Inspec Inc. Fundamental Analysis (JPX: 6656.T)
Inspec Inc. (JPX: 6656.T) shows strong financial fundamentals with a PE ratio of 14.15, profit margin of 7.68%, and ROE of 24.78%. The company generates $2.9B in annual revenue with strong year-over-year growth of 10.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 6656.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6656.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6656.T trades at attractive valuation levels.
Growth Score
Moderate6656.T shows steady but slowing expansion.
Financial Health Score
Moderate6656.T shows balanced financial health with some risks.
Profitability Score
Weak6656.T struggles to sustain strong margins.
Key Financial Metrics
Is 6656.T Expensive or Cheap?
P/E Ratio
6656.T trades at 14.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 6656.T's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Inspec Inc. at 3.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.47 times EBITDA. This is generally considered low.
How Well Does 6656.T Make Money?
Net Profit Margin
For every $100 in sales, Inspec Inc. keeps $7.68 as profit after all expenses.
Operating Margin
Core operations generate 7.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.78 in profit for every $100 of shareholder equity.
ROA
Inspec Inc. generates $7.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Inspec Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Inspec Inc. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
6656.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How 6656.T Stacks Against Its Sector Peers
| Metric | 6656.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.15 | 34.00 | Better (Cheaper) |
| ROE | 24.78% | 783.00% | Weak |
| Net Margin | 7.68% | -3153.00% (disorted) | Weak |
| Debt/Equity | 1.37 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.38 | 12.44 | Neutral |
| ROA | 7.69% | 336.00% | Weak |
6656.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Inspec Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
106.06%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-218.83%
Industry Style: Growth, Innovation, High Beta
Declining