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TWOSTONE&Sons Co.Ltd. (7352) AI Stock Analysis

JP:7352

TWOSTONE&Sons Co.Ltd.

(TSE/TYO:7352)

Select Model
Rating:62Neutral
Price Target:JPY 398.00â–²(2.58% Upside)
Action:reiterated
Date:10/29/26

The score is primarily supported by solid financial performance—strong revenue expansion and consistently positive free cash flow. It is held back by thin and softening profitability, a mixed technical setup with weakness versus the long-term trend, and a stretched valuation (high P/E with a low dividend yield).

Positive Factors
Revenue GrowthRapid multi-year revenue expansion indicates sustained demand and increasing business scale rather than reliance on a single short-term gain. Continued growth provides a broader base for operating leverage, investment, and future earnings development over the next several quarters.
Negative Factors
Thin ProfitabilityBottom-line profitability weakened despite continued revenue growth, showing that scale has not yet translated consistently into stronger net earnings. A margin near 2% leaves limited room to absorb operating pressure and makes future profit growth more sensitive to cost changes and execution.

TWOSTONE&Sons Co.Ltd. (7352) vs. iShares MSCI Japan ETF (EWJ)

-80%-60%-40%-20%0%20%40%JP:7352-45.34%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 17.33B
Dividend Yield
0.26%
Average Volume (3M)
787.98K
Price to Earnings (P/E)
39.5
Beta (1Y)
0.87
Revenue Growth
20.62%
EPS Growth
-13.75%
Country
Japan
Employees
750
Sector
General
Sector Strength
55
Industry
Staffing & Employment Services

TWOSTONE&Sons Co.Ltd. Business Overview & Revenue Model

Company Description

TWOSTONE&Sons Inc. engages in the IT service business in Japan. It offers engineer matching services, in-house production consulting, branding career services, web marketing consulting, M&A advisory, and closed ASP services; engineer recruitment serv...

TWOSTONE&Sons Co.Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and consistently positive, improving free cash flow support financial quality. Offsetting this, profitability is thin and softened in the latest year (net profit down and net margin ~2%), and leverage remains a watch item given modest operating cash flow coverage of debt despite improving debt-to-equity.

Income Statement

78Positive

Balance Sheet

64Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue21.81B21.81B18.08B14.29B10.06B6.87B
Gross Profit7.62B7.62B5.51B4.12B2.71B2.07B
EBITDA1.40B1.31B1.07B612.68M359.05M266.56M
Net Income429.99M429.99M494.32M188.86M170.12M134.69M
Balance Sheet
Total Assets10.68B10.68B9.95B7.10B4.09B2.51B
Cash, Cash Equivalents and Short-Term Investments4.57B4.57B4.56B3.70B1.29B874.71M
Total Debt3.52B3.52B3.64B1.97B1.81B819.32M
Total Liabilities6.75B6.75B6.48B4.22B3.19B1.77B
Stockholders Equity3.85B3.85B3.36B2.89B897.07M736.92M
Cash Flow
Free Cash Flow0859.80M689.47M674.91M165.02M155.87M
Operating Cash Flow01.03B749.69M697.11M172.60M216.58M
Investing Cash Flow0-847.28M-1.28B-90.25M-652.91M-259.08M
Financing Cash Flow0-165.95M1.39B1.80B895.27M436.53M

TWOSTONE&Sons Co.Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price388.00

Price Trends

50DMA364.75Positive
100DMA360.42Positive
200DMA458.74Negative

Market Momentum

MACD17.90Positive
RSI48.08Neutral
STOCH6.36Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7352, the sentiment is Negative. The current price of 388.00 is below the 20-day moving average (MA) of 416.70, above the 50-day MA of 364.75, and below the 200-day MA of 458.74, indicating a neutral trend. The MACD of 17.90 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 6.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7352.

TWOSTONE&Sons Co.Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7352 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7914JP:791473OutperformJPY 42.68B10.64―4.82%-1.79%10.53%
JP:7811JP:781171OutperformJPY 21.82B7.85―3.19%5.98%52.32%
JP:7352JP:735262NeutralJPY 17.33B39.47―0.26%20.62%-13.75%
JP:7916JP:791657NeutralJPY 5.60B31.21―2.73%-3.93%11.47%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7805JP:780554NeutralJPY 3.24B9.66―1.99%-1.49%-24.51%
JP:7911JP:791146NeutralJPY 1.21T15.625.81%2.07%8.97%-9.58%

* General Sector Average

Performance Comparison

-50%-25%0%25%50%JP:7352JP:7911JP:7805JP:7811JP:7914JP:7916Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7352 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7352TWOSTONE&Sons Co.Ltd.388.00-343.84-46.98%
JP:7911Toppan Printing Co 2127.50261.2014.00%
JP:7805PRINTNET INC.653.0018.492.91%
JP:7811Nakamoto Packs Co. Ltd.2446.00698.7139.99%
JP:7914Kyodo Printing Co., Ltd.1661.00229.5916.04%
JP:7916Mitsumura Printing Co., Ltd.1829.00359.0624.43%
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 29, 2026