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Espec Corp.
(6859)
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Rating:80Outperform
Price Target:
¥5,141.00
▲(53.23% Upside)
Action:Reiterated
Date:06/18/26
The score is driven primarily by strong financial performance, led by a very conservative balance sheet and improved profitability, tempered by cash-flow consistency and mild margin pressure in 2026. Technicals add support due to a strong uptrend and positive MACD, but overbought readings raise near-term pullback risk. Valuation is reasonable with a mid-teens P/E and a moderate dividend yield.
Positive Factors
Conservative balance sheet
Low leverage and rising equity through 2021–2026 provide durable financial flexibility. This lowers refinancing and solvency risk, supports counter-cyclical investments and R&D, and gives management scope to fund capex, M&A or return capital while withstanding downturns.
Negative Factors
Uneven cash conversion history
Historical volatility in converting earnings to cash—highlighted by the 2024 dip—reduces predictability of free cash flow. That inconsistency can constrain funding for capex, service contracts and discretionary spending, and complicates medium-term planning and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and rising equity through 2021–2026 provide durable financial flexibility. This lowers refinancing and solvency risk, supports counter-cyclical investments and R&D, and gives management scope to fund capex, M&A or return capital while withstanding downturns.
Read all positive factors
Espec Corp. (6859) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥95.08B
Dividend Yield3.12%
Average Volume (3M)69.88K
Price to Earnings (P/E)15.5
Beta (1Y)1.19
Revenue Growth4.08%
EPS Growth-1.67%
CountryJP
Employees1,775
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)245.22
Shares Outstanding23,781,393
10 Day Avg. Volume67,030
30 Day Avg. Volume69,880
Financial Highlights & Ratios
PEG Ratio-6.59
Price to Book (P/B)1.05
Price to Sales (P/S)0.92
P/FCF Ratio17.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)284.03
Revenue Forecast (FY)¥72.49B
Espec Corp. Business Overview & Revenue Model
Company Description
Espec Corp. is a global producer and distributor of environmental testing equipment. The company's business activities are organized into three primary divisions: Equipment Business, Service Business, and Other Business. Its product line features ...
How the Company Makes Money
Espec primarily makes money by selling environmental testing and conditioning equipment (e.g., temperature/humidity chambers, thermal shock systems, and other reliability test solutions) to corporate and institutional customers that need to qualif...
Espec Corp. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.92B | 70.03B | 67.29B | 62.13B | 52.89B | 41.85B |
| Gross Profit | 23.13B | 24.04B | 23.73B | 21.80B | 17.83B | 13.90B |
| EBITDA | 8.97B | 9.30B | 9.50B | 8.30B | 5.83B | 3.37B |
| Net Income | 5.35B | 5.88B | 6.00B | 4.97B | 3.33B | 1.91B |
Balance Sheet | ||||||
| Total Assets | 73.38B | 82.92B | 75.85B | 78.23B | 67.18B | 61.92B |
| Cash, Cash Equivalents and Short-Term Investments | 13.56B | 14.70B | 12.77B | 16.80B | 14.30B | 16.16B |
| Total Debt | 73.00M | 611.00M | 1.05B | 5.30B | 712.00M | 958.00M |
| Total Liabilities | 17.93B | 21.52B | 19.15B | 25.52B | 20.00B | 16.33B |
| Stockholders Equity | 55.45B | 61.40B | 56.69B | 52.72B | 46.95B | 45.38B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.65B | 2.26B | 498.00M | 947.00M | 1.34B |
| Operating Cash Flow | 0.00 | 5.05B | 4.45B | 2.74B | 1.92B | 2.02B |
| Investing Cash Flow | 0.00 | -273.00M | -1.15B | -3.78B | -1.06B | -932.00M |
| Financing Cash Flow | 0.00 | -3.88B | -7.25B | 2.80B | -2.90B | -2.83B |
Espec Corp. Technical Analysis
Positive
3355.00
Price Trends
3836.60
Positive
3627.93
Positive
3477.03
Positive
Market Momentum
153.99
Positive
54.73
Neutral
15.56
Positive
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 3355 is below the 20-day moving average (MA) of 4328.00, below the 50-day MA of 3836.60, and below the 200-day MA of 3477.03, indicating a neutral trend. The MACD of 153.99 indicates Positive momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6859.
Espec Corp. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥18.86B | 15.05 | ― | 5.39% | 2.47% | -6.22% | |
81 Outperform | ¥164.31B | 26.27 | ― | 3.23% | 5.32% | -3.12% | |
80 Outperform | ¥95.08B | 15.53 | ― | 3.12% | 4.08% | -1.67% | |
79 Outperform | ¥1.16T | 29.61 | 11.99% | 0.65% | 8.38% | 8.43% | |
76 Outperform | ¥29.20B | 13.73 | ― | 2.89% | 7.91% | 2.84% | |
73 Outperform | ¥19.83B | 17.95 | ― | 2.93% | 6.08% | 10.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Espec Corp. Corporate Events
Espec Tightens Internal Control Policy to Strengthen Group Governance
Apr 27, 2026
Espec Corp. has approved revisions to its basic policy on establishing an internal control system, tightening compliance, risk management, and governance frameworks across the parent company and its subsidiaries. The changes reinforce board oversi...
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.