TeamSpirit, Inc. (4397) AI Stock Analysis

• Market Cap: ¥6.94B
• Dividend Yield: N/A
• Average Volume (3M): 130.87K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.62
• Revenue Growth: 11.32%
• EPS Growth: N/A
• Country: JP
• Employees: 208
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 4.70
• 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: ¥458.00 ▼(-11.24% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Zero net debt / conservative balance sheet

A debt-free balance sheet materially reduces financial risk and interest burden, giving management flexibility to fund operations, invest in product and weather downturns from internal resources. Rising equity in 2025 further strengthens solvency and capital cushions.

Improved cash generation and FCF alignment

Operating cash flow rebound to ~¥443M and free cash flow tracking net income show earnings are converting to cash. Durable cash generation enhances ability to self-fund growth, reduce financing needs and sustain operations without relying on external capital.

Multi-year revenue growth trend

A history of consistent revenue expansion indicates underlying product-market fit and demand durability. This multi-year top-line growth provides a base for scaling margins and investment recovery if management sustains retention and upsell execution.

Negative Factors

Sharp revenue growth slowdown in 2025

The drop to 4.8% growth after mid-teens growth undermines scalability assumptions and slows operating leverage. Prolonged low growth would constrain margin expansion, reduce cash conversion upside, and increase sensitivity to competitive or macro pressures.

Gross margin compression vs. prior years

Material compression of gross margins versus earlier periods signals weaker unit economics or higher cost structure. Persistently lower gross margins reduce operating income leverage, limiting ability to absorb SG&A and invest while maintaining profitability.

Historic earnings volatility and prior multi-year losses

A stretch of losses through 2022–2024 followed by a 2025 recovery indicates inconsistent profitability. This volatility complicates planning, undermines confidence in sustained earnings power and raises execution risk for maintaining the recent turnaround.

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

A clear 2025 turnaround supports the score: profitability returned (7.4% net margin) and operating cash flow rebounded (~¥443M) with free cash flow tracking earnings. Balance sheet risk is low with zero debt and rising equity. Offsetting this, revenue growth slowed sharply in 2025 (4.8%) and gross margin has compressed versus 2020–2021, raising questions about durability of the recovery.

Income Statement

Revenue has grown consistently over the last several years, but growth slowed sharply in 2025 (annual revenue growth of 4.8% vs. mid-teens previously). Profitability has been volatile: after multiple loss years (2022–2024), the company returned to solid profitability in 2025 with a 7.4% net margin and positive operating profit. However, gross margin has materially compressed versus 2020–2021 levels, which suggests weaker unit economics and leaves less cushion if growth remains muted.

Balance Sheet

The balance sheet is conservatively positioned with no debt across all reported periods, which meaningfully reduces financial risk. Equity increased in 2025 (to ~¥1.62B), and returns on equity rebounded strongly in 2025 after being negative in 2022–2024. The main weakness is the prior stretch of losses, which demonstrates that while leverage is low, earnings quality and consistency have not been stable year-to-year.

Cash Flow

Cash generation improved materially: operating cash flow rose to ~¥443M in 2025 from a modest level in 2024 and negative levels in 2022–2023. Free cash flow closely matched net income in both 2024 and 2025, indicating earnings are translating into cash. A key watch item is that operating cash flow remains relatively small compared with revenue (about 9% of sales in 2025), implying limited cash conversion efficiency at the top line despite the rebound.

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

TeamSpirit, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 516.00
• 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:4397, the sentiment is Negative. The current price of 516 is above the 20-day moving average (MA) of 456.15, above the 50-day MA of 485.52, and above the 200-day MA of 508.49, indicating a bearish trend. The MACD of -14.44 indicates Positive momentum. The RSI at 31.91 is Neutral, neither overbought nor oversold. The STOCH value of 34.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4397.

TeamSpirit, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥6.53B	23.92	―	0.57%	21.03%	32.29%
4397	68 Neutral	¥6.94B	17.25	―	―	11.32%	―
5033	66 Neutral	¥4.80B	13.11	―	―	7.60%	19.13%
5588	62 Neutral	¥8.91B	43.44	―	0.12%	37.21%	129.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥11.71B	54.38	―	―	14.63%	-760.87%
4015	57 Neutral	¥7.47B	56.10	―	―	49.33%	104.72%

TeamSpirit, Inc. Corporate Events

TeamSpirit Delivers Strong First-Quarter Profit Growth and Maintains Upbeat FY2026 Outlook

TeamSpirit reported strong results for the three months ended November 30, 2025, with net sales rising 23.0% year on year to ¥1,411 million and operating profit more than doubling to ¥109 million, lifting profit attributable to owners of parent by 104.8% to ¥77 million and basic earnings per share to ¥4.70. The company’s financial position remained solid with total assets of ¥4,687 million and an unchanged capital adequacy ratio of 36.1%, while it maintained a no-dividend policy for the current fiscal year; for the full year ending August 31, 2026, TeamSpirit forecasts net sales of ¥5,700 million and operating profit of ¥430 million, implying continued top-line expansion and margin improvement even as full-year profit attributable to owners of parent is projected to decline 11.8%, signaling ongoing growth investment and a focus on strengthening its earnings base over the medium term.

The most recent analyst rating on (JP:4397) stock is a Hold with a Yen556.00 price target. To see the full list of analyst forecasts on TeamSpirit, Inc. stock, see the JP:4397 Stock Forecast page.