TeamSpirit, Inc. AI Stock Analysis
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TeamSpirit, Inc. (4397) AI Stock Analysis
TeamSpirit, Inc.
(TSE/TYO:4397)
TeamSpirit earns a moderate score driven primarily by its improving fundamentals: accelerating revenue growth, a return to profitability after three loss-making years, and strong free cash flow that nearly matches reported earnings. A reasonable P/E of 13.5 adds support given a 25% return on equity. However, the score is held back by a persistent technical downtrend, with the stock trading below all major moving averages and negative MACD momentum, alongside fundamental caution flags — gross margins have fallen sharply from historical levels, net margins remain thin at under 6%, and the equity cushion has shrunk to roughly a quarter of assets following the first borrowings in five years. The recovery trajectory is positive, but durable margin improvement and leverage discipline are needed to justify a higher rating.
TeamSpirit, Inc. (4397) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 5.31B
- Dividend Yield
- ―
- Average Volume (3M)
- 64.12K
- Price to Earnings (P/E)
- 15.4
- Beta (1Y)
- 0.42
- Revenue Growth
- 23.50%
- EPS Growth
- 2.72%
- Country
- Japan
- Employees
- 207
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
TeamSpirit, Inc. Business Overview & Revenue Model
Company Description
TeamSpirit Inc. delivers Enterprise Resource Planning (ERP) software and services across Japan. Its solutions specifically address critical business operations such as workforce attendance monitoring, labor hour tracking, and expense reimbursement pr...
TeamSpirit, Inc. Financial Statement Overview
Summary
TeamSpirit is executing a credible turnaround. Revenue rose to ¥6.08 billion from ¥4.92 billion, extending a multi-year growth streak, and the company returned to solid profitability with operating profit of ¥462 million (7.6% margin) after three loss-making years. Cash generation is the standout: operating cash flow climbed to ¥653 million and free cash flow grew roughly 46% to ¥647 million on minimal capex, with free cash flow covering about 99% of net income — a sign of high earnings quality. Offsetting this, gross margin has eroded steadily to 37.5% from 52.1% in fiscal 2021, net margin remains thin at 5.8%, and net income slipped slightly despite higher operating profit. The balance sheet has loosened: ¥550 million of debt was added after five debt-free years, equity fell to ¥1.40 billion and now funds only about 27% of assets versus 50% in fiscal 2021, though return on equity is attractive at 25.1% and absolute leverage stays modest.
Income Statement
65PositiveBalance Sheet
58NeutralCash Flow
74Positive| Breakdown | TTM | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.08B | 6.08B | 4.92B | 4.42B | 3.81B | 3.26B |
| Gross Profit | 2.28B | 2.28B | 1.98B | 1.65B | 1.37B | 1.11B |
| EBITDA | 479.13M | 479.90M | 281.41M | -82.97M | -163.35M | -106.89M |
| Net Income | 351.40M | 351.40M | 362.66M | -180.10M | -189.19M | -90.35M |
Balance Sheet | ||||||
| Total Assets | 5.13B | 5.13B | 4.47B | 3.69B | 3.52B | 3.36B |
| Cash, Cash Equivalents and Short-Term Investments | 3.54B | 3.54B | 2.94B | 2.54B | 2.36B | 2.41B |
| Total Debt | 550.00M | 550.00M | 0 | 0 | 0 | 0 |
| Total Liabilities | 3.74B | 3.74B | 2.85B | 2.46B | 2.12B | 1.83B |
| Stockholders Equity | 1.40B | 1.40B | 1.62B | 1.23B | 1.39B | 1.53B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 647.38M | 442.49M | 63.93M | -7.40M | -7.71M |
| Operating Cash Flow | 0 | 652.72M | 442.96M | 68.25M | -6.69M | -4.45M |
| Investing Cash Flow | 0 | -5.18M | -21.93M | 107.44M | -49.72M | -55.94M |
| Financing Cash Flow | 0 | -52.31M | -34.02M | -628.00K | -790.00K | 6.03M |
TeamSpirit, Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4397, the sentiment is Negative. The current price of 348.00 is below the 20-day moving average (MA) of 361.05, below the 50-day MA of 378.34, and below the 200-day MA of 399.94, indicating a bearish trend. The MACD of -9.04 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 59.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4397.
TeamSpirit, Inc. Peers Comparison
Overall Rating
JP:406072Outperform
JP:558863Neutral
JP:444862.6Neutral- JP:439760Neutral
JP:503359Neutral
JP:401558Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4060 | 72Outperform | JPY 6.97B | 20.89 | ― | 0.75% | 30.60% | 17.83% |
| JP:5588 | 63Neutral | JPY 6.38B | 26.56 | ― | 0.65% | 21.69% | -55.81% |
| JP:4448 | 63Neutral | JPY 13.69B | 18.75 | ― | ― | 14.06% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:4397 | 60Neutral | JPY 5.75B | 15.40 | ― | ― | 23.50% | 2.72% |
| JP:5033 | 59Neutral | JPY 7.75B | 46.70 | ― | ― | 7.04% | -67.36% |
| JP:4015 | 58Neutral | JPY 5.59B | 13.17 | ― | ― | 8.88% | 191.06% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4397 | TeamSpirit, Inc. | 348.00 | -162.00 | -31.76% | |
| JP:4015 | Paycloud Holdings Inc. | 349.00 | -154.00 | -30.62% | |
| JP:4060 | rakumo Inc. | 1194.00 | 105.88 | 9.73% | |
| JP:4448 | Chatwork Co.Ltd. | 321.00 | -33.00 | -9.32% | |
| JP:5033 | Nulab Inc. | 1195.00 | 430.00 | 56.21% | |
| JP:5588 | Fast Accounting Co.,Ltd. | 566.00 | -756.09 | -57.19% |
TeamSpirit, Inc. Corporate Events
TeamSpirit Delivers Strong FY2026 Revenue Growth and Boosts Profit Outlook
TeamSpirit reported consolidated net sales of ¥6.08 billion for the fiscal year ended August 31, 2026, up 23.5% year-on-year, with operating profit surging 71.8% to ¥463 million and ordinary profit rising 67.2% to ¥464 million. Despite stronger core...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 15, 2026