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Sohgo Security Services Co., Ltd. (JP:2331)
:2331
Japanese Market
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Sohgo Security Services Co., Ltd. (2331) AI Stock Analysis

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JP:2331

Sohgo Security Services Co., Ltd.

(2331)

Rating:72Outperform
Price Target:
¥1,152.00
▲(9.09%Upside)
Sohgo Security Services Co., Ltd. holds a strong financial position, marked by consistent revenue growth and solid profitability, which significantly contributes to its stock score. Technical indicators show moderate momentum, suggesting some potential for price appreciation. Valuation metrics indicate that the stock is moderately priced, with limited immediate income potential from dividends.

Sohgo Security Services Co., Ltd. (2331) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSohgo 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 MoneyALSOK 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. demonstrates strong financial performance with consistent revenue growth and robust profitability metrics. The company maintains a strong balance sheet with low leverage, enhancing financial stability. However, a decrease in free cash flow growth suggests potential challenges in cash generation that require monitoring.
Income Statement
85
Very Positive
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
88
Very Positive
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
75
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue551.88B521.40B492.23B489.09B469.92B
Gross Profit127.76B125.71B121.23B125.58B117.11B
EBITDA68.71B65.79B61.62B67.19B59.45B
Net Income27.11B27.33B23.95B28.96B25.01B
Balance Sheet
Total Assets572.40B567.56B516.65B488.28B481.46B
Cash, Cash Equivalents and Short-Term Investments150.68B151.23B143.65B148.50B144.25B
Total Debt54.74B50.58B53.83B54.26B69.98B
Total Liabilities196.40B180.98B172.76B160.77B177.04B
Stockholders Equity338.43B352.93B314.89B300.15B277.51B
Cash Flow
Free Cash Flow30.28B40.57B14.41B26.93B42.08B
Operating Cash Flow45.13B56.06B31.68B42.74B55.52B
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
Positive
Last Price1056.00
Price Trends
50DMA
1017.78
Positive
100DMA
1065.16
Negative
200DMA
1062.19
Negative
Market Momentum
MACD
8.45
Negative
RSI
68.05
Neutral
STOCH
78.91
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 1056 is above the 20-day moving average (MA) of 1025.20, above the 50-day MA of 1017.78, and below the 200-day MA of 1062.19, indicating a neutral trend. The MACD of 8.45 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 78.91 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥532.57B18.87
2.37%5.85%4.84%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
$16.38B21.608.55%0.05%
82
Outperform
¥7.05B7.55
2.21%7.72%72.38%
78
Outperform
¥15.67B22.07
2.69%11.76%9.90%
73
Outperform
¥33.85B9.45
2.59%9.40%-32.82%
72
Outperform
¥3.81B13.11
3.42%13.49%17.08%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2331
Sohgo Security Services Co., Ltd.
1,056.00
141.04
15.41%
SOMLF
Secom Co
37.02
7.15
23.94%
JP:4754
Tosnet Corporation
1,473.00
257.76
21.21%
JP:7058
Kyoei Security Service Co., Ltd.
2,631.00
-73.41
-2.71%
JP:9686
Toyo Tec Co., Ltd
1,486.00
294.98
24.77%
JP:9740
Central Security Patrols Co., Ltd.
2,331.00
-257.00
-9.93%

Sohgo Security Services Co., Ltd. Corporate Events

ALSOK Completes Treasury Stock Disposal with Adjustments
Jul 16, 2025

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
Jun 20, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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.

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.Date of analysis: Jul 15, 2025