SCAT Inc. (3974) AI Stock Analysis

• Market Cap: ¥1.80B
• Dividend Yield: 3.43%
• Average Volume (3M): 5.55K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.26
• Revenue Growth: -7.98%
• EPS Growth: -43.43%
• Country: JP
• Employees: 196
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 6.34
• Shares Outstanding: 5,240,000
• 10 Day Avg. Volume: 3,130
• 30 Day Avg. Volume: 5,546
• PEG Ratio: 0.08
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.71
• 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

• Rating: 76 Outperform
• Price Target: ¥464.00 ▲(12.90%Upside)

SCAT Inc. receives a strong overall score, primarily driven by a solid valuation and positive technical indicators. While financial performance is stable, challenges in profitability and revenue growth temper enthusiasm. The stock's reasonable P/E ratio and attractive dividend yield enhance its appeal, while positive market momentum suggests potential for future appreciation.

SCAT Inc. Business Overview & Revenue Model

Company Description

SCAT Inc. (3974) is a company that operates primarily in the information technology and services sector. It specializes in providing robust software solutions and innovative technology services to businesses across various industries. The company's core offerings include software development, IT consulting, and system integration services, designed to enhance operational efficiency and drive digital transformation for its clients.

How the Company Makes Money

SCAT Inc. generates revenue through a combination of service-based and project-based income streams. The company charges clients for software development and IT consulting services, typically under time-and-materials or fixed-price contracts. Additionally, SCAT Inc. earns recurring revenue from long-term maintenance and support agreements. Partnerships with technology providers and strategic alliances also contribute to its earnings, allowing the company to offer a broader range of services and solutions to its clientele.

SCAT Inc. Financial Statement Overview

Summary

SCAT Inc. demonstrates stability in its financial structure with healthy equity levels and manageable debt. However, declining profit margins and inconsistent revenue growth suggest challenges in profitability. Strong operating cash flows provide a buffer, but reduced free cash flow may limit strategic investments.

Income Statement

SCAT Inc. shows a stable gross profit margin but a declining net profit margin, indicating increasing operational costs. Revenue growth has been inconsistent, with recent declines. The EBIT and EBITDA margins have decreased, suggesting potential efficiency issues.

Balance Sheet

The company maintains a strong equity position with a moderate debt-to-equity ratio. Although total assets have decreased, the equity ratio remains healthy, indicating stability. The declining ROE suggests a need for improved profitability.

Cash Flow

Operating cash flow is strong relative to net income, highlighting solid core operations. However, the free cash flow has declined significantly, impacting growth potential. The cash flow to net income ratios indicate efficient cash generation, despite recent downward trends.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.66B	2.59B	2.74B	2.59B	2.48B	2.46B
	Gross Profit
1.03B	997.69M	1.09B	1.08B	1.02B	1.01B
	EBIT
165.97M	147.81M	227.87M	224.16M	180.89M	129.38M
	EBITDA
225.29M	339.66M	412.09M	305.18M	293.42M	240.97M
	Net Income Common Stockholders
102.99M	100.21M	157.94M	100.66M	120.93M	71.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	1.26B	1.21B	1.77B	1.73B	1.57B
	Total Assets
2.87B	2.94B	2.98B	3.47B	3.71B	3.66B
	Total Debt
193.00M	178.52M	240.20M	503.88M	589.56M	673.24M
	Net Debt
-972.00M	-1.08B	-968.92M	-1.26B	-1.14B	-901.53M
	Total Liabilities
941.00M	992.17M	1.13B	1.29B	1.40B	1.46B
	Stockholders Equity
1.93B	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: 411.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 411 is above the 20-day moving average (MA) of 406.85, above the 50-day MA of 401.68, and above the 200-day MA of 393.25, indicating a bullish trend. The MACD of 1.85 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 71.68 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
4016	79 Outperform	¥1.82B	11.34		2.21%	8.32%	62.04%
3974	76 Outperform	¥1.80B	12.86		3.43%	-7.98%	-43.43%
9250	70 Outperform	¥1.83B	16.01		―	7.48%	99.40%
3908	67 Neutral	¥1.50B	9.71		―	-11.47%	―
3670	67 Neutral	¥1.91B	11.13		3.45%	-18.16%	-33.45%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
6555	53 Neutral	¥1.81B	11.74		1.14%	6.73%	-334.24%

SCAT Inc. Corporate Events

SCAT Inc. Announces Merger with Subsidiary to Enhance Efficiency

SCAT Inc. has announced its decision to execute an absorption-type merger with its wholly owned subsidiary, VID Co., Ltd., to streamline operations and unify business management. This merger, planned to be effective from June 1, 2025, will dissolve VID Co., Ltd., allowing SCAT Inc. to consolidate its management resources, aiming to improve efficiency and strengthen its market position in the beauty ICT sector.