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

• Market Cap: ¥13.40B
• Dividend Yield: 0.71%
• Average Volume (3M): 109.30K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.66
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 332
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 15.41
• 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: ¥1,959.00 ▲(39.13% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

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

Balance sheet strength

A zero-debt balance sheet provides durable financial flexibility and low solvency risk, enabling the company to fund operations, capex, or opportunistic investments from internal resources. This conservatism supports resilience through economic cycles and reduces refinancing exposure.

High-quality cash generation

Free cash flow that closely matches net income indicates earnings are translating to real cash, supporting sustainable reinvestment, dividends or shareholder returns. Reliable FCF underpins long-term capital allocation and reduces dependency on external financing.

Profitability & long-term revenue growth

Multi-year top-line expansion with sector-leading margins signals a durable business model and pricing power. Healthy gross and operating margins imply competitive advantages or cost control that can sustain returns and fund incremental investments as revenue base grows.

Negative Factors

Moderating revenue growth

A slowdown from prior double-digit expansion to low-single-digit growth reduces the pace at which scale and operating leverage accrue. Over months this can constrain margin expansion, limit FCF growth trajectory, and increase dependence on margin or efficiency gains to meet targets.

Profitability & cash conversion volatility

Intermittent dips in margins and uneven cash conversion histories undermine predictability of earnings and free cash flow. For planning and reinvestment, this variability raises execution risk: budgets, dividend policies and M&A financing become harder to rely on consistently.

Limited financial engineering from zero leverage

While conservative, an all-equity stance removes debt as a tool to amplify returns or capture tax shields. Over the medium term this limits capital structure flexibility to accelerate growth via leveraged investments or large acquisitions without diluting equity.

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

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 1767.75, below the 50-day MA of 1686.36, and above the 200-day MA of 1365.10, indicating a neutral trend. The MACD of -10.12 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, 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	¥13.40B	25.41	―	0.71%	―	―
3676	73 Outperform	¥19.40B	29.34	―	2.36%	-2.68%	-12.83%
2335	71 Outperform	¥15.90B	11.36	―	3.60%	2.46%	-5.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4418	59 Neutral	¥14.43B	26.78	―	―	6.24%	―
4053	58 Neutral	¥16.31B	33.26	―	―	9.82%	-32.60%
6572	56 Neutral	¥15.39B	17.22	―	1.75%	13.47%	296.94%

T&S, Inc. Corporate Events

T&S Group Lifts Quarterly Profit and Confirms Growth Outlook for FY2026

T&S Group Inc. reported consolidated net sales of ¥1,067 million for the quarter ended December 31, 2025, up 15.8% year on year, with operating profit rising 11.7% to ¥173 million and profit attributable to owners of parent increasing 13.8% to ¥116 million. Earnings per share improved to ¥15.41 basic, while adjusted EBITDA climbed 13.1% to ¥178 million, and the company maintained a robust equity-to-asset ratio of 84.5%, underscoring a strong financial base despite a slight decrease in total assets.

For the full year ending September 30, 2026, T&S forecasts net sales of ¥4,500 million, a 9.7% increase, and operating profit of ¥800 million, up 5.8%, with profit attributable to owners of parent seen rising 5.9% to ¥539 million. The firm plans to keep rewarding shareholders through dividends, targeting a total annual payout of ¥11.0 per share, signaling confidence in sustained earnings growth and cash generation.

The most recent analyst rating on (JP:4055) stock is a Buy with a Yen2252.00 price target. To see the full list of analyst forecasts on T&S, Inc. stock, see the JP:4055 Stock Forecast page.