SECURE,INC. (4264) AI Stock Analysis

• Market Cap: ¥8.68B
• Dividend Yield: N/A
• Average Volume (3M): 20.94K
• Price to Earnings (P/E): 69.5
• Beta (1Y): 1.10
• Revenue Growth: 5.80%
• EPS Growth: -43.56%
• Country: JP
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 9.91
• Shares Outstanding: 5,615,420
• 10 Day Avg. Volume: 20,990
• 30 Day Avg. Volume: 20,940
• PEG Ratio: 0.87
• Price to Book (P/B): 6.72
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 30.91
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥1,560.00 ▲(14.71% Upside)

SECURE, INC. shows strong financial performance, which is the most significant factor in its overall score. However, the stock's technical indicators suggest bearish momentum, and its high P/E ratio indicates overvaluation, which negatively impacts the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for SECURE, INC.'s cybersecurity solutions, enhancing its market position and financial stability.

Cash Flow Management

Strong cash flow growth supports operational flexibility and investment in innovation, crucial for sustaining competitive advantage in cybersecurity.

Balance Sheet Health

A stable balance sheet with manageable debt levels ensures financial resilience and the ability to withstand economic fluctuations.

Negative Factors

Earnings Decline

A significant decline in earnings per share suggests challenges in profitability, potentially impacting investor confidence and future growth.

High Leverage

While manageable, the current leverage level could limit financial flexibility and increase risk during economic downturns.

Profit Margin Pressure

Despite improvement, relatively low net profit margins suggest potential challenges in cost management and competitive pricing pressures.

SECURE,INC. Business Overview & Revenue Model

Company Description

SECURE, INC. (4264) is a leading cybersecurity firm specializing in providing advanced security solutions for businesses and organizations across various sectors. The company focuses on delivering innovative products and services, including threat detection and response systems, secure communication tools, and comprehensive risk management frameworks. With a commitment to safeguarding digital assets, SECURE, INC. aims to protect clients from evolving cyber threats and ensure regulatory compliance.

How the Company Makes Money

SECURE, INC. generates revenue through multiple streams, primarily by offering subscription-based security software and services. These recurring subscriptions provide a steady income as clients pay for ongoing access to the company's cybersecurity solutions. Additionally, SECURE, INC. earns money through consulting services, which include risk assessments and tailored security solutions for enterprises. The company also has strategic partnerships with technology providers and government agencies, enhancing its market reach and enabling joint ventures that contribute to its earnings. Furthermore, SECURE, INC. benefits from licensing its proprietary technology to third-party vendors, adding another layer to its revenue model.

SECURE,INC. Financial Statement Overview

Summary

SECURE, INC. exhibits strong financial performance with significant revenue and profit growth, efficient cash flow management, and a stable balance sheet. The company has effectively improved its profitability and operational efficiency while maintaining a balanced approach to financing.

Income Statement

SECURE, INC. has demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin is healthy at 40.5% for 2024, and the net profit margin has improved to 3.85% from 3.25% in 2023. The EBIT and EBITDA margins have also shown positive trends, indicating improved operational efficiency. These factors contribute to a robust income statement performance.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.11 in 2024, which is manageable. The return on equity has improved to 18.76%, indicating effective use of equity to generate profits. The equity ratio stands at 33.88%, showing a balanced approach to financing with equity and debt. Overall, the balance sheet is solid, though there is room for improvement in reducing leverage.

Cash Flow

SECURE, INC. has shown a remarkable increase in free cash flow from 2023 to 2024, with a growth rate of 264.8%. The operating cash flow to net income ratio is robust at 1.38, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also healthy at 1.16, reflecting efficient cash management. These metrics highlight a strong cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.40B	6.25B	5.19B	3.38B	3.38B	2.79B
Gross Profit	2.56B	2.53B	2.02B	1.31B	1.32B	1.10B
EBITDA	245.21M	382.82M	238.52M	-129.70M	210.90M	71.27M
Net Income	104.62M	240.56M	168.79M	-227.63M	131.48M	33.03M
Balance Sheet
Total Assets	5.00B	3.78B	2.75B	1.99B	1.98B	1.47B
Cash, Cash Equivalents and Short-Term Investments	2.38B	1.20B	808.95M	474.19M	675.93M	372.11M
Total Debt	1.15B	1.43B	880.16M	617.66M	500.69M	640.98M
Total Liabilities	2.21B	2.50B	1.73B	1.15B	998.38M	1.01B
Stockholders Equity	2.79B	1.28B	1.02B	842.14M	983.09M	455.24M
Cash Flow
Free Cash Flow	0.00	278.58M	76.34M	-362.57M	51.45M	-202.36M
Operating Cash Flow	0.00	331.26M	99.19M	-268.30M	122.23M	-132.11M
Investing Cash Flow	0.00	-502.49M	-36.12M	-144.71M	-70.78M	-83.27M
Financing Cash Flow	0.00	558.22M	270.57M	210.16M	252.14M	90.58M

SECURE,INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1360.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4264, the sentiment is Negative. The current price of 1360 is below the 20-day moving average (MA) of 1480.70, below the 50-day MA of 1561.12, and below the 200-day MA of 1658.59, indicating a bearish trend. The MACD of -53.84 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 15.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4264.

SECURE,INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9740	80 Outperform	¥37.57B	11.99	―	2.17%	9.05%	14.38%
2331	77 Outperform	¥538.69B	17.49	―	2.26%	7.73%	30.92%
9686	77 Outperform	¥16.55B	7.74	―	3.31%	34.15%	324.87%
4754	74 Outperform	¥7.43B	7.66	―	2.45%	3.00%	-13.97%
7058	72 Outperform	¥4.32B	19.81	―	3.02%	6.87%	-1.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4264	60 Neutral	¥8.68B	69.47	―	―	5.80%	-43.56%