transcosmos (9715) AI Stock Analysis

• Market Cap: $139.40B
• Dividend Yield: 2.9%
• Average Volume (3M): 61.24K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.43
• Revenue Growth: 4.00%
• EPS Growth: 38.72%
• Country: JP
• Employees: 40,793
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 83.32
• Shares Outstanding: 43,863,117
• 10 Day Avg. Volume: 71,020
• 30 Day Avg. Volume: 61,240
• PEG Ratio: 0.86
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 8.20
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 3.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥4,104.00 ▲(9.88% Upside)

Transcosmos receives a strong overall score driven by its solid financial performance and reasonable valuation. The technical analysis suggests a neutral to slightly positive outlook, but the lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Balance Sheet Health

A strong balance sheet with low leverage provides a solid foundation for future growth and resilience against economic downturns.

Negative Factors

Return on Equity

Moderate return on equity indicates potential inefficiencies in capital use, which could limit profitability and shareholder returns over time.

Net Profit Margin Variability

Fluctuating net profit margins can signal instability in cost management or pricing power, potentially impacting long-term profitability.

Room for Improvement in ROE

Improving ROE is crucial for enhancing investor confidence and ensuring efficient capital allocation, which is vital for long-term growth.

transcosmos Business Overview & Revenue Model

Company Description

Transcosmos Inc. (9715) is a leading provider of outsourcing services based in Japan, specializing in digital marketing, customer support, and business process outsourcing (BPO). The company operates across various sectors including e-commerce, logistics, finance, and telecommunications, offering a wide range of services such as call center operations, digital advertising, and data analysis. Transcosmos is dedicated to enhancing operational efficiency and customer engagement for its clients through innovative solutions and technology-driven services.

How the Company Makes Money

Transcosmos generates revenue primarily through its diverse outsourcing services, which include customer care, digital marketing, and IT solutions. The company charges clients based on service agreements, which can be structured as fixed fees, transaction-based fees, or performance-based incentives. Key revenue streams include commissions from e-commerce sales, fees for managed services in customer support, and retainer agreements for ongoing digital marketing campaigns. Additionally, Transcosmos has formed strategic partnerships with various technology providers and platforms, enhancing its service offerings and expanding its market reach, which contributes significantly to its earnings.

transcosmos Financial Statement Overview

Summary

Transcosmos demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow generation. The balance sheet is solid with low leverage, though there is room for improvement in return on equity.

Income Statement

Transcosmos has shown consistent revenue growth with a 3.76% increase from 2024 to 2025. The gross profit margin for 2025 is 19.22%, and the net profit margin is 3.01%, indicating healthy profitability. The EBIT margin stands at 3.73%, and the EBITDA margin is 5.87%, showing stable operating efficiency. However, the net profit margins have varied, suggesting some fluctuations in net income relative to revenue.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 57.03% for 2025, indicating a solid foundation. The debt-to-equity ratio is 0.14, reflecting low leverage and financial stability. Return on equity is moderate at 9.55%, which suggests efficient use of equity capital but with room for improvement in profitability.

Cash Flow

Transcosmos has demonstrated strong free cash flow growth, with a 10.49% increase from 2024 to 2025. The operating cash flow to net income ratio is 1.53, highlighting robust cash generation relative to net profits. The free cash flow to net income ratio is favorable at 1.29, indicating good conversion of profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	379.20B	375.85B	362.20B	373.83B	354.08B	336.40B
Gross Profit	73.01B	72.25B	68.25B	76.52B	77.78B	65.89B
EBITDA	20.96B	22.05B	22.42B	29.03B	31.48B	21.90B
Net Income	13.13B	11.33B	10.10B	15.77B	21.49B	10.02B
Balance Sheet
Total Assets	205.58B	207.98B	199.45B	193.84B	218.46B	175.88B
Cash, Cash Equivalents and Short-Term Investments	72.63B	73.50B	64.84B	51.18B	64.83B	49.90B
Total Debt	14.48B	16.53B	18.64B	16.26B	28.19B	19.09B
Total Liabilities	79.78B	78.91B	81.38B	81.46B	97.58B	83.37B
Stockholders Equity	115.60B	118.65B	108.39B	103.49B	112.95B	85.81B
Cash Flow
Free Cash Flow	0.00	14.58B	13.20B	18.22B	10.55B	9.90B
Operating Cash Flow	0.00	17.31B	18.25B	24.25B	15.77B	15.71B
Investing Cash Flow	0.00	-3.67B	-600.00M	-7.81B	-6.22B	-8.40B
Financing Cash Flow	0.00	-6.03B	-3.75B	-31.89B	4.22B	6.74B

transcosmos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3735.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9715, the sentiment is Positive. The current price of 3735 is above the 20-day moving average (MA) of 3629.00, above the 50-day MA of 3633.50, and above the 200-day MA of 3420.58, indicating a bullish trend. The MACD of 12.72 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9715.

transcosmos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9889	77 Outperform	¥89.85B	16.74	―	3.13%	5.09%	26.12%
2317	76 Outperform	¥193.15B	18.58	―	2.36%	13.82%	37.07%
9715	75 Outperform	$139.40B	10.17	11.52%	2.90%	4.00%	38.72%
4722	73 Outperform	¥188.65B	18.46	―	2.10%	9.29%	1.18%
9682	66 Neutral	$189.79B	16.72	18.89%	2.63%	11.90%	60.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

transcosmos Corporate Events

transcosmos Reports Strong Financial Growth for H1 2025

transcosmos inc. reported its consolidated financial results for the six months ended September 30, 2025, showing a 3.5% increase in net sales to ¥192,111 million. The company achieved significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with notable year-on-year increases of 13.2%, 29.3%, and 57.1% respectively. This financial performance highlights the company’s strong operational efficiency and positive market positioning, which could have favorable implications for its stakeholders.

The most recent analyst rating on (JP:9715) stock is a Buy with a Yen4028.00 price target. To see the full list of analyst forecasts on transcosmos stock, see the JP:9715 Stock Forecast page.

transcosmos Announces Strategic Personnel Change

transcosmos announced a personnel change effective October 1, 2025, where Kumiko Nakatsu will take on new responsibilities as Corporate Senior Officer, Deputy Headquarters Manager for the CX Business Headquarters, and will be responsible for the Digital Agency Business Division. This change reflects the company’s strategic focus on strengthening its digital agency and customer experience services, potentially impacting its market positioning and operational efficiency.

The most recent analyst rating on (JP:9715) stock is a Buy with a Yen4189.00 price target. To see the full list of analyst forecasts on transcosmos stock, see the JP:9715 Stock Forecast page.

transcosmos Reports Strong Q2 2025 Financial Performance

transcosmos inc. announced the completion of its interim review for the quarterly financial statements for the period ending June 30, 2025, with no changes from the previously disclosed results. The company reported a year-on-year increase in net sales and profits, indicating a strong financial performance. This announcement underscores transcosmos’s stable financial position and growth trajectory, which is likely to positively impact its market standing and stakeholder confidence.