T&S, Inc. (4055) AI Stock Analysis

• Market Cap: ¥14.90B
• Dividend Yield: 0.71%
• Average Volume (3M): 109.30K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.64
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 332
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 20.75
• Shares Outstanding: 7,633,200
• 10 Day Avg. Volume: 106,110
• 30 Day Avg. Volume: 109,296
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 77 Outperform
• Price Target: ¥2,082.00 ▲(47.87% Upside)

The score is driven primarily by strong financial quality (zero debt, solid margins, and reliable free-cash-flow conversion). Technicals support the uptrend, but overbought signals temper the outlook, and valuation is a headwind given the P/E and low dividend yield.

Positive Factors

Conservative balance sheet

Zero reported debt and rising equity (¥1.21B in 2020 to ¥2.91B in 2025) create durable financial flexibility. This reduces bankruptcy risk, supports opportunistic capex or M&A funding from internal resources, and sustains operations through downturns.

Healthy revenue and margins

Multi-year top-line expansion and sector-leading margins provide a durable profit base. Strong gross and operating margins support reinvestment in products and talent, enabling sustainable cash generation and competitive positioning over the next several quarters.

Reliable cash generation

FCF conversion near 1.0x indicates net income largely converts to cash, supporting dividends, buybacks, or organic investment without reliance on external funding. Recent OCF strength enhances resilience and long-term capital allocation flexibility.

Negative Factors

Moderating revenue growth

A shift from double-digit expansion to ~5% growth suggests market maturation or tougher comps. Slower top-line momentum can limit long-term earnings upside and raises the importance of margin expansion or new product wins to sustain shareholder returns.

Profitability volatility

Inter-year swings in net margin point to operational sensitivity—potentially project timing, cost swings, or mix shifts. Persistent volatility undermines cash-flow predictability and complicates long-range planning and consistent reinvestment pacing.

No financial leverage

Zero leverage lowers financial risk but limits capital structure options. Without modest debt capacity, the company may forego low-cost scale funding, constraining faster growth or RoE enhancement that peers might achieve via prudent leverage.

T&S, Inc. Business Overview & Revenue Model

Company Description

T&S inc. provides system development and related services in Japan. The company offers contract development, operation, and maintenance solutions for various corporate clients; and IT infrastructure operation and maintenance services, as well as the IT help desk services. It also provides various technology categories comprising artificial intelligence, image analysis/recognition, machine learning, automated driving, hardware control, software acceleration, etc. T&S inc. was incorporated in 2016 and is headquartered in Yokohama, Japan.

How the Company Makes Money

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T&S, Inc. Financial Statement Overview

Summary

T&S, Inc. is performing exceptionally well across all financial statement dimensions. The company exhibits strong revenue growth, solid profitability, and excellent financial stability with no debt. Cash flow metrics underscore the firm's ability to generate and manage cash efficiently. Overall, T&S, Inc. is well-positioned for continued success in the Information Technology Services industry.

Income Statement

T&S, Inc. has demonstrated strong and consistent revenue growth, with a robust revenue growth rate of 3.88% from 2023 to 2024 and 5.72% from 2022 to 2023. The company maintains a high gross profit margin of 29.07% in 2024, indicating effective cost management. Despite a decrease in net income, the net profit margin remains healthy at 10.78%, suggesting stable profitability. EBIT and EBITDA margins are solid, reflecting efficient operational performance.

Balance Sheet

The balance sheet is exceptionally strong, with no debt and a high equity ratio of 83.38% in 2024, highlighting financial stability and low leverage risk. Return on Equity (ROE) is strong at 15.83%, demonstrating effective utilization of equity to generate earnings. The company's robust cash position further supports its financial health.

Cash Flow

T&S, Inc. showcases impressive cash flow metrics with a strong free cash flow growth rate of 17.63% from 2023 to 2024. The operating cash flow to net income ratio is high, indicating effective cash generation relative to reported profits. The free cash flow to net income ratio is also robust, reflecting strong cash conversion capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.91B	4.10B	3.58B	3.44B	3.26B	2.73B
Gross Profit	1.15B	1.24B	1.04B	1.05B	1.01B	785.54M
EBITDA	690.61M	764.93M	627.98M	653.28M	630.47M	423.27M
Net Income	450.43M	509.24M	385.63M	473.83M	440.24M	294.57M
Balance Sheet
Total Assets	3.39B	3.66B	2.92B	2.62B	2.28B	1.99B
Cash, Cash Equivalents and Short-Term Investments	2.48B	2.60B	2.01B	1.72B	1.41B	1.28B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	659.20M	749.90M	485.29M	453.21M	548.00M	492.37M
Stockholders Equity	2.73B	2.91B	2.44B	2.16B	1.73B	1.50B
Cash Flow
Free Cash Flow	0.00	757.97M	435.32M	370.09M	382.49M	270.40M
Operating Cash Flow	0.00	758.95M	436.66M	373.24M	387.24M	272.50M
Investing Cash Flow	0.00	-123.13M	-21.59M	-13.37M	-55.31M	-2.10M
Financing Cash Flow	0.00	-60.66M	-49.60M	-44.07M	-201.83M	-11.96M

T&S, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1408.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4055, the sentiment is Positive. The current price of 1408 is below the 20-day moving average (MA) of 1545.00, below the 50-day MA of 1491.58, and above the 200-day MA of 1267.37, indicating a bullish trend. The MACD of 112.99 indicates Negative momentum. The RSI at 82.50 is Negative, neither overbought nor oversold. The STOCH value of 91.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4055.

T&S, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4356	78 Outperform	¥10.55B	11.34	―	1.61%	-3.26%	34.51%
3979	78 Outperform	¥11.47B	17.17	―	0.59%	12.09%	30.56%
4055	77 Outperform	¥14.90B	29.05	―	0.71%	―	―
9360	74 Outperform	¥9.41B	8.35	―	2.90%	9.15%	28.48%
4442	73 Outperform	¥9.26B	16.91	―	0.95%	9.36%	-1.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5026	38 Underperform	¥6.61B	-17.74	―	―	29.55%	-500.01%

T&S, Inc. Corporate Events

T&S Group Inc. Reports Strong Financial Growth for FY 2025

T&S Group Inc. reported significant growth in its consolidated financial results for the fiscal year ended September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s strong financial performance highlights its robust market positioning and strategic execution, which are expected to positively impact its operations and shareholder value.