tiprankstipranks
Trending News
More News >
Scala, Inc. (JP:4845)
:4845
Japanese Market

Scala, Inc. (4845) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Scala, Inc.

(4845)

Rating:52Neutral
Price Target:
¥410.00
▲(0.99%Upside)
Scala, Inc.'s overall stock score is primarily weighed down by negative financial performance and risky valuation due to ongoing losses and high leverage. Technical indicators show mixed signals, reflecting market uncertainty. Despite improved cash flow, the financial risks and valuation concerns are significant factors.

Scala, Inc. (4845) vs. iShares MSCI Japan ETF (EWJ)

Scala, Inc. Business Overview & Revenue Model

Company DescriptionScala, Inc. (4845) is a technology company that specializes in digital signage solutions. The company operates within the information technology and services sector, offering a range of products and services that include digital signage software, media players, and content management systems. Scala's core offerings are designed to enhance customer engagement and streamline communication for businesses across various industries, such as retail, healthcare, education, and transportation.
How the Company Makes MoneyScala, Inc. generates revenue primarily through the sale of its digital signage software and hardware solutions. The company licenses its software to businesses, providing them with the tools to create and manage digital display content. Additionally, Scala offers subscription-based services for ongoing software support and updates. The company also earns revenue from the sale of media players and other hardware components necessary for deploying digital signage networks. Significant partnerships with technology resellers and distributors further contribute to Scala's earnings by expanding its market reach and customer base.

Scala, Inc. Financial Statement Overview

Summary
Scala, Inc. faces challenges with declining revenue and negative profitability, reflected in a low income statement score. While cash flow management shows improvement, high leverage and negative returns point to financial instability.
Income Statement
40
Negative
Scala, Inc. is experiencing declining revenue with a substantial drop over the years. Despite a consistent gross profit margin, the company has negative EBIT and net income margins, indicating operating inefficiencies and financial losses. The TTM data shows improvement in EBIT but still remains negative, highlighting ongoing profitability challenges.
Balance Sheet
55
Neutral
The company maintains a moderate equity ratio indicating reliance on equity to finance assets. However, the high debt-to-equity ratio suggests significant leverage, posing financial risk. The return on equity is negative due to net losses, indicating poor returns for shareholders.
Cash Flow
65
Positive
Scala, Inc. shows signs of improved cash flow management with positive operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is favorable, reflecting efficient cash generation relative to net losses. However, cash flow growth is mixed over the periods.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
9.60B10.71B12.64B10.02B8.73B17.03B
Gross Profit
4.23B4.56B5.13B4.14B3.64B5.98B
EBIT
-812.42M-2.16B397.22M-393.59M220.34M934.42M
EBITDA
-403.42M-1.47B1.22B497.24M843.37M600.47M
Net Income Common Stockholders
-726.27M-2.89B-218.58M-523.04M3.07B321.17M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.42B6.82B7.74B9.63B9.81B7.82B
Total Assets
11.21B12.70B18.32B20.82B20.33B24.91B
Total Debt
4.78B6.19B7.89B9.25B8.58B11.53B
Net Debt
-32.40M-631.27M154.30M-373.29M-1.23B3.71B
Total Liabilities
6.78B8.13B10.23B11.81B9.86B14.57B
Stockholders Equity
4.39B4.34B7.83B8.69B10.16B7.40B
Cash FlowFree Cash Flow
663.14M152.34M392.66M1.85B-49.99M259.18M
Operating Cash Flow
754.06M251.77M601.36M2.05B720.81M1.13B
Investing Cash Flow
321.25M161.98M-214.87M-1.89B4.43B-1.43B
Financing Cash Flow
-3.94B-1.35B-2.25B-339.02M-3.16B1.72B

Scala, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price406.00
Price Trends
50DMA
399.32
Positive
100DMA
403.62
Negative
200DMA
421.92
Negative
Market Momentum
MACD
-0.38
Positive
RSI
46.59
Neutral
STOCH
27.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4845, the sentiment is Negative. The current price of 406 is above the 20-day moving average (MA) of 404.40, above the 50-day MA of 399.32, and below the 200-day MA of 421.92, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4845.

Scala, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥7.87B18.32
0.90%17.86%21.88%
77
Outperform
¥6.45B34.93
31.14%
75
Outperform
¥7.34B43.96
13.76%-15.36%
73
Outperform
¥7.34B35.48
0.58%14.23%425.33%
62
Neutral
$11.80B10.08-7.46%2.99%7.37%-8.21%
52
Neutral
¥7.12B
3.99%-15.71%65.07%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4845
Scala, Inc.
401.00
-280.95
-41.20%
JP:2303
Dawn Corporation
2,386.00
450.12
23.25%
JP:4476
AI CROSS Inc
1,840.00
828.00
81.82%
JP:5029
circlace Inc
1,482.00
939.00
172.93%
JP:5259
BBD Initiative, Inc.
1,200.00
397.59
49.55%

Scala, Inc. Corporate Events

Scala, Inc. Reports Positive Financial Turnaround in Q3 2025
May 15, 2025

Scala, Inc. reported its consolidated financial results for the third quarter of the fiscal year ending June 30, 2025, showing a revenue increase to 7,261 million yen, a 2% rise from the previous year. The company has improved its financial position significantly, turning around from losses in the previous year to a profit attributable to owners of the parent at 534 million yen, reflecting a positive shift in operational efficiency and market positioning.

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.