Risk factor
Very poor trading liquidity
Profitability factor
Excellent dividends
About
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 its operations into five distinct divisions: IT/AI/IoT/DX Business, Customer Support Business, HR & Education Business, EC Business, and Incubation & Investment Business. The IT/AI/IoT/DX Business segment is dedicated to developing and implementing digital transformation (DX) services, including initiatives for local governments and the financial sector, as well as creating digital platforms that leverage the "xID" app, which links to the My Number Card. Within the Customer Support Business, the company offers consultancy services, particularly for call centers and related operations. The HR & Education Business encompasses diverse services such as recruitment support for new graduates, specifically targeting athletic and female students, alongside planning and executing relevant events like information sessions and career seminars. This segment also provides childcare and educational services, operates sports schools for children, manages sports events, offers online sports education, and assists with the recruitment of foreign professionals. The EC Business unit manages an e-commerce platform for buying and selling pre-owned trading card games (TCG), which also features detailed game walkthroughs. Lastly, the Incubation & Investment Business concentrates on identifying, executing, and engaging in investments, in addition to business development and immigration support services. The company previously operated as Fusion Partners Co. before officially rebranding to Scala, Inc. in December 2016.
Company Valuation
Considering past and projected metrics, the stock is 'cheaper' than its peers. In particular, the stock is underpriced on P/E, of fair value on EV/EBITD.