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SCAT Inc. (JP:3974)
:3974
Japanese Market
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SCAT Inc. (3974) AI Stock Analysis

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JP:3974

SCAT Inc.

(3974)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥745.00
▲(31.86% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial resilience from a conservative, strengthening balance sheet, offset by variability in profitability and free cash flow. Technically, the uptrend is strong (price above major moving averages and positive MACD), but momentum is stretched (RSI ~72). Valuation is reasonable with a mid-level P/E and moderate dividend yield.
Positive Factors
Balance Sheet Strength
A materially lower leverage profile and a conservative, strengthening balance sheet give the company lasting financial resilience. This reduces financing risk, preserves liquidity for downturns, and supports strategic investments or opportunistic M&A without stressing cash flow.
Negative Factors
Free Cash Flow Variability
Volatile free cash flow undermines predictability of internally funded investments, dividends, and debt servicing. Recurrent swings tied to working capital or investment timing increase the risk that funding needs will spike in weak periods, pressuring financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A materially lower leverage profile and a conservative, strengthening balance sheet give the company lasting financial resilience. This reduces financing risk, preserves liquidity for downturns, and supports strategic investments or opportunistic M&A without stressing cash flow.
Read all positive factors

SCAT Inc. (3974) vs. iShares MSCI Japan ETF (EWJ)

SCAT Inc. Business Overview & Revenue Model

Company Description
SCAT Inc. delivers a variety of information technology solutions, primarily targeting the beauty and hair salon industry. Their product lineup features Sacla, a specialized point-of-sale and customer relationship management system for salons; Mail...
How the Company Makes Money
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SCAT Inc. Financial Statement Overview

Summary
Financials are supported by a very strong, low-leverage balance sheet (Balance Sheet Score 88), while profitability and cash generation are decent but less consistent (Income Statement Score 67; Cash Flow Score 63). Key risks are uneven revenue trajectory and volatile free cash flow conversion despite recent improvement.
Income Statement
67
Positive
Balance Sheet
88
Very Positive
Cash Flow
63
Positive
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue2.62B2.61B2.59B2.74B2.59B2.48B
Gross Profit1.04B1.04B997.69M1.09B1.08B1.02B
EBITDA348.67M337.55M339.66M412.09M305.18M293.42M
Net Income133.54M125.51M100.21M157.94M100.66M120.93M
Balance Sheet
Total Assets3.02B3.04B2.95B2.99B3.48B3.72B
Cash, Cash Equivalents and Short-Term Investments1.24B1.24B1.26B1.21B1.77B1.73B
Total Debt86.00M118.28M181.12M240.20M509.79M592.27M
Total Liabilities922.04M997.22M1.01B1.15B1.30B1.41B
Stockholders Equity2.09B2.04B1.95B1.84B2.18B2.32B
Cash Flow
Free Cash Flow171.41M171.41M89.28M245.53M137.27M235.94M
Operating Cash Flow282.65M282.65M230.29M339.74M253.20M346.66M
Investing Cash Flow-194.90M-194.90M-113.00M-135.71M112.32M-113.39M
Financing Cash Flow-106.01M-106.01M-67.92M-760.62M-326.80M-81.05M

SCAT Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price565.00
Price Trends
50DMA
580.16
Positive
100DMA
580.51
Positive
200DMA
565.22
Positive
Market Momentum
MACD
24.59
Negative
RSI
73.05
Negative
STOCH
68.35
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 632.25, below the 50-day MA of 580.16, and below the 200-day MA of 565.22, indicating a bullish trend. The MACD of 24.59 indicates Negative momentum. The RSI at 73.05 is Negative, neither overbought nor oversold. The STOCH value of 68.35 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥3.30B15.102.35%4.13%77.38%
72
Outperform
¥2.63B8.853.28%3.91%-4.11%
70
Outperform
¥2.80B12.542.86%7.29%-10.63%
64
Neutral
¥2.67B14.340.69%13.41%62.66%
60
Neutral
¥3.12B25.892.38%-15.87%
56
Neutral
¥3.04B-35.911.52%6.03%-170.68%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3974
SCAT Inc.
666.00
219.81
49.26%
JP:4068
Basis Corporation
1,665.00
-439.00
-20.87%
JP:4335
IPS Co., Ltd.
1,104.00
-51.32
-4.44%
JP:4421
D.I.System Co.,Ltd.
924.00
-4.14
-0.45%
JP:6193
Virtualex Holdings, Inc.
1,034.00
274.26
36.10%
JP:7046
TDSE Inc.
1,300.00
-218.54
-14.39%

SCAT Inc. Corporate Events

SCAT Inc. Confirms 7 Yen Interim Dividend, Keeps Full-Year Payout Outlook
Jun 12, 2026
SCAT Inc. has approved an interim dividend of 7 yen per share for shareholders of record as of April 30, 2026, matching both its prior forecast and the previous year’s interim payout. The total interim dividend payment will amount to 23.62 m...
SCAT Inc. Outlines FY2026 Q2 Results and Medium-Term Strategy
Jun 12, 2026
SCAT Inc. released supplementary materials for its FY2026 second-quarter financial results, outlining financial highlights and policies on shareholder returns. The document also signals forthcoming discussion of key operational topics, a medium-te...
SCAT Inc. Delivers Modest Profit Growth and Confirms Stable Dividend
Jun 12, 2026
SCAT Inc. reported modest growth for the six months ended April 30, 2026, with net sales rising 1.4% year on year to ¥1.32 billion and operating profit up 6.5% to ¥99 million. Ordinary profit increased 10.7% to ¥104 million and prof...
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: Aug 06, 2026