Espec Corp. (6859) AI Stock Analysis

• Market Cap: ¥77.29B
• Dividend Yield: 2.99%
• Average Volume (3M): 69.88K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.15
• Revenue Growth: 3.74%
• EPS Growth: 4.01%
• Country: JP
• Employees: 1,775
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 4.94
• Shares Outstanding: 23,781,393
• 10 Day Avg. Volume: 67,030
• 30 Day Avg. Volume: 69,880
• PEG Ratio: 0.42
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 22.98
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥3,842.00 ▲(9.30% Upside)

Espec Corp. receives a strong overall score driven by its robust financial performance, characterized by solid revenue growth, strong margins, and effective cash flow management. The stock's valuation is reasonable with a good dividend yield, adding to its attractiveness. Technical indicators suggest moderate momentum, supporting a positive outlook.

Espec Corp. Business Overview & Revenue Model

Company Description

Espec Corp. manufactures and sells environmental test chambers worldwide. It operates through three segments: Equipment Business, Service Business, and Other Business. The company offers temperature and humidity chambers/rapid-rate thermal cycle chambers, thermal shock chambers, temperature chambers, and network solutions. It also provides secondary battery-related equipment; measurement and evaluation systems, and semiconductor-related equipment; and indoor farm and growth chambers. In addition, the company offers after-sales and engineering services; laboratory testing and consulting services; and analysis, calibration, and equipment rental and resale services. Espec Corp. was founded in 1947 and is headquartered in Osaka, Japan.

How the Company Makes Money

Espec Corp. generates revenue through the sale of its specialized environmental testing equipment and related services. The company's primary revenue streams include the direct sale of test chambers and systems, which are often customized to meet specific client requirements, and ongoing service contracts for maintenance and calibration of the equipment. Additionally, Espec benefits from partnerships with industry leaders, enabling it to integrate advanced technologies into its products, enhancing their value. The company also generates income through consulting and testing services, where it provides expertise in product reliability and compliance testing. Overall, Espec's diverse offerings and strong market presence contribute significantly to its financial performance.

Espec Corp. Financial Statement Overview

Summary

Espec Corp. demonstrates strong financial health with consistent revenue and profit growth, solid profit margins, and effective cash flow management. The low leverage and strong equity position add stability. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.92B	67.29B	62.13B	52.89B	41.85B	38.67B
Gross Profit	23.13B	23.99B	21.99B	17.96B	14.00B	13.41B
EBITDA	9.31B	10.13B	8.66B	5.83B	3.37B	3.99B
Net Income	5.35B	6.00B	4.97B	3.33B	1.91B	1.96B
Balance Sheet
Total Assets	73.38B	75.85B	78.23B	67.18B	61.92B	58.61B
Cash, Cash Equivalents and Short-Term Investments	13.56B	12.77B	16.80B	14.30B	16.16B	17.30B
Total Debt	73.00M	126.00M	5.23B	293.00M	351.00M	538.00M
Total Liabilities	17.93B	19.15B	25.52B	20.01B	16.33B	13.62B
Stockholders Equity	55.45B	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: 3515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 3515 is above the 20-day moving average (MA) of 3454.75, above the 50-day MA of 3399.80, and above the 200-day MA of 2812.68, indicating a bullish trend. The MACD of 19.05 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 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
7715	―	¥41.69B	7.41	―	1.96%	-0.10%	1.43%
7723	―	¥43.46B	11.09	―	2.69%	5.64%	27.01%
7500	―	¥38.69B	14.70	―	2.63%	6.32%	5.91%
6914	―	¥78.93B	12.62	―	1.93%	5.70%	19.34%
6859	―	¥77.29B	13.74	―	2.99%	3.74%	4.01%
6866	―	¥82.29B	13.89	―	3.37%	7.28%	4.16%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Espec Corp. Corporate Events

Espec Corp. Reports Mixed Q1 FY2025 Results Amid Strong Market Demand

Espec Corp. reported a mixed financial performance for Q1 FY2025, with record-high orders driven by demand in generative AI and EV development, yet net sales and profits fell below expectations due to long-lead-time projects. Despite these challenges, the company maintained strong performance in its target markets and did not revise its first-half and full-year forecasts.

The most recent analyst rating on (JP:6859) stock is a Buy with a Yen3473.00 price target. To see the full list of analyst forecasts on Espec Corp. stock, see the JP:6859 Stock Forecast page.

Espec Corp. Corrects Treasury Shares Disposal Date for Employee Incentive Plan

Espec Corp. announced a correction to its previous notice regarding the disposal of treasury shares through a third-party allotment, which is part of the introduction of its Trust-type Employee Shareholding Incentive Plan (E-Ship Ⓡ). The correction involves a change in the disposal date from August 7, 2025, to September 24, 2025, due to errors found in the initial announcement. This adjustment may impact the company’s timeline for implementing the incentive plan, potentially affecting employee engagement and shareholder relations.

Espec Corp. Launches Employee Shareholding Incentive Plan to Boost Growth

Espec Corp. has introduced a Trust-type Employee Shareholding Incentive Plan (E-Ship Ⓡ) to motivate employees and enhance corporate value over the medium to long term. This plan involves the establishment of an E-Ship Trust, which will acquire company shares and sell them to the Employee Stockholding Association, with the company acting as a guarantor for loans taken by the trust. This initiative is expected to improve employee benefits and encourage steady growth by aligning employee interests with the company’s performance.

Espec Corp. Launches Employee Shareholding Incentive Plan with Treasury Share Disposal

Espec Corp. announced the disposal of 135,500 treasury shares through a third-party allotment as part of its new Trust-type Employee Shareholding Incentive Plan (E-Ship Ⓡ). This initiative aims to motivate employees by offering them a stake in the company, thereby enhancing corporate value and promoting long-term growth. The disposal is expected to have minimal dilution effects on existing shares, as the shares will be gradually transferred to the employee shareholding association.

Espec Corp. Reports Decline in Q1 2025 Financial Results

Espec Corp. reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 10% and profits dropping sharply compared to the same period in the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio and has not revised its forecast for the fiscal year ending March 31, 2026, indicating a cautious optimism about future performance.