Scroll Corporation (8005) AI Stock Analysis

• Market Cap: ¥48.23B
• Dividend Yield: 4.27%
• Average Volume (3M): 88.79K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.49
• Revenue Growth: 6.15%
• EPS Growth: -25.28%
• Country: JP
• Employees: 886
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 17.89
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,561.00 ▲(13.28% Upside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

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

Recurring subscription revenue

A subscription-heavy revenue mix creates durable, recurring cash flows and higher customer retention versus one-off sales. This steady income base supports multi-period planning, predictable service renewals, and incremental upsell opportunities, improving revenue visibility and funding R&D and support investments.

Very low financial leverage

Practically no debt materially reduces financial risk and interest burden, preserving flexibility to invest, acquire, or return capital. A strong equity ratio and 11.7% ROE signal prudent capital structure and capacity to withstand cyclical shocks without relying on external financing.

Healthy gross and operating margins

High gross margins point to pricing power or cost-efficient delivery of digital services; positive EBIT/EBITDA margins show operational leverage. These durable margin characteristics allow funding for product development and sales investment while maintaining profitability over the medium term.

Negative Factors

Earnings volatility (EPS decline)

A near-38% decline in EPS signals material earnings pressure or one-off hits that reduce shareholder earnings power. Persistent EPS volatility undermines investor confidence, complicates planning for dividends or buybacks, and raises execution risk for sustained profitability improvements.

Free cash flow volatility

Volatile free cash flow growth weakens predictability for capital allocation such as capex, dividends, or M&A. Even with a strong FCF-to-net-income ratio, inconsistent cash generation can force conservative spending, limit strategic initiatives, and raise reliance on internal timing to fund growth.

Modest net profit margin

A single-digit net margin constrains retained earnings available for reinvestment and cushions against downturns. With material gap between gross and net margins, sustained cost pressure or competitive pricing could compress net returns, limiting long-term reinvestment and shareholder payout capacity.

Scroll Corporation Business Overview & Revenue Model

Company Description

Scroll Corporation primarily engages in the mail-order and e-commerce businesses in Japan. The company's mail order business offers apparel, innerwear, insurance, and miscellaneous goods. Its solution business provides mail order and sales agency services, such as fulfillment support, promotion support, system construction support, BPO, and other services for mail-order and e-commerce businesses. The company's e-commerce business offers clothing accessories, outdoor products, cosmetics, and miscellaneous goods, as well as disaster prevention products for individuals. Its cosmetics business sells brand cosmetics, health foods, etc. The company's travel business engages in the planning and sale of travel products through mail order; and events, including day trip sightseeing bus tours, inbound tours, etc. It also engages in the logistics and real estate leasing business. The company was formerly known as Mutow Co., Ltd. and changed its name to Scroll Corporation in October 2009. Scroll Corporation was founded in 1939 and is headquartered in Hamamatsu, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1378.00
• 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 1378 is above the 20-day moving average (MA) of 1354.95, above the 50-day MA of 1351.20, and above the 200-day MA of 1165.90, indicating a bullish trend. The MACD of 11.26 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 97.04 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	¥48.23B	18.83	―	4.27%	6.15%	-25.28%
2674	74 Outperform	¥28.70B	12.36	―	3.77%	7.88%	-5.92%
3134	74 Outperform	¥8.06B	9.07	―	2.05%	13.52%	-42.59%
3093	65 Neutral	¥44.66B	14.84	―	2.19%	17.90%	14.14%
2751	64 Neutral	¥48.39B	26.20	―	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 Books ¥851 Million Loss on E-commerce Exit but Raises Profit Outlook, Keeps Dividend Plan

Scroll Corporation will book an extraordinary loss of ¥851 million in the third quarter of the fiscal year ending March 31, 2026, as it withdraws from its unprofitable parallel-import e-commerce operations amid a difficult external environment marked by post-pandemic shifts in consumer sentiment and yen weakness. While full-year consolidated net sales guidance remains unchanged at ¥87 billion, the company has raised its operating and ordinary profit forecasts on the back of solid performance in its Solutions Business, but cut its forecast for profit attributable to owners of parent to ¥2.8 billion, which will lower earnings per share; nevertheless, management is keeping its dividend forecast intact, signaling confidence in the underlying earnings power despite the one-off restructuring charge.

