SECURE,INC. (4264) AI Stock Analysis

• Market Cap: ¥9.89B
• Dividend Yield: N/A
• Average Volume (3M): 20.94K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.05
• 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: 66 Neutral
• Price Target: ¥2,051.00 ▲(41.45% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven by strong technical momentum and a solid post-2022 operational recovery, partially offset by thin and recently softening profitability/cash flow and a demanding valuation (high P/E) with no dividend yield provided.

Positive Factors

Multi-year revenue growth & recovery

Sustained revenue expansion and a profitability rebound since 2022 indicate durable demand for core services and improving operational execution. This sustained top-line momentum through 2025 supports scalable unit economics, room to invest in service capabilities, and a stronger base for medium-term margin improvement.

Improved balance sheet posture

A more conservative leverage profile and meaningful equity growth in 2025 reduce refinancing and solvency risk, increasing financial flexibility. Stronger capital structure supports funding for strategic investments, M&A optionality, and resilience to industry cycles over the next several quarters.

Positive operating and free cash flow

Return to positive operating and free cash flow after earlier negative years demonstrates improved cash generation and earnings quality. Persistent FCF through 2025 enhances the firm's ability to self-fund maintenance capex and incremental growth initiatives without immediate external financing.

Negative Factors

Thin and weakening net margins

Low and deteriorating net margins constrain the company's ability to translate revenue gains into durable profits. Persistent thin bottom-line margins reduce retained earnings, limit reinvestment capacity, and leave the business sensitive to cost inflation or adverse mix shifts over the medium term.

Operating cash flow deceleration

A decline in operating cash flow in 2025 versus 2024 signals weaker cash conversion of profits and reduces near-term financial headroom. Slower OCF growth limits capacity to fund working capital or expansion internally and increases reliance on external funding if investments accelerate.

Volatile leverage and sizable absolute debt

Historical swings in leverage and a materially sized absolute debt stock raise refinancing and interest-rate sensitivity risks. Volatility in funding needs can constrain strategic choices and magnify downside if cash flow weakens, posing a structural risk to stability over the next several quarters.

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 since 2022 support the score. However, net margins remain thin and weakened in 2025 versus 2024, and operating/free cash flow also stepped down in 2025, limiting financial strength.

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	2.46B	1.97B	1.27B	1.28B
EBITDA	268.82M	414.75M	392.13M	247.50M	-107.85M	211.31M
Net Income	104.45M	187.59M	240.56M	168.79M	-227.63M	131.48M
Balance Sheet
Total Assets	5.00B	5.26B	3.79B	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	2.51B	1.73B	1.15B	1.00B
Stockholders Equity	2.79B	2.93B	1.28B	1.02B	842.14M	983.09M
Cash Flow
Free Cash Flow	0.00	147.85M	293.39M	77.69M	-351.45M	112.41M
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: Neutral
• Last Price: 1450.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1450 is below the 20-day moving average (MA) of 1840.10, below the 50-day MA of 1667.50, and below the 200-day MA of 1592.31, indicating a neutral trend. The MACD of 48.82 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 17.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥44.87B	21.44	―	1.95%	9.05%	14.38%
9735	73 Outperform	¥2.65T	19.24	8.35%	1.77%	5.39%	4.89%
7734	73 Outperform	¥149.50B	14.99	―	1.39%	11.23%	16.49%
4264	66 Neutral	¥9.89B	42.27	―	―	5.80%	-43.56%
2331	64 Neutral	¥625.54B	16.50	―	2.14%	7.73%	30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7058	62 Neutral	¥4.34B	6.80	―	3.03%	6.87%	-1.10%