transcosmos (9715) AI Stock Analysis

• Market Cap: $134.72B
• Dividend Yield: 2.95%
• Average Volume (3M): 69.01K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.48
• Revenue Growth: 3.77%
• EPS Growth: 12.41%
• Country: JP
• Employees: 40,793
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 100.09
• Shares Outstanding: 43,863,117
• 10 Day Avg. Volume: 63,880
• 30 Day Avg. Volume: 69,013
• PEG Ratio: 0.64
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $3,819.28
• Price Target Upside: 6.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥3,819.00 ▲(6.83%Upside)

Transcosmos's strong financial performance and reasonable valuation are the primary drivers of its stock score. The technical analysis supports a bullish outlook, although caution is advised due to overbought signals. The absence of recent earnings call data and corporate events does not impact the score.

transcosmos Business Overview & Revenue Model

Company Description

transcosmos inc. provides business outsourcing services worldwide. The company offers outsourcing services to back-office operations, including accounting/finance and human resources; order placement services; operation and maintenance of IT systems; and mechanical, architectural, and other design operations. It also provides contract center services, such as outsourcing services for customer support operations comprising dealing with inquires and complaints from consumers, providing products and services information to the customers, and supporting marketing and sales. In addition, the company offers digital marketing services that make use of Internet infrastructures, Internet promotions, Website design and operations, omni cahnnel marketing, and analysis and research services. Further, it provides e-commerce services, including various functions required for e-commerce, such as e-commerce Website development and operation, fulfillment, customer care, online promotions, and analysis services. The company serves financial, telecommunication, high-tech, medical, cosmetics, distribution, automobile, and airline industries, as well as the public sector. transcosmos inc. was founded in 1966 and is based in Tokyo, Japan.

How the Company Makes Money

transcosmos Inc. generates revenue through a diversified portfolio of services, including BPO, digital marketing, and IT solutions. Their BPO services encompass customer support, technical support, and back-office operations, providing businesses with cost-effective solutions to manage customer interactions and improve operational efficiency. The digital marketing segment involves offering online advertising, social media management, and content marketing services to enhance clients' brand presence and customer engagement. Additionally, transcosmos provides IT solutions such as system development, maintenance, and infrastructure management. The company also benefits from strategic partnerships and collaborations with technology firms, which enable them to leverage cutting-edge tools and platforms to enhance service delivery. These combined offerings allow transcosmos to tap into a broad client base, ensuring a steady stream of revenue across different industries.

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: 3575.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3575 is above the 20-day moving average (MA) of 3521.75, above the 50-day MA of 3402.50, and above the 200-day MA of 3276.11, indicating a bullish trend. The MACD of 54.18 indicates Positive momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 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
9715	78 Outperform	$134.72B	11.89	9.87%	2.95%	3.77%	12.41%
Sector *	61 Neutral	€9.58B	17.10	3.87%	1.79%	4.38%	-25.22%
DTSOF	―	$1.20B	17.79	17.46%	3.53%	―	―
2317	82 Outperform	¥143.14B	17.05		3.04%	8.68%	24.54%
3962	―	¥83.12B	10.56		1.27%	―	―
9889	81 Outperform	¥88.11B	17.08		2.09%	7.17%	45.75%
4722	73 Outperform	¥195.20B	19.29		2.04%	19.53%	9.84%

transcosmos Corporate Events

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.

transcosmos inc. Revises Dividend Policy and Abolishes Shareholder Benefits

transcosmos inc. has announced a significant change in its dividend policy, aiming to increase the consolidated dividend payout ratio to 35%, reflecting a stronger commitment to shareholder returns. Additionally, the company has revised its dividend forecast for the fiscal year ended March 31, 2025, to 106 yen per share and decided to abolish its shareholder benefit program to focus on equitable profit distribution through dividends.

Transcosmos Reports Strong Financial Growth for FY 2025

Transcosmos Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a significant improvement in performance compared to the previous year. The company achieved a 3.8% increase in net sales, reaching 375,849 million yen, and a notable rise in operating profit by 26.1%, amounting to 14,475 million yen. This financial growth reflects the company’s strengthened market position and operational efficiency, which are likely to positively impact stakeholders and enhance its competitive standing in the industry.