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

• Market Cap: ¥17.40B
• 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: 67 Neutral
• Price Target: ¥1,893.00 ▲(0.69% Upside)
• 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

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 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	1.60B	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
3040	73 Outperform	¥33.39B	16.59	19.71%	3.09%	3.44%	79.35%
4704	71 Outperform	¥702.04B	24.78	29.21%	2.57%	1.91%	44.78%
4475	68 Neutral	¥31.27B	27.58	―	0.39%	30.59%	65.14%
4493	67 Neutral	¥17.40B	17.99	―	0.17%	31.39%	13.12%
4417	65 Neutral	¥37.65B	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.