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

• Market Cap: ¥13.27B
• Dividend Yield: 0.71%
• Average Volume (3M): 109.30K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.69
• 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: 0.52
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 11.36
• 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: 81 Outperform
• Price Target: ¥2,252.00 ▲(59.94% Upside)

The score is driven primarily by high-quality financial performance (strong margins, reliable free cash flow, and a zero-debt balance sheet) and supportive technical strength (price above key moving averages with positive momentum). This is partially offset by less attractive valuation (higher P/E and low dividend yield) and overbought-leaning momentum signals that may increase near-term volatility.

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

Strong overall fundamentals: steady multi-year revenue growth with healthy 2025 profitability (gross ~30%, operating ~18%, net ~12%). Balance sheet is exceptionally conservative with zero debt and expanding equity/assets, while free cash flow closely tracks earnings (~0.99x). Main risk is some year-to-year volatility in profitability and cash conversion history.

Income Statement

Revenue has grown steadily over the long term (from ~¥2.27B in 2020 to ~¥4.10B in 2025), though growth has moderated recently (2025: ~5% vs. earlier double-digit years). Profitability is strong for the sector, with 2025 margins healthy (gross margin ~30%, operating profit margin ~18%, net margin ~12%). The main weakness is some year-to-year volatility in profitability (notably the net margin dip in 2024 vs. 2023), suggesting earnings can fluctuate despite continued top-line growth.

Balance Sheet

The balance sheet is very conservative: total debt is reported at zero across all periods, resulting in minimal financial risk and high flexibility. Equity and assets have expanded meaningfully over time (equity rising from ~¥1.21B in 2020 to ~¥2.91B in 2025), and returns on equity remain solid (mid-to-high teens in 2024–2025, higher in 2022–2023). The key limitation is that, with no leverage, growth and returns rely entirely on operating execution rather than balance-sheet optimization.

Cash Flow

Cash generation is strong and high-quality: free cash flow closely tracks net income in every year (roughly ~0.99x), indicating earnings are translating into cash. Operating cash flow also covers net income well in recent periods (2024–2025 above 1.0x), though earlier years showed weaker conversion (below 1.0x in 2021–2023), and free cash flow growth has been uneven (a decline in 2023 followed by a rebound). Overall, cash flow appears reliable, with some historical volatility in operating cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.10B	4.10B	3.58B	3.44B	3.26B	2.73B
Gross Profit	1.24B	1.24B	1.04B	1.05B	1.01B	785.54M
EBITDA	764.93M	764.93M	627.98M	653.28M	630.47M	423.27M
Net Income	509.24M	509.24M	385.63M	473.83M	440.24M	294.57M
Balance Sheet
Total Assets	3.66B	3.66B	2.92B	2.62B	2.28B	1.99B
Cash, Cash Equivalents and Short-Term Investments	2.60B	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	749.90M	749.90M	485.29M	453.21M	548.00M	492.37M
Stockholders Equity	2.91B	2.91B	2.44B	2.16B	1.73B	1.50B
Cash Flow
Free Cash Flow	757.97M	757.97M	435.32M	370.09M	382.49M	270.40M
Operating Cash Flow	758.95M	758.95M	436.66M	373.24M	387.24M	272.50M
Investing Cash Flow	-123.13M	-123.13M	-21.59M	-13.37M	-55.31M	-2.10M
Financing Cash Flow	-60.66M	-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: 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 Positive. The current price of 1408 is below the 20-day moving average (MA) of 1801.60, below the 50-day MA of 1603.58, and above the 200-day MA of 1319.28, indicating a neutral trend. The MACD of 42.80 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, 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
4055	81 Outperform	¥13.27B	25.87	―	0.71%	―	―
4356	78 Outperform	¥10.30B	11.07	―	1.61%	-3.26%	34.51%
3979	78 Outperform	¥11.63B	17.42	―	0.59%	12.09%	30.56%
9360	74 Outperform	¥9.18B	8.14	―	2.90%	9.15%	28.48%
4442	73 Outperform	¥8.96B	16.37	―	0.95%	9.36%	-1.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5026	38 Underperform	¥5.96B	-16.77	―	―	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.