TSI Holdings Co (3608) AI Stock Analysis

• Market Cap: ¥51.13B
• Dividend Yield: 6.12%
• Average Volume (3M): 229.27K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.29
• Revenue Growth: -6.22%
• EPS Growth: 679.61%
• Country: JP
• Employees: 4,102
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 63,438,793
• 10 Day Avg. Volume: 269,220
• 30 Day Avg. Volume: 229,270
• PEG Ratio: 0.02
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 26.48
• 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: 68 Neutral
• Price Target: ¥1,166.00 ▲(6.10% Upside)

TSI Holdings Co's strong valuation with a low P/E ratio and high dividend yield are significant positives, suggesting potential undervaluation and attractive returns. Financial performance is stable with a solid balance sheet, though improvements in cash conversion are needed. Technical analysis indicates a bearish trend, which could pose short-term risks.

Positive Factors

Low Leverage / Strong Balance Sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility. This foundation supports capital allocation to brands, logistics and real estate, cushions cyclical retail downturns, and enables sustained dividends or opportunistic M&A without stressing liquidity.

Free Cash Flow Recovery

Re-establishing positive free cash flow after prior negative years signals improved cash generation. Sustainable FCF enhances ability to fund operations, reinvest in growth initiatives, reduce debt, and maintain shareholder returns, strengthening long-term financial independence.

High Gross & Improved Net Margins

A high gross margin indicates pricing power and product mix strength in beauty/personal care. The jump in net margin reflects better cost control. Together these margins support durable profitability and the ability to reinvest in brands and distribution over the medium term.

Negative Factors

Weak Cash Conversion

Significant gap between accounting profits and cash conversion constrains internal funding. Persistently low conversion ratios indicate structural working-capital inefficiencies or timing issues that reduce free cash available for capex, marketing, or acquisitions.

Low Operating Profitability (EBIT)

Very low EBIT margin despite reasonable gross margin points to elevated operating overheads or non-core costs. Structural weakness at the operating level limits scalability and reduces the company's ability to generate operating cash flow as revenue grows.

Modest Revenue Growth

Near-flat top-line growth across diversified segments suggests challenges scaling brands or retail/e‑commerce channels. Without sustained revenue expansion, margin improvements and cash generation gains may be difficult to maintain over the next several quarters.

TSI Holdings Co Business Overview & Revenue Model

Company Description

TSI Holdings Co.,Ltd. plans, manufactures, sells, and imports clothing in Japan and internationally. It offers men's and women's wear. The company is also involved in the import, export, wholesale, and retail of clothing, cosmetics, perfumes, soaps, quasi-drugs, etc.; and food service business; and development and sale of synthetic resin related and processed products, as well as production and logistics management activities, employment agency, and work dispatching business. It serves specialty and department stores. The company was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TSI Holdings generates revenue through multiple streams, including the sale of beauty and personal care products, which constitute a significant portion of its earnings. The company operates various brand lines under its umbrella, leveraging both physical retail and e-commerce channels to reach consumers. Additionally, TSI Holdings earns income from logistics services, optimizing supply chain operations for its products and potentially for third-party clients. The real estate segment contributes to revenue through rental income from properties owned or managed by the company. Strategic partnerships with both domestic and international brands enhance TSI's market reach and product offerings, further bolstering its financial performance.

TSI Holdings Co Financial Statement Overview

Summary

TSI Holdings Co exhibits a stable financial performance with moderate revenue growth and improved profitability. The balance sheet is robust due to low debt levels and a high equity ratio, providing a cushion against potential risks. Despite positive trends in cash flows, the company should focus on enhancing cash conversion efficiency. Overall, the company is financially sound with opportunities for operational improvements.

Income Statement

TSI Holdings' income statement shows a stable revenue with a slight growth of 0.79% from 2024 to 2025. The company maintains a healthy gross profit margin of 53.3% in 2025. However, the net profit margin improved significantly from 3.12% in 2024 to 9.72% in 2025, indicating better cost management. The EBIT and EBITDA margins are relatively low, at 1.05% and 17.65%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a strong equity position, with a debt-to-equity ratio of 0.015 in 2025, showcasing low leverage risk. The equity ratio stands at 76.44%, indicating financial stability. Return on Equity (ROE) improved to 14.11%, demonstrating effective use of shareholder funds. Overall, the company has a solid financial foundation with minimal debt levels.

