Sohgo Security Services Co., Ltd. (2331) AI Stock Analysis

• Market Cap: ¥519.07B
• Dividend Yield: 0.2%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.46
• Revenue Growth: 5.85%
• EPS Growth: 3.31%
• Country: JP
• Employees: 64,982
• Sector: Industrials
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): 11.85
• Shares Outstanding: 510,200,200
• 10 Day Avg. Volume: 1,186,940
• 30 Day Avg. Volume: 1,253,010
• PEG Ratio: -0.87
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.05
• 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: ¥1,080.00
• Price Target Upside: 7.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,094.00 ▲(8.64%Upside)

The overall stock score of 66 reflects a strong financial foundation and fair valuation, tempered by bearish technical indicators. The company's robust financial performance is a significant positive, but the technical analysis suggests caution due to the stock's current downward trend and oversold condition.

Sohgo Security Services Co., Ltd. Business Overview & Revenue Model

Company Description

Sohgo Security Services Co.,Ltd. engages in the security, integrated management, and disaster prevention businesses in Japan and internationally. The company offers home security systems and services, such as housework contracting and safety confirmation services for senior citizens; stalker countermeasures for women; and long-term care services. It also provides various systems for corporate customers, including online security systems, electronic security systems, condominium complex security systems, and automated management system for ATMs, as well as security systems for supporting schedule management at unmanned stores and other buildings; and damage insurance policies. In addition, the company offers stationed security services, total security and robot systems, transportation security systems, cash management solutions for stores, and total ATM management systems; and general property management and fire protection, building management, and call center services, as well as automated external defibrillator, a device that administrates an electric shock. Further, it provides other products and services for corporate customers, such as guest reception terminals, risk management tools, and security camera systems, as well as information security, specialty security, confidential document collection and recycling, test administration support, telegram, career training, BCP solution, and acquisition support services. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sohgo Security Services Co., Ltd. generates revenue primarily through its diverse range of security services. Key revenue streams include the provision of security personnel for on-site security at corporate, commercial, and residential properties. The company also earns substantial income from its electronic security systems, which include installation and monitoring of alarm systems, surveillance cameras, and access control systems. Additionally, ALSOK offers cash-in-transit services, providing secure transportation of cash and valuables for financial institutions and businesses. Facility management services, which include building management and maintenance, add another layer of revenue. Strategic partnerships with technology providers and continuous investment in advanced security solutions further enhance its service offerings and contribute to its financial performance.

Sohgo Security Services Co., Ltd. Financial Statement Overview

Summary

Sohgo Security Services Co., Ltd. demonstrates a strong financial position with consistent revenue growth and strong profitability. The company maintains a low leverage profile with a robust balance sheet, ensuring financial stability. However, the decrease in free cash flow growth indicates potential challenges in cash generation, which needs monitoring.

Income Statement

The company has demonstrated consistent revenue growth with a 5.84% increase in the latest year. Gross profit margin stands at 23.14%, indicating strong cost management. However, net profit margin slightly decreased to 4.91%, reflecting increased operational costs. EBIT and EBITDA margins are stable at 7.28% and 12.45%, respectively, showcasing solid operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.16, indicating a strong capital structure. Return on Equity (ROE) is healthy at 8.01%, demonstrating efficient use of equity capital. The equity ratio of 59.11% suggests a high level of financial stability and low leverage risk.

Cash Flow

Operating cash flow to net income ratio is high at 1.67, indicating strong cash generation relative to net income. However, free cash flow decreased, leading to a negative free cash flow growth rate of -25.33%. Free cash flow to net income ratio remains substantial at 1.12, reflecting good cash flow management despite recent declines.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
551.88B	521.40B	492.23B	489.09B	469.92B
	Gross Profit
127.76B	125.71B	121.23B	125.58B	117.11B
	EBIT
40.20B	39.08B	36.99B	42.87B	37.18B
	EBITDA
68.71B	65.79B	61.62B	67.19B	59.45B
	Net Income Common Stockholders
27.11B	27.33B	23.95B	28.96B	25.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
150.68B	151.23B	143.65B	148.50B	144.25B
	Total Assets
572.40B	567.56B	516.65B	488.28B	481.46B
	Total Debt
54.74B	50.58B	53.83B	54.26B	69.98B
	Net Debt
-95.48B	-100.62B	-89.17B	-93.87B	-73.67B
	Total Liabilities
196.40B	180.98B	172.76B	160.77B	177.04B
	Stockholders Equity
338.43B	352.93B	314.89B	300.15B	277.51B
Cash Flow		Free Cash Flow
30.28B	40.57B	14.41B	26.93B	42.08B
	Operating Cash Flow
45.13B	56.06B	31.68B	42.74B	55.52B
	Investing Cash Flow
-15.55B	-16.91B	-24.82B	-14.09B	-38.45B
	Financing Cash Flow
-36.31B	-21.50B	-19.38B	-18.18B	-12.71B

Sohgo Security Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1007.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2331, the sentiment is Neutral. The current price of 1007 is below the 20-day moving average (MA) of 1009.57, below the 50-day MA of 1068.72, and below the 200-day MA of 1060.89, indicating a neutral trend. The MACD of -17.06 indicates Negative momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 55.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2331.

