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Sohgo Security Services Co., Ltd.
(2331)
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Rating:68Neutral
Price Target:
¥1,222.00
▼(-0.77% Downside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by healthy and stable financial performance (steady growth, resilient margins, and conservative leverage), partially offset by weaker recent cash conversion. Valuation is supportive with a moderate P/E and a ~2.5% dividend yield. Technicals are mixed, with the stock below key longer-term moving averages and neutral momentum indicators, limiting near-term bullish conviction.
Positive Factors
Consistent multi-year revenue growth
Multi-year top-line expansion from ¥489B to ¥597B reflects durable demand for contracted security services. Predictable recurring revenue supports capacity planning and reinvestment, enabling gradual scale benefits and undergirding mid-term earnings stability even in moderate economic cycles.
Negative Factors
Weak free-cash-flow conversion
Relatively low FCF conversion (≈34% of net income) signals working-capital or investment absorption that reduces financial flexibility. Over time this can constrain dividend capacity, delay reinvestment, or force incremental borrowing if cash conversion does not normalize despite positive headline free cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent multi-year revenue growth
Multi-year top-line expansion from ¥489B to ¥597B reflects durable demand for contracted security services. Predictable recurring revenue supports capacity planning and reinvestment, enabling gradual scale benefits and undergirding mid-term earnings stability even in moderate economic cycles.
Read all positive factors
Sohgo Security Services Co., Ltd. (2331) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥582.49B
Dividend Yield2.55%
Average Volume (3M)783.35K
Price to Earnings (P/E)15.9
Beta (1Y)0.27
Revenue Growth6.69%
EPS Growth18.88%
CountryJP
Employees66,949
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)71.87
Shares Outstanding510,200,200
10 Day Avg. Volume728,830
30 Day Avg. Volume783,346
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)1.58
Price to Sales (P/S)1.02
P/FCF Ratio32.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)84.95
Revenue Forecast (FY)¥631.97B
Sohgo Security Services Co., Ltd. Business Overview & Revenue Model
Company Description
Sohgo Security Services Co.,Ltd., established in Tokyo, Japan in 1965, operates both domestically and internationally, specializing in comprehensive security, integrated management, and disaster preparedness solutions. For individual clients, the ...
How the Company Makes Money
Sohgo Security Services makes money primarily by selling security services under service contracts to customers. Revenue is typically generated through recurring contract fees for ongoing security coverage (e.g., staffed security/guarding and on-s...
Sohgo Security Services Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
81
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 601.77B | 597.03B | 551.88B | 521.40B | 492.23B | 489.09B |
| Gross Profit | 142.46B | 139.64B | 124.02B | 118.27B | 114.09B | 119.49B |
| EBITDA | 79.02B | 78.07B | 69.29B | 65.79B | 61.62B | 65.88B |
| Net Income | 34.92B | 33.26B | 27.11B | 26.63B | 23.23B | 28.23B |
Balance Sheet | ||||||
| Total Assets | 653.03B | 675.02B | 572.40B | 571.46B | 520.99B | 492.45B |
| Cash, Cash Equivalents and Short-Term Investments | 151.89B | 167.38B | 150.68B | 151.23B | 143.65B | 148.50B |
| Total Debt | 29.78B | 94.12B | 54.74B | 50.58B | 53.83B | 54.26B |
| Total Liabilities | 224.46B | 248.08B | 196.40B | 193.70B | 186.91B | 174.38B |
| Stockholders Equity | 385.67B | 383.63B | 338.43B | 344.10B | 305.07B | 290.71B |
Cash Flow | ||||||
| Free Cash Flow | 26.99B | 18.48B | 30.28B | 33.37B | 23.32B | 35.53B |
| Operating Cash Flow | 61.04B | 53.79B | 45.13B | 47.79B | 38.48B | 48.64B |
| Investing Cash Flow | -41.63B | -39.21B | -15.55B | -16.48B | -24.82B | -14.09B |
| Financing Cash Flow | -10.78B | -7.75B | -36.31B | -21.94B | -19.38B | -18.18B |
Sohgo Security Services Co., Ltd. Technical Analysis
Positive
1231.50
Price Trends
1107.86
Positive
1154.75
Positive
1167.46
Positive
Market Momentum
11.43
Positive
56.73
Neutral
31.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2331, the sentiment is Positive. The current price of 1231.5 is above the 20-day moving average (MA) of 1152.97, above the 50-day MA of 1107.86, and above the 200-day MA of 1167.46, indicating a bullish trend. The MACD of 11.43 indicates Positive momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 31.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2331.
Sohgo Security Services Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥268.65B | 18.47 | ― | 2.42% | 6.33% | 33.61% | |
68 Neutral | ¥582.49B | 15.91 | ― | 2.14% | 6.69% | 18.88% | |
64 Neutral | ¥2.81T | 22.98 | 8.87% | 1.45% | 4.15% | 5.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥10.06B | 37.62 | ― | ― | 18.12% | 53.11% | |
62 Neutral | ¥4.32B | 6.71 | ― | 3.03% | 14.54% | ― | |
62 Neutral | ¥38.85B | 17.58 | ― | 1.95% | 7.98% | -38.53% |
* Industrials Sector Average
JP:2331
Sohgo Security Services Co., Ltd.
