TerraSky Co., Ltd. (3915) AI Stock Analysis

• Market Cap: ¥22.02B
• Dividend Yield: N/A
• Average Volume (3M): 105.79K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.58
• Revenue Growth: 17.93%
• EPS Growth: 91.21%
• Country: JP
• Employees: 1,193
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 51.35
• Shares Outstanding: 12,918,380
• 10 Day Avg. Volume: 149,590
• 30 Day Avg. Volume: 105,790
• PEG Ratio: 0.12
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 20.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 120.1
• Revenue Forecast (FY): ¥32.30B

• Rating: 68 Neutral
• Price Target: ¥1,950.00 ▼(-8.67% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

TerraSky Co., Ltd. demonstrates strong financial performance, which is the most significant factor in its overall score. However, technical indicators suggest bearish momentum, and the valuation is moderate. The absence of earnings call insights and corporate events does not impact the score.

Positive Factors

Revenue and Profit Growth

Sustained 29% revenue growth with improving net margins reflects durable demand for TerraSky's cloud services and successful execution. This growth supports reinvestment in product and talent, drives scale benefits over months, and underpins longer-term profitability and ROE expansion.

Cash Flow Generation

A transition to positive free cash flow and operating cash flows that cover net income signal sustainable internal funding for capex, R&D, or M&A without relying on external financing. This durable cash generation improves financial flexibility across the next several quarters.

Balance Sheet Strength

A strong equity ratio (~57%) and low leverage provide resilience to economic shocks and the capacity to fund strategic initiatives. Conservative balance-sheet positioning preserves optionality for growth investments and reduces refinancing risk over a 2-6 month horizon.

Negative Factors

Competitive Intensity

Operating in cloud consulting and system integration exposes TerraSky to intense competition from global cloud providers, large integrators, and low-cost firms. Maintaining pricing power and margin requires continuous investment in skills and partnerships, pressuring margins over time.

Modest Gross Margin

A ~27% gross margin reflects a services-heavy mix that limits operating leverage compared with pure software or SaaS peers. Durable margin expansion will require a shift toward higher-margin offerings or scale efficiencies, which can take multiple quarters to realize.

Limited Public Guidance

Absence of earnings call disclosures and formal guidance reduces transparency into execution and near-term priorities. That limited visibility can make forecasting and investor oversight harder, potentially slowing external confidence and complicating capital allocation decisions.

TerraSky Co., Ltd. Business Overview & Revenue Model

Company Description

TerraSky Co.,Ltd. provides cloud products and solutions in Japan and internationally. It offers cloud integration services comprising Salesforce, Amazon Web services, Heroku, contact center solutions, and SAP migration Solutions; cloud consulting services, such as cloud ERP concierge, DX promotion consulting, AppExchange consulting, marketing automation introduction support service, IoT consulting, and BI tool introduction support services; and development support tools, such as DataSpider cloud, DCSpider, SkyVisualEditor, and Flosum. The company was formerly known as Head Solutions Co., Ltd. and changed its name to Terasakai Co.,Ltd. in February 2007. TerraSky Co.,Ltd. was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TerraSky generates revenue primarily through the sale of its cloud-based software solutions and services, which include subscription fees for access to its applications, consulting services, and custom integration projects for enterprise clients. The company also earns income from maintenance and support services, as well as training programs for users. Significant partnerships with major cloud providers, such as Salesforce and Amazon Web Services, enhance its offerings and expand its customer base, contributing to its overall revenue. Additionally, TerraSky may benefit from government contracts and projects focusing on digital transformation initiatives across various industries.

TerraSky Co., Ltd. Financial Statement Overview

Summary

TerraSky Co., Ltd. exhibits strong financial performance with impressive revenue growth and profitability. The balance sheet reflects stability with low leverage, and cash flow improvements indicate effective cash management, supporting future growth.

Income Statement

TerraSky Co., Ltd. has demonstrated impressive revenue growth, with a 29% increase in the latest year. The gross profit margin stands at approximately 27%, indicating efficient production. Net profit margin has improved significantly, reflecting effective cost management. EBIT and EBITDA margins show strong profitability, supporting a healthy financial position.

Balance Sheet

The company maintains a solid equity position with an equity ratio of approximately 57%. The debt-to-equity ratio is low, indicating a conservative approach to leverage. The return on equity is robust, driven by strong net income growth. Overall, the balance sheet reflects financial stability and prudent management.