Sohgo Security Services Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2331	66 Neutral	¥519.07B	18.39		0.20%	5.85%	3.31%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
SOMLF		$16.61B	21.69	8.55%	1.80%	―	―
9686	77 Outperform	¥13.93B	19.69		3.03%	11.76%	9.97%
4754	75 Outperform	¥6.62B	7.09		2.36%	7.72%	72.38%
7058	72 Outperform	¥3.56B	13.11		3.66%	13.49%	17.08%
9740	69 Neutral	¥35.02B	10.81		2.50%	5.01%	-39.78%

Sohgo Security Services Co., Ltd. Corporate Events

ALSOK Announces 60th Anniversary Commemorative Dividend

ALSOK announced a dividend payment from retained earnings, including a commemorative dividend in celebration of its 60th anniversary. The total dividend per share for the fiscal year ending March 31, 2025, is set at ¥25.8, reflecting the company’s gratitude towards its stakeholders and shareholders.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Reports Growth in Sales and Income for FY2025

Sohgo Security Services Co., Ltd. reported a 5.8% increase in net sales for the fiscal year ended March 31, 2025, with operating income rising by 5.6% and ordinary income by 4.7%. Despite these gains, the company’s comprehensive income saw a significant decline of 55.4% compared to the previous year. The company also announced a dividend increase and a forecast for continued growth in the next fiscal year, reflecting a positive outlook and potential benefits for stakeholders.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Identifies Financial Reporting Deficiencies

Sohgo Security Services Co., Ltd. has identified material deficiencies in its financial reporting, specifically related to errors in accounting for retirement benefits over several fiscal years. These deficiencies have prompted the company to amend past financial reports and strengthen internal controls to ensure the reliability of future financial reporting. The impact of these corrections is reflected in both consolidated and non-consolidated financial statements, with the independent auditor providing an unqualified opinion on the fiscal year ending March 31, 2025.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Revises Q3 Financial Results

Sohgo Security Services Co., Ltd. announced corrections to its previously disclosed consolidated financial results for the third quarter ended December 31, 2024. The corrections involve adjustments to numeric data, reflecting changes in net sales, operating income, and net income attributable to owners of the parent. These changes may impact the company’s financial outlook and stakeholder expectations.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Corrects Internal Control Reports Due to Financial Reporting Deficiencies

Sohgo Security Services Co., Ltd. has announced the filing of a correction report for its internal control reports from fiscal years 2019 to 2024 due to significant deficiencies in financial reporting. The errors were related to the accounting process of retirement benefits, which were based on incorrect data entry, affecting the company’s financial statements. The company is taking steps to strengthen its internal controls and enhance the reliability of its financial reporting.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Amends Financial Reports Due to Data Entry Errors

Sohgo Security Services Co., Ltd. announced the filing of amended annual securities reports and consolidated financial results due to errors in the data entry of projected benefit obligations for retirement plans. These corrections, affecting past fiscal years, have resulted in adjustments to operating income, ordinary income, and profit attributable to owners, indicating a slight negative impact on the company’s financial statements.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Updates Financial Results for Q2 2024

Sohgo Security Services Co., Ltd. announced corrections to its consolidated financial results for the second quarter ended September 30, 2024. The corrections, which involve numeric data, reflect adjustments in their previously disclosed financial figures. This announcement may impact stakeholders’ perception of the company’s financial health and transparency, highlighting the importance of accurate financial reporting.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

SOHGO Security Services Announces Corrections to Financial Results

SOHGO SECURITY SERVICES CO., LTD. announced corrections to its consolidated financial results for the first quarter ended June 30, 2024. These corrections involve numeric data and are part of a broader correction report for past fiscal years. The company’s net sales increased by 6.1% compared to the previous year, but operating income, ordinary income, and profit attributable to owners of the parent all saw declines. The corrections may impact stakeholders’ understanding of the company’s financial performance and market positioning.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

Sohgo Security Services Adjusts Financial Results for FY 2024

Sohgo Security Services Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2024. The corrections involve adjustments to previously disclosed numeric data, impacting the company’s reported financial performance metrics. These adjustments are significant for stakeholders as they reflect changes in the company’s financial health and operational outcomes, potentially influencing investor perceptions and market positioning.

The most recent analyst rating on (JP:2331) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sohgo Security Services Co., Ltd. stock, see the JP:2331 Stock Forecast page.

ALSOK Announces Executive Leadership Changes

SOHGO SECURITY SERVICES CO., LTD. announced several changes in its executive leadership, effective June 25, 2025. The changes include new appointments and retirements among directors and audit & supervisory board members, which are expected to be resolved at the upcoming General Shareholders’ Meeting. These changes aim to strengthen the company’s strategic planning and operational efficiency, potentially impacting its market positioning and stakeholder relations.

Sohgo Security Services Announces Strategic Company Split

Sohgo Security Services Co., Ltd. announced a company split to integrate the emergency reporting business of its subsidiary, ALSOK Care & Support Co., Ltd., into its operations. This strategic move aims to enhance the company’s ability to operate closely with local communities, potentially strengthening its market position and operational efficiency.

Sohgo Security Services Marks 60th Anniversary with Employee Stock Incentive Plan

Sohgo Security Services Co., Ltd. announced the disposal of treasury stock as part of a Restricted Stock Incentive Plan to commemorate its 60th anniversary. This initiative aims to reward employees, promote their welfare, and align their interests with shareholders by issuing restricted stock through the Employees Shareholding Association, thereby supporting sustainable corporate value enhancement.

Sohgo Security Services to Rebrand as ALSOK and Expand Workforce Strategy

Sohgo Security Services Co., Ltd. announced its decision to change its trade name to ALSOK Co., Ltd., effective July 16, 2025, to unify its corporate identity and enhance brand value. Additionally, the company plans to amend its Articles of Incorporation to include support for specified skilled workers, addressing labor shortages by accepting foreign interns in nursing care and facility management, thereby preparing for broader acceptance of foreign nationals in the security industry.