transcosmos (9715) AI Stock Analysis

• Market Cap: $138.84B
• Dividend Yield: 2.86%
• Average Volume (3M): 76.15K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.45
• Revenue Growth: 4.08%
• EPS Growth: 27.98%
• Country: JP
• Employees: 40,793
• Sector: Technology
• Sector Strength: 98
• Industry: Information Technology Services
• EPS (TTM): 90.85
• Shares Outstanding: 43,863,117
• 10 Day Avg. Volume: 102,180
• 30 Day Avg. Volume: 76,150
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: 4.23
• 1Y Price Target: $4,188.31
• Price Target Upside: 13.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥4,189.00 ▲(13.06% Upside)

Transcosmos shows strong financial performance with robust revenue growth and profit margins. The stock's technical indicators suggest positive momentum, although it may be overbought in the short term. Valuation metrics indicate that the stock is attractively priced, supported by a decent dividend yield. The lack of earnings call data and notable corporate events means these areas do not influence the score.

transcosmos Business Overview & Revenue Model

Company Description

Transcosmos Inc. is a Japan-based company that provides a wide range of outsourcing services, primarily in the fields of business process outsourcing (BPO), information technology outsourcing (ITO), and digital marketing. The company serves diverse sectors including e-commerce, telecommunications, and finance, offering solutions to improve operational efficiency and customer engagement. Its core services include contact center operations, back-office support, system development, and digital marketing strategies.

How the Company Makes Money

Transcosmos generates revenue through its comprehensive suite of outsourcing services. The company operates numerous contact centers and provides customer support services that form a significant portion of its income. Additionally, Transcosmos offers business process outsourcing, which includes administrative and back-office tasks for other businesses, generating steady revenue streams. In the digital marketing area, the company provides services such as search engine optimization, social media management, and online advertising, helping clients enhance their market presence. Partnerships with technology providers and continuous innovation in service delivery also play a crucial role in sustaining and growing its revenue.

transcosmos Financial Statement Overview

Summary

Transcosmos demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow. The balance sheet is solid with low leverage and a substantial equity ratio, although 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	375.85B	362.20B	373.83B	354.08B	336.40B
Gross Profit	72.25B	68.25B	76.52B	77.78B	65.89B
EBITDA	22.05B	22.42B	28.80B	31.48B	21.90B
Net Income	11.33B	10.10B	15.77B	21.49B	10.02B
Balance Sheet
Total Assets	207.98B	199.45B	193.84B	218.46B	175.88B
Cash, Cash Equivalents and Short-Term Investments	73.50B	64.84B	51.18B	64.83B	49.90B
Total Debt	16.53B	18.64B	16.26B	28.19B	19.09B
Total Liabilities	78.91B	81.38B	81.46B	97.58B	83.37B
Stockholders Equity	118.65B	108.39B	103.49B	112.95B	85.81B
Cash Flow
Free Cash Flow	14.58B	13.20B	18.22B	10.55B	9.90B
Operating Cash Flow	17.31B	18.25B	24.25B	15.77B	15.71B
Investing Cash Flow	-3.67B	-600.00M	-7.81B	-6.22B	-8.40B
Financing Cash Flow	-6.03B	-3.75B	-31.89B	4.22B	6.74B

transcosmos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3705.00
• 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 3705 is above the 20-day moving average (MA) of 3577.25, above the 50-day MA of 3502.60, and above the 200-day MA of 3285.42, indicating a bullish trend. The MACD of 54.78 indicates Negative momentum. The RSI at 66.11 is Neutral, neither overbought nor oversold. The STOCH value of 68.52 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	80 Outperform	¥95.20B	17.93		2.45%	4.72%	37.65%
2317	76 Outperform	¥184.46B	19.76		2.36%	10.87%	27.25%
9715	74 Outperform	$138.84B	10.58	11.91%	2.86%	4.08%	27.98%
4722	73 Outperform	¥213.79B	21.34		1.82%	13.51%	2.64%
9682	73 Outperform	¥189.78B	19.03	19.83%	2.44%	10.18%	56.98%
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%

transcosmos Corporate Events

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.

Transcosmos Reports Strong Q1 2025 Financial Results Amidst Challenges

Transcosmos Inc. reported its consolidated financial results for the three months ended June 30, 2025, showing a notable increase in profit attributable to owners of the parent, which rose by 111.4% year-on-year. The company’s net sales also grew by 3.7%, reflecting a positive operational performance. However, comprehensive income decreased significantly by 67.1%, indicating potential challenges in other areas of the business. The company maintained its forecast for the fiscal year ending March 31, 2026, with expected growth in net sales and profits, suggesting confidence in its strategic direction.

Transcosmos Announces Strategic Organizational and Personnel Changes

Transcosmos Inc. announced significant organizational and personnel changes following its annual general meeting on June 25, 2025. The company has restructured its divisions, moving the Government Relations & Public Affairs Division under the Group Sales Headquarters, and appointed new directors and corporate officers to strengthen its leadership and strategic direction.

transcosmos Announces Strategic Personnel Changes

transcosmos inc. announced a personnel change, effective June 1, 2025, involving the reassignment of responsibilities for corporate officer Takayuki Maeda and the appointment of Akihisa Katsumata as a corporate officer. These changes are part of the company’s strategic efforts to strengthen its leadership team and enhance operational efficiency.

transcosmos Announces Increased Year-End Dividend Distribution

transcosmos announced a resolution to distribute year-end dividends from surplus, with a record date of March 31, 2025, and a dividend of 106.00 yen per share, reflecting an increase from the previous fiscal year’s 81.00 yen. This decision aligns with the company’s policy to return profits to shareholders, targeting a consolidated payout ratio of 35%, and underscores its commitment to aligning dividends with business performance.