SECURE,INC. (4264) AI Stock Analysis

• Market Cap: ¥10.68B
• Dividend Yield: N/A
• Average Volume (3M): 20.94K
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.13
• Revenue Growth: 5.80%
• EPS Growth: -43.56%
• Country: JP
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 15.06
• Shares Outstanding: 5,639,420
• 10 Day Avg. Volume: 20,990
• 30 Day Avg. Volume: 20,940
• PEG Ratio: -1.32
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 53.64
• 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): 115.8
• Revenue Forecast (FY): ¥9.00B

• Rating: 65 Neutral
• Price Target: ¥2,036.00 ▲(40.41% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by solid but not top-tier financial performance (turnaround with improved leverage, but thin and softening margins and weaker 2025 cash flow). Technicals are supportive with strong momentum, though overbought signals temper the outlook. Valuation is a meaningful headwind due to a high P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained multi-year top-line growth through 2025 indicates durable customer demand and successful market penetration. Consistent revenue expansion provides a foundation for scaling operations, spreading fixed costs and funding reinvestment without relying solely on external financing.

Profitability Turnaround

A clear shift from losses in 2022 to sustained operating profit and net income through 2025 reflects durable operational improvements and cost discipline. This structural recovery reduces bankruptcy risk and supports strategic planning and predictable cash allocation over the medium term.

Positive Cash Flow Recovery

Return to positive operating and free cash flow shows the company converts earnings into real liquidity, enhancing self-funding capacity for capex, working capital and debt servicing. Even if cash weakened in 2025, the recovery trend improves long-term financial resilience.

Negative Factors

Thin & Softening Net Margins

Persistently low and declining net margins suggest limited pricing power or rising cost pressures that can compress earnings despite revenue growth. Over months this constrains internal funding for growth, reduces buffer against shocks and makes profits more sensitive to input-cost swings.

Weakened 2025 Cash Generation

A step-down in operating and free cash flow in 2025 signals reduced cash conversion efficiency and less cushion for capex or debt obligations. If this trend persists, the company may face tougher trade-offs between growth investment and maintaining leverage targets over the coming quarters.

Volatile, Sizeable Leverage

Swinging leverage levels and sizeable absolute debt elevate refinancing and interest-rate risk if cash flow weakens. Volatility in capital structure also signals shifting funding needs, which can limit strategic flexibility and raise the cost of capital during adverse conditions.

SECURE,INC. Business Overview & Revenue Model

Company Description

SECURE Inc. engages in the security solution business in Japan. The company's products portfolio includes access control systems, which offers entry/exit management systems, such as card readers, fingerprints, and facial recognition for offices, shops, and factories; surveillance camera systems, that comprises various devices and image recognition applications, including face recognition; and image analysis solutions that analyzes and predicts the degree of congestion in commercial facilities, event venues, evacuation centers, etc. It is also involved in the research, development, and sales of artificial intelligence, cloud systems, and IoT devices. SECURE Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

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

Strong multi-year revenue growth and a clear profitability turnaround after 2022, with improved leverage in 2025. However, net margins remain thin and weakened versus 2024, and operating/free cash flow stepped down in 2025, limiting financial quality.

Income Statement

Revenue has grown strongly over time (from 2020 to 2025) and 2025 still delivered solid growth. Profitability improved materially after the 2022 loss year, with positive operating profit and net income in 2023–2025 and a steady gross margin around the low-40% range. The main weakness is thin bottom-line profitability: net margin remains low in 2025 and declined versus 2024, indicating higher costs and/or less favorable mix despite higher sales.

Balance Sheet

Leverage looks more conservative in 2025, with debt modest relative to equity, a clear improvement from the higher leverage levels seen in 2020 and 2024. Equity also increased meaningfully in 2025, supporting the capital structure. The key risk is that leverage has been somewhat volatile across years (swinging from higher to lower), which can signal changing funding needs; also, total debt remains sizable in absolute terms.

Cash Flow

The business is generating positive operating cash flow and free cash flow in 2023–2025, a clear recovery from negative cash generation in 2020 and 2022. Free cash flow is a decent share of net income in 2025, supporting earnings quality. However, operating cash flow weakened in 2025 versus 2024, and cash generation relative to the scale of the business is not especially strong, which reduces flexibility if growth investments or working-capital needs rise.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.40B	6.84B	6.25B	5.19B	3.38B	3.38B
Gross Profit	2.56B	2.83B	2.53B	2.02B	1.31B	1.32B
EBITDA	245.21M	414.75M	382.82M	238.52M	-129.70M	210.90M
Net Income	104.62M	187.59M	240.56M	168.79M	-227.63M	131.48M
Balance Sheet
Total Assets	5.00B	5.26B	3.78B	2.75B	1.99B	1.98B
Cash, Cash Equivalents and Short-Term Investments	2.38B	2.25B	1.20B	808.95M	474.19M	675.93M
Total Debt	1.15B	1.04B	1.43B	880.16M	617.66M	500.69M
Total Liabilities	2.21B	2.33B	2.50B	1.73B	1.15B	998.38M
Stockholders Equity	2.79B	2.93B	1.28B	1.02B	842.14M	983.09M
Cash Flow
Free Cash Flow	0.00	147.85M	278.58M	76.34M	-362.57M	51.45M
Operating Cash Flow	0.00	220.00M	331.26M	99.19M	-268.30M	122.23M
Investing Cash Flow	0.00	-267.28M	-502.49M	-36.12M	-144.71M	-70.78M
Financing Cash Flow	0.00	1.08B	558.22M	270.57M	210.16M	252.14M

SECURE,INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1450.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4264, the sentiment is Positive. The current price of 1450 is below the 20-day moving average (MA) of 1666.85, below the 50-day MA of 1551.06, and below the 200-day MA of 1584.46, indicating a bullish trend. The MACD of 88.91 indicates Negative momentum. The RSI at 80.15 is Negative, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥44.79B	14.19	―	1.95%	9.05%	14.38%
9735	73 Outperform	¥2.68T	23.15	8.35%	1.77%	5.39%	4.89%
7734	73 Outperform	¥170.15B	19.72	―	1.39%	11.23%	16.49%
4264	65 Neutral	¥10.68B	53.30	―	―	5.80%	-43.56%
2331	64 Neutral	¥652.54B	18.50	―	2.14%	7.73%	30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7058	62 Neutral	¥4.56B	17.67	―	3.03%	6.87%	-1.10%