Cyber Security Cloud, Inc. (4493) AI Stock Analysis

• Market Cap: ¥16.78B
• Dividend Yield: 0.17%
• Average Volume (3M): 194.71K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.32
• Revenue Growth: 31.39%
• EPS Growth: 13.12%
• Country: JP
• Employees: 136
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 24.91
• Shares Outstanding: 10,390,644
• 10 Day Avg. Volume: 169,100
• 30 Day Avg. Volume: 194,710
• PEG Ratio: 0.70
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 3.54
• P/FCF Ratio: 17.93
• 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): 108.1
• Revenue Forecast (FY): ¥6.37B

• Rating: 67 Neutral
• Price Target: ¥1,652.00 ▼(-12.13% Downside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is supported by strong financial fundamentals (high margins, improving profitability, and low leverage). It is held back by weak technicals (price below key moving averages, negative MACD, and oversold momentum) and only moderate valuation support given a minimal dividend yield.

Positive Factors

Revenue scaling

Strong multi-year revenue scaling (about 4x since 2020 with continued growth in 2025) indicates durable product-market fit and an expanding customer base. That scale supports continued investment in R&D and sales, improves operating leverage, and lengthens the revenue runway even if growth moderates.

High, sustainable margins

Consistently high gross margins (~65–72%) alongside improving EBIT (~22%) and net margins (~16%) point to durable unit economics and pricing power. Strong margins support reinvestment, cushion against cyclical demand, and enable sustainable cash generation and profitability over the medium term.

Conservative balance sheet

Very low leverage (debt-to-equity ~0.06 in 2025, down from ~0.67 in 2020) provides financial flexibility and resilience. A stronger balance sheet reduces refinancing risk, supports opportunistic capital deployment or M&A, and preserves operational stability through cycles.

Negative Factors

Moderating growth rate

Growth appears to be moderating relative to the company’s earlier high-growth phase, reducing the pace of top-line expansion. Slower revenue acceleration makes sustaining margin expansion and ROIC more dependent on execution, pricing, and cross-sell, raising long-term growth risk if not addressed.

Inconsistent cash conversion

Operating cash flow has lagged net income in several years (2025 OCF ~0.83x net income) and free cash flow dipped in 2022, signalling working-capital or timing variability. This inconsistency can constrain reinvestment, increase reliance on external financing, and complicate capital planning over the medium term.

Unclear equity step-change

An unexplained step-change in equity between 2024 and 2025 may indicate dilution or other balance-sheet actions. Such moves can create uncertainty around capital allocation, shareholder dilution, and future EPS trends, affecting long-term investor returns and governance clarity.

Cyber Security Cloud, Inc. Business Overview & Revenue Model

Company Description

Cyber Security Cloud, Inc. develops Web security services using artificial intelligence (AI) in Japan. The company offers Shadankun, a Web security service that detects and blocks cyber-attacks on Websites and Web servers; WafCharm, a service for automation of AWS WAF rules using AI and big data; Cyber Security Cloud Managed Rules for AWS WAF; and Cyber Security Cloud Managed Rules for AWS WAF. It is also involved in the cyber-attack research and analysis business; and research and development of AI technology. The company was founded in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Cyber Security Cloud, Inc. primarily generates revenue through a subscription-based model, offering tiered pricing plans that cater to different organizational needs. Key revenue streams include monthly or annual subscriptions for its software-as-a-service (SaaS) products, which provide continuous access to their cybersecurity tools and updates. Additionally, the company earns income from professional services, such as consulting and training, which help clients implement and optimize their cybersecurity strategies. Significant partnerships with technology firms and cloud service providers enhance its service offerings, further driving customer acquisition and retention, and contributing to overall revenue growth.

Cyber Security Cloud, Inc. Financial Statement Overview

Summary

Strong multi-year revenue scaling with solid, improving profitability (net margin ~16% in 2025; EBIT margin ~22% in 2024–2025) and consistently high gross margins (~65–72%). Balance sheet is a key strength with very low leverage (debt-to-equity ~0.06 in 2025). Watch-outs include moderating growth versus earlier years and some variability in cash flow conversion year to year.

Income Statement

Revenue has scaled strongly over time (about 4x since 2020) with continued growth in 2025, while profitability is solid and improving—net margin rose from ~9% (2021) to ~16% (2025) and operating profitability remains healthy (EBIT margin ~22% in 2024–2025). Gross margin is consistently high (~65–72%), supporting durable unit economics. The main watch-out is that growth appears to be moderating versus the earlier high-growth years, and gross margin in 2025 is below the 2021–2023 peak.

Balance Sheet

Leverage looks conservative: debt-to-equity is low in 2025 (~0.06) and has improved materially from 2020 (~0.67), indicating strengthening balance-sheet resilience. Equity and assets have expanded significantly, suggesting the company has been building financial capacity as it grows. A potential risk is the step-change in equity between 2024 and 2025, which may reflect dilution or other balance-sheet actions (not explained in the provided data), though overall leverage remains very manageable.

Cash Flow

Cash generation is strong relative to earnings: free cash flow is close to net income across years (near 1.0 in 2025), indicating good earnings quality, and operating cash flow has grown meaningfully from 2020 to 2025. Cash flow conversion is not perfectly consistent—operating cash flow is less than net income in several years (and in 2025 it is ~0.83x), and free cash flow dipped in 2022—so working-capital or timing effects can create year-to-year variability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.43B	5.08B	3.86B	3.06B	2.28B	1.59B
Gross Profit	2.79B	3.33B	2.52B	2.14B	1.61B	1.15B
EBITDA	791.95M	1.23B	906.61M	608.68M	462.73M	262.10M
Net Income	513.36M	821.90M	575.10M	427.21M	306.41M	147.62M
Balance Sheet
Total Assets	5.17B	5.83B	3.02B	2.78B	2.16B	1.58B
Cash, Cash Equivalents and Short-Term Investments	3.39B	3.98B	1.67B	1.75B	1.33B	796.74M
Total Debt	349.57M	276.49M	383.41M	184.20M	279.41M	266.28M
Total Liabilities	1.28B	1.41B	1.31B	958.55M	848.09M	644.02M
Stockholders Equity	3.89B	4.42B	1.71B	1.82B	1.31B	944.89M
Cash Flow
Free Cash Flow	0.00	1.00B	589.85M	472.31M	272.28M	374.91M
Operating Cash Flow	0.00	1.00B	633.51M	578.46M	353.63M	382.04M
Investing Cash Flow	0.00	-426.42M	-175.92M	-106.15M	-114.24M	-59.02M
Financing Cash Flow	0.00	1.71B	-595.00M	-93.26M	40.60M	-169.89M

Cyber Security Cloud, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1880.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4493, the sentiment is Negative. The current price of 1880 is above the 20-day moving average (MA) of 1714.75, above the 50-day MA of 1791.08, and above the 200-day MA of 1806.96, indicating a bearish trend. The MACD of -56.62 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4493.

Cyber Security Cloud, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3040	73 Outperform	¥36.91B	16.09	19.71%	3.09%	3.44%	79.35%
4704	71 Outperform	¥682.74B	19.82	29.20%	2.57%	1.91%	44.78%
4475	68 Neutral	¥32.66B	24.33	―	0.39%	30.59%	65.14%
4493	67 Neutral	¥16.78B	20.22	―	0.17%	31.39%	13.12%
4417	65 Neutral	¥40.97B	31.12	―	0.90%	25.06%	37.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%