Inspec Inc. (6656) AI Stock Analysis

• Market Cap: ¥2.59B
• Dividend Yield: N/A
• Average Volume (3M): 113.39K
• Price to Earnings (P/E): 160.5
• Beta (1Y): 1.14
• Revenue Growth: 50.79%
• EPS Growth: -59.24%
• Country: JP
• Employees: 84
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): -53.79
• Shares Outstanding: 4,012,800
• 10 Day Avg. Volume: 41,600
• 30 Day Avg. Volume: 113,393
• PEG Ratio: -1.78
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.99
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• 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. Business Overview & Revenue Model

Company Description

Inspec 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 Money

Inspec 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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.13B	1.67B	2.29B	1.76B	1.27B	2.35B
Gross Profit	801.50M	596.71M	845.81M	662.68M	457.16M	931.53M
EBITDA	190.74M	-255.44M	249.01M	241.19M	-1.11B	268.52M
Net Income	-26.45M	-353.83M	78.84M	155.40M	-1.20B	70.94M
Balance Sheet
Total Assets	3.44B	3.76B	3.98B	3.28B	2.70B	3.81B
Cash, Cash Equivalents and Short-Term Investments	573.37M	738.59M	605.14M	696.78M	781.18M	1.20B
Total Debt	2.11B	2.34B	2.20B	1.77B	1.35B	1.41B
Total Liabilities	2.39B	2.68B	2.57B	2.19B	1.80B	1.86B
Stockholders Equity	1.05B	1.08B	1.41B	1.09B	904.25M	1.93B
Cash Flow
Free Cash Flow	312.81M	905.00K	-722.67M	-475.51M	-300.24M	-386.48M
Operating Cash Flow	312.81M	102.82M	-589.11M	-175.68M	-153.72M	98.38M
Investing Cash Flow	0.00	-77.87M	-163.56M	-329.12M	-174.79M	-1.01B
Financing Cash Flow	0.00	132.40M	630.92M	390.73M	-36.61M	1.11B

Inspec Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 646.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	75 Outperform	¥29.75B	9.01		3.36%	3.61%	-14.91%
6337	72 Outperform	¥9.19B	21.08		4.29%	-25.41%	-45.60%
6616	58 Neutral	¥14.93B	―		4.12%	-6.97%	45.07%
Sector *	56 Neutral	HK$13.54B	4.87	-5.76%	5.64%	8.06%	-42.52%
6656	55 Neutral	¥2.59B	160.51		―	50.79%	-59.24%
6613	46 Neutral	¥9.19B	―		―	-7.85%	-23.02%
6614	43 Neutral	¥3.84B	31.45		1.73%	-8.12%	-102.86%