SecuAvail, Inc. (3042) AI Stock Analysis

• Market Cap: ¥2.25B
• Dividend Yield: 0.68%
• Average Volume (3M): 93.10K
• Price to Earnings (P/E): 52.4
• Beta (1Y): 0.50
• Revenue Growth: 2.69%
• EPS Growth: -114.65%
• Country: JP
• Employees: 94
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): 6.68
• Shares Outstanding: 7,690,000
• 10 Day Avg. Volume: 71,610
• 30 Day Avg. Volume: 93,100
• PEG Ratio: 0.73
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -40.82
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ―

SecuAvail, Inc. demonstrates strengths in its balance sheet with high equity and low debt, suggesting financial stability. However, operational inefficiencies and poor cash flow management weigh negatively. Technical indicators show neutral to slightly bearish signals, while valuation metrics highlight concerns about profitability and potential overvaluation. The absence of a dividend further weakens its attractiveness to investors seeking income.

SecuAvail, Inc. Business Overview & Revenue Model

Company Description

SecuAvail, Inc. is a Japanese company specializing in cybersecurity solutions, providing comprehensive security monitoring and managed security services. Operating primarily in the IT security sector, the company offers a range of services including security operation center (SOC) services, network security, and vulnerability management to protect enterprises from cyber threats and ensure data integrity.

How the Company Makes Money

SecuAvail, Inc. generates revenue through its managed security services, primarily by offering subscription-based models for its SOC services and other security solutions. The company charges clients regular fees for continuous monitoring and management of their IT infrastructures. Additionally, SecuAvail earns money from professional services such as cybersecurity consulting, implementation, and support. The company may also have strategic partnerships with technology vendors and security hardware providers, which can enhance its service offerings and contribute to revenue growth.

SecuAvail, Inc. Financial Statement Overview

Summary

SecuAvail, Inc. shows growth in revenue and a positive shift to net income, yet faces challenges with negative EBIT and EBITDA margins, and cash flow issues. The balance sheet is strong, with high equity and low debt, offering financial resilience.

Income Statement

SecuAvail, Inc. has seen a modest revenue growth of 6.8% from 2023 to 2024, and a significant gross profit margin of approximately 40.33% in 2024. However, EBIT and EBITDA margins remain negative, indicating ongoing profitability challenges. The transition from a net loss in 2023 to a net income in 2024 is a positive sign, yet the company needs to address its operational inefficiencies to sustain profitability.

Balance Sheet

The company's balance sheet is strong with a high equity ratio of 77.22% in 2024, indicating financial stability. The debt-to-equity ratio is very low at 0.0038, highlighting minimal leverage and low financial risk. A robust cash position with significant cash equivalents further enhances financial flexibility. However, consistent improvement in net income is crucial for optimizing return on equity.

Cash Flow

SecuAvail's cash flow situation presents mixed results. The operating cash flow remains negative at -¥25.93 million, indicating cash generation issues from core operations. Although there is a decrease in free cash flow negativity, the free cash flow to net income ratio remains unfavorable, suggesting the need for better cash flow management. Positive investing cash flow due to strategic activities is a notable highlight.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.09B	1.10B	1.03B	957.04M	1.20B	1.19B
Gross Profit	425.93M	443.09M	413.74M	372.73M	496.66M	457.00M
EBITDA	285.05M	358.55M	-18.51M	-63.67M	82.08M	100.00M
Net Income	236.61M	228.96M	-44.04M	-111.83M	46.18M	56.00M
Balance Sheet
Total Assets	1.34B	1.48B	1.32B	1.35B	1.33B	1.12B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.20B	769.49M	811.06M	980.10M	-28.93M
Total Debt	0.00	4.32M	6.29M	0.00	0.00	28.93M
Total Liabilities	234.00M	337.30M	260.45M	243.77M	243.75M	28.93M
Stockholders Equity	1.11B	1.15B	1.06B	1.11B	1.09B	765.00M
Cash Flow
Free Cash Flow	0.00	-41.29M	-48.04M	-156.42M	863.00K	92.00M
Operating Cash Flow	0.00	-25.93M	-41.21M	-151.49M	47.43M	94.00M
Investing Cash Flow	0.00	459.15M	3.72M	1.52M	-51.54M	5.00M
Financing Cash Flow	0.00	-1.97M	-4.08M	-19.08M	296.87M	-3.00M

SecuAvail, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 292.00
• 50DMA: Negative
• 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:3042, the sentiment is Negative. The current price of 292 is below the 20-day moving average (MA) of 311.20, below the 50-day MA of 301.14, and above the 200-day MA of 284.06, indicating a neutral trend. The MACD of -3.41 indicates Positive momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3042.

SecuAvail, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2326	76 Outperform	¥101.32B	31.02		1.25%	-5.73%	49.33%
4704	75 Outperform	$1.27T	39.17	29.09%	1.90%	9.63%	233.82%
9719	74 Outperform	¥1.34T	29.65		1.75%	24.10%	11.27%
3853	70 Outperform	¥10.27B	17.47		1.31%	―	―
Sector *	69 Neutral	¥228.59B	14.33	7.64%	2.71%	9.13%	8.49%
4725	67 Neutral	€32.98B	12.67	7.79%	5.12%	2.87%	4.34%
3042	58 Neutral	¥2.25B	52.45		0.68%	2.69%	-114.65%