The most recent analyst rating on (JP:8005) stock is a Buy with a Yen1514.00 price target. To see the full list of analyst forecasts on Scroll Corporation stock, see the JP:8005 Stock Forecast page.

Scroll Corporation Releases FY2025 Third-Quarter Results and Full-Year Outlook

Scroll Corporation released materials covering its financial results for the third quarter of fiscal year 2025, spanning the period from April 1 to December 31, 2025. The disclosure also outlines the company’s full-year forecast for FY2025 and provides an appendix with a business overview and company profile, signaling management’s intent to give investors a comprehensive view of current performance and expectations for the remainder of the fiscal year.

The most recent analyst rating on (JP:8005) stock is a Buy with a Yen1514.00 price target. To see the full list of analyst forecasts on Scroll Corporation stock, see the JP:8005 Stock Forecast page.

Scroll Posts Higher Sales but Sharp Profit Decline, Keeps Dividend Hike on Track

Scroll Corporation reported consolidated net sales of ¥65.9 billion for the nine months ended 31 December 2025, up 4.9% year on year, but saw profitability weaken, with operating profit down 13.1% to ¥4.7 billion, ordinary profit down 11.7% to ¥5.1 billion and profit attributable to owners of parent tumbling 44.6% to ¥2.2 billion; basic earnings per share fell to ¥62.42. Despite the profit contraction and a slight decline in the equity ratio to 62.8%, the company maintained a solid financial position with total assets of ¥58.8 billion and net assets of ¥37.0 billion, kept its dividend forecast unchanged and even targeted a higher full-year payout of ¥59 per share, while revising full-year guidance to modest sales growth but significantly lower profit, signaling margin pressure but continued commitment to shareholder returns.

The most recent analyst rating on (JP:8005) stock is a Buy with a Yen1514.00 price target. To see the full list of analyst forecasts on Scroll Corporation stock, see the JP:8005 Stock Forecast page.

Scroll Corporation Completes ¥1 Billion Treasury Share Buyback

Scroll Corporation has completed a board-authorized share buyback program conducted under Article 459, Paragraph 1 of Japan’s Companies Act, using market purchases on the Tokyo Stock Exchange. Under the resolution approved on October 31, 2025, the company was authorized to repurchase up to 1,050,000 common shares for a maximum of ¥1 billion between November 5, 2025, and March 31, 2026. As of January 13, 2026, Scroll had acquired a cumulative total of 790,000 shares at a total cost of ¥999,868,680, including 128,500 shares purchased between January 1 and January 13, 2026, effectively completing the buyback within the approved budget; the move signals active capital management that may support shareholder value and per-share metrics by reducing the free float of its common stock.

The most recent analyst rating on (JP:8005) stock is a Buy with a Yen1383.00 price target. To see the full list of analyst forecasts on Scroll Corporation stock, see the JP:8005 Stock Forecast page.

Scroll Corporation Reports Progress on ¥1 Billion Share Buyback Program

Scroll Corporation has been executing a share buyback program authorized by its board on October 31, 2025, allowing for the repurchase of up to 1,050,000 common shares, or 3.0% of its outstanding shares (excluding treasury shares), with a maximum budget of ¥1 billion through market purchases on the Tokyo Stock Exchange between November 5, 2025 and March 31, 2026. As of December 31, 2025, the company had acquired a cumulative total of 661,500 shares for approximately ¥822.6 million, including 271,600 shares bought in December alone, signaling an active capital allocation policy that reduces the share float and may support shareholder value through enhanced earnings per share and a stronger equity structure.

The most recent analyst rating on (JP:8005) stock is a Buy with a Yen1354.00 price target. To see the full list of analyst forecasts on Scroll Corporation stock, see the JP:8005 Stock Forecast page.