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Scala, Inc. (4845) AI Stock Analysis

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JP:4845

Scala, Inc.

(TSE/TYO:4845)

Select Model
Rating:62Neutral
Price Target:JPY 337.00â–²(5.97% Upside)
Action:reiterated
Date:08/19/26

Mixed financial results with volatile earnings and cash flows are the primary factors. Positive technical momentum and attractive valuation with low P/E and high yield provide support.

Positive Factors
Revenue RecoveryThe return to 17.7% revenue growth indicates that Scala regained business momentum after several declining years. If this recovery persists, expanding demand for its ICT, software, and IT-enabled services could improve operating scale and provide a stronger base for future earnings.
Negative Factors
Weaker Cash GenerationThe sharp decline in operating and free cash flow weakens earnings quality and reduces internally generated funds for investment, dividends, or debt reduction. Although free cash flow remained positive, the deterioration suggests that cash conversion and underlying funding capacity are less dependable.

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

-20%-10%0%10%20%30%JP:4845-13.58%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 5.44B
Dividend Yield
5.35%
Average Volume (3M)
69.24K
Price to Earnings (P/E)
15.2
Beta (1Y)
0.47
Revenue Growth
16.77%
EPS Growth
-42.53%
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

Volatile profitability and cash flows despite debt reduction and recent revenue growth result in a moderate financial performance score.

Income Statement

42Neutral

Balance Sheet

62Positive

Cash Flow

35Negative
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 Price318.00

Price Trends

50DMA335.26Negative
100DMA336.25Negative
200DMA340.42Negative

Market Momentum

MACD-4.70Negative
RSI43.42Neutral
STOCH68.18Neutral

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 318.00 is below the 20-day moving average (MA) of 322.35, below the 50-day MA of 335.26, and below the 200-day MA of 340.42, indicating a bearish trend. The MACD of -4.70 indicates Negative momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, 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:416871OutperformJPY 9.69B9.03―1.94%12.19%30.65%
JP:5256JP:525662NeutralJPY 3.43B63.06――23.30%-70.98%
JP:4845JP:484562NeutralJPY 5.65B15.21―5.35%16.77%-42.53%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:4397JP:439760NeutralJPY 5.75B15.40――23.50%2.72%
JP:5033JP:503359NeutralJPY 7.75B46.70――7.04%-67.36%
JP:4015JP:401558NeutralJPY 5.59B13.17――8.88%191.06%

* 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 '26Nov '26
JP:4845 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4845Scala, Inc.318.00-52.85-14.25%
JP:4015Paycloud Holdings Inc.349.00-154.00-30.62%
JP:4168Yappli, Inc.746.00-231.37-23.67%
JP:4397TeamSpirit, Inc.348.00-162.00-31.76%
JP:5033Nulab Inc.1195.00430.0056.21%
JP:5256Fusic Co.,Ltd.2660.00182.007.34%
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