ScoreWhy is Scala, Inc. (Japan) ?
1
Poor Management Efficiency with a low ROE of 0.82%
- The company has been able to generate a Return on Equity (avg) of 0.82% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -13.08% and Operating profit at 7.88% over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at JPY -130.5 MM
- NET PROFIT(HY) At JPY 294.85 MM has Grown at -41.46%
- INTEREST(Q) At JPY 12.53 MM has Grown at 10.9%
4
With ROE of 16.41%, it has a very attractive valuation with a 1.35 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.37%, its profits have risen by 161% ; the PEG ratio of the company is 0.1
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.37% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Scala, Inc. (Japan) should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Scala, Inc. (Japan) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Scala, Inc. (Japan)
-100.0%
-3.50
15.32%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-13.08%
EBIT Growth (5y)
7.88%
EBIT to Interest (avg)
2.52
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
0.87
Tax Ratio
37.93%
Dividend Payout Ratio
29.16%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.84%
ROE (avg)
0.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.35
EV to EBIT
17.26
EV to EBITDA
11.08
EV to Capital Employed
1.43
EV to Sales
0.73
PEG Ratio
0.05
Dividend Yield
NA
ROCE (Latest)
8.27%
ROE (Latest)
16.41%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET SALES(Q)
At JPY 2,327.38 MM has Grown at 26.08%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
PRE-TAX PROFIT(Q)
At JPY 281.12 MM has Grown at 117.64%
RAW MATERIAL COST(Y)
Fallen by -16.58% (YoY
OPERATING PROFIT(Q)
Highest at JPY 364.92 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.68 %
-19What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY -130.5 MM
NET PROFIT(HY)
At JPY 294.85 MM has Grown at -41.46%
INTEREST(Q)
At JPY 12.53 MM has Grown at 10.9%
RAW MATERIAL COST(Y)
Grown by 102.37% (YoY
CASH AND EQV(HY)
Lowest at JPY 8,105.84 MM
DEBT-EQUITY RATIO
(HY)
Highest at 4.72 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.36 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
Here's what is working for Scala, Inc. (Japan)
Net Sales
At JPY 2,327.38 MM has Grown at 26.08%
over average net sales of the previous four periods of JPY 1,845.96 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 281.12 MM has Grown at 117.64%
over average net sales of the previous four periods of JPY 129.17 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Operating Profit
Highest at JPY 364.92 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 15.68 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -16.58% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Scala, Inc. (Japan)
Interest
At JPY 12.53 MM has Grown at 10.9%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 294.85 MM has Grown at -41.46%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Operating Cash Flow
Lowest at JPY -130.5 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Cash and Eqv
Lowest at JPY 8,105.84 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 4.72 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 8.36 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 102.37% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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