TIS Inc. (3626) AI Stock Analysis

• Market Cap: ¥694.35B
• Dividend Yield: 1.39%
• Average Volume (3M): 500.69K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.36
• Revenue Growth: 4.95%
• EPS Growth: 9.54%
• Country: JP
• Employees: 21,972
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 63.95
• Shares Outstanding: 228,400,000
• 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: ¥4,545.00
• Price Target Upside: 31.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 226.09
• Revenue Forecast (FY): ¥593.99B

• Rating: 70 Outperform
• Price Target: ¥3,491.00 ▲(1.07% Upside)
• Action: Upgraded Date: 02/14/26
• Date: Action: Upgraded 02/14/26

The score is driven primarily by strong financial performance (growth, improving margins, low leverage, and solid cash generation). This is meaningfully offset by very weak technical momentum (price below all major moving averages and deeply negative momentum indicators). Valuation is supportive with a moderate P/E and a ~2.16% dividend yield.

Positive Factors

Consistent revenue growth

Sustained top-line expansion over multiple years indicates the company is scaling its services and winning customers. This multi-year revenue growth provides a durable base for reinvestment in products, talent, and client relationships, supporting steady organic expansion.

Improving profitability

Rising net and stable gross margins point to improving operational efficiency and pricing power. Durable margin improvement suggests structural cost controls, higher-value service mix, or scale economics that can sustain higher cash flows and support long-term profitability.

Low leverage and strong cash conversion

A conservative capital structure and high cash conversion provide financial flexibility for investments, dividends, and M&A. Low leverage reduces refinancing and solvency risk, making the company more resilient to cyclical slowdowns and enabling durable capital allocation choices.

Negative Factors

Moderate revenue growth rate

A mid-single-digit revenue growth pace may limit long-term upside relative to faster-growing IT peers. In a sector where scale and rapid product adoption drive valuations, moderate organic growth constrains revenue leverage and the speed at which the company can expand margins.

Operating in a highly competitive sector

The IT services industry is crowded with global and regional competitors, pressuring pricing and requiring continuous investment in skills and technology. Structural competition can compress margins over time and demands ongoing spending to defend market share and client relationships.

Labor‑intensive business model

A large employee base implies a labor‑driven cost structure that is sensitive to utilization, wage inflation, and recruitment. Sustaining margins requires high utilization and productivity; failure to maintain them or higher wage costs could erode profitability over the medium term.

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

Strong fundamentals supported by consistent revenue growth (JPY 443.7B in 2020 to JPY 571.7B in 2025), improving profitability (net margin up to 8.7% in 2025), low leverage (debt-to-equity down to 0.12), solid ROE (14.6%), and healthy cash conversion (FCF to net income 0.90; operating cash flow to net income 1.27).

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	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: Negative
• Last Price: 3454.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 3454 is above the 20-day moving average (MA) of 3404.65, below the 50-day MA of 4384.22, and below the 200-day MA of 4754.50, indicating a bearish trend. The MACD of -386.46 indicates Negative momentum. The RSI at 31.80 is Neutral, neither overbought nor oversold. The STOCH value of 59.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3626.

TIS Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9715	75 Outperform	¥151.58B	10.80	11.52%	2.76%	4.00%	38.72%
3626	70 Outperform	¥694.35B	13.78	―	1.39%	4.95%	9.54%
8056	67 Neutral	¥412.16B	14.62	―	2.17%	10.42%	28.75%
9682	66 Neutral	¥177.23B	15.39	18.89%	2.78%	11.90%	60.66%
4725	65 Neutral	¥32.20B	10.11	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2327	57 Neutral	¥730.69B	26.49	10.07%	1.76%	11.66%	-0.21%

TIS Inc. Corporate Events

TIS to Cancel ¥35 Billion in Treasury Shares to Optimize Capital Structure

TIS Inc. has resolved to cancel 7,833,411 shares of its treasury stock, equivalent to about 3.3% of its issued shares, under Article 178 of the Companies Act, with the cancellation scheduled for February 27, 2026. The move follows a ¥42.0 billion share buyback in fiscal 2026, of which ¥35.0 billion worth of shares—acquired to optimize the company’s capital structure and alleviate concerns over potential future dilution—will be cancelled, reducing total issued shares to 228.4 million and leaving treasury stock at roughly 1.3% of shares outstanding, underscoring TIS’s ongoing focus on capital efficiency and shareholder returns.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5015.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Inc. Delivers Higher Sales and Profits, Confirms Full-Year Outlook

TIS Inc. reported year-on-year growth in both sales and operating income for the first three quarters of the fiscal year ending March 31, 2026, while maintaining a stable operating margin in the 12% range. The company noted that order intake increased moderately compared with the previous year, though its order backlog decreased, suggesting a healthy flow of new business but also faster execution of existing projects. Management indicated that performance is broadly tracking the revised full-year plan announced at the half-year stage and confirmed there would be no change to its full-year forecast, signaling operational stability and visibility for investors and other stakeholders.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5015.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS Posts Double-Digit Profit Growth and Lifts Dividend Outlook for FY2025–26

TIS Inc. reported steady growth for the nine months ended December 31, 2025, with net sales rising 4.7% year on year to ¥436.3 billion and operating profit increasing 12.1% to ¥54.8 billion, while profit attributable to owners of parent climbed 10.8% to ¥38.2 billion, supported by improved profitability and higher earnings per share of ¥167.05. The company maintained a solid financial position with a capital adequacy ratio of 62.7%, confirmed an increased annual dividend forecast of ¥76.00 per share for the fiscal year ending March 31, 2026, and left its full-year earnings guidance unchanged, signaling confidence in its business performance and shareholder-return policy, including the impact of ongoing share buybacks on per-share metrics.

The most recent analyst rating on (JP:3626) stock is a Buy with a Yen5015.00 price target. To see the full list of analyst forecasts on TIS Inc. stock, see the JP:3626 Stock Forecast page.

TIS to Absorb UX/UI Subsidiary Fixel to Bolster Integrated DX Services

TIS Inc. has approved an absorption-type merger of its wholly owned subsidiary Fixel Inc., a UX/UI design and design-driven DX consultancy, with TIS as the surviving entity and Fixel to be dissolved on April 1, 2026. The simplified, short-form transaction, which involves no share or cash consideration, is aimed at consolidating Fixel’s design capabilities and personnel into TIS to strengthen integrated design-and-engineering services, enabling more seamless end-to-end DX support for clients from proposal and development through to maintenance, and thereby enhancing TIS’s competitive positioning in enterprise digital transformation solutions.

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. 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.