	1.71B
Total Debt	4.87B	4.73B	4.01B	3.78B	3.59B	4.74B
Total Liabilities	6.48B	6.29B	5.73B	5.32B	5.24B	6.27B
Stockholders Equity	4.21B	4.50B	4.45B	4.81B	3.91B	1.63B
Cash Flow
Free Cash Flow	-590.82M	-806.14M	309.40M	286.79M	-21.65M	101.04M
Operating Cash Flow	409.42M	186.04M	973.52M	1.25B	1.11B	591.80M
Investing Cash Flow	-866.73M	-859.31M	-705.48M	-1.03B	-1.17B	-611.11M
Financing Cash Flow	224.54M	722.97M	-160.50M	219.03M	153.92M	78.24M

RIVER ELETEC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 413.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 413 is above the 20-day moving average (MA) of 390.50, below the 50-day MA of 426.55, and below the 200-day MA of 426.92, indicating a neutral trend. The MACD of -14.23 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥263.24B	16.78	―	0.88%	15.02%	46.62%
6957	75 Outperform	¥109.52B	36.26	―	2.12%	3.95%	-32.30%
6779	64 Neutral	¥20.65B	18.23	―	3.08%	2.87%	-53.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	€18.56B	-35.00	1.29%	4.97%	-1.71%	―
6976	54 Neutral	¥562.88B	-115.10	―	2.59%	4.81%	-49.43%
6666	46 Neutral	¥3.56B	-16.67	―	2.23%	7.71%	-215.42%