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

• Market Cap: ¥27.00B
• Dividend Yield: N/A
• Average Volume (3M): 105.79K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.68
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,511.00 ▲(17.61% Upside)

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

Strong revenue growth

A 29% annual revenue rise signals durable demand for cloud and integration services. Sustained top-line expansion supports scale benefits, strengthens pricing leverage, funds R&D and hiring, and underpins long-term market share gains in enterprise cloud adoption.

Positive free cash flow turnaround

The shift to positive free cash flow and operating cash flow covering net income materially improves financial flexibility. It reduces reliance on external financing, funds organic investment, and enables disciplined capital allocation that supports sustainable growth and resilience.

Conservative balance sheet

A strong equity ratio and low leverage provide a conservative capital structure that preserves optionality. This balance sheet strength allows investment in platforms, selective M&A, and cushions cyclical slowdowns without jeopardizing operations or forcing distressed financing.

Negative Factors

Moderate gross margin

A ~27% gross margin is modest for software-related businesses and may limit operating leverage as revenue grows. Persistent service-heavy delivery and competitive pricing pressure could constrain margin expansion, capping cash generation and reinvestment potential over the medium term.

No dividend policy

The lack of dividend distribution reduces appeal to income-oriented shareholders and concentrates returns in capital gains. Over time, absence of cash returns may limit investor base diversification and could pressure management to shift allocation priorities if shareholders demand yield.

Limited investor communications/events

Sparse public disclosures and few corporate events may hinder transparency and investor engagement. Over months this can limit market understanding of strategy execution, reduce feedback loops for management, and complicate capital market access if greater clarity is required.

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	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: Negative
• Last Price: 2135.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2135 is below the 20-day moving average (MA) of 2221.95, above the 50-day MA of 2121.94, and below the 200-day MA of 2336.96, indicating a bearish trend. The MACD of 25.90 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.88 is Neutral, 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
3741	75 Outperform	¥35.32B	25.12	―	1.74%	21.97%	15.89%
4475	69 Neutral	¥37.77B	27.40	―	0.39%	30.59%	65.14%
3915	68 Neutral	¥27.00B	17.72	―	―	17.93%	91.21%
3694	68 Neutral	¥27.39B	20.53	―	―	6.33%	14.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.93B	-45.43	―	―	―	―

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.