tiprankstipranks
Trending News
More News >
Inspec Inc. (JP:6656)
:6656
Japanese Market

Inspec Inc. (6656) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Inspec Inc.

(6656)

Rating:55Neutral
Price Target:
¥788.00
▲(21.98%Upside)
Inspec Inc.'s stock score is primarily hindered by its weak financial performance, characterized by declining revenues and high leverage. While technical analysis indicates strong upward momentum, potential overbought conditions may limit further gains. The negative P/E ratio and lack of dividend yield also weigh on its valuation, presenting challenges for investors seeking value.

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

Inspec Inc. Business Overview & Revenue Model

Company DescriptionInspec Inc. (6656) is a technology-focused company operating primarily within the semiconductor industry. It specializes in the development and manufacturing of advanced inspection and measurement equipment used in the production of semiconductors. The company provides solutions that improve the quality and efficiency of semiconductor manufacturing processes, serving a global clientele including major semiconductor producers and research institutions.
How the Company Makes MoneyInspec Inc. makes money by selling its high-precision inspection and measurement equipment to semiconductor manufacturers. Its revenue streams are primarily derived from the sale of these capital-intensive machines, as well as from providing maintenance services, software upgrades, and technical support to its customers. The company may also generate revenue through research and development partnerships or collaborations with other technology firms and research organizations. Additionally, significant partnerships with major semiconductor producers can contribute to steady income streams and influence its market positioning.

Inspec Inc. Financial Statement Overview

Summary
Inspec Inc. has faced significant financial challenges, with declining revenues, negative profitability, and high leverage. Despite maintaining a positive gross profit margin, the overall financial health remains weak, posing risks for future growth and sustainability.
Income Statement
45
Neutral
Inspec Inc. has faced significant challenges in maintaining profitability, with negative net income and EBIT in the latest fiscal year. The revenue has declined sharply by 27.2% from the previous year, indicating a downward trajectory. Although the gross profit margin remains positive, it has decreased to 35.8% from 36.9% a year ago, suggesting potential issues in controlling cost or pricing strategies.
Balance Sheet
50
Neutral
The company's balance sheet shows a moderate debt-to-equity ratio of 2.17, indicating a high reliance on debt financing. The equity ratio is at 28.7%, suggesting some stability, but the significant debt levels pose a risk. The return on equity is negative, reflecting the overall loss situation. Inspec Inc. needs to address its leverage and profitability issues to improve its financial health.
Cash Flow
40
Negative
Inspec Inc.'s cash flow position indicates a concerning trend, with minimal free cash flow and a substantial decrease from the previous year. The operating cash flow to net income ratio is positive, indicating some operational efficiency, but the free cash flow to net income ratio is poor, highlighting cash flow challenges. The company needs to improve cash flow generation to sustain operations without increasing debt.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.13B1.67B2.29B1.76B1.27B2.35B
Gross Profit801.50M596.71M845.81M662.68M457.16M931.53M
EBITDA190.74M-255.44M249.01M241.19M-1.11B268.52M
Net Income-26.45M-353.83M78.84M155.40M-1.20B70.94M
Balance Sheet
Total Assets3.44B3.76B3.98B3.28B2.70B3.81B
Cash, Cash Equivalents and Short-Term Investments573.37M738.59M605.14M696.78M781.18M1.20B
Total Debt2.11B2.34B2.20B1.77B1.35B1.41B
Total Liabilities2.39B2.68B2.57B2.19B1.80B1.86B
Stockholders Equity1.05B1.08B1.41B1.09B904.25M1.93B
Cash Flow
Free Cash Flow312.81M905.00K-722.67M-475.51M-300.24M-386.48M
Operating Cash Flow312.81M102.82M-589.11M-175.68M-153.72M98.38M
Investing Cash Flow0.00-77.87M-163.56M-329.12M-174.79M-1.01B
Financing Cash Flow0.00132.40M630.92M390.73M-36.61M1.11B

Inspec Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price646.00
Price Trends
50DMA
691.70
Negative
100DMA
682.87
Negative
200DMA
694.63
Negative
Market Momentum
MACD
-19.37
Positive
RSI
39.57
Neutral
STOCH
5.69
Positive
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 646 is below the 20-day moving average (MA) of 722.65, below the 50-day MA of 691.70, and below the 200-day MA of 694.63, indicating a bearish trend. The MACD of -19.37 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 5.69 is Positive, 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥29.75B9.01
3.36%3.61%-14.91%
72
Outperform
¥9.19B21.08
4.29%-25.41%-45.60%
58
Neutral
¥14.93B
4.12%-6.97%45.07%
56
Neutral
HK$13.54B4.87-5.76%5.64%8.06%-42.52%
55
Neutral
¥2.59B160.51
50.79%-59.24%
46
Neutral
¥9.19B
-7.85%-23.02%
43
Neutral
¥3.84B31.45
1.73%-8.12%-102.86%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6656
Inspec Inc.
652.00
-416.00
-38.95%
JP:6337
Tesec Corporation
1,627.00
-586.14
-26.48%
JP:6613
QD Laser, Inc.
221.00
-230.00
-51.00%
JP:6614
Shikino High-Tech CO.,LTD.
868.00
-1,063.25
-55.06%
JP:6616
Torex Semiconductor Ltd.
1,365.00
-389.55
-22.20%
JP:6627
Tera Probe, Inc.
3,270.00
-1,421.35
-30.30%
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: May 20, 2025