Inspec Inc. (6656) AI Stock Analysis

• Market Cap: ¥2.94B
• Dividend Yield: N/A
• Average Volume (3M): 16.20K
• Price to Earnings (P/E): 160.5
• Beta (1Y): 1.05
• Revenue Growth: 34.13%
• EPS Growth: 59.74%
• Country: JP
• Employees: 84
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): -53.79
• Shares Outstanding: 4,012,800
• 10 Day Avg. Volume: 21,530
• 30 Day Avg. Volume: 16,200
• PEG Ratio: 0.28
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 4.91
• 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: ¥723.00
• Price Target Upside: 1.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥723.00 ▲(1.83% Upside)

Inspec Inc.'s stock score is primarily influenced by its mixed financial performance, with revenue growth but profitability and leverage concerns. Technical analysis shows a positive trend, but valuation is weak due to a negative P/E ratio and no dividend yield.

Inspec Inc. Business Overview & Revenue Model

Company Description

Inspec Inc. (6656) is a leading provider of inspection and compliance services, primarily operating within the industrial sector. The company specializes in offering comprehensive testing, inspection, and certification solutions to businesses in various industries, including manufacturing, construction, and energy. Inspec Inc. leverages advanced technology and a team of certified professionals to ensure safety, quality, and regulatory compliance for its clients.

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. 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

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

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

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.

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: Positive
• Last Price: 710.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 710 is above the 20-day moving average (MA) of 698.15, above the 50-day MA of 689.24, and above the 200-day MA of 675.51, indicating a bullish trend. The MACD of 7.01 indicates Negative momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 69.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6656.

Inspec Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	75 Outperform	¥40.80B	13.68		2.39%	-0.46%	-25.32%
6337	72 Outperform	¥9.92B	27.07		3.95%	-23.42%	-66.90%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
6616	56 Neutral	¥18.39B	―		3.22%	-7.92%	43.84%
6656	52 Neutral	¥2.94B	160.51		―	34.13%	59.74%
6613	46 Neutral	¥15.41B	―		―	14.80%	43.53%
6614	45 Neutral	¥3.64B	31.45		1.85%	-5.64%	-113.92%