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Inspec Inc. (JP:6656)
:6656
Japanese Market
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Inspec Inc. (6656) AI Stock Analysis

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JP:6656

Inspec Inc.

(6656)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥873.00
▲(49.49% Upside)
Action:Reiterated
Date:06/16/26
The score is held back primarily by weak financial quality—high leverage and a sharp reversal to negative operating and free cash flow—despite an improving profit picture. Technicals are a key offset, showing a strong, sustained uptrend and positive momentum. Valuation is a modest negative due to a negative P/E and no dividend yield data.
Positive Factors
Revenue Momentum
A multi-year rebound in revenue (2025 strong rebound then +10.8% in 2026) indicates recovering end-market demand and improved top-line traction. Sustained revenue growth supports capacity utilization and long-term ability to scale fixed R&D and manufacturing costs, improving structural earnings potential if maintained.
Negative Factors
High Leverage
A debt-to-equity near 2.16 materially constrains financial flexibility in a cyclical industry. Elevated leverage increases interest and refinancing risk, limits capacity to fund capex or absorb demand shocks, and raises the likelihood that cash flow volatility will force deleveraging actions that could slow strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Momentum
A multi-year rebound in revenue (2025 strong rebound then +10.8% in 2026) indicates recovering end-market demand and improved top-line traction. Sustained revenue growth supports capacity utilization and long-term ability to scale fixed R&D and manufacturing costs, improving structural earnings potential if maintained.
Read all positive factors

Inspec Inc. (6656) vs. iShares MSCI Japan ETF (EWJ)

Inspec Inc. Business Overview & Revenue Model

Company Description
inspec Inc. engages in the manufacture and sale of PCB inspection equipment and related equipment in Japan. The company offers inspection equipment comprising flexible substrates, PCB large boards, lead frames, touch panels, glass masks, jedec tra...
How the Company Makes Money
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Inspec Inc. Financial Statement Overview

Summary
Income statement is improving (revenue rebound and return to positive operating profit/net income in 2026), but quality is weakened by thin net margin (~3.1%), elevated leverage (debt-to-equity ~2.16), and sharply negative/volatile cash flow in 2026 (OCF -519M; FCF -574M).
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
28
Negative
BreakdownTTMApr 2025Apr 2024Apr 2023Apr 2023Apr 2022
Income Statement
Total Revenue2.13B2.48B2.24B1.67B2.29B1.76B
Gross Profit704.38M840.55M895.47M596.71M822.85M651.62M
EBITDA168.02M214.47M149.33M-191.37M223.29M104.59M
Net Income-26.45M76.86M-142.27M-353.83M78.84M155.40M
Balance Sheet
Total Assets3.44B3.74B3.02B3.76B4.01B3.28B
Cash, Cash Equivalents and Short-Term Investments573.37M508.54M540.33M738.59M605.14M696.78M
Total Debt2.11B2.24B1.67B2.34B2.20B1.77B
Total Liabilities2.39B2.70B2.06B2.68B2.60B2.19B
Stockholders Equity1.05B1.04B958.56M1.08B1.41B1.09B
Cash Flow
Free Cash Flow0.00-574.21M459.26M19.43M-706.13M-463.31M
Operating Cash Flow0.00-519.43M525.85M102.82M-589.11M-175.65M
Investing Cash Flow0.0027.77M-66.75M-77.87M-163.56M-329.12M
Financing Cash Flow0.00548.95M-657.36M132.40M630.92M390.73M

Inspec Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price584.00
Price Trends
50DMA
1141.94
Negative
100DMA
905.59
Negative
200DMA
753.28
Positive
Market Momentum
MACD
-72.30
Positive
RSI
39.19
Neutral
STOCH
32.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6656, the sentiment is Negative. The current price of 584 is below the 20-day moving average (MA) of 1013.80, below the 50-day MA of 1141.94, and below the 200-day MA of 753.28, indicating a neutral trend. The MACD of -72.30 indicates Positive momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 32.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6656.

Inspec Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥743.02B29.4313.70%1.50%13.77%3.10%
72
Outperform
¥23.90T58.1656.56%0.20%36.20%104.76%
70
Outperform
¥25.80T43.9028.89%1.79%8.25%16.50%
69
Neutral
¥3.57T47.8440.97%0.76%-8.35%-8.09%
62
Neutral
¥105.98B29.141.85%20.88%15.69%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥3.44B45.9310.78%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6656
Inspec Inc.
879.00
184.00
26.47%
JP:6857
Advantest
34,550.00
23,377.68
209.25%
JP:6920
Lasertec
38,980.00
23,043.75
144.60%
JP:8035
Tokyo Electron
58,230.00
37,381.35
179.30%
JP:7729
Tokyo Seimitsu Co., Ltd
18,460.00
10,197.61
123.42%
JP:6627
Tera Probe, Inc.
11,770.00
8,485.55
258.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 16, 2026