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LTS, Inc. (6560) AI Stock Analysis

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JP:6560

LTS, Inc.

(TSE/TYO:6560)

Select Model
Rating:56Neutral
Price Target:JPY 1,607.00â–¼(-2.25% Downside)
Action:reiterated
Date:11/07/26

The score is held back primarily by weakening recent financial performance and especially poor/volatile cash generation (negative operating and free cash flow), alongside a bearish technical setup with the stock trading below major moving averages. These risks are partially offset by a relatively attractive valuation (low P/E and a ~2.1% dividend yield) and improved leverage versus 2023.

Positive Factors
Improved Balance SheetLower leverage and a larger equity base improve financial flexibility compared with the 2023 peak. This gives LTS more capacity to withstand operating volatility, fund necessary investment, and manage obligations without relying as heavily on additional borrowing.
Negative Factors
Recent Revenue ContractionA roughly 25% annual revenue decline is a material setback for near-term operating leverage and visibility. Sustained weakness would make fixed costs harder to absorb, limit reinvestment capacity, and challenge the durability of the earlier growth trajectory over coming quarters.

LTS, Inc. (6560) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:6560-29.77%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 7.10B
Dividend Yield
2.14%
Average Volume (3M)
31.69K
Price to Earnings (P/E)
7.3
Beta (1Y)
0.61
Revenue Growth
-0.56%
EPS Growth
18.81%
Country
Japan
Employees
1,003
Sector
Industrials
Sector Strength
63
Industry
Consulting Services

LTS, Inc. Business Overview & Revenue Model

Company Description

Established in 2002 and based in Tokyo, Japan, LTS, Inc. provides a comprehensive range of consulting, business process management, and digital transformation solutions to its Japanese clientele. The company's consulting expertise spans strategic bus...

LTS, Inc. Financial Statement Overview

Summary

Income statement trends weakened in the latest year (revenue down ~25% and net margin down to ~4.1% from ~5.9%), and cash flow quality is a major concern (negative operating cash flow and negative free cash flow in 2025 despite positive net income). The balance sheet is healthier than 2023 with lower leverage (debt-to-equity ~0.61), but returns have cooled (ROE ~14.6% vs ~21.3% in 2024).

Income Statement

61Positive

Balance Sheet

64Positive

Cash Flow

33Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.05B17.10B16.59B12.24B9.64B7.38B
Gross Profit5.84B6.09B5.90B4.27B3.21B2.63B
EBITDA1.59B1.44B1.84B905.00M454.47M636.32M
Net Income976.00M696.00M973.00M456.00M232.58M388.41M
Balance Sheet
Total Assets9.98B10.03B11.58B12.00B5.60B5.08B
Cash, Cash Equivalents and Short-Term Investments3.97B3.38B5.45B3.85B2.98B2.43B
Total Debt2.42B2.92B3.89B5.20B682.22M965.88M
Total Liabilities4.86B5.27B7.01B8.38B2.35B3.00B
Stockholders Equity5.12B4.76B4.57B3.57B3.24B2.08B
Cash Flow
Free Cash Flow0-466.00M0604.00M-33.20M331.65M
Operating Cash Flow0-326.00M0647.00M255.25M421.96M
Investing Cash Flow0-135.00M2.14B-3.66B-329.86M-399.68M
Financing Cash Flow0-1.60B-1.35B4.07B626.85M-277.61M

LTS, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price1644.00

Price Trends

50DMA1749.76Negative
100DMA1747.83Negative
200DMA1757.31Negative

Market Momentum

MACD-38.70Positive
RSI42.93Neutral
STOCH46.55Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6560, the sentiment is Negative. The current price of 1644.00 is below the 20-day moving average (MA) of 1676.90, below the 50-day MA of 1749.76, and below the 200-day MA of 1757.31, indicating a bearish trend. The MACD of -38.70 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 46.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6560.

LTS, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:6560 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6532JP:653288OutperformJPY 1.86T40.88―0.96%32.48%24.82%
JP:7033JP:703375OutperformJPY 27.45B12.05―1.96%――
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:2170JP:217063NeutralJPY 61.57B39.72―2.74%11.33%-57.36%
JP:4792JP:479262NeutralJPY 30.44B11.47―4.78%13.80%12.02%
JP:6560JP:656056NeutralJPY 7.53B7.29―2.14%-0.56%18.81%
JP:9556JP:955648NeutralJPY 16.78B32.50――20.41%-62.53%

* Industrials Sector Average

Performance Comparison

-50%0%50%JP:6560JP:2170JP:4792JP:6532JP:7033JP:9556Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6560 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6560LTS, Inc.1644.00-801.14-32.76%
JP:2170Link and Motivation Inc.599.00124.1926.16%
JP:4792YAMADA Consulting Group Co., Ltd.1610.00-66.59-3.97%
JP:6532BayCurrent Consulting, Inc.11970.005200.8176.83%
JP:7033Management Solutions Co., Ltd.1630.00330.8425.47%
JP:9556INTLOOP, Inc.1795.00-2530.00-58.50%

LTS, Inc. Corporate Events

LTS Reports Progress in Treasury-Share Buyback

Nov 2, 2026

LTS, Inc., a company listed on the Tokyo Stock Exchange Standard Market, announced the latest progress in its treasury-share acquisition program. Between October 1 and October 31, 2026, it purchased 28,000 common shares for 47.56 million yen through...

LTS to Shift TSE Listing From Prime to Standard Market, Withdraws Compliance Plan

Oct 16, 2026

LTS, Inc. announced that it has received approval from Tokyo Stock Exchange, Inc. to change the listing of its shares from the Prime Market to the Standard Market, effective October 23, 2026. In tandem with this shift, the company has withdrawn its p...

LTS Steps Up Share Buybacks Under Board-Approved Program

Oct 1, 2026

LTS, Inc., a professional services firm listed on the Tokyo Stock Exchange Prime Market, operates in Japan’s business services sector, offering corporate-focused solutions and consulting support. The company targets enterprise customers and leverages...

LTS Begins Share Buyback, Acquires 51,400 Shares Under New Program

Sep 1, 2026

LTS, Inc. has launched a share buyback program and reported acquiring 51,400 of its own common shares between August 14 and August 31, 2026, through market purchases on the Tokyo Stock Exchange at a total cost of ¥86.46 million. This move is part of...

LTS to Shift TSE Listing to Standard Market Amid Prime Criteria Shortfall

Aug 13, 2026

LTS, Inc. has decided to apply to transfer its listing from the Tokyo Stock Exchange Prime Market to the Standard Market after concluding it is unlikely to meet the Prime Market’s tradable share market capitalization requirement by the end of 2026. T...

LTS Launches Targeted Share Buyback to Boost Capital Efficiency and Incentives

Aug 13, 2026

LTS, Inc. has authorized a new share buyback program, allowing the company to repurchase up to 120,000 of its common shares, or 2.72% of issued shares excluding treasury stock, for a maximum of ¥200 million through market purchases on the Tokyo Stock...

LTS, Inc. Outlines Q2 FY2026 Results and Strategic Outlook

Aug 13, 2026

LTS, Inc. has released its financial results for the second quarter of fiscal 2026, outlining its business overview and earnings performance for the first half of the year. The disclosure also presents the company’s outlook for the second half of fis...

LTS Lifts Interim Profit and Keeps Strong Outlook as Margins Improve

Aug 13, 2026

LTS, Inc. reported consolidated interim results for the first half of the fiscal year ending December 2026 showing essentially flat net sales at ¥8.52 billion, but a sharp improvement in profitability, with operating profit up 37.3% and profit attrib...

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: Nov 07, 2026