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

• Market Cap: ¥8.85B
• Dividend Yield: 0.69%
• Average Volume (3M): 40.31K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.39
• Revenue Growth: 3.71%
• EPS Growth: 0.07%
• Country: JP
• Employees: 332
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 18.56
• Shares Outstanding: 7,633,200
• 10 Day Avg. Volume: 33,320
• 30 Day Avg. Volume: 40,306
• PEG Ratio: 1.97
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.43K
• 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

• Rating: 75 Outperform
• Price Target: ―

T&S, Inc. demonstrates strong financial performance with robust revenue growth, high profitability, and excellent financial stability. However, technical analysis indicates mixed signals with some bearish trends. The stock's valuation is fair, with a reasonable P/E ratio and modest dividend yield. These factors contribute to an overall stock score of 75, reflecting confidence in the company's financial health and growth prospects tempered by technical analysis concerns.

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	Sep 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.58B	3.44B	3.26B	2.73B	2.27B
Gross Profit	1.04B	1.05B	1.01B	785.54M	676.91M
EBITDA	627.98M	653.28M	630.47M	423.27M	307.72M
Net Income	385.63M	473.83M	440.24M	294.57M	236.26M
Balance Sheet
Total Assets	2.92B	2.62B	2.28B	1.99B	1.50B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.72B	1.41B	1.28B	1.02B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	485.29M	453.21M	548.00M	492.37M	290.57M
Stockholders Equity	2.44B	2.16B	1.73B	1.50B	1.21B
Cash Flow
Free Cash Flow	435.32M	370.09M	382.49M	270.40M	179.04M
Operating Cash Flow	436.66M	373.24M	387.24M	272.50M	185.76M
Investing Cash Flow	-25.91M	-13.37M	-55.31M	-2.10M	-9.75M
Financing Cash Flow	-59.52M	-44.07M	-201.83M	-11.96M	517.75M

T&S, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1160.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4055, the sentiment is Negative. The current price of 1160 is below the 20-day moving average (MA) of 1194.15, below the 50-day MA of 1211.86, and below the 200-day MA of 1465.91, indicating a bearish trend. The MACD of -15.54 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 32.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4055.

T&S, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9360	83 Outperform	¥9.03B	7.83		2.93%	11.40%	45.43%
4442	76 Outperform	¥8.92B	14.37		0.95%	4.18%	15.01%
4356	76 Outperform	¥8.94B	11.44		1.92%	5.64%	1.34%
4055	75 Outperform	¥8.85B	22.80		0.69%	3.71%	0.07%
3979	74 Outperform	¥10.92B	23.82		0.63%	12.86%	-36.40%
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%
5026	59 Neutral	¥11.79B	128.59		―	54.50%	24.27%

T&S, Inc. Corporate Events

T&S Group Inc. Announces Q4 2024 Financial Results and 2025 Forecasts

T&S Group Inc. reported its financial results for the three months ended December 31, 2024, indicating net sales of 921 million yen and a profit attributable to owners of the parent at 102 million yen. The company maintains a strong equity-to-asset ratio of 83.8% as of December 31, 2024. The forecast for the fiscal year ending September 30, 2025, anticipates net sales of 4,000 million yen and a profit attributable to owners of the parent at 492 million yen, with no revisions to the earnings forecast.