SecuAvail, Inc. (3042) AI Stock Analysis

• Market Cap: ¥2.11B
• Dividend Yield: 0.58%
• Average Volume (3M): 159.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• 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: 50 Neutral
• Price Target: ¥275.00 ▼(-20.75% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is primarily constrained by persistently negative cash flow and uneven earnings quality despite a strong, low-debt balance sheet. Technicals are weak with the stock trading below major moving averages and negative MACD, while valuation support is limited due to a negative P/E and low dividend yield.

Positive Factors

Low Leverage / Strong Balance Sheet

Extremely low debt-to-equity (0.0019) and a robust equity ratio give the company durable financial flexibility. Over 2-6 months this reduces refinancing risk, supports discretionary investment or R&D, and provides a cushion to withstand cyclical softness without increasing leverage.

Stable Gross Margin with Revenue Expansion

A stable ~39% gross margin alongside positive revenue growth indicates persistent product economics and pricing power. This long-term margin stability supports unit-level profitability as sales scale, enabling reinvestment in product development and sustaining competitive positioning.

Consistent Top-line Growth

Consistent positive revenue growth across periods shows enduring customer demand and market traction. Sustained top-line expansion over months supports operating leverage potential and the ability to fund strategic initiatives without relying solely on external capital.

Negative Factors

Eroding Net Profit Margin

A sharp decline in net margin from ~20.8% to 3.7% signals deteriorating bottom-line efficiency. Over the medium term this compresses retained earnings, weakens return metrics and limits internal funding for growth or R&D unless operational trends reverse or pricing/costs are addressed.

Weak Cash Generation

Negative operating and free cash flows indicate the core business struggles to convert profits into cash. Persisting cash generation weakness can force external financing or constrain investments, creating liquidity vulnerability despite low reported leverage.

Low Operating (EBIT/EBITDA) Margins

Relatively low EBIT and EBITDA margins point to operational inefficiencies or cost structure rigidity. Over months this reduces the firm's ability to absorb price pressure or invest in scaling operations, weakening competitive resilience and profit conversion.

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.

SecuAvail, Inc. Financial Statement Overview

Summary

Balance sheet strength (minimal leverage, solid equity base) supports financial resilience, but fundamentals are held back by persistently negative operating/free cash flow (2022–2025) and uneven earnings quality with volatile profitability.

Income Statement

Revenue has stabilized and returned to modest growth (2023–2025), with consistently solid gross margins around ~39–40%. However, profitability has been volatile: losses in 2022–2023, a large profit in 2024 despite negative operating profit, and then a return to low single-digit net margins in 2025. This pattern suggests earnings quality is uneven and operating leverage remains limited.

Balance Sheet

The balance sheet is a clear strength: debt is minimal across the period (very low debt-to-equity in all years), providing strong financial flexibility and low refinancing risk. Equity is sizable relative to assets, supporting stability through downturns. The main weakness is inconsistent returns for shareholders, with negative returns in 2022–2023 and much lower returns again in 2025 versus 2024.

Cash Flow

Cash generation is the key concern. Operating cash flow and free cash flow are negative in 2022–2025, including the most recent year, indicating the business is not consistently funding itself from operations. The mismatch between positive net income (notably 2024 and 2025) and negative operating cash flow points to weaker cash conversion and/or working-capital pressures, raising dependence on the balance sheet over time if it persists.

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	531.12M	450.75M	443.09M	412.58M	371.57M	496.66M
EBITDA	107.03M	36.05M	-18.29M	-19.43M	-71.67M	52.80M
Net Income	104.41M	42.81M	228.96M	-44.04M	-111.83M	46.18M
Balance Sheet
Total Assets	1.51B	1.55B	1.48B	1.33B	1.36B	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	367.68M	337.30M	265.33M	253.35M	244.24M
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	-45.46M	-156.42M	3.55M
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: Negative
• 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 above the 20-day moving average (MA) of 307.90, above the 50-day MA of 340.94, and above the 200-day MA of 335.00, indicating a bearish trend. The MACD of -13.89 indicates Negative momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 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
4493	74 Outperform	¥16.37B	17.99	―	0.17%	31.39%	13.12%
3040	73 Outperform	¥32.04B	16.59	19.71%	3.09%	3.44%	79.35%
3694	68 Neutral	¥21.80B	119.61	―	―	6.33%	14.82%
4475	68 Neutral	¥30.32B	27.58	―	0.39%	30.59%	65.14%
4417	63 Neutral	¥35.64B	29.03	―	0.90%	25.06%	37.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3042	50 Neutral	¥2.11B	-31.06	―	0.58%	25.37%	―

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.