Cash Flow

TerraSky Co., Ltd. has shown a remarkable turnaround in free cash flow, moving from negative to positive. Operating cash flow is strong and comfortably covers net income, indicating effective cash management. The company has successfully improved its cash flow generation, supporting future investment and growth opportunities.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	25.51B	24.71B	19.14B	15.44B	12.58B	11.14B
Gross Profit	6.83B	6.68B	5.01B	4.26B	3.61B	3.29B
EBITDA	2.18B	2.14B	1.06B	1.11B	1.07B	4.02B
Net Income	1.06B	1.02B	300.03M	347.42M	306.77M	2.46B
Balance Sheet
Total Assets	19.92B	19.47B	18.45B	15.52B	13.83B	15.56B
Cash, Cash Equivalents and Short-Term Investments	6.86B	6.51B	5.62B	5.89B	5.67B	6.09B
Total Debt	200.00M	205.96M	229.08M	290.22M	596.35M	680.22M
Total Liabilities	6.72B	6.63B	5.89B	4.59B	3.99B	5.11B
Stockholders Equity	11.48B	11.08B	11.10B	9.58B	8.79B	9.67B
Cash Flow
Free Cash Flow	0.00	1.39B	-40.32M	661.04M	-807.96M	-188.75M
Operating Cash Flow	0.00	1.56B	671.80M	978.19M	-466.93M	234.72M
Investing Cash Flow	0.00	-1.01B	-894.61M	-975.89M	-365.02M	2.42B
Financing Cash Flow	0.00	345.44M	-59.70M	216.33M	407.70M	34.32M

TerraSky Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2135.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3915, the sentiment is Negative. The current price of 2135 is above the 20-day moving average (MA) of 1884.20, above the 50-day MA of 2046.25, and below the 200-day MA of 2262.20, indicating a bearish trend. The MACD of -81.08 indicates Positive momentum. The RSI at 24.13 is Positive, neither overbought nor oversold. The STOCH value of 3.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3915.

TerraSky Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3915	68 Neutral	¥22.02B	15.13	―	―	17.93%	91.21%
3694	68 Neutral	¥25.30B	20.45	―	―	6.33%	14.82%
4475	68 Neutral	¥32.40B	24.33	―	0.39%	30.59%	65.14%
3850	65 Neutral	¥15.53B	19.50	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥16.24B	-46.23	―	―	―	―
3778	52 Neutral	¥121.54B	162.31	―	0.14%	36.42%	28.23%

TerraSky Co., Ltd. Corporate Events

TerraSky Takes One-Time Hit to Q3 Profit as Strategic Deals Set Stage for Margin Recovery

TerraSky Co., Ltd. reported that third-quarter operating profit declined due to one-time costs linked to key strategic initiatives, including the merger of Diceworks, the transfer of Mizuho Bank’s DX business, and the acquisition of Kit Alive, while net income surpassed plans thanks to gains on sales of investment securities and strong lead generation from marketing events such as TerraSky Day and Dreamforce. For the full fiscal year ending February 2026, the company expects net sales to slightly undershoot its initial forecast despite contributions from its NTT DATA alliance beginning in the fourth quarter, but anticipates net profit to slightly exceed its plan, a significant recovery in margins from fiscal 2027 onward following its reorganization, and has announced an initial dividend of 16 yen per share, signaling continued shareholder returns.

The most recent analyst rating on (JP:3915) stock is a Hold with a Yen2170.00 price target. To see the full list of analyst forecasts on TerraSky Co., Ltd. stock, see the JP:3915 Stock Forecast page.

TerraSky Posts Higher Sales and Profit Surge, Affirms Outlook and Plans Dividend for FY2025

TerraSky Co., Ltd. reported consolidated net sales of ¥20.3 billion for the nine months ended November 30, 2025, up 12.2% year on year, while operating profit declined 7.5% to ¥868 million and ordinary profit edged down 2.2% to ¥1,015 million; profit attributable to owners of parent nearly doubled to ¥1,069 million, reflecting improved bottom-line performance despite pressure on operating margins. The company’s financial position remained solid, with total assets of ¥21.0 billion and a capital adequacy ratio of 57.1%, and it confirmed a full-year forecast of ¥27.9 billion in net sales and ¥1.37 billion in profit attributable to owners of parent, alongside introducing a planned annual dividend of ¥16 per share; TerraSky also expanded its consolidation scope by adding Kitalive Inc. and implemented changes in accounting policies and estimates, developments that signal ongoing strategic adjustments and could affect future earnings quality and growth trajectory for shareholders.

The most recent analyst rating on (JP:3915) stock is a Hold with a Yen2170.00 price target. To see the full list of analyst forecasts on TerraSky Co., Ltd. stock, see the JP:3915 Stock Forecast page.