SecuAvail, Inc. (3042) AI Stock Analysis

• Market Cap: ¥2.45B
• Dividend Yield: 0.58%
• Average Volume (3M): 159.40K
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.78
• Revenue Growth: 25.37%
• EPS Growth: N/A
• Country: JP
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -2.69
• Shares Outstanding: 7,690,000
• 10 Day Avg. Volume: 298,040
• 30 Day Avg. Volume: 159,400
• PEG Ratio: -0.60
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.83
• P/FCF Ratio: -77.77
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥407.00 ▲(17.29% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score reflects a mixed financial performance with positive revenue growth but declining profitability and cash flow challenges. Technical analysis indicates moderate bullish momentum, while valuation suggests the stock is relatively expensive. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Low Leverage

An extremely low debt-to-equity ratio (0.0019) gives SecuAvail durable financial flexibility and low insolvency risk. This capital structure supports funding R&D or strategic initiatives without heavy interest burden, enabling longer runway to execute strategic plans.

Top-line Growth

Sustained revenue growth (reported at 25.37%) indicates ongoing market traction and demand for the company’s offerings. Persistent top-line expansion improves scale economics, creates more room to invest in product development and sales, and supports longer-term market share gains.

Stable Gross Margin

A stable gross margin near 39% signals durable unit economics and some pricing power versus cost of goods sold. That stability provides a foundation to absorb SG&A or R&D investments and pursue margin recovery through operating efficiencies over the medium term.

Negative Factors

Negative Cash Flow

Persistent negative operating and free cash flows undermine internal funding of operations and capital needs. Over months, this increases dependence on external financing or asset sales, raising execution risk for growth plans despite low reported leverage on the balance sheet.

Profit Margin Collapse

A sharp fall in net profit margin from ~20.8% to ~3.7% indicates the company is retaining far less profit per revenue dollar. This compression limits retained earnings for reinvestment, stresses return generation for shareholders, and may signal structural cost or pricing pressure.

Low Operating Margins

Relatively low EBIT and EBITDA margins point to operational inefficiencies or high fixed costs relative to revenue. Over time this reduces the firm’s ability to absorb cost shocks or scale profitably, slowing path to consistent cash generation and lowering resilience.

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 primarily through the sale of its cybersecurity products and services. Key revenue streams include subscription fees from its software-as-a-service (SaaS) offerings, licensing fees for its proprietary security software, and consulting fees for its professional services. Additionally, the company engages in strategic partnerships with major technology firms and government agencies, enhancing its market reach and credibility. These collaborations often lead to joint ventures and bundled service offerings, further contributing to SecuAvail's earnings. The company also benefits from recurring revenue through maintenance and support contracts, which provide a steady income stream.

SecuAvail, Inc. Financial Statement Overview

Summary

SecuAvail, Inc. demonstrates a mixed financial performance. Revenue growth is positive, but declining profitability margins and significant cash flow management challenges are concerning. The balance sheet is strong with low leverage, but cash flow issues need addressing for long-term stability.

Income Statement

SecuAvail, Inc. shows a moderate revenue growth rate of 5.78% in the latest year, indicating a positive trajectory. However, the net profit margin has significantly decreased from 20.83% to 3.73%, suggesting declining profitability. The gross profit margin remains stable at around 39.2%, but the EBIT and EBITDA margins are relatively low, indicating operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0019, indicating minimal leverage and financial risk. The equity ratio is robust, reflecting a solid capital structure. However, the return on equity is not provided for the latest year, which limits the assessment of profitability from shareholders' perspective.

Cash Flow

SecuAvail, Inc. faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow to net income ratio is positive, suggesting some efficiency in converting income to cash, but the overall negative cash flow growth indicates potential liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.24B	1.15B	1.10B	1.03B	957.04M	1.20B
Gross Profit	531.45M	450.75M	443.09M	413.74M	372.73M	496.66M
EBITDA	77.50M	37.50M	358.55M	-19.67M	-63.67M	82.08M
Net Income	102.62M	42.81M	228.96M	-44.04M	-111.83M	46.18M
Balance Sheet
Total Assets	1.51B	1.55B	1.48B	1.32B	1.35B	1.33B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.11B	1.20B	769.49M	811.06M	980.10M
Total Debt	1.75M	2.27M	4.32M	6.29M	0.00	0.00
Total Liabilities	309.74M	366.19M	337.30M	260.45M	243.77M	243.75M
Stockholders Equity	1.20B	1.19B	1.15B	1.06B	1.11B	1.09B
Cash Flow
Free Cash Flow	0.00	-26.99M	-41.29M	-48.04M	-156.42M	863.00K
Operating Cash Flow	0.00	-20.06M	-25.93M	-41.21M	-151.49M	47.43M
Investing Cash Flow	0.00	-66.37M	459.15M	3.72M	1.52M	-51.54M
Financing Cash Flow	0.00	-2.05M	-1.97M	-4.08M	-19.08M	296.87M

