Scala, Inc. (4845) AI Stock Analysis

• Market Cap: ¥7.12B
• Dividend Yield: 3.99%
• Average Volume (3M): 37.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -15.71%
• EPS Growth: 65.07%
• Country: JP
• Employees: 529
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 10.44
• Shares Outstanding: 17,760,960
• 10 Day Avg. Volume: 30,180
• 30 Day Avg. Volume: 37,413
• PEG Ratio: 1.03
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.00
• 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: 52 Neutral
• 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. 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. 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
9.60B	10.71B	12.64B	10.02B	8.73B	17.03B
	Gross Profit
4.23B	4.56B	5.13B	4.14B	3.64B	5.98B
	EBIT
-812.42M	-2.16B	397.22M	-393.59M	220.34M	934.42M
	EBITDA
-403.42M	-1.47B	1.22B	497.24M	843.37M	600.47M
	Net Income Common Stockholders
-726.27M	-2.89B	-218.58M	-523.04M	3.07B	321.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.42B	6.82B	7.74B	9.63B	9.81B	7.82B
	Total Assets
11.21B	12.70B	18.32B	20.82B	20.33B	24.91B
	Total Debt
4.78B	6.19B	7.89B	9.25B	8.58B	11.53B
	Net Debt
-32.40M	-631.27M	154.30M	-373.29M	-1.23B	3.71B
	Total Liabilities
6.78B	8.13B	10.23B	11.81B	9.86B	14.57B
	Stockholders Equity
4.39B	4.34B	7.83B	8.69B	10.16B	7.40B
Cash Flow		Free Cash Flow
663.14M	152.34M	392.66M	1.85B	-49.99M	259.18M
	Operating Cash Flow
754.06M	251.77M	601.36M	2.05B	720.81M	1.13B
	Investing Cash Flow
321.25M	161.98M	-214.87M	-1.89B	4.43B	-1.43B
	Financing Cash Flow
-3.94B	-1.35B	-2.25B	-339.02M	-3.16B	1.72B

Scala, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 406.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2303	80 Outperform	¥7.87B	18.32		0.90%	17.86%	21.88%
5029	77 Outperform	¥6.45B	34.93		―	31.14%	―
4476	75 Outperform	¥7.34B	43.96		―	13.76%	-15.36%
5259	73 Outperform	¥7.34B	35.48		0.58%	14.23%	425.33%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
4845	52 Neutral	¥7.12B	―		3.99%	-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.