TeamSpirit, Inc. (4397) AI Stock Analysis

TeamSpirit, Inc.

(TSE/TYO:4397)

Select Model

Rating:65Neutral

Price Target:JPY 392.00▲(7.69% Upside)

Action:reiterated

Date:10/15/26

The overall score of 65 reflects a company with strong fundamentals that is currently out of favor in the market. The primary strength is the robust financial performance, highlighted by excellent cash flow conversion and a healthy balance sheet. This is significantly offset by a very weak technical analysis, with the stock in a clear downtrend across all timeframes. The reasonable P/E ratio provides some valuation support, but the absence of a dividend and bearish momentum are key risks.

Positive Factors

Return to profitabilityThe return to solid profitability after losses in 2022–2024 indicates that the business has improved its earnings base and can now fund operations from a positive result. Maintaining profitability through 2026 strengthens resilience and provides a platform for reinvestment.

Negative Factors

Revenue growth decelerationRevenue growth slowed to about 4.8% in 2026 from mid-teens rates earlier in the period. This deceleration reduces the pace at which the company can expand its recurring earnings base and may limit operating leverage unless growth reaccelerates.

TeamSpirit, Inc. (4397) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.55B
Dividend Yield: ―
Average Volume (3M): 62.16K
Price to Earnings (P/E): 16.1
Beta (1Y): 0.30
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

Financial health is strong, anchored by excellent cash flow generation (Score 85) and a conservative balance sheet (Score 78). The company has successfully pivoted to profitability with a robust 25.1% ROE. The income statement (Score 72) shows a solid recovery, though slowing revenue growth and slight margin compression temper the overall score.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

85Very Positive

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price364.00

Price Trends

50DMA391.04Negative

100DMA385.68Negative

200DMA407.37Negative

Market Momentum

MACD-4.66Negative

RSI38.60Neutral

STOCH38.29Neutral

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 364.00 is below the 20-day moving average (MA) of 370.20, below the 50-day MA of 391.04, and below the 200-day MA of 407.37, indicating a bearish trend. The MACD of -4.66 indicates Negative momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 38.29 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

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4397 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5588	75Outperform	JPY 7.17B	29.89	―	0.58%	25.25%	-49.30%
JP:4060	72Outperform	JPY 6.63B	24.56	―	0.79%	37.13%	-7.58%
JP:4448	72Outperform	JPY 14.50B	19.86	―	―	14.06%	―
JP:5033	66Neutral	JPY 7.96B	47.99	―	―	7.04%	-67.36%
JP:4397	65Neutral	JPY 6.01B	16.11	―	―	23.50%	2.72%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4015	57Neutral	JPY 8.38B	19.74	―	―	8.88%	191.06%

* Technology Sector Average

Performance Comparison

JP:4397 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4397	TeamSpirit, Inc.	364.00	-143.00	-28.21%
JP:4015	Paycloud Holdings Inc.	523.00	25.00	5.02%
JP:4060	rakumo Inc.	1136.00	30.04	2.72%
JP:4448	Chatwork Co.Ltd.	340.00	-53.00	-13.49%
JP:5033	Nulab Inc.	1228.00	465.00	60.94%
JP:5588	Fast Accounting Co.,Ltd.	637.00	-606.32	-48.77%

TeamSpirit, Inc. Corporate Events

TeamSpirit Delivers Strong FY2026 Revenue Growth and Boosts Profit Outlook

Oct 14, 2026

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...

TeamSpirit Posts Strong Nine-Month Profit Growth Amid Share Buyback and Zero-Dividend Policy

Jul 15, 2026

TeamSpirit Inc. reported strong growth for the nine months ended May 31, 2026, with net sales rising 24.7% year on year to ¥4.43 billion and operating profit jumping 60.8% to ¥431 million. Profit attributable to owners of the parent climbed...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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

TeamSpirit, Inc. AI Stock Analysis