Cash Flow

TSI Holdings displays a strong recovery in cash flows with a positive free cash flow of 3.28 billion JPY in 2025, after negative figures in previous years. The operating cash flow to net income ratio is 0.38, highlighting some inefficiencies in cash conversion. The free cash flow to net income ratio is 0.22. The cash flow trend is positive, but the company should strive for better cash conversion from its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.54B	156.61B	155.38B	154.46B	140.38B	134.08B
Gross Profit	79.90B	83.52B	84.73B	84.90B	76.83B	63.85B
EBITDA	30.01B	27.63B	5.41B	6.81B	7.26B	10.91B
Net Income	17.34B	15.23B	4.85B	3.06B	1.02B	3.86B
Balance Sheet
Total Assets	122.70B	141.16B	133.46B	135.43B	140.44B	154.95B
Cash, Cash Equivalents and Short-Term Investments	28.90B	46.33B	27.47B	32.20B	40.23B	49.87B
Total Debt	9.08B	1.66B	9.96B	9.77B	16.18B	25.20B
Total Liabilities	29.94B	32.92B	36.04B	36.55B	42.70B	57.52B
Stockholders Equity	92.49B	107.91B	97.08B	98.48B	97.21B	96.98B
Cash Flow
Free Cash Flow	0.00	3.28B	-3.57B	-2.43B	-710.00M	-8.94B
Operating Cash Flow	0.00	5.72B	-525.00M	1.33B	1.38B	-5.30B
Investing Cash Flow	0.00	28.33B	3.50B	-110.00M	-3.98B	36.01B
Financing Cash Flow	0.00	-15.13B	-7.25B	-9.59B	-8.96B	-11.17B

TSI Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1099.00
• 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:3608, the sentiment is Positive. The current price of 1099 is above the 20-day moving average (MA) of 1075.50, above the 50-day MA of 1047.26, and above the 200-day MA of 1059.85, indicating a neutral trend. The MACD of 1.92 indicates Positive momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3608.

TSI Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3580	79 Outperform	¥34.39B	34.13	―	3.23%	6.98%	-42.05%
3569	75 Outperform	¥176.51B	12.76	10.24%	2.43%	6.08%	8.55%
3608	68 Neutral	¥51.13B	4.07	17.77%	6.12%	-6.22%	679.61%
2685	64 Neutral	¥130.18B	14.33	11.28%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

TSI Holdings Co Corporate Events

TSI Holdings Delivers Strong Profit Rebound in Q3 and Reshapes Group Structure

TSI Holdings reported third-quarter consolidated net sales of ¥116.6 billion, up 0.5% year on year, while operating income jumped 70.0% to ¥3.7 billion and ordinary income doubled to ¥5.0 billion; profit attributable to owners of parent surged to ¥3.3 billion from ¥159 million a year earlier, driving earnings per share up to ¥51.17. Despite a decline in net assets and shareholders’ equity ratio due in part to changes in the scope of consolidation and increased treasury stock, the company maintained its full-year forecast, projecting ¥169.0 billion in net sales and a sharp recovery in profitability, while also restructuring its group portfolio by adding Daytona International Co., Ltd. as a consolidated subsidiary and removing six other subsidiaries, signaling continued efforts to streamline operations and improve capital efficiency, including through share buybacks reflected in reduced shares outstanding and higher treasury stock.

The most recent analyst rating on (JP:3608) stock is a Buy with a Yen1070.00 price target. To see the full list of analyst forecasts on TSI Holdings Co stock, see the JP:3608 Stock Forecast page.

TSI Holdings Posts Strong December Sales Boosted by New Subsidiary, Underlying Store Performance Still Soft

TSI Holdings reported that December 2025 retail sales across all channels rose 34.3% year-on-year, driven largely by strong growth in e-commerce and the consolidation of Daytona International, while existing retail channels posted a more modest 3.8% increase to 96.2% of the prior year. The company noted that steady demand for winter and basic items, particularly in menswear, was offset by weak promotional sales at key brands and by the impact of having one fewer holiday, which shaved an estimated 2.3 percentage points off year-on-year results, and that excluding the newly consolidated Daytona International business, overall retail sales were only 91.4% of the previous year, highlighting continued softness in the underlying store network.

The most recent analyst rating on (JP:3608) stock is a Hold with a Yen1056.00 price target. To see the full list of analyst forecasts on TSI Holdings Co stock, see the JP:3608 Stock Forecast page.

TSI Holdings Reports Strong November Sales Boosted by Weather and Holidays

TSI Holdings Co. reported a significant increase in year-on-year sales for November 2025, with all retail channels achieving 139.4% and existing retail channels reaching 103.2%. The rise in sales was driven by a drop in temperatures boosting demand for heavy outerwear and an additional two holidays compared to the previous year, which positively impacted sales by approximately 5.2 percentage points. Excluding the impact of its new subsidiary, Daytona International, sales were slightly below the previous year at 98.5%.

The most recent analyst rating on (JP:3608) stock is a Hold with a Yen1056.00 price target. To see the full list of analyst forecasts on TSI Holdings Co stock, see the JP:3608 Stock Forecast page.

TSI Holdings Reports Strong October Sales Driven by Physical Stores

In October 2025, TSI Holdings Co. reported a year-on-year sales increase of 133.2% across all retail channels, driven by strong performance in physical stores due to a decline in temperature boosting autumn and winter product sales. However, e-commerce sales struggled, resulting in existing retail channels maintaining similar sales levels to the previous year. Excluding the impact of the newly consolidated Daytona International, the overall sales growth was 94.9% year-on-year.

The most recent analyst rating on (JP:3608) stock is a Buy with a Yen1201.00 price target. To see the full list of analyst forecasts on TSI Holdings Co stock, see the JP:3608 Stock Forecast page.