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TIS Inc. (JP:3626)
:3626
Japanese Market
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TIS Inc. (3626) AI Stock Analysis

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JP:3626

TIS Inc.

(3626)

Rating:67Neutral
Price Target:
¥4,989.00
▲(0.60% Upside)
TIS Inc. is well-positioned in the Information Technology Services industry, with strong financial performance being the most significant factor. Despite mixed technical signals, the company's solid balance sheet and cash flow generation provide a stable foundation for growth. The valuation is reasonable, supporting its investment appeal.

TIS Inc. (3626) vs. iShares MSCI Japan ETF (EWJ)

TIS Inc. Business Overview & Revenue Model

Company DescriptionTIS Inc. provides information technology (IT) services in Japan and internationally. The company operates through Service IT Business, BPO, Financial IT Services, Industrial IT Services, and Other segments. The Service IT Business segment provides knowledge-intensive IT services to create universalized template-oriented solutions, such as default configuration and ERP for clients. The BPO segment offers business process outsourcing services, including marketing and sales services; and office and contract operations. The Financial IT Services segment offers value-added services for client's operations, expand use of IT, and IT-based support services for the financial sector. The Industrial IT Business segment value-added services for client's operations, expand use of IT, and IT-based support services for the non-financial sector. The Others segment provides leasing and other information systems. The company serves clients in the credit card, banking, insurance and other financial, manufacturing, distribution, service, public, and other sectors. The company was formerly known as IT Holdings Corporation and changed its name to TIS Inc. in July 2016. TIS Inc. was founded in 1971 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTIS Inc. generates revenue primarily through its diversified portfolio of IT services, which include system integration, outsourcing, and cloud-based solutions. The company earns money by offering consulting services, developing customized IT systems for clients, and providing ongoing maintenance and support. Key revenue streams include fees for professional services, subscription-based cloud offerings, and long-term outsourcing contracts. TIS Inc. also benefits from strategic partnerships with technology providers and alliances that enhance its service offerings and expand its client base, contributing significantly to its overall earnings.

TIS Inc. Financial Statement Overview

Summary
TIS Inc. exhibits strong financial health with consistent revenue and profit growth, effective cost management, and a solid balance sheet. The company maintains a prudent capital structure with low leverage, ensuring stability and resilience. Cash flow generation is robust, supporting ongoing investments and shareholder returns. Overall, TIS Inc. is well-positioned for sustainable growth.
Income Statement
85
Very Positive
TIS Inc. has demonstrated consistent revenue growth, with a notable increase from JPY 443.7 billion in 2020 to JPY 571.7 billion in 2025. The gross profit margin has been stable, with a slight increase to 28.0% in 2025. Net profit margin improved to 8.7% in 2025, indicating enhanced efficiency in operations. EBIT and EBITDA margins also show positive trends, reflecting strong operational performance.
Balance Sheet
80
Positive
The company's debt-to-equity ratio is favorable, reducing from 0.17 in 2020 to 0.12 in 2025, indicating lower leverage risk. Return on equity remains robust at 14.6% in 2025, showcasing effective use of equity capital. The equity ratio improved to 61.5%, underscoring strong financial stability and low debt reliance.
Cash Flow
78
Positive
Free cash flow has grown steadily, with a free cash flow to net income ratio of 0.90 in 2025, indicating effective cash conversion. Operating cash flow to net income ratio remains strong at 1.27, suggesting healthy cash generation relative to earnings. The company effectively manages its capital expenditures, maintaining positive free cash flow growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue571.69B549.00B508.40B482.55B448.38B
Gross Profit160.21B151.64B141.73B128.85B113.71B
EBITDA94.30B87.75B78.19B70.65B57.24B
Net Income50.01B48.87B55.46B39.46B27.69B
Balance Sheet
Total Assets558.05B525.46B462.32B476.64B451.07B
Cash, Cash Equivalents and Short-Term Investments122.73B103.83B94.96B114.49B83.60B
Total Debt41.07B42.67B20.05B41.00B47.75B
Total Liabilities201.98B200.73B153.10B173.65B171.64B
Stockholders Equity343.35B312.41B297.04B293.12B270.48B
Cash Flow
Free Cash Flow44.93B43.65B23.25B40.85B11.82B
Operating Cash Flow63.75B62.58B33.63B56.13B33.34B
Investing Cash Flow-17.74B-32.82B11.30B-3.42B-17.52B
Financing Cash Flow-27.79B-21.89B-64.57B-21.95B12.48B

TIS Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4959.00
Price Trends
50DMA
4725.50
Positive
100DMA
4480.54
Positive
200DMA
4109.60
Positive
Market Momentum
MACD
79.76
Negative
RSI
72.47
Negative
STOCH
92.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3626, the sentiment is Positive. The current price of 4959 is above the 20-day moving average (MA) of 4705.40, above the 50-day MA of 4725.50, and above the 200-day MA of 4109.60, indicating a bullish trend. The MACD of 79.76 indicates Negative momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 92.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3626.

