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Scala, Inc. (JP:4845)
:4845
Japanese Market

Scala, Inc. (4845) AI Stock Analysis

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JP:4845

Scala, Inc.

(4845)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
¥352.00
▼(-10.43% Downside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by weak cash-flow conversion and declining revenue, along with a clearly bearish technical trend (price below key moving averages and negative MACD). These are partly offset by the return to profitability, improved leverage/ROE, and a relatively attractive valuation with a high dividend yield.
Positive Factors
Recovered profitability
Company returned to positive earnings with a TTM net margin around 8.7%, indicating operational improvements. This recovery improves internal financing capacity, supports reinvestment and dividend ability, and provides a stronger base for durable profit generation if margins hold.
Negative Factors
Declining revenue
A shrinking top line (TTM revenue down ~5.5%) undermines scale benefits and makes sustaining margins harder. Persistent revenue decline restricts growth optionality, increases reliance on cost cuts to preserve profits, and raises medium-term execution risk for a software business.
Read all positive and negative factors
Positive Factors
Negative Factors
Recovered profitability
Company returned to positive earnings with a TTM net margin around 8.7%, indicating operational improvements. This recovery improves internal financing capacity, supports reinvestment and dividend ability, and provides a stronger base for durable profit generation if margins hold.
Read all positive factors

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

Scala, Inc. Business Overview & Revenue Model

Company Description
Scala, Inc. provides SaaS/ASP services supporting communications between corporations and individuals primarily in Japan. The company operates through five segments: IT/AI/IoT/DX Business, Customer Support Business, HR & Education Business, EC Bus...

Scala, Inc. Financial Statement Overview

Summary
Profitability has recovered (TTM net margin ~8.7%, gross margin ~49%) and leverage improved (TTM debt-to-equity ~0.92; ROE ~14%), but revenue is declining (~-5.5% TTM) and cash conversion has deteriorated sharply (operating cash flow ~6% of net income; free cash flow minimal and down ~94%), making the quality of earnings the key risk.
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
37
Negative
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue7.38B8.18B10.71B11.84B9.57B8.73B
Gross Profit3.64B3.95B4.56B4.47B3.63B3.64B
EBITDA826.32M1.05B-1.47B1.22B497.24M843.37M
Net Income643.81M982.00M-2.89B-218.58M-523.04M3.07B
Balance Sheet
Total Assets10.00B10.32B12.80B18.32B20.82B20.33B
Cash, Cash Equivalents and Short-Term Investments4.38B4.59B6.82B7.74B9.63B9.81B
Total Debt4.31B4.21B6.19B7.89B9.25B8.58B
Total Liabilities5.28B5.48B8.23B10.23B11.81B9.86B
Stockholders Equity4.69B4.80B4.34B7.83B8.69B10.16B
Cash Flow
Free Cash Flow20.76M512.00M152.34M392.66M1.85B-49.99M
Operating Cash Flow187.91M589.00M251.77M601.36M2.05B720.81M
Investing Cash Flow1.19B778.00M161.98M-214.87M-1.89B4.43B
Financing Cash Flow-2.02B-3.60B-1.35B-2.25B-339.02M-3.16B

Scala, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price393.00
Price Trends
50DMA
362.22
Negative
100DMA
373.05
Negative
200DMA
387.93
Negative
Market Momentum
MACD
-2.20
Negative
RSI
45.61
Neutral
STOCH
77.65
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 393 is above the 20-day moving average (MA) of 352.35, above the 50-day MA of 362.22, and above the 200-day MA of 387.93, indicating a neutral trend. The MACD of -2.20 indicates Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 77.65 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥3.15B27.1813.48%61.77%
67
Neutral
¥8.90B11.670.70%9.78%-23.98%
66
Neutral
¥4.84B21.997.60%19.13%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥7.20B37.4649.33%104.72%
60
Neutral
¥6.74B27.1511.32%
53
Neutral
¥6.24B16.804.25%-24.66%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4845
Scala, Inc.
351.00
-5.35
-1.50%
JP:4015
Paycloud Holdings Inc.
451.00
-138.00
-23.43%
JP:4168
Yappli, Inc.
685.00
35.43
5.45%
JP:4397
TeamSpirit, Inc.
408.00
-22.00
-5.12%
JP:5033
Nulab Inc.
747.00
-224.00
-23.07%
JP:5256
Fusic Co.,Ltd.
2,458.00
149.00
6.45%

Scala, Inc. Corporate Events

Scala Launches Targeted Share Buyback to Boost Capital Efficiency
Mar 24, 2026
Scala, Inc. has approved a share buyback via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system, resolving to repurchase up to 270,000 shares, or 1.55% of its outstanding stock, at a fixed price of 348 yen per share on March 25, 2026. T...
Scala Profit Slumps Despite Stable Revenue, Dividend Policy Intact
Feb 16, 2026
Scala, Inc. reported six-month revenue to December 31, 2025 of ¥4.01 billion, down 4.1% year on year, with IFRS operating income plunging 84.8% to ¥56 million and net income attributable to owners of the parent falling 95.9% to ¥14 ...
Scala Applies to Shift Listing from TSE Prime to Standard Market
Feb 10, 2026
Scala, Inc. has applied to move its listing from the Tokyo Stock Exchange Prime Market to the Standard Market, formalizing a policy first outlined in June 2025. The company concluded that the Standard Market better fits its current business scale ...
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.Date of analysis: Mar 24, 2026