Strong Gross MarginA 40%+ gross margin indicates the business has solid product-level economics and pricing power or efficient manufacturing. This margin cushion supports long-term profitability recovery if operating expenses are controlled and can fund R&D or scaling without immediate margin erosion.

Improving Free Cash FlowLarge free cash flow growth and high FCF-to-net-income ratio show the company is converting earnings into cash effectively. Durable cash generation improves liquidity, lowers refinancing risk, and provides funds to reduce debt or invest in growth without relying on volatile capital markets.

Reasonable Equity CushionAn equity ratio near 32% means a meaningful portion of the capital structure is equity, offering a buffer against losses. That structural capital base, combined with improving cash flow, gives the company more room to deleverage or endure cyclical swings without immediate solvency pressure.

Bears Say

Negative ProfitabilitySustained negative net and EBIT margins show the company currently cannot convert revenue into operating or net profit. This undermines long-term shareholder returns, limits reinvestment capacity, and requires structural fixes—cost reduction, pricing, or scale—to restore durable profitability.

High LeverageA debt-to-equity ratio of 1.75 indicates elevated leverage, increasing interest expense sensitivity and refinancing risk. High leverage constrains strategic flexibility, making it harder to invest in growth or weather downturns without raising costly external capital or materially altering the capital structure.

Negative Return On EquityA negative ROE signals the company is destroying shareholder capital rather than creating it. Unless operations improve, continued negative ROE will pressure investor confidence, limit access to equity financing, and reflect structural issues in capital allocation or core business profitability.

6656 FAQ

What was Inspec Inc.’s price range in the past 12 months?

Inspec Inc. lowest stock price was ¥407.00 and its highest was ¥922.00 in the past 12 months.

What is Inspec Inc.’s market cap?

Inspec Inc.’s market cap is ¥2.20B.

When is Inspec Inc.’s upcoming earnings report date?

Inspec Inc.’s upcoming earnings report date is Mar 12, 2026 which is in 2 days.

How were Inspec Inc.’s earnings last quarter?

Inspec Inc. released its earnings results on Mar 06, 2026. The company reported -¥53.86 earnings per share for the quarter, missing the consensus estimate of N/A by -¥53.86.

Is Inspec Inc. overvalued?

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

Does Inspec Inc. pay dividends?

Inspec Inc. pays a Annually dividend of ¥3 which represents an annual dividend yield of N/A. See more information on Inspec Inc. dividends here

What is Inspec Inc.’s EPS estimate?

Inspec Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Inspec Inc. have?

Inspec Inc. has 4,012,800 shares outstanding.

What happened to Inspec Inc.’s price movement after its last earnings report?

Inspec Inc. reported an EPS of -¥53.86 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 1.361%.

Which hedge fund is a major shareholder of Inspec Inc.?

Currently, no hedge funds are holding shares in JP:6656

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

Inspec Inc.

inspec Inc. engages in the research, development, manufacture, and sale of visual inspection and measurement equipment, software, and other equipment for the automatic visual inspection of semiconductor and various IT-related devices. The company's products are used for the inspection and verification of semiconductor package boards, precision printed boards, glass mask and film substrates, high density boards, rectangles, LED boards and frames, flexible boards, and TAB tapes. It also offers offline teaching and verification software products; and verification equipment, inspection devices, and inline inspection modules, as well as periodic maintenance and calibration, and operational support services. The company was formerly known as Taiyo Mfg.Co.,Ltd. and changed its name to inspec Inc. in January 2001. inspec Inc. was founded in 1984 and is headquartered in Senboku, Japan.