Scala, Inc. (4845) AI Stock Analysis

• Market Cap: ¥6.86B
• Dividend Yield: 4.25%
• Average Volume (3M): 42.30K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.32
• Revenue Growth: -24.66%
• EPS Growth: N/A
• Country: JP
• Employees: 529
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -4.88
• Shares Outstanding: 17,762,660
• 10 Day Avg. Volume: 45,680
• 30 Day Avg. Volume: 42,300
• PEG Ratio: -0.06
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 14.53
• 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: 61 Neutral
• Price Target: ¥415.00 ▲(5.60% Upside)

Scala, Inc.'s overall stock score is primarily influenced by its financial performance and valuation. The company shows a stable financial position with strong profitability metrics but faces challenges in revenue growth and cash flow management. The stock is attractively valued with a low P/E ratio and high dividend yield, making it appealing for value investors. Technical analysis indicates a neutral trend, with no strong momentum in either direction.

Positive Factors

Strong Profitability Metrics

Scala's strong gross profit margin and return on equity indicate effective cost management and efficient use of equity, supporting long-term profitability.

Recurring Revenue Model

The subscription-based revenue model provides a steady and predictable income stream, enhancing financial stability and long-term growth potential.

Balanced Leverage Position

A balanced debt-to-equity ratio suggests prudent financial management, allowing Scala to leverage growth opportunities without excessive risk.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Cash Flow Challenges

Significant decline in cash flow growth suggests issues in converting income to cash, which could limit Scala's ability to invest in future growth.

Low Net Profit Margin

A low net profit margin indicates limited profitability after expenses, which may affect Scala's ability to reinvest in business development and innovation.

Scala, Inc. Business Overview & Revenue Model

Company Description

Scala, Inc. (4845) is a technology company specializing in advanced data analytics and software solutions. Operating primarily in the information technology sector, Scala focuses on providing businesses with tools to enhance operational efficiency and decision-making through data-driven insights. Their core products include data management platforms, predictive analytics software, and business intelligence solutions tailored for various industries, including healthcare, finance, and retail.

How the Company Makes Money

Scala generates revenue through a combination of software licensing, subscription-based services, and consulting fees. The company sells its data analytics platforms to enterprises on a license basis, providing one-time fees along with annual maintenance contracts. Additionally, Scala offers subscription models for its cloud-based analytics solutions, generating recurring revenue from clients who require ongoing access to their software. Consulting services further contribute to revenue, as Scala assists organizations in implementing and optimizing their data strategies. Key partnerships with cloud service providers enhance their offerings and attract more clients, thus positively impacting their earnings.

Scala, Inc. Financial Statement Overview

Summary

Scala, Inc. shows a mixed financial performance. While profitability has improved with a positive net profit margin and reduced leverage, the company faces challenges in revenue growth and cash flow generation. The strong gross profit margin indicates effective cost management, but operational efficiency and cash flow conversion need enhancement.

Income Statement

Scala, Inc. has shown a mixed performance in its income statement. The company experienced a significant revenue decline of 14.79% in the most recent year, indicating potential challenges in maintaining its market position. However, the gross profit margin remains relatively healthy at 48.32%, suggesting effective cost management. The net profit margin improved to 12.01% from a negative position in the previous year, reflecting a turnaround in profitability. Despite these improvements, the EBIT and EBITDA margins are modest at 9.19% and 12.87%, respectively, indicating room for operational efficiency enhancements.

Balance Sheet

The balance sheet of Scala, Inc. reflects a moderate financial position. The debt-to-equity ratio has improved to 0.88 from 1.43, indicating a reduction in leverage and a stronger equity base. Return on equity is positive at 20.45%, showcasing effective utilization of shareholder funds. However, the equity ratio stands at 46.98%, suggesting a balanced but cautious approach to asset financing. The company has made strides in reducing debt, but maintaining this trajectory is crucial for long-term stability.

Cash Flow

Scala, Inc.'s cash flow statement reveals challenges in cash generation. The free cash flow growth rate is negative at -22.79%, indicating a decline in cash available for reinvestment or debt reduction. The operating cash flow to net income ratio is relatively low at 0.17, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is healthier at 0.87, indicating that a significant portion of net income is being converted into free cash flow. Improving cash flow generation remains a key area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.82B	8.18B	10.71B	11.84B	9.57B	8.73B
Gross Profit	3.79B	3.95B	4.56B	4.47B	3.63B	3.64B
EBITDA	1.01B	1.05B	-1.47B	1.22B	497.24M	843.37M
Net Income	940.67M	982.00M	-2.89B	-218.58M	-523.04M	3.07B
Balance Sheet
Total Assets	10.05B	10.22B	12.70B	18.32B	20.82B	20.33B
Cash, Cash Equivalents and Short-Term Investments	4.17B	4.59B	6.82B	7.74B	9.63B	9.81B
Total Debt	4.30B	4.20B	6.19B	7.89B	9.25B	8.58B
Total Liabilities	5.44B	5.39B	8.13B	10.23B	11.81B	9.86B
Stockholders Equity	4.58B	4.80B	4.34B	7.83B	8.69B	10.16B
Cash Flow
Free Cash Flow	336.83M	512.00M	152.34M	392.66M	1.85B	-49.99M
Operating Cash Flow	442.68M	589.00M	251.77M	601.36M	2.05B	720.81M
Investing Cash Flow	1.11B	778.00M	161.98M	-214.87M	-1.89B	4.43B
Financing Cash Flow	-2.94B	-3.60B	-1.35B	-2.25B	-339.02M	-3.16B

Scala, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 393.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4845, the sentiment is Positive. The current price of 393 is above the 20-day moving average (MA) of 383.48, above the 50-day MA of 383.43, and below the 200-day MA of 394.13, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 44.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4845.

Scala, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2303	78 Outperform	¥8.53B	18.89	―	0.99%	-0.69%	-6.98%
2186	69 Neutral	¥7.18B	19.41	―	3.65%	―	―
4476	68 Neutral	¥6.61B	80.25	―	―	10.43%	-65.78%
5029	62 Neutral	¥4.79B	25.27	―	―	29.44%	485.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4845	61 Neutral	¥6.86B	7.13	―	4.25%	-24.66%	―
5259	49 Neutral	¥9.49B	-25.58	―	―	6.59%	-294.11%

Scala, Inc. Corporate Events

Scala, Inc. Reports Q1 2026 Financial Results with Revenue Growth Amid Income Decline

Scala, Inc. reported its consolidated financial results for the first quarter of the fiscal year ending June 30, 2026, showing a slight increase in revenue by 0.8% year-on-year to 1,863 million yen. However, the company experienced a decline in operating and net income, with net income attributable to owners of the parent showing a negative trend. The financial position saw a slight decrease in total assets and equity attributable to owners, with the equity ratio declining to 45.6%. Despite these challenges, the company maintained its dividend forecast for the fiscal year.

The most recent analyst rating on (JP:4845) stock is a Hold with a Yen410.00 price target. To see the full list of analyst forecasts on Scala, Inc. stock, see the JP:4845 Stock Forecast page.