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

• Market Cap: ¥20.46B
• Dividend Yield: N/A
• Average Volume (3M): 105.79K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.60
• 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: ¥1,730.00 ▼(-18.97% 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

Strong revenue growth and profitability

TerraSky's 29% revenue growth and rising net and operating margins indicate durable demand for its cloud services and effective cost control. Sustained top-line expansion with improving profitability supports reinvestment in products, scaling delivery and long-term margin expansion.

Conservative, solid balance sheet

A ~57% equity ratio and low leverage provide financial resilience, reducing refinancing risk and enabling capital deployment for M&A or R&D. Strong ROE from net income growth shows capital efficiency, underpinning sustainable investment and strategic optionality.

Positive free cash flow turnaround

The shift to positive free cash flow and operating cash flows that comfortably cover net income signal durable cash-generating capability. This improves funding for growth initiatives, lowers dependence on external finance, and enhances long-term financial flexibility.

Negative Factors

Dependence on public cloud platforms

Heavy reliance on public cloud platforms exposes TerraSky to vendor concentration and the sector's intense competition and commoditization. Pricing pressure from hyperscalers and global systems integrators can compress services margins and limit pricing power over time.

Moderate gross profit margin

A gross margin near 27% is reasonable for services but leaves less buffer against rising labor costs or competitive pricing. Sustaining operating leverage will require continued efficiency gains or higher-value offerings to prevent margin erosion under structural cost pressures.

Limited investor disclosure / guidance

Absence of earnings call insights and corporate-event activity reduces visibility into management guidance, strategic priorities and execution. Over the medium term this can make it harder for investors to assess operational risks and judge ongoing capital allocation choices.

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

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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	2.01B	1.96B	948.32M	976.06M	1.07B	1.21B
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	290.50M	598.35M	683.88M
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	612.54M	936.19M	-489.20M	144.62M
Operating Cash Flow	0.00	1.56B	671.80M	978.19M	-466.93M	234.72M
Investing Cash Flow	0.00	-658.49M	-894.61M	-502.09M	122.16M	2.81B
Financing Cash Flow	0.00	-4.86M	-59.70M	-257.47M	-79.48M	-352.68M

TerraSky Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2135.00
• 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 Negative. The current price of 2135 is above the 20-day moving average (MA) of 1694.68, above the 50-day MA of 1924.37, and below the 200-day MA of 2187.62, indicating a bearish trend. The MACD of -83.76 indicates Negative momentum. The RSI at 33.47 is Neutral, neither overbought nor oversold. The STOCH value of 35.68 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
3915	68 Neutral	¥20.46B	9.96	―	―	17.93%	91.21%
3694	68 Neutral	¥22.78B	119.61	―	―	6.33%	14.82%
4475	68 Neutral	¥31.27B	27.58	―	0.39%	30.59%	65.14%
3850	65 Neutral	¥14.44B	25.11	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.79B	8.71	―	―	―	―
3778	52 Neutral	¥111.14B	367.27	―	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.