SCSK Corporation (9719) AI Stock Analysis

• Market Cap: ¥1.39T
• Dividend Yield: 1.66%
• Average Volume (3M): 823.34K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.76
• Revenue Growth: 24.10%
• EPS Growth: 11.27%
• Country: JP
• Employees: 16,296
• Sector: Technology
• Sector Strength: 95
• Industry: Information Technology Services
• EPS (TTM): 48.75
• Shares Outstanding: 312,875,180
• 10 Day Avg. Volume: 824,170
• 30 Day Avg. Volume: 823,340
• PEG Ratio: 3.93
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.58
• 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: ¥4,760.00
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: ¥4,766.00 ▲(7.39%Upside)

SCSK Corporation's strong financial performance is the primary driver of its stock score, reflecting robust revenue growth and profitability. The technical indicators support a bullish outlook, further bolstering the stock's attractiveness. However, the relatively high P/E ratio suggests caution due to potential overvaluation concerns.

SCSK Corporation Business Overview & Revenue Model

Company Description

SCSK Corporation provides information technology (IT) services in Japan and internationally. The company's Manufacturing & Telecommunication Systems Business segment offers IT solutions comprising core systems, manufacturing and information management systems, supply chain management (SCM), and customer relationship management (CRM) systems for manufacturing, communication, and energy industries. Its Distribution & Media Systems Business segment offers IT solutions, such as core and information systems, SCM, CRM, and e-commerce systems for distribution, service, and media industries. The company's Global System Solutions & Innovation Business segment provides IT solutions for trading companies. Its Financial IT Business segment develops, maintains, and operates systems for banks and trust banks, as well as insurance, securities, lease, and credit companies. The company's IT Business Solutions segment provides contact center services; and application management outsourcing services that covers development, installation, maintenance, and operation of enterprise resource planning and CRM products, such as ProActive, SAP, Oracle, and Salesforce, as well as business process outsourcing services. Its IT Platform Solutions segment provides services and products in the fields of IT infrastructure and manufacturing, including computer-aided design and engineering. The company's IT Management Service segment develops solutions-oriented netXDC data centers to provide outsourcing services; and provides cloud infrastructure, on-site SE support management services. Its Mobility System segment offers software development and assessments, middleware, and process improvement measures for automobile electronic control units. The company was formerly known as Sumisho Computer Systems Corporation and changed its name to SCSK Corporation in October 2011. The company was incorporated in 1969 and is headquartered in Tokyo, Japan. SCSK Corporation is a subsidiary of Sumitomo Corporation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 4438.00
• 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 4438 is above the 20-day moving average (MA) of 4277.40, above the 50-day MA of 4301.14, and above the 200-day MA of 3569.12, indicating a bullish trend. The MACD of 16.14 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 88.12 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	74 Outperform	¥1.39T	30.80		1.66%	24.10%	11.27%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	5.39%	9.34%	-42.23%
DTSOF	―	$1.20B	17.79	17.46%	3.53%	―	―
NSSXF	―	$4.77B	26.97	10.73%	0.01%	―	―
2317	82 Outperform	¥143.51B	17.09		2.99%	8.68%	24.54%
8056	76 Outperform	¥543.23B	21.77		1.68%	9.15%	8.68%
3626	74 Outperform	¥1.06T	21.71		1.54%	4.13%	5.66%