SCAT Inc. (3974) AI Stock Analysis

• Market Cap: ¥2.85B
• Dividend Yield: 2.35%
• Average Volume (3M): 28.37K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.23
• Revenue Growth: 0.40%
• EPS Growth: 21.21%
• Country: JP
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 9.72
• Shares Outstanding: 5,764,000
• 10 Day Avg. Volume: 22,860
• 30 Day Avg. Volume: 28,370
• PEG Ratio: 1.16
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥634.00 ▲(12.21% Upside)

SCAT Inc. scores well due to its strong financial performance and attractive valuation. The technical analysis indicates bullish momentum, but overbought conditions suggest caution. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The robust revenue growth indicates SCAT Inc.'s strong market demand and effective business strategies, positioning it well for future expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests prudent financial leverage, providing SCAT Inc. with stability and flexibility for future investments.

Cash Generation Ability

Strong cash generation relative to net income enhances SCAT Inc.'s ability to fund operations, invest in growth, and return value to shareholders.

Negative Factors

Volatile Free Cash Flow

Volatility in free cash flow growth can indicate challenges in cash flow management, potentially affecting SCAT Inc.'s ability to sustain investments and operations.

Net Profit Margin

While profitable, the relatively low net profit margin suggests SCAT Inc. may face challenges in cost management or pricing power, impacting long-term profitability.

Free Cash Flow Management

Volatile free cash flow growth may hinder SCAT Inc.'s ability to consistently reinvest in its business, potentially affecting long-term growth prospects.

SCAT Inc. Business Overview & Revenue Model

Company Description

How the Company Makes Money

SCAT Inc. Financial Statement Overview

Summary

SCAT Inc. presents a mixed financial picture. The company has a robust balance sheet with low leverage and high equity, but its income statement reveals declining revenues and moderate profitability margins. Cash flow management is a challenge, with significant declines in free cash flow. Focus is needed on reversing revenue declines and improving cash flow conversion.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.58B	2.61B	2.59B	2.74B	2.59B	2.48B
Gross Profit	1.01B	1.04B	997.69M	1.09B	1.08B	1.02B
EBITDA	336.48M	337.55M	339.66M	412.09M	305.18M	293.42M
Net Income	111.62M	125.51M	100.21M	157.94M	100.66M	120.93M
Balance Sheet
Total Assets	2.92B	3.04B	2.94B	2.98B	3.47B	3.71B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.24B	1.26B	1.21B	1.77B	1.73B
Total Debt	132.26M	116.84M	178.52M	240.20M	503.88M	589.56M
Total Liabilities	916.71M	997.22M	992.17M	1.13B	1.29B	1.40B
Stockholders Equity	2.00B	2.04B	1.95B	1.84B	2.18B	2.32B
Cash Flow
Free Cash Flow	0.00	171.41M	89.28M	245.53M	137.27M	235.94M
Operating Cash Flow	0.00	282.65M	230.29M	339.74M	253.20M	346.66M
Investing Cash Flow	0.00	-194.90M	-113.00M	-135.71M	112.32M	-113.39M
Financing Cash Flow	0.00	-106.01M	-67.92M	-760.62M	-326.80M	-81.05M

SCAT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 565.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 565 is below the 20-day moving average (MA) of 569.15, above the 50-day MA of 538.96, and above the 200-day MA of 459.27, indicating a bullish trend. The MACD of 10.62 indicates Positive momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 72.08 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	73 Outperform	¥2.85B	14.48	―	2.35%	0.40%	21.21%
3670	67 Neutral	¥2.50B	8.76	―	2.76%	-9.03%	53.70%
4016	63 Neutral	¥2.10B	13.22	―	3.07%	2.07%	11.34%
9250	63 Neutral	¥1.33B	21.97	―	―	5.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3908	60 Neutral	¥1.42B	9.98	―	―	-10.98%	―
6555	46 Neutral	¥1.98B	-8.58	―	―	8.27%	-295.89%

SCAT Inc. Corporate Events

SCAT Inc. Raises Annual Dividend to 14 Yen Per Share

SCAT Inc. has resolved to pay a year-end dividend of 7 yen per share for the fiscal year ended October 31, 2025, matching its interim dividend and bringing the total annual dividend to 14 yen per share, up from 13 yen in the previous year. The payout, totaling 23.51 million yen and effective January 13, 2025, underscores the company’s policy of continuous shareholder returns through stable dividends and signals a modest enhancement of shareholder value compared with the prior fiscal year.

