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Scala, Inc. (4845) AI Stock Analysis

JP:4845

Scala, Inc.

(TSE/TYO:4845)

Select Model
Rating:56Neutral
Price Target:JPY 330.00â–²(3.13% Upside)
Action:reiterated
Date:08/19/26

The score is held back mainly by weak cash flow trends and inconsistent profitability despite a revenue rebound and improved leverage. Valuation is a clear positive (low P/E and high dividend yield), while technicals are trend-positive but appear overbought, adding near-term risk.

Positive Factors
Revenue recoveryThe return to double-digit revenue growth indicates renewed demand for Scala’s ICT and IT-enabled services after a period of contraction. If sustained, stronger sales can improve operating scale, support reinvestment in digital capabilities, and reinforce the company’s ability to serve business clients over the next several quarters.
Negative Factors
Weakening cash generationThe sharp decline in operating and free cash flow raises concerns about earnings conversion and the durability of internally generated funding. With free cash flow covering only about 44% of net income, Scala may have less capacity to finance investment, dividends, or debt reduction without added balance-sheet pressure.

Scala, Inc. (4845) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:4845-13.93%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 5.48B
Dividend Yield
5.31%
Average Volume (3M)
63.78K
Price to Earnings (P/E)
15.3
Beta (1Y)
0.47
Revenue Growth
4.33%
EPS Growth
-62.93%
Country
Japan
Employees
429
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

Scala, Inc. Business Overview & Revenue Model

Company Description

Scala, Inc., founded in Tokyo in 1991, delivers Software-as-a-Service (SaaS) and Application Service Provider (ASP) solutions primarily focused on enhancing communication between corporations and individuals throughout Japan. The company organizes it...

Scala, Inc. Financial Statement Overview

Summary

Income statement recovery is visible (2026 revenue +17.7% YoY and profitability improved vs. the 2024 loss year), and leverage has improved (debt-to-equity ~0.96x in 2026 vs. ~1.43x in 2024). However, profitability has been volatile (net margin ~4.2% in 2026 vs. ~12.0% in 2025) and cash flow weakened sharply in 2026 (FCF ¥83M vs. ¥512M in 2025), keeping confidence in earnings quality and durability low.

Income Statement

56Neutral

Balance Sheet

58Neutral

Cash Flow

39Negative
Financial statement breakdown
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue8.53B8.53B8.18B10.71B11.84B9.57B
Gross Profit4.08B4.08B3.95B4.56B4.47B3.63B
EBITDA851.61M846.44M1.05B-1.42B1.22B514.27M
Net Income362.69M361.87M982.00M-2.89B-218.58M-523.04M
Balance Sheet
Total Assets10.38B10.38B10.32B12.80B18.32B20.82B
Cash, Cash Equivalents and Short-Term Investments4.73B4.73B4.59B6.82B7.74B9.63B
Total Debt4.56B4.56B4.21B6.19B7.89B9.25B
Total Liabilities5.58B5.58B5.48B8.23B10.23B11.81B
Stockholders Equity4.76B4.76B4.80B4.34B7.83B8.69B
Cash Flow
Free Cash Flow83.13M83.13M512.00M152.34M392.66M1.85B
Operating Cash Flow190.67M190.67M589.00M251.77M601.36M2.05B
Investing Cash Flow65.31M65.31M778.00M161.98M-214.87M-1.89B
Financing Cash Flow-109.79M-109.79M-3.60B-1.35B-2.25B-339.02M

Scala, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price320.00

Price Trends

50DMA342.34Negative
100DMA336.96Negative
200DMA343.03Negative

Market Momentum

MACD-5.65Positive
RSI37.60Neutral
STOCH9.52Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4845, the sentiment is Negative. The current price of 320.00 is below the 20-day moving average (MA) of 328.35, below the 50-day MA of 342.34, and below the 200-day MA of 343.03, indicating a bearish trend. The MACD of -5.65 indicates Positive momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4845.

Scala, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4845 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4168JP:416878OutperformJPY 9.55B8.46―1.97%12.61%49.51%
JP:5256JP:525667NeutralJPY 3.89B71.48――23.30%-70.98%
JP:5033JP:503366NeutralJPY 7.96B47.99――7.04%-67.36%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:4397JP:439761NeutralJPY 6.01B16.11――23.50%2.72%
JP:4015JP:401557NeutralJPY 8.38B19.74――8.88%191.06%
JP:4845JP:484556NeutralJPY 5.69B15.30―5.31%4.33%-62.93%

* Technology Sector Average

Performance Comparison

-25%0%25%50%JP:4845JP:4015JP:4168JP:4397JP:5033JP:5256Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4845 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4845Scala, Inc.320.00-54.66-14.59%
JP:4015Paycloud Holdings Inc.523.0025.005.02%
JP:4168Yappli, Inc.735.00-218.82-22.94%
JP:4397TeamSpirit, Inc.364.00-143.00-28.21%
JP:5033Nulab Inc.1228.00465.0060.94%
JP:5256Fusic Co.,Ltd.3015.00442.0017.18%
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: Aug 19, 2026