Inspec Inc. (6656) AI Stock Analysis

• Market Cap: ¥2.75B
• Dividend Yield: N/A
• Average Volume (3M): 23.26K
• Price to Earnings (P/E): 160.5
• Beta (1Y): 1.12
• Revenue Growth: 15.80%
• EPS Growth: 43.81%
• Country: JP
• Employees: 84
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -36.35
• Shares Outstanding: 4,012,800
• 10 Day Avg. Volume: 30,970
• 30 Day Avg. Volume: 23,260
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥720.00
• Price Target Upside: 1.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ¥682.00 ▼(-3.81% Downside)

Inspec Inc.'s overall stock score is primarily influenced by its mixed financial performance and technical analysis. While there is revenue growth and improving cash flow, profitability challenges and high leverage pose significant risks. Technical indicators suggest a neutral to slightly bearish outlook. The negative P/E ratio and lack of dividend yield further weigh on the stock's valuation.

Inspec Inc. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Inspec Inc. generates revenue through multiple streams, primarily by charging clients for its inspection and compliance services. The company operates on a fee-for-service model, where customers pay for each inspection conducted, testing performed, and certification issued. Additionally, Inspec Inc. offers consulting services that include risk assessments and compliance audits, which further contribute to its revenue. The company has established significant partnerships with industry leaders and regulatory bodies, enhancing its credibility and expanding its client base. These partnerships often lead to long-term contracts, providing a steady income stream. Moreover, Inspec Inc. invests in technology to improve efficiency and effectiveness, allowing for competitive pricing and increased market share.

Inspec Inc. Financial Statement Overview

Summary

Inspec Inc. shows a mixed financial performance. Revenue growth is positive at 5.02%, but profitability is challenged with a negative net profit margin of -6.36% and a negative EBIT margin of -4.29%. The balance sheet indicates high leverage with a debt-to-equity ratio of 1.75, posing financial risks. However, cash flow performance is improving, with a strong free cash flow growth rate of 52.56%.

Income Statement

Inspec Inc. shows a mixed performance in its income statement. The company has experienced revenue growth of 5.02% in the latest year, indicating a positive trend. However, the net profit margin is negative at -6.36%, reflecting ongoing profitability challenges. The gross profit margin of 40.43% is strong, but the negative EBIT margin of -4.29% highlights operational inefficiencies. Overall, while revenue is growing, profitability remains a concern.

Balance Sheet

The balance sheet of Inspec Inc. presents a moderate risk profile. The debt-to-equity ratio is high at 1.75, indicating significant leverage, which could pose financial risks. The return on equity is negative at -14.84%, suggesting that the company is not generating sufficient returns on shareholders' equity. However, the equity ratio of 31.95% provides some stability, showing a reasonable proportion of equity financing.

Cash Flow

Inspec Inc.'s cash flow statement shows improvement, with a substantial free cash flow growth rate of 52.56%. The operating cash flow to net income ratio is 0.38, indicating that operating cash flows are covering net income to some extent. The free cash flow to net income ratio is high at 87.73%, suggesting that the company is generating significant free cash flow relative to its net income, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.13B	2.24B	1.67B	2.29B	1.76B	1.27B
Gross Profit	801.50M	904.69M	596.71M	845.81M	662.68M	457.16M
EBITDA	190.74M	30.48M	-255.44M	249.01M	241.19M	-1.11B
Net Income	-26.45M	-142.27M	-353.83M	78.84M	155.40M	-1.20B
Balance Sheet
Total Assets	3.44B	3.00B	3.76B	3.98B	3.28B	2.70B
Cash, Cash Equivalents and Short-Term Investments	573.37M	540.33M	738.59M	605.14M	696.78M	781.18M
Total Debt	2.11B	1.67B	2.34B	2.20B	1.77B	1.35B
Total Liabilities	2.39B	2.04B	2.68B	2.57B	2.19B	1.80B
Stockholders Equity	1.05B	958.56M	1.08B	1.41B	1.09B	904.25M
Cash Flow
Free Cash Flow	312.81M	477.22M	905.00K	-722.67M	-475.51M	-300.24M
Operating Cash Flow	312.81M	543.97M	102.82M	-589.11M	-175.68M	-153.72M
Investing Cash Flow	0.00	-66.75M	-77.87M	-163.56M	-329.12M	-174.79M
Financing Cash Flow	0.00	-675.48M	132.40M	630.92M	390.73M	-36.61M

Inspec Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 709.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 709 is above the 20-day moving average (MA) of 692.50, above the 50-day MA of 692.02, and above the 200-day MA of 675.42, indicating a neutral trend. The MACD of -1.99 indicates Negative momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 43.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	79 Outperform	47.40B	15.64	9.38%	2.11%	-0.46%	-25.32%
6337	72 Outperform	11.55B	31.28	0.00%	3.42%	-23.42%	-66.90%
6616	56 Neutral	18.79B	-7.85	-13.55%	3.26%	-7.92%	43.84%
6614	54 Neutral	3.70B	-76.05	-0.59%	1.79%	-5.64%	-113.92%
6656	49 Neutral	¥2.75B	160.51		―	15.80%	43.81%
6613	46 Neutral	16.79B	-44.26	0.00%	―	14.80%	43.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%