The most recent analyst rating on (JP:3974) stock is a Buy with a Yen634.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Evaluates Board Effectiveness, Highlights Sustainability Focus

SCAT Inc. has conducted an evaluation of its Board of Directors’ effectiveness for FY2025, aiming to enhance corporate value. The evaluation, involving a questionnaire distributed to all directors and auditors, revealed improvements in board discussions and management strategies. However, it highlighted the need for more focus on sustainability topics like ESG management and SDGs. The company has improved meeting efficiency by sharing agendas in advance and ensured cooperation with the Internal Audit Department, although training still depends on individual qualifications.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Updates Management Strategy to Enhance Shareholder Value

SCAT Inc. announced updates to its management strategy focused on enhancing shareholder value and stock price awareness. The company is implementing structural reforms and developing new services, with a focus on increasing shareholder returns and improving market valuation. Despite challenges in previous fiscal years, SCAT Inc. has improved its ROE and aims to address market undervaluation by enhancing its core business and capital return strategies.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Revises Medium-Term Management Plan Amid Market Challenges

SCAT Inc. has revised its medium-term management plan, lowering its financial targets for the fiscal year ending October 31, 2026, due to market trends and operational challenges. The company aims to strengthen its revenue streams by enhancing its cloud-based systems and expanding consulting and nursing care services, while maintaining its current capital and business strategies to achieve sustainable growth.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Reports Strong Fiscal 2025 Performance

SCAT Inc. reported a significant improvement in its fiscal 2025 financial results compared to the previous year, driven by increased stock-type revenues and the successful capture of replacement demand following the end of Windows 10 support. The company’s strategic focus on expanding stock-based revenue and consulting services has stabilized its revenue base, contributing to a notable increase in profits.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Reports Strong Financial Performance for FY 2025

SCAT Inc. reported its consolidated financial results for the fiscal year ending October 31, 2025, showing a slight increase in net sales and significant growth in profits compared to the previous year. The company’s operating profit rose by 30.6%, and ordinary profit increased by 25.8%, indicating a strong financial performance. The company also announced a dividend increase, reflecting its robust financial health and commitment to returning value to shareholders. The exclusion of VID Co., Ltd. from the consolidation scope marks a notable change in the company’s operational structure.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Announces New Director and Audit Member Candidates

SCAT Inc. has announced the selection of candidates for its Board of Directors and a substitute Statutory Audit & Supervisory Board Member, to be proposed at its upcoming Annual General Meeting. The company plans to strengthen management oversight by adding an outside director and appointing six directors, while also ensuring continuity in its audit functions by appointing an alternate audit member.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Announces 10th Anniversary Shareholder Benefits and New Program

SCAT Inc. announced a special shareholder benefit to commemorate its 10th anniversary of being listed on the Tokyo Stock Exchange. Eligible shareholders will receive a QUO card worth 1000 yen. Additionally, the company introduced a new shareholder benefits program for the fiscal year ending October 2027, offering QUO cards based on the number of shares held and the duration of holding, aiming to increase the attractiveness of its shares and encourage long-term investment.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Meets TSE Listing Standards and Increases Dividends

SCAT Inc. announced it has met the Tokyo Stock Exchange’s Standard Market continued listing criteria, following initiatives to recover its core business and increase market capitalization. The company has also increased dividends for the fifth consecutive year, offered commemorative shareholder benefits, and implemented a gratis allotment of shares to enhance shareholder value and meet listing standards.

The most recent analyst rating on (JP:3974) stock is a Hold with a Yen535.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Revises Earnings Forecast Amid Challenges in Nursing Care Services

SCAT Inc. has revised its consolidated earnings forecast for the fiscal year ending October 2025 due to significant impacts on its Nursing care services business. The company has experienced a decline in facility utilization rates, leading to a decrease in segment sales and profits. Despite these challenges, SCAT Inc. maintains its year-end dividend forecast unchanged.

The most recent analyst rating on (JP:3974) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.