Robust Revenue GrowthSustained top-line expansion (¥12.13B → ¥18.73B; ~12.6% growth) indicates durable demand for ICT products and services. Higher revenue supports scale economies, investment capacity and market share gains, underpinning medium-term profitability potential.

Conservative Balance SheetModerate leverage (D/E 0.57) and a near-50% equity ratio provide financial resilience. Improved ROE (12.35%) shows effective equity use while conservative gearing preserves access to capital and buffers against cyclical ICT spending downturns.

Service-led Business ModelA value-added reseller and systems integrator model drives recurring services, long-term client relationships and upsell opportunities. Ongoing implementation, operation and maintenance contracts create durable revenue streams and higher switching costs versus pure product sellers.

Bears Say

Negative Operating & Free Cash FlowReported negative OCF (¥322m) and FCF (¥-353m) signal cash-generation shortfalls despite revenue growth. Persistent negative cash flows can force reliance on external financing, constrain capex or M&A, and weaken the firm's ability to self-fund strategic initiatives.

Thin Net MarginsLow net margin (3.53%) leaves limited buffer against cost inflation, pricing pressure or project overruns. With moderate gross margins, operational leverage is constrained and margin expansion is required to improve resilience and internal funding capacity.

Weak Cash ConversionA negative OCF-to-net-income ratio indicates earnings are not translating into cash, often due to working-capital swings or billing timing. This undermines sustainability of reported profits, increases liquidity risk, and may necessitate ongoing financing support.

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 ¥7.92B.

When is Rikei Corporation’s upcoming earnings report date?

Rikei Corporation’s upcoming earnings report date is May 18, 2026 which is in 90 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 (8226) is a Japan-based company primarily engaged in the information technology and telecommunications sectors. The company provides a range of services including system integration, software development, and IT consulting. Rikei also specializes in network solutions, data center services, and cloud computing, catering to various industries such as finance, healthcare, and manufacturing.