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

• Market Cap: ¥16.37B
• Dividend Yield: 0.17%
• Average Volume (3M): 194.71K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.19
• 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: 74 Outperform
• Price Target: ¥1,809.00 ▼(-3.78% Downside)
• Action: Upgraded Date: 03/24/26
• Date: Action: Upgraded 03/24/26

The score is driven primarily by strong financial performance—high and improving profitability with low leverage—partly offset by uneven cash-flow conversion. Technicals are a drag due to the stock trading below major moving averages, while valuation is supportive with a reasonable P/E and modest yield.

Positive Factors

Durable revenue scaling & high gross margins

Multi-year revenue scale combined with consistently high gross margins supports durable unit economics. High gross margins enable reinvestment in product and sales, sustain margins through pricing pressure, and allow scalable profit growth as revenue expands over the next 2–6 months and beyond.

Improving operating and net profitability

Rising EBIT and net margins indicate the business is capturing operating leverage and improving cost structure. Sustained margin expansion strengthens cash generation, increases reinvestment capacity, and makes earnings more resilient to revenue slowdowns, supporting long-term profitability.

Very low leverage and strong cash generation

Extremely low leverage and free cash flow roughly matching net income signal strong balance-sheet resilience and financial flexibility. This reduces refinancing risk, supports organic investment or M&A, and provides a buffer to fund growth or weather cyclical downturns without relying on outside capital.

Negative Factors

Moderating revenue growth trend

While growth remains solid, the pace has slowed from the earlier hyper-growth phase that produced ~4x revenue since 2020. Slower top-line expansion reduces the base for operating leverage and limits upside from scale unless product adoption or new markets re-accelerate over the medium term.

Inconsistent cash-flow conversion

Variability in cash conversion and a history of free cash flow dips (notably 2022) point to working-capital or timing sensitivity. That intermittency can strain funding for growth initiatives, complicate capital allocation, and raises earnings-quality questions across reporting periods.

Unexplained equity step-change risk

A material, unexplained increase in equity suggests potential dilution or one-off balance-sheet actions. Such events can dilute EPS, alter ownership, or signal capital-raising that changes long-term return profiles; lack of clarity increases governance and forecasting uncertainty.

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.

Cyber Security Cloud, Inc. Financial Statement Overview

Summary

Strong profitability and scale-up: revenue grew ~4.3x from 2020–2025 with solid 2025 growth (14.7%), while margins remain high (2025 EBIT ~21.7%, net ~16.2%). Balance sheet is conservative with very low leverage (2025 debt-to-equity ~0.06) and healthy ROE (~18.6%). Main constraint is cash-flow consistency: operating cash flow has periodically lagged earnings (coverage ~0.83 in 2025) and free cash flow growth has been volatile.

Income Statement

Revenue has compounded strongly from 2020–2025 (about 4.3x growth), with growth remaining solid in 2025 (14.7%) after very rapid expansion in prior years. Profitability is a clear strength: gross margin remains high (~65–72%) and operating profitability has improved over time, with 2025 EBIT margin at ~21.7% and net margin at ~16.2% (up from ~9.3% in 2021). The main watch-out is decelerating revenue growth versus earlier years and a modest step-down in gross margin versus 2021–2022, though overall margins remain very strong for the sector.

Balance Sheet

Leverage is low and improving, with debt-to-equity down to ~0.06 in 2025 from ~0.67 in 2020, providing meaningful balance-sheet flexibility. Equity has expanded substantially by 2025, supporting scale-up without heavy reliance on debt. Returns on equity are healthy (about 18.6% in 2025), though they have come down from an unusually high 2024 level, suggesting profitability is strong but not consistently trending higher every year.

Cash Flow

Cash generation is positive and growing in absolute terms, with operating cash flow rising to about 1.00B in 2025 (from ~0.63B in 2024 and ~0.13B in 2020). Free cash flow closely tracks operating cash flow and in 2025 matched net income (free cash flow to net income of 1.0), indicating good earnings quality. However, cash conversion has been uneven: operating cash flow has not consistently covered accounting profits (coverage below 1.0 across years, including ~0.83 in 2025), and free cash flow growth has been volatile (notably negative in 2022 and 2020).

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	1.60B	1.15B
EBITDA	861.62M	1.23B	845.20M	597.88M	416.83M	277.11M
Net Income	513.46M	821.90M	575.10M	427.21M	306.41M	147.62M
Balance Sheet
Total Assets	5.17B	5.83B	3.03B	2.80B	2.18B	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	1.32B	973.77M	865.85M	644.01M
Stockholders Equity	3.89B	4.42B	1.71B	1.82B	1.31B	937.59M
Cash Flow
Free Cash Flow	0.00	1.00B	593.87M	472.57M	295.31M	379.90M
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	-595.27M	-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: Negative
• 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 1653.55, above the 50-day MA of 1755.84, and above the 200-day MA of 1791.30, indicating a neutral trend. The MACD of 6.38 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 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
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%
4704	71 Outperform	¥695.22B	24.78	29.21%	2.57%	1.91%	44.78%
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%

Cyber Security Cloud, Inc. Corporate Events

Cyber Security Cloud Lifts Profit, Strengthens Balance Sheet and Hikes Dividend

Cyber Security Cloud reported strong consolidated results for the fiscal year ended December 31, 2025, with net sales climbing 31.8% to ¥5.08 billion and operating profit up 42.5% to ¥1.10 billion. Profit attributable to owners of parent rose 42.9% to ¥821 million, while its equity ratio improved to 75.6% as total assets nearly doubled, supported by solid operating cash flow and a sharp rise in year-end cash and cash equivalents.

Shareholders are set to receive a higher annual dividend of ¥5 per share for 2025, up from ¥3 a year earlier, with a further increase to ¥6 forecast for 2026. For the year ending December 31, 2026, the company projects continued but moderating growth, guiding for net sales of ¥6.0 billion and profit attributable to owners of parent of ¥865 million, indicating ongoing business expansion and a stronger financial base following the consolidation of subsidiary DataSign Inc.

The most recent analyst rating on (JP:4493) stock is a Hold with a Yen1878.00 price target. To see the full list of analyst forecasts on Cyber Security Cloud, Inc. stock, see the JP:4493 Stock Forecast page.