Sustained Revenue GrowthA substantial revenue rise from ¥12.13bn to ¥18.73bn signals durable demand for Rikei's ICT products and services and successful expansion of systems-integration business. Higher top-line scale supports negotiated supplier terms, recurring service contracts and long-term revenue visibility.

Conservative Leverage And Equity BackingA debt-to-equity of 0.57 and ~48% equity ratio indicate modest leverage and a solid asset base. That balance-sheet conservatism reduces solvency risk, preserves capacity for inorganic investment or cyclical buffers, and enhances strategic flexibility over multiple quarters.

Stable Operating MarginsGross and operating margins near current levels reflect disciplined cost management across hardware/software resale and integration services. Sustained mid-single-digit EBIT/EBITDA margins support reinvestment in service capabilities and make the business resilient to moderate pricing pressure over the medium term.

Bears Say

Negative Operating And Free Cash FlowPersistently negative operating and free cash flow undermines internal funding for working capital, capex and growth initiatives. Continued cash outflows force reliance on financing or equity to fund operations, increasing funding cost and constraining strategic investments over the next several quarters.

Weak Cash ConversionA negative operating-cash-to-net-income ratio signals difficulty converting reported profits into real cash. This structural cash conversion gap elevates liquidity risk, can necessitate repeated external financing, and limits the firm’s ability to scale services without improving working-capital efficiency.

Thin Net ProfitabilityA net margin around 3.5% leaves limited buffer against cost inflation, pricing pressure or project overruns typical in IT services. Low absolute profitability constrains retained earnings for R&D or margin-expanding initiatives and increases sensitivity to any adverse operational shocks.

8226 FAQ

What was Rikei Corporation’s price range in the past 12 months?

Rikei Corporation lowest stock price was ¥267.00 and its highest was ¥623.00 in the past 12 months.

What is Rikei Corporation’s market cap?

Rikei Corporation’s market cap is ¥8.12B.

When is Rikei Corporation’s upcoming earnings report date?

Rikei Corporation’s upcoming earnings report date is May 18, 2026 which is in 68 days.

How were Rikei Corporation’s earnings last quarter?

Rikei Corporation released its earnings results on Feb 09, 2026. The company reported -¥5.02 earnings per share for the quarter, missing the consensus estimate of N/A by -¥5.02.

Is Rikei Corporation overvalued?

According to Wall Street analysts Rikei Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Rikei Corporation pay dividends?

Rikei Corporation pays a Annually dividend of ¥7 which represents an annual dividend yield of 1.27%. See more information on Rikei Corporation dividends here

What is Rikei Corporation’s EPS estimate?

Rikei Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Rikei Corporation have?

Rikei Corporation has 15,514,721 shares outstanding.

What happened to Rikei Corporation’s price movement after its last earnings report?

Rikei Corporation reported an EPS of -¥5.02 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -0.173%.

Which hedge fund is a major shareholder of Rikei Corporation?

Currently, no hedge funds are holding shares in JP:8226

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Rikei Corporation

Rikei Corporation, together with its subsidiaries, engages in the system and network solutions, and electronic components and instrument businesses in Japan and internationally. It provides system solutions, including IT infrastructure, information security, 3D CAD, IBM, and Hewlett Packard enterprise solutions; entrance exam/curriculum and secure file collaboration systems; VR for vehicle/drone AI development; IoT healthcare products; PCs; OpenVMS; electromagnetic transient simulation software for power systems; and AI products to private companies, universities, government offices, and research institutions. The company also offers information transmission and distribution network solutions to broadcasters, telecommunications, and local governments; and electronic components, instruments, and electronic materials for various sectors, including industrial equipment, automobile, medical, optical communication, and security. In addition, it engages in the sale and lease of aircraft and aircraft parts; system development activities; and export, import, and sale of electronic products. The company was formerly known as Rikei Trading Co., Ltd. and changed its name to Rikei Corporation in June 1971. Rikei Corporation was incorporated in 1957 and is headquartered in Tokyo, Japan.