SCAT Inc. (3974) AI Stock Analysis

• Market Cap: ¥2.78B
• Dividend Yield: 2.07%
• Average Volume (3M): 19.97K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.22
• Revenue Growth: -2.87%
• EPS Growth: 4.31%
• Country: JP
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 12.35
• Shares Outstanding: 5,240,000
• 10 Day Avg. Volume: 26,910
• 30 Day Avg. Volume: 19,973
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥534.00
• Price Target Upside: -15.10% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥539.00 ▼(-14.31% Downside)

SCAT Inc. scores well due to strong technical indicators showing bullish momentum, supported by a solid balance sheet. However, challenges in revenue growth and cash flow management, along with fair valuation metrics, moderate the overall score.

SCAT Inc. Business Overview & Revenue Model

Company Description

SCAT Inc. (3974) is a dynamic company operating within the industrial sector, specializing in the manufacturing and distribution of high-performance automotive components. The company is renowned for its innovative engineering solutions and a comprehensive range of products that cater to both the consumer and industrial markets.

How the Company Makes Money

SCAT Inc. generates revenue primarily through the sale of its automotive components, which include crankshafts, connecting rods, and other high-performance engine parts. The company serves a broad client base ranging from individual automotive enthusiasts to large-scale manufacturers. SCAT Inc. benefits from strategic partnerships with automotive manufacturers and aftermarket distributors, enhancing its market reach and sales volume. Additionally, SCAT Inc. may engage in licensing agreements or collaborations that further bolster its revenue streams.

SCAT Inc. Financial Statement Overview

Summary

SCAT Inc. presents a mixed financial picture. The balance sheet is strong with low leverage and high equity, but the income statement shows declining revenues and moderate profitability margins. Cash flow management is challenging, with significant declines in free cash flow. Improvement in revenue growth and cash flow conversion is needed.

Income Statement

SCAT Inc. has demonstrated a stable income statement with a gross profit margin of 38.4% and a net profit margin of 3.9% for the latest year. However, the company experienced a revenue decline of 5.4% compared to the previous year, which may indicate potential challenges in maintaining growth. The EBIT margin stands at 5.7%, and the EBITDA margin is 13.1%, reflecting reasonable operational efficiency but room for improvement.

Balance Sheet

The balance sheet of SCAT Inc. is strong, with a low debt-to-equity ratio of 0.09, indicating minimal leverage and financial risk. The equity ratio is 66.2%, showcasing a solid capital structure. Return on equity is 5.1%, which suggests moderate profitability relative to shareholder investment. The company maintains substantial cash reserves, enhancing its financial stability.

Cash Flow

SCAT Inc.'s cash flow statement shows a decline in free cash flow by 63.6% year-over-year, indicating potential cash management issues. The operating cash flow to net income ratio is 2.3, reflecting strong cash generation relative to net income. However, the free cash flow to net income ratio of 0.89 suggests that not all net income is translating into free cash flow, which could be a concern for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.55B	2.59B	2.74B	2.59B	2.48B	2.46B
Gross Profit	970.29M	997.69M	1.09B	1.08B	1.02B	1.01B
EBITDA	270.84M	339.66M	412.09M	305.18M	293.42M	240.97M
Net Income	88.30M	100.21M	157.94M	100.66M	120.93M	71.68M
Balance Sheet
Total Assets	2.86B	2.94B	2.98B	3.47B	3.71B	3.66B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.26B	1.21B	1.77B	1.73B	1.57B
Total Debt	163.10M	178.52M	240.20M	503.88M	589.56M	673.24M
Total Liabilities	918.46M	992.17M	1.13B	1.29B	1.40B	1.46B
Stockholders Equity	1.94B	1.95B	1.84B	2.18B	2.32B	2.19B
Cash Flow
Free Cash Flow	0.00	89.28M	245.53M	137.27M	235.94M	-65.91M
Operating Cash Flow	0.00	230.29M	339.74M	253.20M	346.66M	70.00M
Investing Cash Flow	0.00	-113.00M	-135.71M	112.32M	-113.39M	-134.28M
Financing Cash Flow	0.00	-67.92M	-760.62M	-326.80M	-81.05M	146.21M

SCAT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 629.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3974, the sentiment is Positive. The current price of 629 is above the 20-day moving average (MA) of 590.20, above the 50-day MA of 531.90, and above the 200-day MA of 431.54, indicating a bullish trend. The MACD of 31.36 indicates Negative momentum. The RSI at 78.29 is Negative, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3974.

SCAT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	77 Outperform	¥2.78B	16.14	―	2.07%	-2.87%	4.31%
3908	74 Outperform	1.89B	10.90	11.22%	―	-10.89%	―
4016	72 Outperform	2.58B	16.81	18.77%	1.56%	5.61%	32.84%
3670	67 Neutral	2.53B	10.99	8.11%	2.60%	-17.18%	-11.43%
9250	64 Neutral	1.79B	70.80	27.09%	―	7.94%	―
6555	49 Neutral	1.87B	-6.76	-9.38%	―	7.71%	-328.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SCAT Inc. Corporate Events

SCAT Inc. Announces Shareholder Benefits Following Nagoya Listing

SCAT Inc. has announced the implementation of commemorative shareholder benefits following its redundant listing on the Nagoya Stock Exchange Main Board. The initiative aims to increase engagement with individual investors and ensure stock liquidity, offering a QUO card worth 1000 yen to shareholders holding 100 shares or more as of October 2025. This one-time benefit highlights the company’s commitment to shareholder returns and enhancing corporate value.

SCAT Inc. Gains Approval for Dual Listing on Nagoya Stock Exchange

SCAT Inc. has received approval to list on the Nagoya Stock Exchange Main Market, aiming to increase engagement with individual investors and ensure stock liquidity. The dual listing is part of the company’s strategy to enhance corporate value and investor relations, while establishing a base in Nagoya to support future business strategies.

SCAT Inc. Announces Increased Interim Dividend for 2025

SCAT Inc. announced a resolution to pay an interim dividend of 7 yen per share, effective July 11, 2025, with a total payout of 21.38 million yen. This decision aligns with their policy of sustained shareholder returns and marks an increase from the previous year’s interim dividend of 6 yen per share, reflecting the company’s commitment to returning profits to shareholders.

SCAT Inc. Reports Decline in Semi-Annual Financial Results but Forecasts Growth

SCAT Inc. reported a decline in its consolidated financial results for the six months ended April 30, 2025, with net sales, operating profit, ordinary profit, and profit attributable to owners of the parent all showing year-on-year decreases. Despite these declines, the company maintains a stable financial position with a slight increase in total assets and net assets. Looking forward, SCAT Inc. forecasts a positive outlook for the fiscal year ending October 31, 2025, with expected increases in net sales, operating profit, and ordinary profit, indicating potential growth and improved earnings per share.