SCAT Inc. (3974) AI Stock Analysis

• Market Cap: ¥2.78B
• Dividend Yield: 2.23%
• Average Volume (3M): 28.37K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.22
• Revenue Growth: -2.87%
• EPS Growth: 4.31%
• Country: JP
• Employees: 196
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 11.22
• Shares Outstanding: 5,764,000
• 10 Day Avg. Volume: 22,860
• 30 Day Avg. Volume: 28,370
• PEG Ratio: -0.34
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 12.14
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥627.00 ▲(9.81% Upside)

SCAT Inc.'s overall stock score reflects a strong balance sheet and reasonable valuation, offset by challenges in revenue growth and cash flow management. The technical analysis supports a neutral outlook, with the stock trading above its short-term moving average but lacking strong momentum indicators.

SCAT Inc. Business Overview & Revenue Model

Company Description

SCAT Inc. (3974) is a dynamic company operating within the industrial sector, specializing in the manufacturing and distribution of high-performance automotive components. The company is renowned for its innovative engineering solutions and a comprehensive range of products that cater to both the consumer and industrial markets.

How the Company Makes Money

SCAT Inc. generates revenue primarily through the sale of its automotive components, which include crankshafts, connecting rods, and other high-performance engine parts. The company serves a broad client base ranging from individual automotive enthusiasts to large-scale manufacturers. SCAT Inc. benefits from strategic partnerships with automotive manufacturers and aftermarket distributors, enhancing its market reach and sales volume. Additionally, SCAT Inc. may engage in licensing agreements or collaborations that further bolster its revenue streams.

SCAT Inc. Financial Statement Overview

Summary

SCAT Inc. presents a mixed financial picture. The balance sheet is strong with low leverage and high equity, but the income statement shows declining revenues and moderate profitability margins. Cash flow management is challenging, with significant declines in free cash flow. Improvement in revenue growth and cash flow conversion is needed.

Income Statement

SCAT Inc. has demonstrated a stable income statement with a gross profit margin of 38.4% and a net profit margin of 3.9% for the latest year. However, the company experienced a revenue decline of 5.4% compared to the previous year, which may indicate potential challenges in maintaining growth. The EBIT margin stands at 5.7%, and the EBITDA margin is 13.1%, reflecting reasonable operational efficiency but room for improvement.

Balance Sheet

The balance sheet of SCAT Inc. is strong, with a low debt-to-equity ratio of 0.09, indicating minimal leverage and financial risk. The equity ratio is 66.2%, showcasing a solid capital structure. Return on equity is 5.1%, which suggests moderate profitability relative to shareholder investment. The company maintains substantial cash reserves, enhancing its financial stability.

Cash Flow

SCAT Inc.'s cash flow statement shows a decline in free cash flow by 63.6% year-over-year, indicating potential cash management issues. The operating cash flow to net income ratio is 2.3, reflecting strong cash generation relative to net income. However, the free cash flow to net income ratio of 0.89 suggests that not all net income is translating into free cash flow, which could be a concern for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.59B	2.74B	2.59B	2.48B	2.46B
Gross Profit	1.01B	997.69M	1.09B	1.08B	1.02B	1.01B
EBITDA	336.48M	339.66M	412.09M	305.18M	293.42M	240.97M
Net Income	111.62M	100.21M	157.94M	100.66M	120.93M	71.68M
Balance Sheet
Total Assets	2.92B	2.94B	2.98B	3.47B	3.71B	3.66B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.26B	1.21B	1.77B	1.73B	1.57B
Total Debt	132.26M	178.52M	240.20M	503.88M	589.56M	673.24M
Total Liabilities	916.71M	992.17M	1.13B	1.29B	1.40B	1.46B
Stockholders Equity	2.00B	1.95B	1.84B	2.18B	2.32B	2.19B
Cash Flow
Free Cash Flow	0.00	89.28M	245.53M	137.27M	235.94M	-65.91M
Operating Cash Flow	0.00	230.29M	339.74M	253.20M	346.66M	70.00M
Investing Cash Flow	0.00	-113.00M	-135.71M	112.32M	-113.39M	-134.28M
Financing Cash Flow	0.00	-67.92M	-760.62M	-326.80M	-81.05M	146.21M

SCAT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 571.00
• 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:3974, the sentiment is Positive. The current price of 571 is below the 20-day moving average (MA) of 571.86, above the 50-day MA of 534.62, and above the 200-day MA of 413.89, indicating a neutral trend. The MACD of 6.85 indicates Positive momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3974.

SCAT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	75 Outperform	¥2.78B	15.63	―	2.23%	-2.87%	4.31%
4016	73 Outperform	¥2.54B	15.93	―	1.59%	2.07%	11.34%
3670	65 Neutral	¥2.45B	10.51	―	2.71%	-17.18%	-11.43%
9250	62 Neutral	¥1.56B	25.69	―	―	5.17%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3908	60 Neutral	¥1.73B	9.53	―	―	-10.89%	―
6555	49 Neutral	¥1.78B	11.74	―	―	8.27%	-295.89%

SCAT Inc. Corporate Events

SCAT Inc. Revises Earnings Forecast Amid Challenges in Nursing Care Services

SCAT Inc. has revised its consolidated earnings forecast for the fiscal year ending October 2025 due to significant impacts on its Nursing care services business. The company has experienced a decline in facility utilization rates, leading to a decrease in segment sales and profits. Despite these challenges, SCAT Inc. maintains its year-end dividend forecast unchanged.

The most recent analyst rating on (JP:3974) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Reports Improved Profits and Announces Dividend Increase

SCAT Inc. reported a slight decline in net sales for the nine months ending July 31, 2025, but saw significant improvements in operating and ordinary profits, indicating a positive trend in operational efficiency. The company also announced a plan to distribute treasury shares, effectively increasing dividends by 10%, which reflects a strategic move to enhance shareholder returns and potentially strengthen market confidence.

The most recent analyst rating on (JP:3974) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Announces Dividend Increase Through Gratis Share Allocation

SCAT Inc. announced a revision to its dividend forecast, deciding to allocate treasury shares free of charge at a ratio of 0.1 shares for each common share, effectively increasing dividends by 10%. This decision reflects the company’s commitment to returning profits to shareholders and is based on steady business performance as the fiscal year ending October 2025 progresses.

The most recent analyst rating on (JP:3974) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.

SCAT Inc. Announces Gratis Share Allotment to Boost Shareholder Value

SCAT Inc. announced a gratis allotment of shares, aiming to increase liquidity and return profits to shareholders by distributing treasury stock. This move is part of their strategy to comply with listing maintenance standards and will not affect the company’s capital or forecasted dividends, effectively increasing dividends by 10%.

The most recent analyst rating on (JP:3974) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on SCAT Inc. stock, see the JP:3974 Stock Forecast page.