TeamSpirit, Inc. (4397) AI Stock Analysis

• Market Cap: ¥8.61B
• Dividend Yield: N/A
• Average Volume (3M): 130.87K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.71
• Revenue Growth: 11.32%
• EPS Growth: N/A
• Country: JP
• Employees: 208
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.31
• Shares Outstanding: 16,519,400
• 10 Day Avg. Volume: 199,710
• 30 Day Avg. Volume: 130,873
• PEG Ratio: -0.08
• Price to Book (P/B): 5.63
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 20.66
• 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: 68 Neutral
• Price Target: ¥555.00 ▲(7.56% Upside)

The score is driven primarily by improved financial performance in 2025 (return to profitability, stronger cash flow, and a zero-debt balance sheet). It is tempered by the sharp slowdown in revenue growth and margin compression, while technical indicators are neutral-to-soft and valuation is moderate with no dividend support.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet significantly reduces financial risk, providing stability and flexibility for future investments and growth.

Cash Generation Ability

Improved cash generation indicates better operational efficiency, supporting sustainable growth and investment capacity.

Management Stability

A stable management team with clear strategic roles can enhance operational execution and long-term strategic planning.

Negative Factors

Revenue Growth Slowdown

A slowdown in revenue growth can indicate market saturation or competitive pressures, potentially impacting future profitability.

Margin Compression

Compressed margins suggest weaker pricing power or higher costs, which could limit profitability if not addressed.

Cash Conversion Efficiency

Limited cash conversion efficiency indicates potential challenges in translating revenue into cash, affecting liquidity and investment capacity.

TeamSpirit, Inc. Business Overview & Revenue Model

Company Description

TeamSpirit Inc. provides ERP solutions in Japan. It offers solutions in the areas of attendance management, man-hour management, and expense settlement. The company operates TeamSpirit platform, a cloud service that integrates the functions that employees use every day to help improve corporate productivity and strengthen internal control. TeamSpirit Inc. was incorporated in 1996 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TeamSpirit, Inc. generates revenue primarily through subscription fees for its cloud-based software solutions. The company's revenue model is based on a Software as a Service (SaaS) model, where clients pay a recurring subscription fee to access and use the TeamSpirit platform. Key revenue streams include subscription fees from enterprise clients who utilize the platform for time tracking, expense reporting, and work management. Additionally, the company may generate income through implementation services, customer support, and training services to help clients effectively integrate and use their solutions. Strategic partnerships with other technology providers and system integrators may also contribute to the company's earnings by expanding its reach and enhancing its product offerings.

TeamSpirit, Inc. Financial Statement Overview

Summary

TeamSpirit, Inc. shows promising revenue growth in the software application industry, but persistent losses and declining equity highlight financial challenges. The company maintains a strong liquidity position, but improving profitability is crucial for long-term viability.

Income Statement

The company experienced consistent revenue growth, with a 15.9% increase from 2023 to 2024. However, gross profit margin decreased slightly from 35.8% in 2023 to 37.4% in 2024. Despite this growth, the company continues to report negative EBIT and net income, leading to negative profit margins and indicating ongoing operational challenges.

Balance Sheet

The balance sheet shows a strong liquidity position with a high level of cash compared to total liabilities. The debt-to-equity ratio remains low due to minimal debt, and the equity ratio stands at a stable 33.3%. However, declining stockholders' equity raises concerns about ongoing financial sustainability.

Cash Flow

There was significant improvement in operating cash flow, turning positive in 2024 from negative in 2023. Free cash flow also improved, showing growth and better cash management. However, the free cash flow to net income ratio indicates operational losses, which need addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.70B	4.92B	4.42B	3.81B	3.26B	2.90B
Gross Profit	1.86B	1.98B	1.65B	1.37B	1.11B	1.51B
EBITDA	223.26M	289.68M	-197.36M	-164.00M	-107.00M	191.86M
Net Income	80.37M	362.66M	-180.10M	-189.19M	-90.35M	122.84M
Balance Sheet
Total Assets	4.06B	4.47B	3.69B	3.52B	3.36B	3.17B
Cash, Cash Equivalents and Short-Term Investments	2.83B	2.94B	2.54B	2.36B	2.41B	2.45B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.58B	2.85B	2.46B	2.12B	1.83B	1.59B
Stockholders Equity	1.48B	1.62B	1.23B	1.39B	1.53B	1.58B
Cash Flow
Free Cash Flow	0.00	442.49M	63.93M	-7.40M	-7.71M	264.21M
Operating Cash Flow	0.00	442.96M	68.25M	-6.69M	-4.45M	265.01M
Investing Cash Flow	0.00	-21.93M	107.44M	-49.72M	-55.94M	-549.00K
Financing Cash Flow	0.00	-34.02M	-628.00K	-790.00K	6.03M	7.34M

TeamSpirit, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 516.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4397, the sentiment is Positive. The current price of 516 is above the 20-day moving average (MA) of 509.80, above the 50-day MA of 509.32, and above the 200-day MA of 500.82, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 84.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4397.

TeamSpirit, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4491	82 Outperform	¥6.76B	16.23	―	1.87%	6.18%	29.79%
4446	69 Neutral	¥17.18B	202.47	―	―	14.10%	-53.62%
4397	68 Neutral	¥8.61B	23.68	―	―	11.32%	―
4476	68 Neutral	¥6.61B	80.25	―	―	10.43%	-65.78%
5029	62 Neutral	¥4.79B	25.27	―	―	29.44%	485.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4829	50 Neutral	¥4.39B	132.28	―	2.78%	-4.90%	-85.89%

TeamSpirit, Inc. Corporate Events

TeamSpirit Inc. Announces Director Candidates and Management Structure Plans

TeamSpirit Inc. has announced the candidates for its Board of Directors, which will be discussed at the upcoming General Meeting of Shareholders. The company has also outlined its planned management structure post-meeting, indicating a stable leadership with reappointments and strategic roles aimed at enhancing its business divisions.

TeamSpirit Inc. Reports Increased Profits Due to Deferred Tax Assets

TeamSpirit Inc. has recognized deferred tax assets amounting to 693 million yen as of August 2025, leading to a significant increase in net profit attributable to owners of the parent. The company’s actual figures for the fiscal year ending August 2025 show a notable improvement in profit, particularly due to income tax adjustments, despite a slight decrease in revenue compared to forecasts.

TeamSpirit Inc. Reports Strong Financial Turnaround for FY 2025

TeamSpirit Inc. reported a significant turnaround in its financial performance for the fiscal year ended August 31, 2025, with net sales increasing by 11.3% to 4,922 million yen and a return to profitability, marking an ordinary profit of 277 million yen compared to a loss in the previous year. This improvement reflects the company’s strategic initiatives and market adaptation, positioning it for further growth in the upcoming fiscal year, with a forecasted increase in net sales and operating profit, although a slight decline in profit attributable to owners is expected.