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Espec Corp. (JP:6859)
:6859
Japanese Market
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Espec Corp. (6859) AI Stock Analysis

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JP:6859

Espec Corp.

(6859)

Rating:80Outperform
Price Target:
¥3,473.00
▲(8.19%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. (6859) vs. iShares MSCI Japan ETF (EWJ)

Espec Corp. Business Overview & Revenue Model

Company DescriptionEspec Corp. (6859) is a Japanese company that specializes in the design and manufacture of environmental test chambers and equipment. These products are used in a wide range of industries, including electronics, automotive, pharmaceuticals, and biotechnology, to simulate various environmental conditions for testing purposes. The company is recognized for its advanced technology and high-quality products that help businesses ensure the reliability and durability of their products under different environmental conditions.
How the Company Makes MoneyEspec Corp. generates revenue primarily through the sale of its environmental test chambers and related equipment. The company's key revenue streams include direct sales to businesses in sectors such as electronics, automotive, pharmaceuticals, and biotechnology, which require rigorous testing of their products. Additionally, Espec Corp. may offer maintenance and support services for its equipment, contributing to recurring revenue. Strategic partnerships with other technology firms and continuous innovation in product offerings also play a significant role in driving the company's earnings.

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
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue66.23B67.29B62.13B52.89B41.85B38.67B
Gross Profit23.45B23.73B21.99B17.96B14.00B13.41B
EBITDA9.44B10.13B8.66B5.83B3.37B3.70B
Net Income5.73B6.00B4.97B3.33B1.91B1.96B
Balance Sheet
Total Assets74.12B75.85B78.23B67.18B61.92B58.61B
Cash, Cash Equivalents and Short-Term Investments13.82B12.77B16.80B14.30B16.16B17.30B
Total Debt1.13B126.00M5.23B293.00M351.00M538.00M
Total Liabilities18.46B19.15B25.52B20.01B16.33B13.62B
Stockholders Equity55.66B56.69B52.72B46.95B45.38B44.98B
Cash Flow
Free Cash Flow0.002.26B498.00M947.00M1.34B1.33B
Operating Cash Flow0.004.45B2.74B1.92B2.02B3.04B
Investing Cash Flow0.00-1.15B-3.78B-1.06B-932.00M-2.03B
Financing Cash Flow0.00-7.25B2.80B-2.90B-2.83B-1.50B

Espec Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3210.00
Price Trends
50DMA
2975.36
Positive
100DMA
2653.07
Positive
200DMA
2590.51
Positive
Market Momentum
MACD
57.76
Positive
RSI
61.81
Neutral
STOCH
85.06
Negative
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 3210 is above the 20-day moving average (MA) of 3132.50, above the 50-day MA of 2975.36, and above the 200-day MA of 2590.51, indicating a bullish trend. The MACD of 57.76 indicates Positive momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6859.

Espec Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥71.81B11.67
2.96%8.31%21.11%
79
Outperform
¥40.00B6.63
2.14%2.37%11.78%
78
Outperform
¥37.68B9.88
3.19%5.64%27.01%
75
Outperform
¥62.52B9.99
2.52%8.40%30.12%
72
Outperform
¥33.31B12.36
3.08%5.47%15.88%
68
Neutral
¥78.47B13.28
3.48%4.55%4.94%
62
Neutral
$34.81B6.83-11.82%2.06%6.36%-8.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6859
Espec Corp.
3,210.00
1,141.18
55.16%
JP:6866
Hioki E.E.Corporation
5,750.00
-601.21
-9.47%
JP:6914
OPTEX GROUP Company Limited
1,729.00
418.31
31.92%
JP:7500
Nishikawa Keisoku Co., Ltd.
9,900.00
3,274.38
49.42%
JP:7715
Nagano Keiki Co., Ltd.
2,101.00
86.34
4.29%
JP:7723
Aichi Tokei Denki Co., Ltd.
2,445.00
757.44
44.88%

Espec Corp. Corporate Events

Espec Corp. Updates Strategic Initiatives for Enhanced Growth and Shareholder Value
May 15, 2025

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
May 15, 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
May 15, 2025

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
May 15, 2025

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
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025