kabutan

TeamSpirit poised for re-evaluation as 'SaaS that won't die'

Fri May 22, 2026 10:00 am JST Catalyst

TeamSpirit Inc. <4397> has underperformed the broader market, falling over 27% year-to-date. Given the solid performance of its core business, the stock appears oversold, sparking expectations for a valuation rebound.

The company operates a workforce and business management platform. Its consolidated financial results for the first half of the fiscal year ending August 2026 (September 2025 to February 2026), announced on April 13, showed sales of 2,881 million yen, up 24.3% year-on-year, and an ordinary profit of 232 million yen, up 67.4% year-on-year, achieving double-digit growth in both revenue and profit. Contracted licenses increased, driven by new and additional orders in the enterprise segment.

The stock has been weighed down by medium-term growth concerns stemming from the so-called "death of SaaS" narrative, which suggests AI will replace the operations of SaaS companies. However, the company emphasizes that its services target attendance management, a domain requiring legal and audit compliance and intricate system design to solve highly complex issues, making it "SaaS in a domain that won't die." With revisions to the Labor Standards Act expected from next year, enterprise demand is projected to expand, making the shares attractive in the 300 yen range.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

Related Articles