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

• Market Cap: ¥578.42B
• Dividend Yield: 2.32%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.44
• Revenue Growth: 6.66%
• EPS Growth: 17.57%
• Country: JP
• Employees: 64,982
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 11.85
• Shares Outstanding: 510,200,200
• 10 Day Avg. Volume: 812,160
• 30 Day Avg. Volume: 1,063,430
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,301.00
• Price Target Upside: 14.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,301.00 ▲(14.58% Upside)

Sohgo Security Services Co., Ltd. receives a strong overall stock score driven by robust financial performance and positive technical indicators. The company's solid balance sheet and bullish market momentum are key strengths, while potential liquidity challenges in cash flow and fair valuation are secondary considerations.

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

ALSOK generates revenue primarily through its diversified security services portfolio. The company earns money from providing electronic security systems, which include installation and maintenance of security alarms, surveillance cameras, and access control systems. Additionally, ALSOK offers manned security services, which involve deploying trained security personnel for on-site security at commercial, industrial, and residential properties. The company also provides transportation security services, ensuring the safe transport of valuable goods and cash. Furthermore, ALSOK's revenue is bolstered by key partnerships with government institutions and corporate clients, contributing to a stable and recurring income stream. These partnerships, along with the company's reputation for reliable and innovative security solutions, play a significant role in its financial success.

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 robust 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	71.54B	68.71B	65.79B	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	54.74B	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: Neutral
• Last Price: 1135.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1135.5 is below the 20-day moving average (MA) of 1155.82, above the 50-day MA of 1117.18, and above the 200-day MA of 1077.95, indicating a neutral trend. The MACD of 6.06 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 6.24 is Positive, 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	79 Outperform	¥578.42B	18.78	―	2.32%	6.66%	17.57%
9686	76 Outperform	¥16.98B	11.43	3.19%	3.10%	24.48%	204.62%
9740	75 Outperform	¥37.77B	10.55	8.20%	2.32%	9.40%	-32.82%
4754	74 Outperform	¥7.05B	7.27	11.25%	2.21%	5.24%	91.21%
7058	72 Outperform	¥4.11B	46.28	―	3.18%	6.83%	-59.50%
9735	72 Outperform	¥2.47T	21.29	8.51%	1.80%	4.84%	10.24%
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.

ALSOK Completes Treasury Stock Disposal with Adjustments

ALSOK CO., LTD. has completed the payment procedures for the disposal of Treasury Stock under its Restricted Stock Incentive Plan, with changes in the number of shares due to partial forfeiture. This adjustment, resulting from the finalization of member participation in the Employees Shareholding Association, will not affect the company’s earnings forecast for the fiscal year ending March 2026.

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 due to errors in accounting for retirement benefits. These errors, stemming from incorrect data entry, have led to amendments in financial reports for several fiscal years. The company plans to enhance its internal controls and financial reporting processes to address these deficiencies. Despite these issues, the independent auditor’s report for the fiscal year ending March 31, 2025, remains unqualified, indicating no significant impact on the overall 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.

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.