TriIs Inc. (4840) AI Stock Analysis

• Market Cap: ¥3.20B
• Dividend Yield: N/A
• Average Volume (3M): 49.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 150.27%
• EPS Growth: 233.12%
• Country: JP
• Employees: 29
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -82.98
• Shares Outstanding: 8,300,000
• 10 Day Avg. Volume: 30,380
• 30 Day Avg. Volume: 49,383
• PEG Ratio: 0.03
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.68
• P/FCF Ratio: -4.49
• 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: 43 Neutral
• Price Target: ¥416.00 ▼(-14.93% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held down primarily by weak financial performance (2025 loss, severe margin compression, and ongoing cash burn), with technicals also unfavorable as the stock remains in a broader downtrend. Valuation provides limited support because losses make the P/E less informative and there is no dividend yield data.

Positive Factors

Sustained Revenue Growth

Strong multi-year top-line growth (≈51% in 2024, ≈42% in 2025) signals durable demand expansion and product-market traction. This revenue momentum provides a foundation for scaling operations, negotiating with suppliers/customers, and funding strategic initiatives over the coming months.

Sizable Equity Buffer

A large equity base relative to assets and modest reported debt provides a meaningful solvency buffer. That capital cushion reduces near-term insolvency risk, supports working capital needs during losses, and gives management flexibility to pursue investments without immediate distress financing.

Deleveraging Improved Flexibility

Recent sharp reduction in leverage indicates management emphasis on balance-sheet repair, lowering interest and refinancing pressure. Improved debt metrics enhance liquidity and optionality for strategic moves (M&A, capex) and reduce refinancing risk over the next several quarters.

Negative Factors

Persistent Negative Cash Flow

Consistent negative OCF and FCF, with a large -¥850m outflow in 2025, show the business is not self-funding. Over 2–6 months this raises durable financing risk: continued investment or growth will likely require external funding, increasing dilution or leverage if cash generation does not recover.

Volatile Profitability

A sharp swing from healthy net margins to negative EBITDA within a year indicates unstable unit economics or cost structure. This volatility undermines forecasting, weakens confidence in sustainable margin recovery, and complicates long-term planning for investments and pricing strategies.

Earnings Loss Could Erode Equity

Persistent losses threaten the sizable equity buffer noted earlier; continued erosion would reduce solvency margins, risk covenant breaches or capital raises, and could force dilutive financing or asset sales. This is a structural risk to balance-sheet stability over coming quarters.

TriIs Inc. Business Overview & Revenue Model

Company Description

TriIs Incorporated engages in the construction consulting and fashion businesses in Japan and internationally. The company provides water-related construction consulting services, such as planning, design, surveying, and administration services; and constructs dams. It is also involved in the mail-order business through the operation of internet shopping malls and internet sites; and design, manufacture, import, export, and wholesale of clothing, handbags, accessories, and other leather products. In addition, the company offers its clothing and miscellaneous goods under the CLATHAS and Hamano brands, as well as licenses its trademarks. Further, it engages in the real estate and securities investment businesses. The company was incorporated in 1995 and is headquartered in Tokyo, Japan.

TriIs Inc. Financial Statement Overview

Summary

Financial quality is pressured by a sharp profitability reversal in 2025 (net loss and steep gross margin compression) and persistent negative operating/free cash flow across all years, despite a low-leverage balance sheet that provides some flexibility.

Income Statement

Revenue rebounded strongly in 2025 (+41.8% YoY), but profitability deteriorated sharply: gross margin compressed to 13.3% (from 42.7% in 2024) and the company swung to a sizable net loss (-29.7% net margin). Results have been volatile over time (profits in 2022–2024, losses in 2021 and 2025), suggesting limited earnings stability despite periods of solid margins.

Balance Sheet

Leverage is low in recent years, with debt-to-equity at ~0.11 in 2025 (improved substantially from ~0.49 in 2021), providing balance-sheet flexibility. However, returns to shareholders turned negative in 2025 (negative return on equity), reflecting that the stronger capital position is currently not translating into profitable outcomes.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow were negative across all provided years, including a large outflow in 2025 (operating and free cash flow around -850M). The persistent cash burn alongside the 2025 net loss increases funding risk and reduces financial flexibility even with relatively low debt.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.00B	1.42B	961.30M	636.00M	721.89M	1.00B
Gross Profit	382.99M	188.87M	410.95M	331.00M	252.35M	272.96M
EBITDA	363.49M	-193.38M	281.09M	199.69M	919.20M	-25.92M
Net Income	259.94M	-423.11M	194.78M	102.00M	468.56M	-224.98M
Balance Sheet
Total Assets	5.79B	4.97B	5.67B	5.60B	6.22B	6.42B
Cash, Cash Equivalents and Short-Term Investments	2.68B	3.29B	2.88B	3.04B	1.36B	853.56M
Total Debt	304.00M	464.00M	233.53M	237.52M	541.88M	2.03B
Total Liabilities	626.26M	606.71M	446.12M	451.46M	889.93M	2.27B
Stockholders Equity	5.17B	4.36B	5.23B	5.15B	5.33B	4.15B
Cash Flow
Free Cash Flow	0.00	-850.69M	-192.33M	-561.00M	-202.83M	-846.28M
Operating Cash Flow	0.00	-849.80M	-187.09M	-557.32M	-185.86M	-77.82M
Investing Cash Flow	0.00	1.05B	12.06M	2.94B	2.71B	-757.32M
Financing Cash Flow	0.00	229.18M	-10.26M	-310.52M	-2.20B	-124.87M

TriIs Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 489.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4840, the sentiment is Neutral. The current price of 489 is above the 20-day moving average (MA) of 463.55, above the 50-day MA of 478.84, and above the 200-day MA of 442.71, indicating a neutral trend. The MACD of -6.44 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 15.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4840.

TriIs Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7509	77 Outperform	¥6.89B	1.85	―	3.35%	7.25%	-11.62%
9564	65 Neutral	¥10.46B	16.67	―	1.11%	21.85%	13.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7066	60 Neutral	¥4.85B	11.71	―	3.64%	-1.69%	-18.95%
2462	59 Neutral	¥29.32B	18.38	―	3.90%	5.66%	-10.44%
9248	58 Neutral	¥13.09B	5.37	―	3.88%	15.50%	―
4840	43 Neutral	¥3.20B	-9.02	―	―	150.27%	233.12%