SCSK Corporation (9719) AI Stock Analysis

• Market Cap: ¥1.35T
• Dividend Yield: 1.72%
• Average Volume (3M): 777.77K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.75
• Revenue Growth: 24.10%
• EPS Growth: 11.27%
• Country: JP
• Employees: 16,296
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 48.75
• Shares Outstanding: 312,875,180
• 10 Day Avg. Volume: 734,920
• 30 Day Avg. Volume: 777,773
• PEG Ratio: 16.70
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.84
• 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: 10.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: ¥4,766.00 ▲(10.58%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 IT services and solutions offerings. The company's key revenue streams include system integration services, which involve designing and implementing customized IT systems for businesses. Additionally, SCSK earns income from its cloud computing and IT infrastructure management services, providing clients with scalable and efficient IT environments. Software development is another significant revenue source, with the company developing bespoke software solutions to meet specific client needs. SCSK also benefits from strategic partnerships with global technology firms, enhancing its service offerings and market reach. These partnerships, along with the company's focus on innovation and customer-centric solutions, contribute significantly to its earnings.

SCSK Corporation Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	513.78B	480.31B	445.91B	414.15B	396.85B	387.00B
Gross Profit	137.83B	121.91B	117.68B	108.19B	102.97B	97.95B
EBITDA	81.37B	80.45B	73.57B	67.47B	65.47B	57.80B
Net Income	41.92B	40.46B	37.30B	33.47B	33.44B	28.77B
Balance Sheet
Total Assets	796.66B	471.40B	435.47B	407.61B	380.40B	342.49B
Cash, Cash Equivalents and Short-Term Investments	88.82B	149.37B	121.62B	122.33B	108.99B	32.37B
Total Debt	317.09B	73.97B	77.92B	78.97B	85.64B	57.82B
Total Liabilities	466.58B	168.49B	163.07B	160.25B	153.06B	134.41B
Stockholders Equity	312.55B	302.25B	271.91B	246.92B	226.87B	207.71B
Cash Flow
Free Cash Flow	47.23B	58.31B	29.28B	45.00B	32.95B	36.05B
Operating Cash Flow	56.85B	67.90B	43.59B	59.08B	50.22B	48.95B
Investing Cash Flow	-268.11B	-19.90B	-14.95B	-14.93B	-20.59B	-27.34B
Financing Cash Flow	169.09B	-25.88B	-29.07B	-32.34B	-32.49B	-16.31B

SCSK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4310.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4310 is below the 20-day moving average (MA) of 4318.65, above the 50-day MA of 4173.08, and above the 200-day MA of 3466.42, indicating a neutral trend. The MACD of 25.18 indicates Positive momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 35.66 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
9719	74 Outperform	¥1.35T	29.91		1.72%	24.10%	11.27%
Sector *	49 Neutral	C$2.90B	2.14	-80.91%	2.95%	6.62%	-18.96%
DTSOF		$1.30B	17.79	17.46%	0.02%	―	―
NSSXF		$5.18B	29.17	10.73%	0.01%	―	―
2317	82 Outperform	¥147.49B	17.57		2.96%	8.68%	24.54%
8056	76 Outperform	¥547.26B	21.93		1.67%	9.15%	8.68%
3626	74 Outperform	¥1.12T	22.37		1.51%	4.13%	5.66%