Gross Margin StrengthA 40.43% gross margin indicates strong product-level economics and pricing power in inspection equipment. That margin provides a durable buffer to fund R&D, service delivery and scale-related costs, improving prospects for long-term operating leverage and sustained profitability.

Free Cash Flow GenerationSubstantial FCF growth and high FCF-to-net-income conversion show improving cash conversion. Durable free cash enables reinvestment in product development, service capacity, or debt reduction without dilutive financing, strengthening long-term financial flexibility.

Recurring Revenue & PartnershipsOngoing service contracts, software subscriptions and industry partnerships create predictable annuity-like revenue and customer stickiness. This structural revenue mix supports retention, upsell potential and more stable cashflows across manufacturing and aerospace cycles.

Bears Say

Weak ProfitabilityNegative EBIT and net margins indicate the core business currently fails to cover operating and overhead costs. Without structural cost reduction or a sustained shift to higher-margin services, profitability deficits will limit retained earnings and impede durable earnings improvement.

Elevated LeverageHigh leverage combined with negative ROE signals the firm is highly indebted while delivering poor returns on equity. This constrains strategic flexibility, raises refinancing risk, and can force prioritization of debt servicing over R&D or market expansion in adverse cycles.

Revenue & Earnings VolatilityLarge negative growth rates point to volatile top-line and earnings performance, likely from uneven project timing or one-offs. Such structural volatility complicates forecasting, budgeting and investor confidence, making sustained strategic planning and resource allocation harder.

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 ¥2.55B.

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

Inspec Inc.’s upcoming earnings report date is Mar 06, 2026 which is in 18 days.

How were Inspec Inc.’s earnings last quarter?

Inspec Inc. released its earnings results on Sep 12, 2025. The company reported -¥36.35 earnings per share for the quarter, missing the consensus estimate of N/A by -¥36.35.

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 -¥36.35 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 2.746%.

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.