SCSK Corporation (9719) AI Stock Analysis

• Market Cap: ¥1.47T
• Dividend Yield: 1.5%
• Average Volume (3M): 954.45K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.71
• Revenue Growth: 33.00%
• EPS Growth: 21.00%
• Country: JP
• Employees: 16,296
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 42.93
• Shares Outstanding: 313,125,270
• 10 Day Avg. Volume: 889,060
• 30 Day Avg. Volume: 954,450
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,016.40
• Price Target Upside: 6.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: ¥5,192.00 ▲(9.72% Upside)

SCSK Corporation's strong financial performance, characterized by robust revenue growth and efficient operations, is the most significant factor driving the stock score. Technical analysis indicates a positive market sentiment, though valuation concerns due to a high P/E ratio and moderate dividend yield slightly offset the overall attractiveness. Monitoring debt levels and improving net profit margins will be crucial for long-term success.

SCSK Corporation Business Overview & Revenue Model

Company Description

SCSK Corporation is a leading Japan-based IT services provider, offering a wide range of solutions that include system integration, cloud computing, IT infrastructure management, and business process outsourcing. The company serves various sectors such as finance, manufacturing, telecommunications, and distribution, helping clients to enhance their operational efficiency and innovate through digital transformation.

How the Company Makes Money

SCSK Corporation generates revenue primarily through its comprehensive IT solutions and services. The company's key revenue streams include system integration services, which involve designing and implementing complex IT systems tailored to client needs, and IT infrastructure management, which ensures the smooth operation and maintenance of these systems. Additionally, SCSK offers cloud computing services, providing scalable and flexible IT resources to businesses. Business process outsourcing is another significant revenue contributor, where SCSK manages specific business functions on behalf of its clients. The company benefits from strategic partnerships with major technology vendors, which enhance its service offerings and market reach, thereby contributing to its financial performance.

SCSK Corporation Financial Statement Overview

Summary

SCSK Corporation exhibits strong financial health with robust revenue growth and efficient operations. The company maintains a solid equity base, though increasing debt levels warrant monitoring. The cash flow position is strong, supporting future growth and stability. Continued focus on improving net profit margins and managing leverage will be key to sustaining long-term financial performance.

Income Statement

SCSK Corporation demonstrates strong revenue growth with a TTM increase of 9.22%, indicating robust demand for its services. The gross profit margin remains stable at approximately 26.75%, reflecting efficient cost management. However, the net profit margin of 7.56% suggests room for improvement in profitability. The EBIT and EBITDA margins are healthy at 11.19% and 15.36%, respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 1.08 indicates a balanced approach to leveraging, though it has increased compared to previous years, suggesting a potential risk if not managed carefully. The return on equity (ROE) is strong at 14.77%, highlighting effective use of shareholder funds. The equity ratio of 33.62% suggests a solid equity base, though there is a reliance on debt financing.

Cash Flow

SCSK Corporation shows a significant free cash flow growth rate of 30.11% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.73, suggesting strong cash conversion from earnings. The free cash flow to net income ratio of 0.85 reflects a healthy cash flow position, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	651.00B	596.07B	480.31B	445.91B	414.15B	396.85B
Gross Profit	176.92B	159.48B	121.91B	117.68B	108.19B	102.97B
EBITDA	102.28B	91.74B	80.45B	73.57B	67.47B	65.47B
Net Income	49.23B	45.04B	40.46B	37.30B	33.47B	33.44B
Balance Sheet
Total Assets	863.34B	885.03B	471.40B	435.47B	407.61B	380.40B
Cash, Cash Equivalents and Short-Term Investments	118.29B	105.62B	149.37B	121.62B	122.33B	108.99B
Total Debt	383.10B	315.41B	73.97B	77.92B	78.97B	85.64B
Total Liabilities	571.92B	592.46B	168.49B	163.07B	160.25B	153.06B
Stockholders Equity	290.25B	291.42B	302.25B	271.91B	246.92B	226.87B
Cash Flow
Free Cash Flow	75.46B	58.00B	58.31B	29.28B	45.00B	32.95B
Operating Cash Flow	84.98B	68.04B	67.90B	43.59B	59.08B	50.22B
Investing Cash Flow	-275.32B	-275.49B	-19.90B	-14.95B	-14.93B	-20.59B
Financing Cash Flow	164.96B	167.95B	-25.88B	-29.07B	-32.34B	-32.49B

SCSK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4732.00
• 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:9719, the sentiment is Positive. The current price of 4732 is above the 20-day moving average (MA) of 4615.50, above the 50-day MA of 4458.04, and above the 200-day MA of 3822.67, indicating a bullish trend. The MACD of 50.83 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 88.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9719.

SCSK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9719	75 Outperform	¥1.47T	29.89		1.50%	33.00%	21.00%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
DTSOF	―	$1.25B	16.23	19.83%	3.13%	―	―
NSSXF	―	$4.33B	24.15	10.80%	4.01%	―	―
2317	76 Outperform	¥177.21B	18.83		2.47%	10.87%	27.25%
8056	73 Outperform	¥571.33B	21.93		1.61%	8.94%	10.67%
3626	67 Neutral	¥1.14T	22.05		1.42%	4.39%	7.80%