Espec Corp. (6859) AI Stock Analysis

• Market Cap: ¥74.50B
• Dividend Yield: 3.12%
• Average Volume (3M): 69.88K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.11
• Revenue Growth: 2.78%
• EPS Growth: -5.32%
• Country: JP
• Employees: 1,775
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 82.55
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,842.00 ▲(14.52% 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.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for Espec's products and services, enhancing its market position and financial stability.

Cash Flow Management

Significant growth in free cash flow demonstrates effective capital expenditure management, ensuring financial flexibility and investment capacity.

Balance Sheet Strength

A low debt-to-equity ratio indicates minimal leverage, providing financial stability and reducing risk in economic downturns.

Negative Factors

Return on Equity

While reasonable, the return on equity could be enhanced to increase shareholder value and improve overall financial performance.

Market Competition

Operating in highly competitive markets may pressure margins and require continuous innovation to maintain market share and profitability.

Employee Efficiency

Managing a large workforce can be challenging, potentially impacting operational efficiency and increasing costs if not optimized effectively.

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 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	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: Negative
• Last Price: 3355.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3355 is above the 20-day moving average (MA) of 3352.50, below the 50-day MA of 3367.50, and above the 200-day MA of 3040.54, indicating a neutral trend. The MACD of -6.14 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 45.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6859.

Espec Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	82 Outperform	¥83.38B	14.46	―	3.23%	7.28%	4.16%
7715	80 Outperform	¥48.22B	9.07	―	1.94%	-4.17%	-7.07%
6859	75 Outperform	¥74.50B	13.31	―	3.12%	2.78%	-5.32%
7500	75 Outperform	¥43.07B	15.41	―	2.29%	6.81%	12.70%
7723	73 Outperform	¥42.13B	10.77	―	3.21%	7.99%	50.13%
6914	71 Outperform	¥89.42B	12.90	―	1.68%	2.72%	33.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Espec Corp. Corporate Events

ESPEC Corp. Announces Share Buyback Plan

ESPEC Corp. has announced the acquisition of 88,100 of its own shares, amounting to approximately ¥290.7 million, as part of a broader plan approved by its Board of Directors. This move is part of a strategic effort to buy back up to 900,000 shares by July 2026, potentially impacting its market position and shareholder value.

The most recent analyst rating on (JP:6859) stock is a Buy with a Yen3842.00 price target. To see the full list of analyst forecasts on Espec Corp. stock, see the JP:6859 Stock Forecast page.

Espec Corp. Reports Mixed Results Amid Strong Order Growth

Espec Corp. reported an increase in orders, particularly in its Equipment Business, but faced challenges with net sales due to long delivery lead times, affecting environmental test chambers and energy device equipment. Operating profit declined due to delayed sales and a worsening cost-of-sales ratio, leading to a decrease in profit attributable to owners. Despite these challenges, the company maintained its dividend forecast and announced a share repurchase, reflecting a commitment to shareholder returns.

The most recent analyst rating on (JP:6859) stock is a Buy with a Yen3842.00 price target. To see the full list of analyst forecasts on Espec Corp. stock, see the JP:6859 Stock Forecast page.

Espec Corp. Revises Financial Forecasts Amidst Market Challenges

Espec Corp. has revised its financial forecasts for the fiscal year ending March 31, 2026, due to a decline in profitability in its service business, impacted by reduced EV demand and increased competition in China. Despite increased orders and improved custom product profitability, the company expects lower profits than previously forecasted, though the dividend forecast remains unchanged.

The most recent analyst rating on (JP:6859) stock is a Buy with a Yen3842.00 price target. To see the full list of analyst forecasts on Espec Corp. stock, see the JP:6859 Stock Forecast page.

Espec Corp. Announces Share Acquisition and Cancellation Policy

Espec Corp. announced its decision to acquire up to 900,000 of its own shares, representing 4.05% of its total issued shares, with a budget of ¥3.5 billion. This move aligns with their policy to enhance shareholder returns and maintain a total return ratio of 50% or more over the medium-term management plan ‘Progressive Plus 2027’. The company also plans to cancel shares exceeding 10% of the total issued shares, reinforcing its commitment to strategic capital management.

The most recent analyst rating on (JP:6859) stock is a Buy with a Yen3842.00 price target. To see the full list of analyst forecasts on Espec Corp. stock, see the JP:6859 Stock Forecast page.