Inspec Inc. (6656) AI Stock Analysis

• Market Cap: ¥2.37B
• Dividend Yield: N/A
• Average Volume (3M): 18.14K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.89
• Revenue Growth: -36.20%
• EPS Growth: -1972.83%
• Country: JP
• Employees: 84
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 5.88
• Shares Outstanding: 4,012,800
• 10 Day Avg. Volume: 12,560
• 30 Day Avg. Volume: 18,143
• PEG Ratio: 0.28
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 5.10
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥695.00 ▲(19.01% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by mixed financial performance: solid revenue and free-cash-flow improvement are offset by ongoing losses and high leverage. Technically, the stock is trending above major moving averages but momentum signals are not strong. Valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Strong free cash flow generation

Sustained FCF improvement (52.56%) and an FCF-to-net-income ratio near 88% indicate durable cash conversion despite accounting losses. This strengthens liquidity, funds capex or R&D internally, and provides flexibility to reduce debt or support operations over months ahead.

High gross margin

A 40%+ gross margin signals structural product or cost advantages in its semiconductor offerings. That margin buffer supports long-term pricing power and the ability to invest in product development or absorb some fixed-cost pressure while management works to restore operating profitability.

Equity base provides stability

An equity ratio near 32% gives a moderate capital cushion against shocks and supports continued operations. This structural equity buffer complements FCF generation, making the balance sheet more resilient and providing time to execute turnaround initiatives without immediate recapitalization.

Negative Factors

Negative operating profitability

Continued negative EBIT and net margins reflect persistent operating inefficiencies or cost structure issues. Over a multi-month horizon, failure to turn operating profits constrains retained earnings, limits reinvestment ability, and necessitates either structural cost cuts or sustained revenue improvement to restore profitability.

High leverage and weak ROE

A debt-to-equity ratio of 1.75 paired with negative ROE signals elevated financial risk: leverage amplifies earnings volatility and interest burden while returns on equity are negative. Structurally, this limits strategic flexibility and raises refinancing or covenant risks if cash generation falters.

Mixed and inconsistent fundamentals

The firm's profile is internally inconsistent: improving cash flow and some revenue gains coexist with losses and leverage. This volatility makes multi-month forecasts uncertain, requiring visible operational fixes and steadier margins before the firm's fundamentals can be considered reliably durable.

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.

Inspec Inc. Financial Statement Overview

Summary

Mixed fundamentals: revenue grew 5.02% and free cash flow improved strongly (FCF growth 52.56%, high FCF-to-net income at 87.73%), but profitability is weak with negative net margin (-6.36%) and EBIT margin (-4.29%). Balance sheet leverage is elevated (debt-to-equity 1.75) and ROE is negative (-14.84%).

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	Apr 2024	Apr 2023	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	2.13B	2.24B	1.67B	2.29B	1.76B	1.27B
Gross Profit	704.38M	895.47M	596.71M	822.85M	651.62M	445.27M
EBITDA	168.02M	149.33M	-191.37M	223.29M	104.59M	-238.73M
Net Income	-26.45M	-142.27M	-353.83M	78.84M	155.40M	-1.20B
Balance Sheet
Total Assets	3.44B	3.02B	3.76B	4.01B	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	2.09B	1.67B	2.34B	2.20B	1.77B	1.35B
Total Liabilities	2.39B	2.06B	2.68B	2.60B	2.19B	1.80B
Stockholders Equity	1.05B	958.56M	1.08B	1.41B	1.09B	904.25M
Cash Flow
Free Cash Flow	0.00	459.26M	19.43M	-706.13M	-463.31M	-269.76M
Operating Cash Flow	0.00	525.85M	102.82M	-589.11M	-175.65M	-153.69M
Investing Cash Flow	0.00	-66.75M	-77.87M	-163.56M	-329.12M	-174.79M
Financing Cash Flow	0.00	-657.36M	132.40M	630.92M	390.73M	-36.61M

Inspec Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 584.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 584 is below the 20-day moving average (MA) of 619.35, below the 50-day MA of 626.88, and below the 200-day MA of 645.68, indicating a bearish trend. The MACD of -8.28 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 30.21 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
6920	81 Outperform	$3.16T	25.03	53.12%	1.11%	32.51%	57.19%
6857	77 Outperform	¥16.73T	45.29	47.37%	0.25%	63.36%	149.43%
7729	77 Outperform	¥586.34B	24.84	12.66%	2.28%	9.53%	-11.17%
8035	73 Outperform	¥18.02T	33.18	26.01%	1.79%	16.74%	16.03%
6627	65 Neutral	¥78.87B	17.02	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6656	54 Neutral	¥2.37B	32.49	―	―	-36.20%	-1972.83%