SecuAvail, Inc. (3042) AI Stock Analysis

• Market Cap: ¥2.45B
• Dividend Yield: 0.63%
• Average Volume (3M): 214.70K
• Price to Earnings (P/E): 57.3
• Beta (1Y): 0.50
• Revenue Growth: 2.69%
• EPS Growth: -114.65%
• Country: JP
• Employees: 94
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 6.68
• Shares Outstanding: 7,690,000
• 10 Day Avg. Volume: 101,290
• 30 Day Avg. Volume: 214,700
• 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. provides system security solutions in Japan. The company operates in Information Security Business and Human Resource Service Business segments. It is involved in the design, construction, operation, monitoring, sales, and log analysis of computer network security systems. The company's products include NetStare, a network security operation monitoring system; LogStare, a network monitoring and log management system; and CustomerStare, an outsourcing service. It is also involved in the development and dispatch of information security personnel. The company was incorporated in 2001 and is headquartered in Osaka, Japan.

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
	EBIT
-31.91M	-32.86M	-34.78M	-92.44M	33.05M	78.00M
	EBITDA
285.05M	358.55M	-18.51M	-63.67M	82.08M	100.00M
	Net Income Common Stockholders
236.61M	228.96M	-44.04M	-111.83M	46.18M	56.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.09B	1.20B	769.49M	811.06M	980.10M	-28.93M
	Total Assets
1.34B	1.48B	1.32B	1.35B	1.33B	1.12B
	Total Debt
0.00	4.32M	6.29M	0.00	0.00	28.93M
	Net Debt
-1.09B	-1.20B	-763.20M	-811.06M	-980.10M	57.87M
	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: Positive
• Last Price: 319.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3042, the sentiment is Positive. The current price of 319 is above the 20-day moving average (MA) of 314.25, above the 50-day MA of 282.74, and above the 200-day MA of 281.23, indicating a bullish trend. The MACD of 9.41 indicates Positive momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3042.

SecuAvail, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	77 Outperform	¥19.64B	35.77		0.16%	24.15%	-7.80%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
3042	58 Neutral	¥2.45B	57.30		0.63%	2.69%	-114.65%
3987		¥2.71B	―		―	―	―
4417	76 Outperform	¥51.61B	50.19		1.24%	25.69%	28.41%
4288	54 Neutral	¥2.03B	―		―	13.99%	-47.91%
4073	52 Neutral	¥1.45B	132.85		―	-1.36%	-175.54%