Scroll Corporation (8005) AI Stock Analysis

• Market Cap: ¥45.35B
• Dividend Yield: 4.35%
• Average Volume (3M): 88.79K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.46
• Revenue Growth: 6.15%
• EPS Growth: -25.28%
• Country: JP
• Employees: 886
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 8.84
• Shares Outstanding: 34,629,200
• 10 Day Avg. Volume: 65,560
• 30 Day Avg. Volume: 88,786
• PEG Ratio: 0.45
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 5.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,354.00 ▲(2.42% Upside)

Scroll Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The company's solid revenue growth, profitability, and low leverage contribute significantly to its financial health. The stock's valuation is appealing with a reasonable P/E ratio and a high dividend yield. However, technical indicators suggest caution due to overbought conditions, which may lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A strong balance sheet with minimal leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Cash Generation

Efficient cash generation relative to net income ensures the company can fund operations and growth without relying heavily on external financing.

Negative Factors

Earnings Volatility

A significant decline in EPS growth may indicate challenges in maintaining profitability, which could impact investor confidence and long-term growth.

Profit Margin Concerns

Modest net profit margins suggest limited room for error in cost management and pricing strategies, potentially affecting future profitability.

Cash Flow Volatility

Volatile cash flow growth can lead to unpredictability in funding operations and investments, posing risks to financial planning and stability.

Scroll Corporation Business Overview & Revenue Model

Company Description

Scroll Corporation (8005) is a leading technology company specializing in digital content delivery and management solutions. Operating primarily in the information technology sector, the company offers a range of products and services that facilitate efficient data processing, storage, and retrieval for businesses across various industries. Its core offerings include cloud-based content management systems, digital asset management tools, and enterprise resource planning software, designed to enhance productivity and streamline operations for its clients.

How the Company Makes Money

Scroll Corporation generates revenue through multiple streams, primarily by selling subscription-based services for its cloud-based platforms. This recurring revenue model allows the company to maintain a steady cash flow as clients pay for ongoing access and support. Additionally, Scroll earns revenue from one-time software licensing fees, professional services for system implementation, and consultancy. Strategic partnerships with major technology firms enhance its market reach and enable bundled offerings, further driving sales. The company also invests in research and development to continuously innovate its product lineup, ensuring it meets evolving customer needs and maintains competitive advantage in the market.

Scroll Corporation Financial Statement Overview

Summary

Scroll Corporation exhibits a solid financial position with consistent revenue growth, strong profitability, and a robust balance sheet. The company effectively manages its costs and maintains low leverage, contributing to financial stability. While cash flow performance is strong, attention to cash flow volatility is warranted. The company's financial health is well-positioned for future growth, with opportunities to enhance net profit margins and cash flow consistency.

Income Statement

Scroll Corporation has demonstrated consistent revenue growth with a 2.64% increase in the latest year, recovering from previous declines. The company maintains solid profitability with a gross profit margin of 41.2% and a net profit margin of 5.08%. EBIT and EBITDA margins are also healthy at 7.56% and 8.85%, respectively, indicating efficient cost management. However, the net profit margin is relatively modest, suggesting room for improvement in net earnings.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.00, indicating minimal leverage and financial risk. Return on equity stands at 11.7%, reflecting effective use of shareholder funds to generate profits. The equity ratio is robust, highlighting a solid capital structure. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

