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TIS Inc.

3626.TMEDIUM

Core · Weight: 7%· Data as of 2026-04-14

¥3,399-0.53%

6-month daily

Investment Thesis

Governance reform compounder with exceptional capital return: ¥50B buyback (8.8% of float, 70% executed) + 2.3% dividend = ~11% total shareholder return. ROE 14.9% exceeds TSE 8% target. PE 15.1x is reasonable for this quality. Group Vision 2032 provides long-term roadmap. Reclassify from Healthcare to Governance Reform theme.

Risk

1) Revenue growth essentially zero (+0.4%) — no organic growth driver. 2) Healthcare IT exposure is much smaller than initially assumed — diversified IT services firm. 3) After buyback completes (Sep 2026), no clear next catalyst for re-rating.

Monitoring Trigger

If buyback completes and new program announced, maintain 7%. If no new buyback announced post-Sep 2026, TRIM to 5%. If healthcare IT segment shows >15% growth at earnings, ADD to 9%.

Key Metrics

15.1

15.3

Fwd PE

2.21

P/B

14.9%

ROE

12.6%

Op Margin

54.0%

D/E

2.3%

Div Yield

N/A

FCF

N/A

Mkt Cap

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Japanese financial institutions (banks, insurance, securities, credit card companies)	Core banking, insurance, securities, and payment IT systems	TIS has 50+ years providing banking/insurance/securities systems; leading system integrator in domestic payment services (TIS corporate profile, Annual Report 2025)
confirmed	NTQ Solution (Vietnam, capital & business alliance)	Offshore IT services and DX development partnership	TIS entered capital & business alliance with NTQ, a leading Vietnamese IT services provider, in Jan 2025 (Crunchbase, TIS corporate announcements)
confirmed	Healthcare providers and public sector clients	Health information-sharing systems and DX solutions for government/healthcare	TIS provides health checkup result sharing systems and digital transformation support for ~15,000 client companies across Japan (TIS corporate profile, Yahoo Finance)

Sources & References

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Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Nomura Holdings, Inc.	9.78	9.94	10.1%	N/A (financial services)	N/A
TIS Inc.	15.1	15.3	14.9%	12.6%	N/A
JFE Holdings, Inc.	10.5	4.9	3.1%	2.9%	N/A
Mitsubishi Corporation	14.5	13	8.5%	1.8%	N/A
ITOCHU Corporation	15	13.8	14.2%	5.8%	N/A
Daiwa Securities Group Inc.	13.1	N/A	9.3%	N/A	N/A