RIVER ELETEC CORPORATION (6666) AI Stock Analysis

• Market Cap: ¥7.91B
• Dividend Yield: 2.33%
• Average Volume (3M): 82.61K
• Price to Earnings (P/E): 66.9
• Beta (1Y): 0.80
• 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: 58 Neutral
• Price Target: ¥953.00 ▲(114.64% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven by very strong technical momentum and trend strength, partly offset by weak financial performance (losses, margin compression, and negative free cash flow) and a high valuation multiple with only a modest dividend yield.

Positive Factors

Niche, essential products

Specialization in frequency-control components supplies essential timing parts to multiple end markets. This focused product set creates durable, recurring demand from device manufacturers, insulating revenue from single-market shocks and supporting long-term customer relationships and technical barriers to entry.

Strong revenue rebound

A 42% TTM revenue rebound indicates recovering demand or share gains across core markets. Sustained top-line recovery boosts capacity utilization and spreads fixed costs, improving long-term margin recovery prospects if the company sustains order flow and converts volumes into stable gross profit.

Underlying operating cash generation

Positive operating cash flow and a positive EBITDA margin show the business can generate cash from operations and has underlying operating leverage. This supports reinvestment and debt servicing capacity over months, even if headline earnings are temporarily negative due to mix or one-offs.

Negative Factors

Margin compression & losses

Sharp gross-margin erosion and ongoing operating losses point to structural pricing pressure, rising input costs, or adverse product mix. Persistently weak margins undermine free cash flow and returns, requiring sustained volume gains or cost restructuring to restore profitability over the medium term.

Negative free cash flow volatility

Negative and volatile free cash flow suggests elevated capex, working-capital strain, or weak cash conversion from sales. Over months, this limits the company's ability to deleverage, fund growth, or return capital unless operating margins and cash conversion stabilize.

Elevated leverage

Debt-to-equity near 1.0 and rising debt reduce financial flexibility and increase refinancing and interest risks if profits remain weak. Higher leverage constrains strategic options and heightens vulnerability to demand shocks until retained earnings recover and cash flow strengthens.

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

Revenue rebounded strongly (+42% TTM), but profitability is weak with negative EBIT and net income and notable gross margin compression (~19% vs ~22% FY2025 and ~35% FY2023). Cash flow is mixed (positive operating cash flow but negative free cash flow), and leverage is moderate-to-elevated (debt-to-equity ~1.0) with negative ROE, limiting financial flexibility until margins 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: 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 627.20, below the 50-day MA of 525.56, and below the 200-day MA of 469.70, indicating a bullish trend. The MACD of 84.24 indicates Negative momentum. The RSI at 67.44 is Neutral, neither overbought nor oversold. The STOCH value of 76.17 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	¥11.37B	5.54	―	4.44%	1.68%	15.79%
6626	73 Outperform	¥31.11B	7.34	―	1.78%	4.47%	12.28%
6644	72 Outperform	¥84.13B	-34.71	―	2.36%	2.78%	127.66%
6653	72 Outperform	¥30.17B	15.64	―	1.91%	3.14%	11.04%
6817	70 Outperform	¥37.10B	10.46	―	4.53%	-2.57%	3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6666	58 Neutral	¥7.91B	66.90	―	2.33%	7.71%	-215.42%