Espec Corp. (6859) AI Stock Analysis

• Market Cap: ¥69.69B
• Dividend Yield: 3.85%
• Average Volume (3M): 85.34K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.20
• Revenue Growth: 8.31%
• EPS Growth: 21.11%
• Country: JP
• Employees: 1,775
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 98.83
• Shares Outstanding: 23,781,393
• 10 Day Avg. Volume: 88,660
• 30 Day Avg. Volume: 85,340
• PEG Ratio: 0.18
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.61
• 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: 80 Outperform
• Price Target: ¥3,473.00 ▲(11.49%Upside)

Espec Corp. is rated highly due to its robust financial performance and attractive valuation. The strong technical indicators support a positive momentum, although the high RSI suggests caution for potential short-term corrections. The absence of recent earnings call data and corporate events does not detract from the overall stable outlook.

Espec Corp. Business Overview & Revenue Model

Company Description

Espec Corp. (6859) is a leading Japanese company specializing in the manufacturing and sale of environmental test chambers and equipment. These products are used to simulate various environmental conditions, such as temperature, humidity, and pressure, to test the durability and reliability of products across multiple industries, including automotive, electronics, pharmaceuticals, and energy. The company's offerings are crucial for quality assurance and research and development processes.

How the Company Makes Money

Espec Corp. generates revenue primarily through the sale of its environmental test chambers and related equipment. The company's key revenue streams include product sales, after-sales services such as maintenance and calibration, and leasing of test chambers. Additionally, the company has established significant partnerships with industrial and research organizations to enhance their product offerings and expand their market reach. These partnerships, along with a robust distribution network, contribute to Espec Corp.'s steady revenue growth by ensuring a continuous demand for their high-quality testing solutions.

Espec Corp. Financial Statement Overview

Summary

Espec Corp. demonstrates strong financial health with consistent revenue and profit growth, solid margins, and effective cash flow management. The low leverage and strong equity position add stability, while the significant growth in free cash flow highlights prudent financial management. However, there is room for improvement in return on equity to further enhance shareholder value.

Income Statement

Espec Corp. shows strong income statement metrics with consistent revenue growth over the years. The gross profit margin is robust at 35.3% for 2025, and the net profit margin is healthy at 8.9%. EBIT and EBITDA margins also reflect strong operating performance at 11.2% and 15.0%, respectively. Revenue growth from 2024 to 2025 is 8.3%, indicating a positive trajectory.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.002 for 2025, indicating minimal leverage. The equity ratio is strong at 74.7%, reflecting a solid equity base. Return on equity is reasonable at 10.6%, though it could improve. The company maintains a strong liquidity position with substantial cash reserves.

Cash Flow

Cash flow analysis indicates solid management of cash resources. The operating cash flow to net income ratio is 0.74, showing good cash conversion. The free cash flow to net income ratio is 0.38, and free cash flow has shown significant growth of 354.4% from 2024 to 2025, indicating effective capital expenditure management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	66.23B	67.29B	62.13B	52.89B	41.85B	38.67B
Gross Profit	23.45B	23.73B	21.99B	17.96B	14.00B	13.41B
EBITDA	9.44B	10.13B	8.66B	5.83B	3.37B	3.70B
Net Income	5.73B	6.00B	4.97B	3.33B	1.91B	1.96B
Balance Sheet
Total Assets	74.12B	75.85B	78.23B	67.18B	61.92B	58.61B
Cash, Cash Equivalents and Short-Term Investments	13.82B	12.77B	16.80B	14.30B	16.16B	17.30B
Total Debt	1.13B	126.00M	5.23B	293.00M	351.00M	538.00M
Total Liabilities	18.46B	19.15B	25.52B	20.01B	16.33B	13.62B
Stockholders Equity	55.66B	56.69B	52.72B	46.95B	45.38B	44.98B
Cash Flow
Free Cash Flow	0.00	2.26B	498.00M	947.00M	1.34B	1.33B
Operating Cash Flow	0.00	4.45B	2.74B	1.92B	2.02B	3.04B
Investing Cash Flow	0.00	-1.15B	-3.78B	-1.06B	-932.00M	-2.03B
Financing Cash Flow	0.00	-7.25B	2.80B	-2.90B	-2.83B	-1.50B

