SCSK Corporation (9719) AI Stock Analysis

• Market Cap: ¥1.45T
• Dividend Yield: 1.53%
• Average Volume (3M): 911.65K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.72
• Revenue Growth: 33.00%
• EPS Growth: 21.00%
• Country: JP
• Employees: 16,296
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 42.93
• Shares Outstanding: 313,125,270
• 10 Day Avg. Volume: 1,135,800
• 30 Day Avg. Volume: 911,646
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,810.00
• Price Target Upside: 3.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: ¥5,320.00 ▲(14.85% Upside)

SCSK Corporation's strong financial performance is the primary driver of its overall score, supported by robust revenue growth and effective cash flow management. The technical analysis indicates a positive trend, although the stock is nearing overbought levels. Valuation concerns arise due to the high P/E ratio, which suggests the stock might be overvalued relative to its earnings.

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 across all verticals. The income statement highlights robust revenue and profitability growth. The balance sheet shows a balanced leverage and effective equity management. Cash flow generation remains stable, supporting operational needs and strategic investments.

Income Statement

SCSK Corporation has shown consistent revenue growth with a notable 24.1% increase from 2024 to 2025. The gross profit margin stands strong at 26.8% for 2025, indicating solid profitability. The net profit margin also improved to 7.6%, reflecting effective cost management. EBITDA margin is robust at 15.4%, supporting operational efficiency.

Balance Sheet

The company's balance sheet reflects stability with a debt-to-equity ratio of 1.08, indicating moderate leverage. Return on Equity (ROE) improved to 15.5%, showcasing effective utilization of equity. The equity ratio is at a solid 32.9%, demonstrating a healthy proportion of equity funding.

Cash Flow

Free Cash Flow growth was steady at -0.5% from 2024 to 2025, indicating stable cash generation. The operating cash flow to net income ratio is favorable at 1.51, suggesting strong cash conversion. Free Cash Flow to Net Income ratio is at 1.29, indicating efficient cash flow management.

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

SCSK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4632.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4632 is above the 20-day moving average (MA) of 4471.40, above the 50-day MA of 4374.64, and above the 200-day MA of 3681.87, indicating a bullish trend. The MACD of 110.35 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.66 is Neutral, 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
8056	78 Outperform	¥591.83B	22.79		1.54%	8.94%	10.67%
2317	76 Outperform	¥184.46B	19.76		2.36%	10.87%	27.25%
9719	74 Outperform	¥1.45T	29.41		1.53%	33.00%	21.00%
9682	73 Outperform	¥189.78B	19.03	19.83%	2.44%	8.80%	50.65%
2327	71 Outperform	$652.74B	24.37	10.80%	2.07%	7.99%	4.61%
3626	67 Neutral	¥1.15T	22.20		1.39%	4.39%	7.80%
Sector *	50 Neutral	C$3.26B	5.38	-49.37%	9.08%	2.09%	-13.61%