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Sohgo Security Services Co., Ltd. Corporate Events
ALSOK Completes ¥10 Billion Share Buyback via ToSTNeT-3
Aug 5, 2026
ALSOK CO., LTD. has completed a significant share buyback, repurchasing 8,916,600 common shares for approximately 9.99 billion yen via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction own share repurchase system on August 5, 2026. The transa...
ALSOK Launches Up to ¥10 Billion Share Buyback via ToSTNeT-3
Aug 4, 2026
ALSOK CO., LTD. has approved a specific method to repurchase its own shares through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system, setting the purchase at the August 4 closing price of 1,121.5 yen per share. The company plans to bu...
ALSOK Posts Strong Q1 Results and Projects Further Earnings Growth
Aug 4, 2026
ALSOK reported solid growth for the first quarter ended June 30, 2026, with net sales rising to 145.8 billion yen and operating income climbing to 12.0 billion yen, reflecting stronger profitability. Profit attributable to owners of the parent adv...
ALSOK Delivers Strong Q1 Earnings and Confirms Upbeat Full-Year Outlook
Aug 4, 2026
ALSOK reported solid growth for the quarter ended June 30, 2026, with net sales rising 3.4% to ¥145.9 billion and profit attributable to owners of parent jumping 25.8% to ¥8.1 billion. Strong operating and ordinary income gains lifted co...
ALSOK Holds Off on Share Buybacks Despite ¥10 Billion Authorization
Aug 3, 2026
ALSOK CO., LTD. reported that it did not repurchase any of its own shares during the period from July 1 to July 31, 2026, despite having an existing Board authorization for a sizeable buyback program. The company had previously secured approval to...
ALSOK Holds Off on Executing Authorized Share Buyback in June
Jul 1, 2026
ALSOK CO., LTD. reported that it did not repurchase any of its own shares during June 2026, despite having an ongoing board authorization for a sizeable share buyback program. The company has approval to acquire up to 9 million shares, or about 1....
ALSOK and TCG2511 Complete Tender Offer for Nippon Dry-Chemical Shares
Jun 30, 2026
ALSOK CO., LTD. has disclosed, at the request of TCG2511 Co., Ltd., the results of a tender offer for common shares of Nippon Dry-Chemical Co., Ltd., a fire protection firm listed on the Tokyo Stock Exchange Standard Market. The tender offer, init...
ALSOK and TCG2511 Amend Disclosures on Nippon Dry-Chemical Tender Offer Without Changing Terms
Jun 8, 2026
ALSOK and TCG2511 have corrected previously disclosed documentation related to their ongoing tender offer for Nippon Dry-Chemical, a Tokyo Standard Market-listed company, after receiving a notice from Japan’s Fair Trade Commission on June 4,...
ALSOK Announces No Share Buybacks Yet Under Newly Approved ¥10 Billion Program
Jun 1, 2026
ALSOK has reported that, during the period from May 14 to May 31, 2026, it did not repurchase any of its own shares under a previously approved share buyback program. The board had authorized the acquisition of up to 9 million shares, or 1.85% of ...
ALSOK Authorizes Up to ¥10 Billion Share Buyback to Enhance Shareholder Returns
May 14, 2026
ALSOK CO., LTD. has authorized a share buyback of up to 9 million common shares, equivalent to 1.85% of its outstanding stock, with a maximum total acquisition value of 10 billion yen. The repurchase, scheduled between May 14 and September 30, 202...
ALSOK and Carlyle Launch Tender Offer to Take Nippon Dry-Chemical Private
May 14, 2026
ALSOK and Carlyle-backed TCG2511 Co., Ltd. have launched a tender offer to acquire all common shares of Nippon Dry-Chemical Co., Ltd., aiming to take the fire protection specialist private from the Tokyo Stock Exchange Standard Market. The bid is ...
ALSOK Sets 2029 Earnings and Dividend Targets in New Medium-Term Plan
May 14, 2026
ALSOK has unveiled its new medium-term management plan, ALSOK STAGE 2028, covering fiscal years 2027 to 2029, with a strategic focus on expanding into growth markets and broadening service fields to address increasingly diverse risks. The plan emp...
ALSOK Raises Annual Dividend as Board Approves Year-End Payout
May 12, 2026
ALSOK’s board has approved a year-end dividend of ¥14.60 per share for the fiscal year ended March 31, 2026, in line with its earlier forecast and sourced from retained earnings. This brings the total annual dividend to ¥29.20 per ...
ALSOK Posts Strong FY2026 Earnings and Projects Further Growth for FY2027
May 12, 2026
ALSOK reported solid growth for the fiscal year ended March 31, 2026, with consolidated net sales rising to 597.0 billion yen and operating income climbing to 46.9 billion yen, a 16.7% increase year on year. Profit attributable to owners of parent...
ALSOK lifts profit 23%, raises dividend and forecasts continued growth for FY 2027
May 12, 2026
ALSOK reported solid growth for the year ended March 31, 2026, with consolidated net sales rising 8.2% to ¥597.0 billion and profit attributable to owners of parent up 22.7% to ¥33.3 billion, driven by improved operating margins and high...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.