Espec Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3115.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6859, the sentiment is Positive. The current price of 3115 is above the 20-day moving average (MA) of 2982.40, above the 50-day MA of 2746.56, and above the 200-day MA of 2533.85, indicating a bullish trend. The MACD of 107.42 indicates Negative momentum. The RSI at 71.25 is Negative, neither overbought nor oversold. The STOCH value of 76.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6859.

Espec Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6859	80 Outperform	¥69.69B	11.33		3.85%	8.31%	21.11%
7723	79 Outperform	¥34.57B	9.76		3.57%	5.98%	11.06%
7715	78 Outperform	¥36.10B	5.98		2.31%	2.37%	11.78%
7500	77 Outperform	¥34.69B	12.87		2.79%	5.47%	15.88%
6914	74 Outperform	¥58.72B	9.38		2.68%	8.40%	30.12%
6866	68 Neutral	¥75.19B	12.15		3.63%	4.55%	4.94%
Sector *	62 Neutral	€9.65B	16.89	3.96%	1.76%	3.71%	-27.34%

Espec Corp. Corporate Events

Espec Corp. Updates Strategic Initiatives for Enhanced Growth and Shareholder Value

Espec Corp. has announced a strategic update following its Board of Directors meeting, focusing on cost of capital and share price management. The company has made significant progress in its growth strategy by targeting the EV and IoT fields, expanding product offerings, and increasing production capacity. They have also invested in human resources and enhanced investor relations to improve market reputation. Despite achieving a higher ROE target, the company recognizes the need to present a robust growth strategy to enhance capital efficiency and shareholder returns.

Espec Corp. Reports Strong Financial Performance for FY 2025

Espec Corp. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a significant increase in net sales and profits compared to the previous year. The company achieved an 8.3% rise in net sales to ¥67,288 million and a 20.8% increase in profit attributable to owners of the parent, reaching ¥6,003 million. This growth reflects Espec’s strong market positioning and operational efficiency. The company also announced an increase in annual dividends, indicating confidence in its financial stability and commitment to shareholder returns.

Espec Corp. Unveils Ambitious ‘Progressive Plus 2027’ Plan

Espec Corp. has announced its new medium-term management plan, ‘Progressive Plus 2027,’ following the early achievement of its previous targets. The plan aims to enhance corporate value by focusing on quality improvement and transforming into a lean enterprise, with ambitious targets for operating profit and ROE by FY 2027. The company plans to leverage its strengths in the global market, particularly in Japan, the United States, and China, and will utilize IT and digital technologies to improve profitability and expand its service offerings.

Espec Corp. Enhances Shareholder Return Policy

Espec Corp. has revised its dividend policy to enhance shareholder returns, renaming it the Shareholder Return Policy. The new policy aims for a consolidated dividend payout ratio of 40% or more, with a total return ratio of 50% or more over three years, reflecting a strategic move to increase shareholder value.

Espec Corp. Announces Leadership Change

Espec Corp. has announced a change in its leadership structure, with Satoshi Arata becoming the sole representative director following the retirement of Masaaki Ishida. This decision, effective June 20, 2025, marks a significant shift in the company’s governance, potentially impacting its strategic direction and stakeholder relations.

Espec Corp. Announces Change in Major Shareholder

Espec Corp. has announced a change in its major shareholder status as the ESPEC Business Partners’ Stockholding Association’s voting rights fell below 10% due to equity share withdrawals by its members. This change, confirmed by a shareholders’ list from Mizuho Trust & Banking Co., Ltd., does not impact the company’s financial results, although the association will continue to purchase shares, leading to potential fluctuations in its holdings.