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SCAT Inc. (3974) AI Stock Analysis

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JP:3974

SCAT Inc.

(TSE/TYO:3974)

Select Model
Rating:70Outperform
Price Target:JPY 614.00â–²(13.28% Upside)
Action:reiterated
Date:11/07/26

The overall score of 70 is heavily supported by outstanding financial fundamentals, including exceptional top-line revenue growth, a fortress-like balance sheet, and a very attractive valuation. However, these strong operational merits are partially offset by notably weak technical momentum, as the stock is currently locked in a sustained downtrend despite flashing oversold signals.

Positive Factors
Conservative Balance SheetVery low and improving leverage gives the company resilience during weaker earnings periods and reduces exposure to interest and refinancing pressure. A sizable equity base also preserves financial flexibility to sustain operations and fund priorities without relying heavily on additional debt.
Negative Factors
Inconsistent Revenue GrowthUneven revenue performance makes forward earnings less predictable and suggests demand or project timing is not consistently supportive. The reported negative growth rate and alternating decline and rebound create execution risk for maintaining operating scale over the next several quarters.

SCAT Inc. (3974) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:3974+6.06%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 1.71B
Dividend Yield
2.68%
Average Volume (3M)
20.00K
Price to Earnings (P/E)
14.5
Beta (1Y)
0.19
Revenue Growth
-0.05%
EPS Growth
3.60%
Country
Japan
Employees
190
Sector
General
Sector Strength
55
Industry
Information Technology Services

SCAT Inc. Business Overview & Revenue Model

Company Description

SCAT Inc. delivers a variety of information technology solutions, primarily targeting the beauty and hair salon industry. Their product lineup features Sacla, a specialized point-of-sale and customer relationship management system for salons; Mail Me...

SCAT Inc. Financial Statement Overview

Summary

Strong financial profile highlighted by an exceptional 84.9% revenue growth and robust free cash flow generation. The balance sheet is highly stable with an extremely low debt-to-equity ratio of 0.06, though a modest 6.2% return on equity leaves room for capital efficiency improvements.

Income Statement

82Very Positive

Balance Sheet

74Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue2.58B2.61B2.59B2.74B2.59B2.48B
Gross Profit1.01B1.04B997.69M1.09B1.08B1.02B
EBITDA287.04M337.55M339.66M412.09M305.18M293.42M
Net Income116.34M125.51M100.21M157.94M100.66M120.93M
Balance Sheet
Total Assets2.94B3.04B2.95B2.99B3.48B3.72B
Cash, Cash Equivalents and Short-Term Investments1.20B1.24B1.26B1.21B1.77B1.73B
Total Debt70.58M118.28M181.12M240.20M509.79M592.27M
Total Liabilities858.30M997.22M1.01B1.15B1.30B1.41B
Stockholders Equity2.09B2.04B1.95B1.84B2.18B2.32B
Cash Flow
Free Cash Flow171.41M171.41M89.28M245.53M137.27M235.94M
Operating Cash Flow282.65M282.65M230.29M339.74M253.20M346.66M
Investing Cash Flow-194.90M-194.90M-113.00M-135.71M112.32M-113.39M
Financing Cash Flow-106.01M-106.01M-67.92M-760.62M-326.80M-81.05M

SCAT Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price542.00

Price Trends

50DMA649.53Negative
100DMA630.28Negative
200DMA597.62Negative

Market Momentum

MACD-29.62Positive
RSI28.90Positive
STOCH2.07Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3974, the sentiment is Negative. The current price of 542.00 is below the 20-day moving average (MA) of 634.67, below the 50-day MA of 649.53, and below the 200-day MA of 597.62, indicating a bearish trend. The MACD of -29.62 indicates Positive momentum. The RSI at 28.90 is Positive, neither overbought nor oversold. The STOCH value of 2.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3974.

SCAT Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:3974 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4421JP:442175OutperformJPY 2.85B12.43―3.01%5.77%-7.65%
JP:7046JP:704672OutperformJPY 2.57B13.47―0.80%12.94%67.62%
JP:4335JP:433571OutperformJPY 2.64B11.15―3.45%13.78%15.53%
JP:3974JP:397470OutperformJPY 2.68B14.46―2.68%-0.05%3.60%
JP:4068JP:406863NeutralJPY 3.30B28.72――5.55%15.63%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6193JP:619354NeutralJPY 3.03B3322.58―1.46%3.96%-126.10%

* General Sector Average

Performance Comparison

-20%0%20%JP:3974JP:4068JP:4335JP:4421JP:6193JP:7046Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3974 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3974SCAT Inc.542.0033.926.68%
JP:4068Basis Corporation1749.00-37.00-2.07%
JP:4335IPS Co., Ltd.1100.00-27.21-2.41%
JP:4421D.I.System Co.,Ltd.930.0041.034.62%
JP:6193Virtualex Holdings, Inc.1030.002.230.22%
JP:7046TDSE Inc.1249.00-370.78-22.89%

SCAT Inc. Corporate Events

SCAT Inc. Raises Year-End Dividend and Expands Shareholder Benefits Despite Earnings Downgrade

Sep 11, 2026

SCAT Inc. has revised its dividend forecast for the fiscal year ending October 31, 2026, opting to increase the year-end dividend despite a recently announced downward revision to its full-year consolidated earnings outlook. The company will lift the...

SCAT Inc. Cuts Full-Year Earnings Forecast Amid Beauty ICT Slowdown and One-Off Costs

Sep 11, 2026

SCAT Inc. has sharply revised down its full-year earnings forecast for the fiscal year ending October 31, 2026, citing a slowdown in its core Beauty ICT Business and weaker hardware system sales, which fell about ¥100 million short of targets amid a...

SCAT Inc. Updates FY2026 Outlook and Boosts Shareholder Returns

Sep 11, 2026

SCAT Inc. released supplementary materials for its FY2026 third quarter results, outlining financial highlights and a revision of earnings forecasts that signal an adjustment in performance expectations. The update suggests management is actively res...

SCAT Inc. Cuts Earnings Outlook but Raises Dividend Amid Profit Decline

Sep 11, 2026

SCAT Inc. reported nine‑month consolidated results to July 31, 2026, showing a slight decline in net sales to ¥1,926 million and lower profits, with operating profit down 13.4% and profit attributable to owners of parent falling 9.8% year on year. De...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026