Scroll Corporation's cash flow performance is commendable, with a significant increase in free cash flow, albeit from a low base. The operating cash flow to net income ratio of 0.34 indicates a strong conversion of earnings into cash. The free cash flow to net income ratio is high at 0.97, suggesting efficient cash generation relative to net income. However, the volatility in free cash flow growth rates suggests potential fluctuations in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.69B	84.03B	79.83B	81.02B	81.39B	85.19B
Gross Profit	34.92B	34.63B	31.49B	30.02B	30.36B	31.84B
EBITDA	7.02B	7.44B	6.62B	7.19B	8.45B	8.53B
Net Income	3.93B	4.27B	3.65B	4.17B	5.58B	5.18B
Balance Sheet
Total Assets	54.48B	56.03B	53.26B	53.20B	49.71B	49.90B
Cash, Cash Equivalents and Short-Term Investments	6.00B	8.13B	7.40B	10.27B	7.14B	8.08B
Total Debt	188.00M	5.00M	3.00B	6.00B	6.08B	7.38B
Total Liabilities	17.41B	19.56B	19.88B	21.20B	19.68B	23.26B
Stockholders Equity	37.07B	36.47B	33.38B	32.00B	30.04B	26.65B
Cash Flow
Free Cash Flow	0.00	5.97B	2.98B	5.50B	2.84B	547.00M
Operating Cash Flow	0.00	6.12B	3.43B	5.85B	3.71B	3.96B
Investing Cash Flow	0.00	-3.30B	-332.00M	-414.00M	-1.21B	-3.31B
Financing Cash Flow	0.00	-4.63B	-5.97B	-2.32B	-3.47B	2.61B

Scroll Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1322.00
• 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:8005, the sentiment is Positive. The current price of 1322 is above the 20-day moving average (MA) of 1265.70, above the 50-day MA of 1185.56, and above the 200-day MA of 1068.16, indicating a bullish trend. The MACD of 34.85 indicates Negative momentum. The RSI at 69.59 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8005.

Scroll Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8005	74 Outperform	¥45.35B	14.84	―	4.35%	6.15%	-25.28%
2674	74 Outperform	¥26.93B	12.16	―	3.90%	7.88%	-5.92%
3134	67 Neutral	¥7.10B	7.79	―	2.05%	13.52%	-42.59%
3093	65 Neutral	¥39.27B	13.70	―	2.26%	17.90%	14.14%
2751	64 Neutral	¥41.61B	22.90	―	0.26%	15.30%	-15.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Scroll Corporation Corporate Events

Scroll Corporation Announces Amendments to Shareholder Benefit Program

Scroll Corporation has announced a partial amendment to its Shareholder Benefit Program, effective March 31, 2026. The changes aim to enhance shareholder returns by introducing a new category for shareholders holding 300 to 1,000 shares and increasing benefits for those holding 1,000 to 10,000 shares. These adjustments reflect the company’s commitment to returning profits to shareholders and enhancing corporate value.

Scroll Corporation Announces Treasury Share Acquisition and Cancellation

Scroll Corporation announced its decision to acquire and subsequently cancel up to 1,050,000 common shares to improve capital efficiency and enhance shareholder returns. This strategic move, approved by the Board of Directors, is set to take place between November 2025 and April 2026, reflecting the company’s commitment to optimizing shareholder value.

Scroll Corporation Introduces Progressive Dividend Policy

Scroll Corporation has announced a revision to its shareholder returns policy, introducing a progressive dividend approach to ensure stable and continuous profit returns over the medium to long term. This change reflects the company’s commitment to ROE-oriented management and aims to enhance shareholder value while maintaining financial stability. The new policy will be effective from the fiscal year ending March 31, 2026, with no changes to the previously announced dividend forecast.

Scroll Corporation Revises Financial Forecasts Amid Extraordinary Losses

Scroll Corporation has announced a revision to its full-year consolidated results forecasts for the fiscal year ending March 31, 2026, due to extraordinary losses, including an impairment loss on goodwill from its subsidiary, ZonExpert Co., Ltd. The company has adjusted its profit expectations downward, citing a decline in consumer confidence affecting its Mail-order Business, although its Solutions Business continues to perform well. Despite these financial adjustments, Scroll Corporation has maintained its dividend forecast, reflecting confidence in its growth areas.

Scroll Corporation Reports Mixed Financial Results for First Half of 2025

Scroll Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a 4% increase in net sales compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite increased sales. The company also announced a forecasted increase in annual dividends per share, reflecting its commitment to returning value to shareholders.