LTS, Inc. (6560) AI Stock Analysis

• Market Cap: ¥9.08B
• Dividend Yield: 1.48%
• Average Volume (3M): 31.39K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.67
• Revenue Growth: 16.18%
• EPS Growth: 68.41%
• Country: JP
• Employees: 1,022
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -23.21
• Shares Outstanding: 4,723,675
• 10 Day Avg. Volume: 15,950
• 30 Day Avg. Volume: 31,386
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,219.00
• Price Target Upside: 12.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥2,219.00 ▲(12.35% Upside)

LTS, Inc. demonstrates strong financial performance, which is the most significant factor supporting its stock score. However, technical analysis indicates a bearish trend, which negatively impacts the score. The valuation is reasonable, providing some support to the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for LTS's offerings and effective market penetration, supporting long-term business expansion.

Profit Margins

Improved profit margins reflect enhanced operational efficiency and cost management, contributing to sustainable profitability and competitive advantage.

Balance Sheet Health

A solid balance sheet with manageable leverage provides financial stability and flexibility to pursue growth opportunities and withstand economic fluctuations.

Negative Factors

Profit Decline

The decline in profit suggests challenges in cost control or pricing power, which could impact long-term profitability if not addressed.

Cash Flow Conversion

Decreasing free cash flow conversion indicates potential inefficiencies in converting earnings to cash, which may limit investment capacity and financial resilience.

Earnings Forecast Revision

The downward revision of earnings forecasts signals potential operational challenges or market pressures, impacting investor confidence and strategic planning.

LTS, Inc. Business Overview & Revenue Model

Company Description

LTS, Inc. (6560) is a leading provider of technology solutions specializing in software development, data analytics, and IT consulting services. The company operates primarily in the technology sector, catering to a diverse range of industries including healthcare, finance, and manufacturing. LTS, Inc. focuses on delivering innovative products that enhance operational efficiency and data-driven decision-making for its clients.

How the Company Makes Money

LTS, Inc. generates revenue through a combination of software sales, subscription services, and consulting fees. The company's software products are sold to enterprises, often accompanied by ongoing maintenance and support contracts that provide a steady stream of income. Additionally, LTS offers subscription-based services for its cloud-based solutions, ensuring recurring revenue. Key partnerships with major technology providers enhance LTS's offerings and market reach, thereby contributing significantly to its overall earnings.

LTS, Inc. Financial Statement Overview

Summary

LTS, Inc. exhibits strong financial health with impressive revenue and profit growth, efficient operations, and a stable balance sheet. While cash flow conversion could improve, the company's overall financial position is robust, supporting its growth strategy in the consulting services industry.

Income Statement

LTS, Inc. has demonstrated strong revenue growth with a 35.5% increase from 2023 to 2024. The gross profit margin improved to 35.56%, and the net profit margin increased to 5.86%, indicating enhanced profitability. EBIT and EBITDA margins also show healthy operational efficiency at 6.67% and 11.10%, respectively. These metrics highlight the company's robust growth trajectory and profitability in the consulting services sector.

Balance Sheet

The company's balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.85, indicating manageable leverage. The equity ratio stands at 40.03%, showcasing a strong equity base. Return on equity improved to 21.32%, reflecting efficient utilization of shareholder funds. Overall, LTS, Inc. maintains a stable and healthy balance sheet, supporting its growth initiatives.

Cash Flow

LTS, Inc. shows a positive operating cash flow to net income ratio of 0.80, indicating good cash generation relative to net income. However, free cash flow decreased slightly by 7.28% from 2023 to 2024. The free cash flow to net income ratio is 0.58, suggesting room for improvement in converting earnings to free cash flow. Despite this, the company maintains a strong cash position, supporting its operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.95B	16.59B	12.24B	9.64B	7.38B	5.56B
Gross Profit	6.02B	5.90B	4.27B	3.21B	2.63B	2.05B
EBITDA	1.70B	1.84B	897.00M	454.47M	636.32M	483.53M
Net Income	994.00M	973.00M	456.00M	232.58M	388.41M	270.33M
Balance Sheet
Total Assets	10.90B	11.40B	11.98B	5.60B	5.08B	4.30B
Cash, Cash Equivalents and Short-Term Investments	4.93B	5.45B	3.85B	2.98B	2.43B	2.68B
Total Debt	3.58B	3.88B	5.19B	682.22M	965.88M	1.19B
Total Liabilities	6.16B	6.84B	8.36B	2.35B	3.00B	2.57B
Stockholders Equity	4.74B	4.56B	3.57B	3.24B	2.08B	1.73B
Cash Flow
Free Cash Flow	0.00	560.00M	604.00M	-33.20M	331.65M	389.35M
Operating Cash Flow	0.00	777.00M	647.00M	255.25M	421.96M	468.93M
Investing Cash Flow	0.00	2.14B	-3.66B	-329.86M	-399.68M	-163.61M
Financing Cash Flow	0.00	-1.35B	4.07B	626.85M	-277.61M	988.73M

LTS, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1975.00
• 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:6560, the sentiment is Negative. The current price of 1975 is below the 20-day moving average (MA) of 2050.65, below the 50-day MA of 2184.04, and below the 200-day MA of 2217.75, indicating a bearish trend. The MACD of -57.84 indicates Positive momentum. The RSI at 31.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6560.

LTS, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7039	76 Outperform	¥7.40B	9.94		3.08%	11.81%	13.05%
7379	71 Outperform	¥7.77B	28.53		―	6.05%	7.52%
4490	66 Neutral	¥6.74B	15.61		―	3.77%	―
6560	65 Neutral	¥9.08B	10.62		1.48%	16.18%	68.41%
7034	65 Neutral	¥8.52B	35.49		―	125.74%	-109.66%
Sector *	65 Neutral	$2.69B	14.97	12.10%	3.43%	2.94%	43.39%
9246	46 Neutral	¥8.04B	35.73		―	-10.31%	-222.31%

LTS, Inc. Corporate Events

LTS, Inc. Reports Q2 Financial Results with Mixed Performance

LTS, Inc. reported its financial results for the second quarter ending December 2025, showing a 6.9% increase in net sales compared to the previous year. Despite this growth, the profit attributable to owners of the parent decreased by 36.1%, indicating potential challenges in maintaining profitability. The company also revised its earnings forecast for the fiscal year, projecting a 10.2% increase in net sales but a 33.2% decrease in profit attributable to owners. Additionally, LTS, Inc. made changes in its scope of consolidation, excluding ISIS, Inc. from its consolidated entities.

LTS, Inc. Reports Strong Q1 Financial Results for FY2025

LTS, Inc. reported its financial results for the first quarter of the fiscal year ending December 2025, showing a year-on-year increase in net sales by 8.7% to 4,421 million yen and an operating profit increase of 19.5% to 423 million yen. The company also reported a rise in ordinary profit by 22.5% to 455 million yen, while profit attributable to owners of the parent grew by 8.0% to 332 million yen. The financial position of the company improved with a capital adequacy ratio of 42.5%, up from 39.1% the previous year. Despite these positive results, comprehensive income slightly decreased by 1.3% compared to the previous year.