TIS Inc. (3626) AI Stock Analysis

• Market Cap: ¥1.19T
• Dividend Yield: 1.39%
• Average Volume (3M): 500.69K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.60
• Revenue Growth: 4.95%
• EPS Growth: 9.54%
• Country: JP
• Employees: 21,972
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 49.08
• Shares Outstanding: 236,233,410
• 10 Day Avg. Volume: 560,010
• 30 Day Avg. Volume: 500,686
• PEG Ratio: 3.34
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 21.40
• 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: ¥5,710.00
• Price Target Upside: 11.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥5,461.00 ▲(7.04% Upside)

TIS Inc. has a strong financial foundation with consistent growth and effective management, which is the most significant factor in the overall score. Technical analysis presents mixed signals, with some bearish momentum but support at longer-term moving averages. Valuation metrics suggest the stock is fairly valued with moderate income potential. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility and reduces risk, supporting sustainable growth.

Cash Generation Ability

Robust cash generation supports reinvestment and shareholder returns, ensuring long-term operational and financial health.

Negative Factors

Margin Pressure

While margins have improved, maintaining this trend amidst rising costs and competition could be challenging.

Competitive Pressure

Intense competition in IT services could impact pricing power and profitability, challenging long-term growth.

Market Saturation

Market saturation in core sectors could limit growth opportunities, necessitating innovation and diversification.

TIS Inc. Business Overview & Revenue Model

Company Description

TIS 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 Money

TIS Inc. generates revenue primarily through its IT service offerings, which include system integration, cloud services, and software development. The company charges clients on a project basis, as well as through ongoing maintenance and support contracts. Key revenue streams include consulting services, where TIS Inc. advises businesses on technology adoption and process improvement, and managed services that provide continuous IT support. The company also benefits from strategic partnerships with technology providers, enhancing its service capabilities and expanding its market reach, which contributes significantly to its 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.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	577.95B	571.69B	549.00B	508.40B	482.55B	448.38B
Gross Profit	162.66B	160.21B	151.64B	141.73B	128.85B	113.71B
EBITDA	92.08B	94.30B	87.75B	97.58B	77.78B	58.59B
Net Income	51.85B	50.01B	48.87B	55.46B	39.46B	27.69B
Balance Sheet
Total Assets	524.52B	558.05B	525.46B	462.32B	476.64B	451.07B
Cash, Cash Equivalents and Short-Term Investments	112.18B	122.73B	103.83B	94.96B	114.49B	83.60B
Total Debt	36.29B	41.07B	42.67B	20.05B	41.00B	47.75B
Total Liabilities	175.24B	201.98B	200.73B	153.10B	173.65B	171.64B
Stockholders Equity	337.36B	343.35B	312.41B	297.04B	293.12B	270.48B
Cash Flow
Free Cash Flow	0.00	44.93B	43.65B	23.25B	40.85B	11.82B
Operating Cash Flow	0.00	63.75B	62.58B	33.63B	56.13B	33.34B
Investing Cash Flow	0.00	-17.74B	-32.82B	11.30B	-3.42B	-17.52B
Financing Cash Flow	0.00	-27.79B	-21.89B	-64.57B	-21.95B	12.48B

TIS Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5102.00
• 50DMA: Negative
• 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:3626, the sentiment is Neutral. The current price of 5102 is below the 20-day moving average (MA) of 5248.60, below the 50-day MA of 5171.28, and above the 200-day MA of 4768.83, indicating a neutral trend. The MACD of 5.47 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3626.

TIS Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3636	75 Outperform	¥79.16B	12.33	―	3.28%	5.28%	28.90%
2327	74 Outperform	¥813.22B	30.26	10.07%	1.76%	11.66%	-0.21%
3626	73 Outperform	¥1.19T	22.31	―	1.39%	4.95%	9.54%
4812	73 Outperform	¥531.00B	31.65	―	1.48%	8.02%	20.57%
9719	69 Neutral	¥1.78T	28.93	―	1.48%	42.98%	48.88%
8056	66 Neutral	¥503.14B	17.66	―	2.17%	10.42%	28.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

TIS Inc. Corporate Events

TIS Inc. Completes ¥42 Billion Share Buyback and Announces Cancellation Policy

TIS Inc. has completed a share buyback program authorized by its board in May 2025, acquiring 8,656,200 shares of common stock on the market for a total of approximately ¥42.0 billion by December 23, 2025, including 865,300 shares purchased between December 1 and 23. The company plans to handle the repurchased shares under a dual policy: treasury stock held will in principle be capped at 5% of total shares outstanding with any excess cancelled, with about ¥7.0 billion of the buyback framed as a shareholder-return measure and the remaining roughly ¥35.0 billion specifically earmarked for cancellation to optimize capital structure and alleviate concerns over future stock dilution, signaling a shareholder-friendly capital allocation stance.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5710.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Corrects Errors in Financial Presentation Materials

TIS Inc. announced corrections to errors found in their presentation materials for the first two quarters of the fiscal year ending March 31, 2026. These corrections involve digit misplacements in bar chart values and merger-related expenses, which could impact stakeholders’ understanding of the company’s financial data.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Corrects Errors in Merger Disclosure

TIS Inc. announced corrections to errors found in a previous disclosure regarding the absorption-type merger of its subsidiary, INTEC Inc. The corrections involve digit misplacements in bar chart values and merger-related expenses, which have been rectified to ensure accurate information for stakeholders.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Announces Change in Major Shareholder

TIS Inc. announced a change in its major shareholder and the largest major shareholder due to the acquisition of treasury stock, which altered the distribution of voting rights among shareholders. This change, effective from June 6, 2025, does not impact the company’s business performance or operations.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Updates on Treasury Stock Acquisition Progress

TIS Inc. announced the status of its treasury stock acquisition, following a resolution by its Board of Directors. As of October 31, 2025, the company acquired 6,949,200 shares worth approximately ¥33.2 billion, as part of a larger plan to acquire up to 12 million shares by the end of the year. This move is part of TIS’s strategic financial management to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Reports Strong Semi-Annual Financial Performance

TIS Inc. reported its consolidated financial results for the six months ending September 30, 2025, showing a 4.7% increase in net sales and a significant rise in operating profit by 16.5% compared to the same period in the previous year. The company’s strategic acquisition of treasury shares and improved earnings per share reflect its strong market positioning and commitment to enhancing shareholder value.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Reports Strong Interim Financial Performance and Upward Forecast Revision

TIS Inc. reported strong financial performance for the first two quarters of the fiscal year ending March 31, 2026, with sales and operating income surpassing estimates. The company achieved an operating margin in the 12% range for the first time in the first half, and both orders received and order backlog increased year on year. As a result of these robust first-half results, TIS Inc. has revised its full-year performance forecasts upward.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Announces Merger with Subsidiary INTEC Inc.

TIS Inc. has announced a merger with its wholly owned subsidiary, INTEC Inc., to strengthen its management and business foundation. This merger, which is a simplified and short-form merger, aims to enhance corporate value by improving client and societal value exchange and optimizing management capital allocation. The merger is part of TIS’s long-term management policy, Group Vision 2032, and is expected to be effective from July 1, 2026.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5461.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.