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 -10.99% and Operating profit at -22.43% over the last 5 years
3
Negative results in Jun 25
- CASH AND EQV(HY) Lowest at JPY 10,008.74 MM
- INVENTORY TURNOVER RATIO(HY) Lowest at 11.13%
- DIVIDEND PER SHARE(HY) Lowest at JPY 7.9
4
With ROE of -9.04%, it has a risky valuation with a 1.65 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 -8.18%, its profits have risen by 75.4%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.18% 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)
-9.11%
-1.67
27.20%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-10.99%
EBIT Growth (5y)
-22.43%
EBIT to Interest (avg)
2.52
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.27
Sales to Capital Employed (avg)
0.96
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
NA (Loss Making)
Industry P/E
Price to Book Value
1.65
EV to EBIT
14.63
EV to EBITDA
10.62
EV to Capital Employed
1.88
EV to Sales
0.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.87%
ROE (Latest)
-9.04%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
ROCE(HY)
Highest at 19.8%
PRE-TAX PROFIT(Q)
At JPY 121.23 MM has Grown at 179.96%
NET PROFIT(Q)
Highest at JPY 485.04 MM
RAW MATERIAL COST(Y)
Fallen by -88.31% (YoY
EPS(Q)
Highest at JPY 25.77
-26What is not working for the Company
CASH AND EQV(HY)
Lowest at JPY 10,008.74 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 11.13%
DIVIDEND PER SHARE(HY)
Lowest at JPY 7.9
NET SALES(Q)
Lowest at JPY 918.79 MM
INTEREST(Q)
Highest at JPY 17.23 MM
Here's what is working for Scala, Inc. (Japan)
Net Profit
At JPY 485.04 MM has Grown at 580.7%
over average net sales of the previous four periods of JPY -100.9 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Pre-Tax Profit
At JPY 121.23 MM has Grown at 179.96%
over average net sales of the previous four periods of JPY -151.62 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 485.04 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
EPS
Highest at JPY 25.77
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -88.31% (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)
Net Sales
At JPY 918.79 MM has Fallen at -61.71%
over average net sales of the previous four periods of JPY 2,399.69 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Interest
At JPY 17.23 MM has Grown at 17.34%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
Lowest at JPY 918.79 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 17.23 MM
in the last five periods and Increased by 17.34% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 10,008.74 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 11.13%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend per share
Lowest at JPY 7.9
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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