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

• Market Cap: ¥26.29B
• Dividend Yield: N/A
• Average Volume (3M): 105.79K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.70
• Revenue Growth: 17.93%
• EPS Growth: 91.21%
• Country: JP
• Employees: 1,193
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 15.03
• 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: ¥2,390.00
• Price Target Upside: 17.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥2,390.00 ▲(17.39% Upside)

The overall stock score of TerraSky Co., Ltd. is 64, driven primarily by its strong financial performance, which indicates robust growth and profitability. However, the technical analysis reveals a bearish trend, suggesting caution for short-term investors. The valuation is reasonable, with the P/E ratio reflecting industry standards, though the lack of a dividend yield may deter income-focused investors.

TerraSky Co., Ltd. Business Overview & Revenue Model

Company Description

TerraSky Co., Ltd. (3915) is a leading provider of cloud computing solutions based in Japan. The company specializes in developing cloud-based applications and services, primarily focusing on data management, analytics, and integration solutions. TerraSky serves a diverse range of sectors including finance, healthcare, and manufacturing, offering products designed to enhance operational efficiency and data utilization for businesses leveraging cloud technologies.

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 across all statements. The income statement highlights substantial growth and profitability. The balance sheet reflects stability and prudent financial management with low leverage. Cash flow improvements underscore the company's ability to generate cash, ensuring liquidity and supporting future growth. Overall, TerraSky Co., Ltd. is well-positioned for continued success and expansion in the software infrastructure industry.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 2036.00
• 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:3915, the sentiment is Neutral. The current price of 2036 is below the 20-day moving average (MA) of 2094.75, below the 50-day MA of 2172.80, and below the 200-day MA of 2417.61, indicating a neutral trend. The MACD of -23.58 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3915.

TerraSky Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3741	74 Outperform	¥23.70B	18.12	―	4.75%	17.22%	10.53%
3694	66 Neutral	¥30.09B	25.12	―	―	4.86%	7.22%
4475	66 Neutral	¥45.47B	38.67	―	0.29%	30.64%	33.06%
3915	64 Neutral	¥26.29B	24.85	―	―	17.93%	91.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

TerraSky Co., Ltd. Corporate Events

TerraSky Co., Ltd. Reports Strong Q1 Financial Results with Increased Profitability

TerraSky Co., Ltd. reported a 13.7% increase in net sales for the three months ended May 31, 2025, compared to the previous year, with a notable 20.8% rise in profit attributable to owners of the parent. The company maintains a strong financial position with a capital adequacy ratio of 57.6%. This growth reflects TerraSky’s solid market positioning and effective operational strategies, which are expected to continue driving its performance in the cloud computing sector.