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TIS Inc. (JP:3626)
:3626
Japanese Market

TIS Inc. (3626) AI Stock Analysis

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JP:3626

TIS Inc.

(3626)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
¥5,461.00
▲(2.29% 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. (3626) vs. iShares MSCI Japan ETF (EWJ)

TIS Inc. Business Overview & Revenue Model

Company DescriptionTIS Inc. (3626) is a prominent information technology services company based in Japan, specializing in system integration and IT solutions. The company operates across various sectors, including finance, manufacturing, and healthcare, providing a range of services such as software development, IT infrastructure management, and consulting. TIS Inc. is known for its innovative solutions that enhance operational efficiency and digital transformation for its clients.
How the Company Makes MoneyTIS 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
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue577.95B571.69B549.00B508.40B482.55B448.38B
Gross Profit162.66B160.21B151.64B141.73B128.85B113.71B
EBITDA92.08B94.30B87.75B97.58B77.78B58.59B
Net Income51.85B50.01B48.87B55.46B39.46B27.69B
Balance Sheet
Total Assets524.52B558.05B525.46B462.32B476.64B451.07B
Cash, Cash Equivalents and Short-Term Investments112.18B122.73B103.83B94.96B114.49B83.60B
Total Debt36.29B41.07B42.67B20.05B41.00B47.75B
Total Liabilities175.24B201.98B200.73B153.10B173.65B171.64B
Stockholders Equity337.36B343.35B312.41B297.04B293.12B270.48B
Cash Flow
Free Cash Flow0.0044.93B43.65B23.25B40.85B11.82B
Operating Cash Flow0.0063.75B62.58B33.63B56.13B33.34B
Investing Cash Flow0.00-17.74B-32.82B11.30B-3.42B-17.52B
Financing Cash Flow0.00-27.79B-21.89B-64.57B-21.95B12.48B

TIS Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5339.00
Price Trends
50DMA
5063.70
Positive
100DMA
4978.96
Positive
200DMA
4673.43
Positive
Market Momentum
MACD
34.21
Negative
RSI
61.73
Neutral
STOCH
70.80
Neutral
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 5339 is above the 20-day moving average (MA) of 5147.40, above the 50-day MA of 5063.70, and above the 200-day MA of 4673.43, indicating a bullish trend. The MACD of 34.21 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.80 is Neutral, 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
74
Outperform
¥798.22B29.7010.07%1.78%11.66%-0.21%
73
Outperform
¥1.24T23.351.39%4.95%9.54%
73
Outperform
¥501.04B29.901.45%8.02%20.57%
71
Outperform
¥76.94B11.983.40%5.28%28.90%
69
Neutral
¥1.77T28.861.48%42.98%48.88%
66
Neutral
¥496.28B17.422.21%10.42%28.75%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3626
TIS Inc.
5,339.00
1,532.58
40.26%
JP:2327
NS Solutions
4,388.00
319.11
7.84%
JP:3636
Mitsubishi Research Institute
4,860.00
329.98
7.28%
JP:4812
DENTSU SOKEN INC.
7,700.00
1,952.93
33.98%
JP:8056
BIPROGY Inc.
5,422.00
904.33
20.02%
JP:9719
SCSK Corporation
5,669.00
2,464.16
76.89%

TIS Inc. Corporate Events

TIS Inc. Corrects Errors in Financial Presentation Materials
Nov 21, 2025

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.

TIS Inc. Corrects Errors in Merger Disclosure
Nov 21, 2025

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.

TIS Inc. Announces Change in Major Shareholder
Nov 11, 2025

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.

TIS Inc. Updates on Treasury Stock Acquisition Progress
Nov 10, 2025

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.

TIS Inc. Reports Strong Semi-Annual Financial Performance
Oct 31, 2025

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.

TIS Inc. Reports Strong Interim Financial Performance and Upward Forecast Revision
Oct 31, 2025

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.

TIS Inc. Announces Merger with Subsidiary INTEC Inc.
Oct 31, 2025

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.

TIS Inc. Advances Treasury Stock Acquisition Plan
Oct 7, 2025

TIS Inc. announced the acquisition of 672,800 shares of its own common stock, valued at approximately ¥3.39 billion, as part of a previously approved plan by the Board of Directors. This acquisition is part of a larger initiative to repurchase up to 12 million shares, reflecting TIS Inc.’s strategic effort to enhance shareholder value and optimize its capital structure.

TIS Inc. Enhances AI Capabilities Through Subsidiary Business Absorption
Sep 24, 2025

TIS Inc. has announced a strategic move to enhance its AI and data analysis capabilities by absorbing the business from its subsidiary, Miotsukushi Analytics Co., Ltd., through a simplified absorption-type company split. This decision aligns with TIS’s goal to strengthen its digital transformation and data utilization efforts, positioning AI and data analysis as core strengths to deliver higher value-added services to clients, amidst growing technological advancements and diverse client needs.

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: Oct 21, 2025