SecuAvail, Inc. (3042) AI Stock Analysis

• Market Cap: ¥2.78B
• Dividend Yield: 0.58%
• Average Volume (3M): 159.40K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.76
• Revenue Growth: 25.37%
• EPS Growth: N/A
• Country: JP
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.59
• 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: ¥403.00 ▲(16.14% Upside)

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

Balance Sheet Strength

Extremely low leverage gives SecuAvail durable financial flexibility, lowering insolvency risk and enabling funding of strategic initiatives or downturn absorptions without reliance on debt. This supports multi-month resilience and optionality for investments or M&A.

Revenue Growth Trend

Sustained top-line expansion provides a multi-month runway to scale operations and amortize fixed costs. Strong revenue momentum supports reinvestment in product, sales, and R&D, improving chances to regain margin headroom if cost control follows revenue growth.

Stable Gross Margin

A stable ~39% gross margin indicates the core product/service retains pricing power or consistent cost of goods structure. That stable gross-profit floor supports longer-term margin recovery efforts if operating expenses are addressed, preserving business economics.

Negative Factors

Falling Net Profit Margin

A steep drop in net margin signals rising operating costs, one-offs, or margin erosion that materially reduces retained earnings. If sustained, this will impair internal funding for growth, weaken ROE, and force difficult choices on cost cuts or external financing over coming months.

Negative Operating & Free Cash Flow

Persistent negative operating and free cash flows create liquidity pressure and reduce the company's ability to fund operations, capex, and dividends internally. Over 2–6 months this raises reliance on external capital and constrains strategic flexibility.

Weak Operating Profitability

Low EBIT/EBITDA margins imply the company struggles to convert revenue into operating profit, limiting buffer vs. cost shocks and reducing cash generation. Without efficiency or pricing improvements, scaling revenue may not translate into sustainable profitability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Neutral
• Last Price: 347.00
• 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 Neutral. The current price of 347 is below the 20-day moving average (MA) of 364.50, below the 50-day MA of 349.18, and above the 200-day MA of 327.40, indicating a neutral trend. The MACD of 6.02 indicates Positive momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3042.

SecuAvail, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	78 Outperform	¥18.09B	26.25	―	0.17%	31.39%	13.12%
3042	62 Neutral	¥2.78B	19.11	―	0.58%	25.37%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4417	60 Neutral	¥45.24B	34.36	―	0.90%	25.06%	37.24%
4288	51 Neutral	¥2.37B	-9.68	―	―	20.46%	37.56%
4073	45 Neutral	¥1.42B	-6.74	―	―	-3.49%	-2246.63%

SecuAvail, Inc. Corporate Events

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.

SecuAvail, Inc. Reports Strong Financial Turnaround for 2025

SecuAvail, Inc. reported a significant financial turnaround for the six months ending September 30, 2025, with a notable increase in net sales and profitability compared to the previous year. The company’s financial results indicate a strong recovery and improved market positioning, with expectations of continued growth in the fiscal year ending March 31, 2026, as reflected in their financial forecasts.

The most recent analyst rating on (JP:3042) stock is a Hold with a Yen369.00 price target. To see the full list of analyst forecasts on SecuAvail, Inc. stock, see the JP:3042 Stock Forecast page.