TIS Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥1.15T22.20
1.39%4.39%7.80%
61
Neutral
$34.87B5.87-10.42%2.07%6.72%-8.84%
$4.38B24.4710.80%3.97%
78
Outperform
¥591.83B22.79
1.55%8.94%10.67%
74
Outperform
¥1.45T29.41
1.53%33.00%21.00%
71
Outperform
¥437.27B28.12
1.67%7.93%7.51%
67
Neutral
¥77.18B14.93
3.27%1.06%-0.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3626
TIS Inc.
4,959.00
1,713.81
52.81%
NSSXF
NS Solutions
23.87
1.27
5.62%
JP:3636
Mitsubishi Research Institute
4,905.00
816.51
19.97%
JP:4812
DENTSU SOKEN INC.
6,720.00
1,415.01
26.67%
JP:8056
BIPROGY Inc.
6,466.00
2,158.36
50.11%
JP:9719
SCSK Corporation
4,632.00
1,985.66
75.03%

TIS Inc. Corporate Events

TIS Inc. Reports Strong Q1 Financial Performance and Dividend Increase
Jul 30, 2025

TIS Inc. reported a notable increase in its financial performance for the three months ending June 30, 2025, with net sales rising by 4.7% and operating profit increasing by 16.3% compared to the previous year. The company also announced a forecasted increase in dividends for the fiscal year ending March 31, 2026, reflecting confidence in its ongoing growth and financial stability.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen4300.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Announces Strategic Merger with INTEC Inc.
Jul 30, 2025

TIS Inc. has announced a merger with its subsidiary, INTEC Inc., as part of a strategic move to strengthen its management and business foundation. This merger aims to enhance corporate value by improving client value exchange and optimizing management capital allocation, aligning with TIS’s long-term Group Vision 2032.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen4300.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Advances Shareholder Value with Strategic Stock Buyback
Jul 7, 2025

TIS Inc. announced the acquisition of 946,100 shares of its own common stock, valued at approximately ¥4.47 billion, as part of a broader plan approved by its Board of Directors to repurchase up to 12 million shares by the end of 2025. This move is part of TIS’s strategy to enhance shareholder value and optimize its capital structure, reflecting a proactive approach to managing its equity and market presence.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen4300.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Acquires 900,000 Treasury Shares in Strategic Buyback
May 12, 2025

TIS Inc. announced the acquisition of 900,000 shares of its own stock through the Tokyo Stock Exchange’s off-auction trading system, amounting to approximately ¥4.16 billion. This move is part of a larger plan to repurchase up to 12 million shares by the end of 2025, reflecting the company’s strategy to enhance shareholder value and optimize capital structure.

TIS Inc. Announces Treasury Stock Acquisition Plan
May 9, 2025

TIS Inc. has announced its decision to acquire treasury stock through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System (ToSTNeT-3). The company plans to purchase up to 900,000 shares at a maximum aggregate acquisition amount of ¥4,156,200,000. This strategic move is part of a broader resolution by the Board of Directors to acquire up to 12,000,000 shares, representing 5.1% of the total shares issued, with a maximum aggregate acquisition amount of ¥42,000,000,000, by the end of 2025. This acquisition is expected to impact the company’s market positioning and shareholder value.

TIS Inc. Announces Leadership Change in Representative Director Role
May 8, 2025

TIS Inc. announced a change in its representative director, with Josaku Yanai stepping down from his role but continuing as Executive Vice President and President of subsidiary AGREX INC. This change is set to take place following the company’s General Meeting of Shareholders on June 24, 2025, and reflects a strategic leadership adjustment within the company.

TIS Inc. Announces Increased Year-End Dividend Amid Strong Performance
May 8, 2025

TIS Inc. has announced an increase in its year-end dividend to ¥36 per share for fiscal 2025, reflecting a favorable business performance that exceeded initial estimates. This decision aligns with the company’s strategy to enhance shareholder engagement and improve capital efficiency, with a total return ratio reaching 45.8% through dividends and share repurchases.

TIS Inc. Announces Strategic Treasury Stock Acquisition
May 8, 2025

TIS Inc. has announced a decision by its Board of Directors to acquire up to 12 million shares of its own stock, representing 5.1% of its total shares, with a maximum acquisition cost of ¥42 billion. This move is part of TIS’s strategy to enhance capital efficiency and shareholder returns, aligning with its Medium-Term Management Plan. The acquisition will be conducted via market purchases on the Tokyo Stock Exchange, and any treasury stock exceeding 5% of total issued shares will be canceled to prevent future stock dilution.

TIS Inc. Reports Strong Fiscal 2025 Results and Plans for Growth
May 8, 2025

TIS Inc. reported increased sales and income for the fiscal year ended March 31, 2025, despite a decline in large development projects. The company exceeded financial estimates, achieving an operating margin of 12.1% and plans to further increase sales and income in fiscal 2026 with a projected operating income margin of 12.5%. TIS Inc. announced a year-end dividend increase to ¥70 per share for fiscal 2025 and plans a further increase to ¥76 per share in fiscal 2026. Additionally, the company aims to enhance capital efficiency through a ¥42 billion treasury stock repurchase.

TIS Inc. Reports Increased Sales and Profits for Fiscal Year 2025
May 8, 2025

TIS Inc. reported a 4.1% increase in net sales for the fiscal year ending March 31, 2025, with operating and ordinary profits also seeing growth. The company declared a higher annual dividend per share, reflecting a strong financial position with increased net assets and a higher capital adequacy ratio. The financial results indicate a stable performance with strategic growth in profits, positioning TIS Inc. favorably in the market.

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: Jul 30, 2025