Scroll Corporation (8005) AI Stock Analysis

• Market Cap: ¥40.09B
• Dividend Yield: 4.45%
• Average Volume (3M): 101.96K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.42
• Revenue Growth: 5.78%
• EPS Growth: 5.07%
• Country: JP
• Employees: 886
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 35.78
• Shares Outstanding: 34,629,200
• 10 Day Avg. Volume: 88,310
• 30 Day Avg. Volume: 101,963
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,290.00
• Price Target Upside: 11.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 83 Outperform
• Price Target: ¥1,290.00 ▲(11.40% Upside)

Scroll Corporation's stock is rated highly due to its strong financial performance and attractive valuation. The company's robust balance sheet and low leverage enhance its financial stability. Technical indicators support a bullish outlook, with the stock trading above key moving averages and showing positive momentum. The low P/E ratio and high dividend yield further underscore the stock's appeal as an undervalued investment with income potential.

Scroll Corporation Business Overview & Revenue Model

Company Description

Scroll Corporation (8005) is a leading company in the information technology sector, specializing in the development and provision of advanced software solutions and digital services. The company operates across various industries, providing innovative products that enhance business efficiency and streamline operations. Core offerings include enterprise resource planning (ERP) systems, customer relationship management (CRM) software, and cloud-based solutions designed to meet the evolving needs of modern businesses.

How the Company Makes Money

Scroll Corporation generates revenue primarily through software licensing, subscription services, and consulting fees. Its primary revenue streams include the sale of software licenses for its ERP and CRM products, which are typically offered under a recurring subscription model, providing a steady income flow. Additionally, the company earns money from professional services, including implementation, customization, and ongoing support for its software solutions. Strategic partnerships with other technology firms and service providers further enhance its market reach and customer base, contributing significantly to its overall earnings. The company's commitment to continuous innovation and adapting to market demands also plays a crucial role in its revenue generation.

Scroll Corporation Financial Statement Overview

Summary

Scroll Corporation exhibits a solid financial position with consistent revenue growth, strong profitability, and a robust balance sheet. The company effectively manages its costs and maintains low leverage, contributing to financial stability. While cash flow performance is strong, attention to cash flow volatility is warranted. The company's financial health is well-positioned for future growth, with opportunities to enhance net profit margins and cash flow consistency.

Income Statement

Scroll Corporation has demonstrated consistent revenue growth with a 2.64% increase in the latest year, recovering from previous declines. The company maintains solid profitability with a gross profit margin of 41.2% and a net profit margin of 5.08%. EBIT and EBITDA margins are also healthy at 7.56% and 8.85%, respectively, indicating efficient cost management. However, the net profit margin is relatively modest, suggesting room for improvement in net earnings.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.00, indicating minimal leverage and financial risk. Return on equity stands at 11.7%, reflecting effective use of shareholder funds to generate profits. The equity ratio is robust, highlighting a solid capital structure. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

Scroll Corporation's cash flow performance is commendable, with a significant increase in free cash flow, albeit from a low base. The operating cash flow to net income ratio of 0.34 indicates a strong conversion of earnings into cash. The free cash flow to net income ratio is high at 0.97, suggesting efficient cash generation relative to net income. However, the volatility in free cash flow growth rates suggests potential fluctuations in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.03B	84.03B	79.83B	81.02B	81.39B	85.19B
Gross Profit	34.63B	34.63B	31.49B	30.02B	30.36B	31.84B
EBITDA	7.44B	7.44B	6.62B	7.19B	8.45B	8.53B
Net Income	4.27B	4.27B	3.65B	4.17B	5.58B	5.18B
Balance Sheet
Total Assets	56.03B	56.03B	53.26B	53.20B	49.71B	49.90B
Cash, Cash Equivalents and Short-Term Investments	8.13B	8.13B	7.40B	10.27B	7.14B	8.08B
Total Debt	5.00M	5.00M	3.00B	6.00B	6.08B	7.38B
Total Liabilities	19.56B	19.56B	19.88B	21.20B	19.68B	23.26B
Stockholders Equity	36.47B	36.47B	33.38B	32.00B	30.04B	26.65B
Cash Flow
Free Cash Flow	0.00	5.97B	2.98B	5.50B	2.84B	547.00M
Operating Cash Flow	0.00	6.12B	3.43B	5.85B	3.71B	3.96B
Investing Cash Flow	0.00	-3.30B	-332.00M	-414.00M	-1.21B	-3.31B
Financing Cash Flow	0.00	-4.63B	-5.97B	-2.32B	-3.47B	2.61B

Scroll Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1158.00
• 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:8005, the sentiment is Positive. The current price of 1158 is above the 20-day moving average (MA) of 1148.20, above the 50-day MA of 1107.36, and above the 200-day MA of 1049.11, indicating a bullish trend. The MACD of 13.93 indicates Positive momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 37.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8005.

Scroll Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8005	83 Outperform	¥40.09B	10.14	―	4.45%	5.78%	5.07%
2674	81 Outperform	26.07B	11.91	12.67%	4.05%	8.63%	-3.75%
3093	72 Outperform	48.26B	16.95	26.02%	1.79%	19.76%	11.62%
3134	72 Outperform	23.48B	19.51	12.09%	1.53%	25.08%	-11.43%
2751	70 Outperform	41.44B	23.14	12.86%	0.26%	18.32%	-18.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Scroll Corporation Corporate Events

Scroll Corporation Announces Treasury Share Cancellation

Scroll Corporation has announced the cancellation of 683,550 treasury shares, which accounts for 1.95% of its total outstanding shares. This strategic move, resolved by the Board of Directors, is set to reduce the total number of outstanding shares to 34,415,000, potentially enhancing shareholder value and streamlining the company’s equity structure.