SecuAvail, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 347.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 347 is below the 20-day moving average (MA) of 348.35, below the 50-day MA of 353.08, and above the 200-day MA of 335.75, indicating a bearish trend. The MACD of -9.07 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 39.27 is Neutral, 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
3040	73 Outperform	¥35.54B	16.09	19.71%	3.09%	3.44%	79.35%
3694	68 Neutral	¥25.30B	20.45	―	―	6.33%	14.82%
4475	68 Neutral	¥32.40B	24.33	―	0.39%	30.59%	65.14%
4493	67 Neutral	¥16.26B	20.22	―	0.17%	31.39%	13.12%
4417	65 Neutral	¥39.10B	31.12	―	0.90%	25.06%	37.24%
3042	62 Neutral	¥2.45B	32.27	―	0.58%	25.37%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SecuAvail, Inc. Corporate Events

SecuAvail Returns to Profit and Lifts Dividend on Strong Earnings Outlook

SecuAvail reported net sales of ¥906 million for the nine months ended December 31, 2025, up 8.9% year on year, swinging from a loss to a ¥27 million profit attributable to owners of the parent as margins improved. The company’s balance sheet remained solid, with total assets of ¥1,503 million and an equity ratio of 80.1%, while it reaffirmed its full-year outlook calling for ¥1,320 million in sales, sharply higher operating profit, and a planned increase in the annual dividend to ¥5 per share, signaling confidence in earnings recovery.

The forecast for the fiscal year ending March 31, 2026 implies a 14.9% rise in sales and more than a tripling of operating profit, which, if achieved, would mark a strong earnings turnaround after prior weakness. For stakeholders, the combination of improving profitability, a stronger equity position, and a higher dividend payout suggests the company is transitioning from a period of muted performance to renewed growth, potentially enhancing its standing in the domestic small-cap tech and security space.

The most recent analyst rating on (JP:3042) stock is a Hold with a Yen400.00 price target. To see the full list of analyst forecasts on SecuAvail, Inc. stock, see the JP:3042 Stock Forecast page.

SecuAvail Shares Gain Margin Trading Status on Sapporo Securities Exchange

SecuAvail Inc. announced that, in addition to its existing marginable status on the Tokyo Stock Exchange Standard Market, its shares have been newly designated as marginable securities on the Sapporo Securities Exchange’s Main Market, effective February 18, 2026, coinciding with its listing date there. The company expects the dual margin trading designation to boost liquidity, expand investor participation, and promote more active trading and efficient price discovery, reinforcing its efforts to strengthen its capital markets presence and support long-term value for shareholders.

By becoming margin-eligible on both Tokyo and Sapporo exchanges, SecuAvail is seeking to deepen engagement with a wider range of market participants and facilitate smoother trading of its stock. This step underscores the company’s strategy to leverage its exchange listings to enhance visibility and trading dynamics, potentially making the shares more attractive to both retail and institutional investors over time.

The most recent analyst rating on (JP:3042) stock is a Hold with a Yen400.00 price target. To see the full list of analyst forecasts on SecuAvail, Inc. stock, see the JP:3042 Stock Forecast page.

SecuAvail Wins Approval for Dual Listing on Sapporo Securities Exchange

SecuAvail Inc. has received approval for a dual listing on the Main Board of the Sapporo Securities Exchange, with trading scheduled to begin on February 18, 2026, in addition to its existing listing on the Tokyo Stock Exchange Standard Market. The company aims to use the Sapporo listing to boost recognition in the Hokkaido region, deepen ties with local individual investors and companies, expand regional business activities, and reinforce its governance and investor-relations framework, with the broader goal of enhancing corporate value and delivering sustainable, medium- to long-term growth for stakeholders as its shares become tradable on both markets.

The most recent analyst rating on (JP:3042) stock is a Hold with a Yen403.00 price target. To see the full list of analyst forecasts on SecuAvail, Inc. stock, see the JP:3042 Stock Forecast page.

SecuAvail Wins TSE Approval to Move from Growth to Standard Market

SecuAvail Inc. has received approval from the Tokyo Stock Exchange to transfer its listing from the Growth Market to the Standard Market, with the change taking effect on January 21, 2026 and the share transfer scheduled for January 28, 2026. The company, which fully meets all listing maintenance criteria for the Standard Market, has withdrawn its previous plan to comply with Growth Market requirements and says the move will support its long-term, subscription-based network security business while reinforcing its commitment to capital-efficiency-focused management, medium-term growth targets, and the broader social responsibilities expected of a provider of infrastructure-grade security services.

The most recent analyst rating on (JP:3042) stock is a Hold with a Yen409.00 price target. To see the full list of analyst forecasts on SecuAvail, Inc. stock, see the JP:3042 Stock Forecast page.