Scala, Inc. (4845) AI Stock Analysis

• Market Cap: ¥7.42B
• Dividend Yield: 3.82%
• Average Volume (3M): 48.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -15.71%
• EPS Growth: 65.07%
• Country: JP
• Employees: 529
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Application
• EPS (TTM): 10.44
• Shares Outstanding: 17,761,860
• 10 Day Avg. Volume: 29,240
• 30 Day Avg. Volume: 48,780
• PEG Ratio: -0.17
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.79
• 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: ¥411.00
• Price Target Upside: -1.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥434.00 ▲(3.58%Upside)

Scala, Inc.'s stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability issues. The technical analysis provides a more positive outlook with bullish indicators, but valuation concerns due to negative earnings weigh down the score. The lack of earnings call data and corporate events means these factors do not influence the score.

Scala, Inc. Business Overview & Revenue Model

Company Description

Scala, Inc. (4845) is a technology company specializing in digital signage solutions and interactive display systems. The company operates primarily in the digital media sector, providing innovative software and hardware solutions designed to enhance communication and engagement in various environments, such as retail, transportation, and corporate settings. Scala's core products include content management systems, multimedia players, and customizable display hardware that enable businesses to deliver dynamic content and improve customer experiences.

How the Company Makes Money

Scala, Inc. generates revenue primarily through the sale of its software licenses, hardware products, and ongoing support services. The company offers subscription-based models for its content management systems, allowing clients to access continuous updates and technical support. Additionally, Scala partners with hardware manufacturers and digital signage integrators to expand its market reach, which contributes to its revenue through shared sales agreements and joint marketing initiatives. The increasing demand for digital signage in various industries, along with a focus on innovation and customer experience, further enhances Scala's revenue potential.

Scala, Inc. Financial Statement Overview

Summary

Scala, Inc. operates in a challenging financial environment with declining revenues and negative profitability metrics. High leverage increases financial risk, but improved cash flow management is a positive sign. The company needs to address profitability and leverage to enhance financial stability and investor confidence.

Income Statement

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

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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.71B	12.64B	10.02B	8.73B	17.03B
Gross Profit	4.56B	5.13B	4.14B	3.64B	5.98B
EBITDA	-1.47B	1.22B	497.24M	843.37M	600.47M
Net Income	-2.89B	-218.58M	-523.04M	3.07B	321.17M
Balance Sheet
Total Assets	12.70B	18.32B	20.82B	20.33B	24.91B
Cash, Cash Equivalents and Short-Term Investments	6.82B	7.74B	9.63B	9.81B	7.82B
Total Debt	6.19B	7.89B	9.25B	8.58B	11.53B
Total Liabilities	8.13B	10.23B	11.81B	9.86B	14.57B
Stockholders Equity	4.34B	7.83B	8.69B	10.16B	7.40B
Cash Flow
Free Cash Flow	152.34M	392.66M	1.85B	-49.99M	259.18M
Operating Cash Flow	251.77M	601.36M	2.05B	720.81M	1.13B
Investing Cash Flow	161.98M	-214.87M	-1.89B	4.43B	-1.43B
Financing Cash Flow	-1.35B	-2.25B	-339.02M	-3.16B	1.72B

Scala, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 419.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 419 is above the 20-day moving average (MA) of 411.50, above the 50-day MA of 402.61, and above the 200-day MA of 406.25, indicating a bullish trend. The MACD of 4.84 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 81.25 is Negative, 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	80 Outperform	¥7.71B	17.61		1.05%	17.86%	21.88%
5259	73 Outperform	¥8.16B	39.41		0.53%	14.23%	425.33%
5029	72 Outperform	¥5.81B	31.48		―	31.14%	―
4476	64 Neutral	¥6.87B	41.14		―	13.76%	-15.36%
4845	57 Neutral	¥7.42B	―		3.82%	-15.71%	65.07%
Sector *	57 Neutral	$835.58M	11.04	-16.80%	2.63%	10.19%	-40.75%

Scala, Inc. Corporate Events

Scala, Inc. Completes Share Transfer of Subsidiary, Records Extraordinary Loss

Scala, Inc. has completed the transfer of shares of its subsidiary, Nihon Pet Small-amount Short-term Insurance Company, to Beisia Group Research Institute Co., Ltd. This transaction results in an extraordinary loss of JPY 109 million for Scala, Inc. in its non-consolidated financial results for the fiscal year ending June 30, 2025. The impact on the company’s consolidated financial results is under examination, with updates provided in their financial forecast disclosures.

Scala, Inc. Revises Financial and Dividend Forecasts Amid Structural Reforms

Scala, Inc. announced a revision to its full-year consolidated financial and dividend forecasts for the fiscal year ending June 30, 2025. The company has implemented business structure reforms, including reducing fixed costs and scaling down unprofitable businesses, leading to a return to profitability in operating profit by the second quarter. The revision includes a downward adjustment in revenue but an upward revision in operating profit and profit before tax, reflecting a stable recovery in performance. Additionally, Scala has completed the transfer of shares of its subsidiary, resulting in its classification as a discontinued operation. The company also revised its year-end dividend forecast to JPY 8.50 per share, up by JPY 0.50, aligning with its policy of stable dividends and reflecting the improved earnings forecast.

Scala, Inc. to Receive Dividends from Subsidiaries

Scala, Inc. announced it will receive dividends totaling 250 million yen from two of its consolidated subsidiaries, aimed at optimizing group-wide capital efficiency and enhancing financial management. The dividends will be recorded as net sales on the company’s non-consolidated statement of income for the fiscal year ending June 30, 2025, with no impact on the consolidated financial results.

Scala, Inc. Announces Transition to Tokyo Stock Exchange’s Standard Market

Scala, Inc. has announced its decision to transition from the Tokyo Stock Exchange’s Prime Market to the Standard Market. This move is part of the company’s strategy to enhance corporate value in the medium to long term, following recent structural reforms that have improved profitability. The change is aligned with Scala’s commitment to sustainable growth and efficient management, aiming to meet stakeholder expectations.

Scala, Inc. Reports Positive Financial Turnaround in Q3 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.