Scala, Inc. (4845) AI Stock Analysis

• Market Cap: ¥7.02B
• Dividend Yield: 6.77%
• Average Volume (3M): 45.91K
• 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: 76
• Industry: Software - Application
• EPS (TTM): 10.44
• Shares Outstanding: 17,760,960
• 10 Day Avg. Volume: 52,400
• 30 Day Avg. Volume: 45,906
• PEG Ratio: -0.56
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 68.85
• 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: 55 Neutral
• Price Target: ¥420.00 ▲( 6.33% Upside)

Scala, Inc.'s overall stock score is driven by mixed financial performance, marked by strong gross margins but profitability and revenue growth challenges. The balance sheet is stable, yet declining cash flows and net losses are concerning. Technical analysis suggests a sideways trend, with neutral momentum indicators. Valuation is a key risk factor due to a negative P/E ratio and high dividend yield, highlighting market concerns about profitability and growth prospects.

Scala, Inc. Business Overview & Revenue Model

Company Description

Scala, 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 Money

Scala, 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. presents a mixed financial picture. Strong gross profit margin indicates effective cost management, but negative EBIT and net income margins highlight profitability issues. The balance sheet is stable with a balanced debt-to-equity ratio, but negative return on equity due to net losses is a concern. Cash flow is positive but declining, raising liquidity risks.

Income Statement

Scala, Inc. shows significant volatility in its income statement metrics. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 44.2%, which is a strong indicator of effective cost management relative to revenues. However, the company faces challenges with profitability as indicated by the negative EBIT and net income margins, suggesting operational inefficiencies or high fixed costs. Revenue has fluctuated significantly, with recent declines, impacting overall performance.

Balance Sheet

The balance sheet reveals a moderately solid equity position with a debt-to-equity ratio of approximately 1.23, indicating a balanced approach to leverage. The equity ratio of around 36.7% suggests a stable financial structure, though there has been a reduction in total assets. Return on equity is negative due to net losses, highlighting profitability challenges.

Cash Flow

Cash flow metrics indicate mixed performance. The TTM free cash flow is positive, reflecting good cash generation relative to capital expenditures. However, the free cash flow to net income ratio is negative due to persistent net losses. Operating cash flow has declined, which could pose liquidity risks if it continues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
10.05B	10.71B	12.64B	10.02B	8.73B	17.03B
	Gross Profit
4.44B	4.09B	5.13B	4.14B	3.64B	5.98B
	EBIT
-901.21M	-2.16B	259.56M	-393.59M	220.34M	934.42M
	EBITDA
-1.31B	-1.47B	1.04B	497.24M	843.37M	600.47M
	Net Income Common Stockholders
-2.28B	-2.89B	-218.58M	-523.04M	3.07B	321.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
559.49M	6.82B	7.74B	9.63B	9.81B	7.82B
	Total Assets
1.25B	12.70B	18.32B	20.82B	20.33B	24.91B
	Total Debt
0.00	6.19B	7.89B	9.25B	8.58B	11.53B
	Net Debt
-508.07M	-631.27M	154.30M	-373.29M	-1.23B	3.71B
	Total Liabilities
78.80M	8.13B	10.23B	11.81B	9.86B	14.57B
	Stockholders Equity
1.17B	4.34B	7.83B	8.69B	10.16B	7.40B
Cash Flow		Free Cash Flow
96.32M	152.34M	392.66M	1.85B	-49.99M	259.18M
	Operating Cash Flow
153.80M	251.77M	601.36M	2.05B	720.81M	1.13B
	Investing Cash Flow
-12.56M	161.98M	-214.87M	-1.89B	4.43B	-1.43B
	Financing Cash Flow
-2.78B	-1.35B	-2.25B	-339.02M	-3.16B	1.72B

Scala, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 395.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 395 is below the 20-day moving average (MA) of 405.75, below the 50-day MA of 406.10, and below the 200-day MA of 433.94, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.96B	16.68		0.92%	17.86%	21.88%
4476	76 Outperform	¥7.10B	42.50		―	13.76%	-15.36%
5029	64 Neutral	¥7.39B	40.07		―	31.96%	―
5259	63 Neutral	¥7.14B	34.51		0.60%	14.23%	425.33%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
4845	55 Neutral	¥7.02B	―		6.77%	-15.71%	65.07%

Scala, Inc. Corporate Events

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.