Why is SCAT, Inc. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.98
2
Poor long term growth as Net Sales has grown by an annual rate of -2.29% and Operating profit at -14.40% over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At JPY 58.84 MM has Grown at -29.82%
- ROCE(HY) Lowest at 3.78%
4
With ROE of 4.47%, it has a very attractive valuation with a 1.11 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 49.74%, its profits have fallen by -41.7%
5
Market Beating Performance
- The stock has generated a return of 49.74% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%
How much should you hold?
- Overall Portfolio exposure to SCAT, Inc. 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 SCAT, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
SCAT, Inc.
49.74%
0.40
24.69%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.29%
EBIT Growth (5y)
-14.40%
EBIT to Interest (avg)
83.79
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
1.24
Tax Ratio
35.65%
Dividend Payout Ratio
36.25%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.19%
ROE (avg)
5.91%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.11
EV to EBIT
8.36
EV to EBITDA
3.57
EV to Capital Employed
1.24
EV to Sales
0.44
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
14.78%
ROE (Latest)
4.47%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
7What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at JPY 10.52
RAW MATERIAL COST(Y)
Fallen by 1.3% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -59.68 %
INVENTORY TURNOVER RATIO(HY)
Highest at 48.36%
PRE-TAX PROFIT(Q)
At JPY 56.04 MM has Grown at 60.75%
NET PROFIT(Q)
At JPY 40.85 MM has Grown at 65.24%
-6What is not working for the Company
NET PROFIT(HY)
At JPY 58.84 MM has Grown at -29.82%
ROCE(HY)
Lowest at 3.78%
Here's what is working for SCAT, Inc.
Dividend per share
Highest at JPY 10.52 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Pre-Tax Profit
At JPY 56.04 MM has Grown at 60.75%
over average net sales of the previous four periods of JPY 34.86 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 40.85 MM has Grown at 65.24%
over average net sales of the previous four periods of JPY 24.72 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at -59.68 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 48.36%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.3% (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






