Sohgo Security Services Co., Ltd. (JP:2331)
:2331
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Sohgo Security Services Co., Ltd.
(2331)
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Rating:65Neutral
Price Target:
¥1,218.00
▼(-1.10% Downside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by solid fundamental profitability and a conservative balance sheet, tempered by notably weaker FY2026 cash-flow conversion and sharply lower free cash flow. Technicals are a headwind with the stock trading below key moving averages and negative MACD, while valuation is supportive but not compelling with a mid-range P/E and moderate dividend yield.
Positive Factors
Steady revenue growth
Consistent revenue growth with a clear FY2026 step-up indicates durable demand and expanding contract footprint. Over the next 2–6 months this supports predictable top-line scaling, helps absorb fixed costs, and provides a foundation for reinvestment in services and client retention initiatives.
Negative Factors
Weak cash conversion & FCF decline
A sharp FCF decline and poor conversion of earnings into cash point to working-capital pressure or timing mismatches. This reduces internal funding for capex, dividends, or acquisitions and increases reliance on external financing, weakening durability of capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent revenue growth with a clear FY2026 step-up indicates durable demand and expanding contract footprint. Over the next 2–6 months this supports predictable top-line scaling, helps absorb fixed costs, and provides a foundation for reinvestment in services and client retention initiatives.
Read all positive factors
Sohgo Security Services Co., Ltd. (2331) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥573.58B
Dividend Yield2.14%
Average Volume (3M)783.35K
Price to Earnings (P/E)16.4
Beta (1Y)0.33
Revenue Growth8.18%
EPS Growth23.30%
CountryJP
Employees64,982
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)68.48
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)74.67
Revenue Forecast (FY)¥627.59B
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 confi...
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
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 597.03B | 551.88B | 521.40B | 492.23B | 489.09B |
| Gross Profit | 139.64B | 124.02B | 118.27B | 114.09B | 119.49B |
| EBITDA | 71.73B | 63.50B | 59.94B | 56.73B | 61.10B |
| Net Income | 33.26B | 27.11B | 26.63B | 23.23B | 28.23B |
Balance Sheet | |||||
| Total Assets | 675.02B | 572.40B | 571.46B | 520.99B | 492.45B |
| Cash, Cash Equivalents and Short-Term Investments | 167.38B | 150.68B | 151.23B | 143.65B | 148.50B |
| Total Debt | 94.12B | 54.74B | 50.58B | 53.83B | 54.26B |
| Total Liabilities | 248.08B | 196.40B | 193.70B | 186.91B | 174.38B |
| Stockholders Equity | 383.63B | 338.43B | 344.10B | 305.07B | 290.71B |
Cash Flow | |||||
| Free Cash Flow | 18.48B | 30.28B | 33.37B | 23.32B | 35.53B |
| Operating Cash Flow | 53.79B | 45.13B | 47.79B | 38.48B | 48.64B |
| Investing Cash Flow | -39.21B | -15.55B | -16.48B | -24.82B | -14.09B |
| Financing Cash Flow | -7.75B | -36.31B | -21.94B | -19.38B | -18.18B |
Sohgo Security Services Co., Ltd. Technical Analysis
Negative
1231.50
Price Trends
1204.20
Negative
1204.38
Negative
1166.18
Negative
Market Momentum
-16.18
Negative
39.87
Neutral
41.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2331, the sentiment is Negative. The current price of 1231.5 is above the 20-day moving average (MA) of 1152.10, above the 50-day MA of 1204.20, and above the 200-day MA of 1166.18, indicating a bearish trend. The MACD of -16.18 indicates Negative momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | ¥297.30B | 21.26 | ― | 2.42% | 4.46% | 23.01% | |
66 Neutral | ¥10.55B | 39.86 | ― | ― | 18.12% | 53.11% | |
65 Neutral | ¥573.58B | 16.45 | ― | 2.14% | 8.18% | 23.30% | |
64 Neutral | ¥2.82T | 22.84 | 8.35% | 1.77% | 4.75% | 6.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥4.35B | 6.76 | ― | 3.03% | 14.54% | ― | |
62 Neutral | ¥37.94B | 14.21 | ― | 1.95% | 10.26% | -21.50% |
* Industrials Sector Average
JP:2331
Sohgo Security Services Co., Ltd.
1,126.00
145.04
14.79%
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Sohgo Security Services Co., Ltd. Corporate Events
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...
ALSOK Reshapes Top Management as Naoki Hyakutake Named New Representative Director
Apr 7, 2026
ALSOK CO., LTD. has announced a leadership transition, with Representative Director, Group COO, and President and Executive Officer Ikuji Kayaki retiring from his representative role to become a special adviser, pending shareholder approval on Jun...
ALSOK Makes Minor Correction to Third-Quarter Comprehensive Income Figure
Feb 24, 2026
ALSOK Co., Ltd. has issued a correction to its consolidated financial results for the third quarter ended December 31, 2025, prepared under Japanese GAAP. The revision concerns a minor error in the disclosure of comprehensive income for the nine-m...
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.