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

• Market Cap: ¥538.69B
• Dividend Yield: 2.2%
• Average Volume (3M): 783.35K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.44
• Revenue Growth: 7.73%
• EPS Growth: 30.92%
• Country: JP
• Employees: 64,982
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 16.83
• Shares Outstanding: 510,200,200
• 10 Day Avg. Volume: 728,830
• 30 Day Avg. Volume: 783,346
• PEG Ratio: 4.36
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 18.13
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥1,392.00 ▲(16.44% Upside)

Sohgo Security Services Co., Ltd. scores well due to strong financial performance and bullish technical indicators. The stock's valuation is reasonable, though liquidity concerns from declining free cash flow warrant attention. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong Financial Health

A low debt-to-equity ratio indicates prudent financial leverage, providing stability and flexibility for long-term growth and investment opportunities.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and adapt to customer needs, supporting sustainable business operations.

Stable Profitability Margins

Stable profitability margins suggest effective cost management and operational efficiency, contributing to long-term financial health and shareholder value.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow can signal potential liquidity challenges, limiting the company's ability to invest in growth opportunities and meet financial obligations.

Cost Pressures

A declining gross profit margin may indicate rising costs or pricing pressures, which could impact profitability if not managed effectively.

Cash Flow Challenges

Challenges in cash flow can affect the company's ability to fund operations and strategic initiatives, potentially hindering long-term growth.

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 generates revenue primarily through its core offerings of manned security services, which include on-site security personnel for businesses and events. Additionally, the company earns income from the installation and maintenance of electronic security systems, such as surveillance cameras and alarm systems. Another key revenue stream is derived from security consulting services, where they provide expertise in risk assessment and security planning. The company also benefits from long-term contracts with clients in various sectors, ensuring a stable income flow. Significant partnerships with technology providers enhance their service offerings and contribute to operational efficiency, further bolstering their financial performance.

Sohgo Security Services Co., Ltd. Financial Statement Overview

Summary

Sohgo Security Services Co., Ltd. shows strong financial health with consistent revenue growth and stable profitability margins. The balance sheet is solid with low leverage, but the cash flow statement indicates potential liquidity challenges due to declining free cash flow.

Income Statement

Sohgo Security Services Co., Ltd. demonstrates solid revenue growth with a 2.2% increase in TTM, supported by consistent gross and net profit margins. The EBIT and EBITDA margins are stable, indicating efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.16, indicating prudent financial leverage. The return on equity is healthy at 8.01%, reflecting effective use of shareholder funds. The equity ratio is robust, showcasing financial stability and a solid asset base.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth at -45.96% TTM. The operating cash flow to net income ratio is moderate, suggesting adequate cash generation relative to earnings. However, the decline in free cash flow signals potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	564.02B	551.88B	521.40B	492.23B	489.09B	469.92B
Gross Profit	132.84B	127.76B	125.71B	121.23B	125.58B	117.11B
EBITDA	69.79B	68.71B	59.94B	61.62B	67.19B	59.45B
Net Income	29.25B	27.11B	27.33B	23.95B	28.96B	25.01B
Balance Sheet
Total Assets	576.62B	572.40B	567.56B	516.65B	488.28B	481.46B
Cash, Cash Equivalents and Short-Term Investments	150.25B	150.68B	151.23B	143.65B	148.50B	144.25B
Total Debt	20.17B	59.91B	50.58B	53.83B	54.26B	69.98B
Total Liabilities	199.25B	196.40B	180.98B	172.76B	160.77B	177.04B
Stockholders Equity	338.48B	338.43B	352.93B	305.07B	290.71B	268.49B
Cash Flow
Free Cash Flow	16.36B	30.28B	40.57B	14.41B	26.93B	42.08B
Operating Cash Flow	34.44B	45.13B	56.06B	31.68B	42.74B	55.52B
Investing Cash Flow	-18.58B	-15.55B	-16.91B	-24.82B	-14.09B	-38.45B
Financing Cash Flow	-26.93B	-36.31B	-21.50B	-19.38B	-18.18B	-12.71B

Sohgo Security Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1195.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1195.5 is above the 20-day moving average (MA) of 1190.05, above the 50-day MA of 1127.19, and above the 200-day MA of 1082.62, indicating a bullish trend. The MACD of 31.80 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 59.66 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9740	80 Outperform	¥37.57B	11.99	―	2.17%	9.05%	14.38%
2331	77 Outperform	¥538.69B	17.49	―	2.20%	7.73%	30.92%
9686	77 Outperform	¥16.55B	7.74	―	3.31%	34.15%	324.87%
4754	74 Outperform	¥7.43B	7.66	―	2.45%	3.00%	-13.97%
9735	73 Outperform	$2.41T	21.05	8.35%	1.83%	5.39%	4.89%
7058	72 Outperform	¥4.32B	19.81	―	3.02%	6.87%	-1.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sohgo Security Services Co., Ltd. Corporate Events

ALSOK CO., LTD. Reports Strong Q1 2025 Financial Growth and Rebranding

ALSOK CO., LTD. reported significant financial growth in the first quarter of 2025, with a notable increase in net sales and profit attributable to owners of the parent. The company also announced a name change, reflecting its evolving brand identity, and adjusted its consolidated subsidiaries, which may impact its operational strategy and market presence.

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.