TIS Inc. (3626) AI Stock Analysis

• Market Cap: ¥1.12T
• Dividend Yield: 1.51%
• Average Volume (3M): 660.78K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.58
• Revenue Growth: 4.13%
• EPS Growth: 5.66%
• Country: JP
• Employees: 21,972
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 214.99
• Shares Outstanding: 236,233,410
• 10 Day Avg. Volume: 567,470
• 30 Day Avg. Volume: 660,780
• PEG Ratio: 0.35
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.65
• 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: ¥4,932.50
• Price Target Upside: 2.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: ¥5,191.00 ▲(7.92%Upside)

TIS Inc.'s strong financial performance is the most significant factor driving its overall score, supported by consistent revenue growth and effective cost management. The technical analysis shows positive momentum, but caution is warranted due to potential overbought conditions. The valuation suggests the stock may be slightly overvalued, slightly offsetting the strong fundamentals.

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 services and solutions offerings. The company's key revenue streams include system integration services, which involve designing and implementing IT systems tailored to client needs, and IT infrastructure services, which provide ongoing management and support of IT environments. Consulting services also contribute to revenue, helping clients optimize their IT strategies and processes. Additionally, TIS Inc. benefits from strategic partnerships and collaborations with technology vendors and other IT service providers, enhancing its service offerings and expanding its market reach.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	560.82B	571.69B	549.00B	508.40B	482.55B	448.38B
Gross Profit	156.25B	160.21B	151.64B	141.73B	128.85B	113.71B
EBITDA	82.29B	94.30B	87.75B	78.19B	70.65B	57.24B
Net Income	51.16B	50.01B	48.87B	55.46B	39.46B	27.69B
Balance Sheet
Total Assets	521.74B	558.05B	525.46B	462.32B	476.64B	451.07B
Cash, Cash Equivalents and Short-Term Investments	95.28B	122.73B	103.83B	94.96B	114.49B	83.60B
Total Debt	42.19B	41.07B	42.67B	20.05B	41.00B	47.75B
Total Liabilities	180.41B	201.98B	200.73B	153.10B	173.65B	171.64B
Stockholders Equity	329.16B	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: Positive
• Last Price: 4810.00
• 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:3626, the sentiment is Positive. The current price of 4810 is above the 20-day moving average (MA) of 4744.90, above the 50-day MA of 4527.44, and above the 200-day MA of 3951.09, indicating a bullish trend. The MACD of 75.61 indicates Positive momentum. The RSI at 61.41 is Neutral, neither overbought nor oversold. The STOCH value of 43.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3626	74 Outperform	¥1.12T	22.37		1.51%	4.13%	5.66%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
NSSXF		$5.18B	29.17	10.73%	0.01%	―	―
8056	76 Outperform	¥547.26B	21.93		1.67%	9.15%	8.68%
4812	75 Outperform	¥445.08B	29.46		1.70%	7.49%	1.09%
9719	74 Outperform	¥1.35T	29.91		1.72%	24.10%	11.27%
3636	69 Neutral	¥72.43B	19.62		3.52%	-0.93%	-37.97%

TIS Inc. Corporate Events

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

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

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

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

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

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

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

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.