Vario Secure, Inc. (4494) AI Stock Analysis

• Market Cap: ¥4.07B
• Dividend Yield: N/A
• Average Volume (3M): 31.78K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.58
• Revenue Growth: 1.13%
• EPS Growth: -1.12%
• Country: JP
• Employees: 74
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 23.29
• Shares Outstanding: 4,522,961
• 10 Day Avg. Volume: 81,610
• 30 Day Avg. Volume: 31,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥979.00
• Price Target Upside: 8.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥979.00 ▲(8.90% Upside)

Vario Secure, Inc. scores well due to its strong financial performance and bullish technical indicators. The stock is reasonably valued, but investors should be cautious of the overbought technical signals and monitor the volatility in free cash flow growth.

Vario Secure, Inc. Business Overview & Revenue Model

Company Description

Vario Secure Inc. provides managed security services and network security appliance sales services. The company's managed security services include integrated security equipment and operation and maintenance systems; and integration services, such as design, procurement, installation, and configuration of security equipment. Vario Secure Inc. was founded in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Vario Secure generates revenue primarily through the sale of its cybersecurity software products and subscription-based services. The company employs a Software as a Service (SaaS) model, allowing clients to access its solutions via a recurring subscription fee. Additionally, Vario Secure offers consulting services for businesses seeking to enhance their cybersecurity posture, which contributes to its revenue. Strategic partnerships with technology providers and systems integrators also play a crucial role in expanding its market reach and driving sales. Furthermore, the company benefits from government contracts and grants aimed at improving national cybersecurity infrastructure, providing an additional revenue stream.

Vario Secure, Inc. Financial Statement Overview

Summary

Vario Secure, Inc. demonstrates steady revenue growth and strong gross profit margins, indicating efficient cost control. The balance sheet reflects a stable equity position and prudent debt management, though there is a downward trend in return on equity. Cash flow is solid with strong operating cash flows, despite some volatility in free cash flow growth.

Income Statement

Vario Secure, Inc. has demonstrated steady revenue growth from 2020 to 2025 with marginal fluctuations, reflecting a resilient business model. The gross profit margin remains strong, indicating efficient cost control. However, there is a slight decline in net income over recent years, which could signal rising costs or competitive pressures. The EBIT and EBITDA margins are healthy, suggesting robust operating efficiency.

Balance Sheet

The company's balance sheet shows a stable equity position with a high equity ratio, indicating lower financial risk. The debt-to-equity ratio has improved over the years, reflecting prudent debt management. Return on equity is satisfactory but shows a downward trend, which could impact future profitability if not addressed.

Cash Flow

Vario Secure's cash flow statements reveal strong operating cash flows with consistent free cash flow generation. The free cash flow to net income ratio indicates efficient cash conversion. Nevertheless, the free cash flow growth rate has been volatile, which needs monitoring to ensure sustainable cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.67B	2.64B	2.63B	2.57B	2.55B
Gross Profit	1.37B	1.37B	1.46B	1.39B	1.60B	1.56B
EBITDA	823.26M	693.35M	706.05M	758.74M	877.23M	881.99M
Net Income	342.23M	342.23M	347.60M	383.32M	500.48M	491.53M
Balance Sheet
Total Assets	7.58B	7.58B	7.65B	7.83B	7.12B	7.22B
Cash, Cash Equivalents and Short-Term Investments	759.91M	759.91M	822.30M	1.04B	389.85M	593.93M
Total Debt	1.17B	1.17B	1.33B	1.50B	1.82B	2.26B
Total Liabilities	1.68B	1.68B	2.10B	2.45B	2.80B	3.27B
Stockholders Equity	5.89B	5.89B	5.55B	5.38B	4.32B	3.95B
Cash Flow
Free Cash Flow	267.68M	298.96M	241.00M	383.62M	381.92M	412.02M
Operating Cash Flow	359.54M	359.54M	414.90M	522.29M	490.21M	524.23M
Investing Cash Flow	-125.48M	-125.48M	-173.91M	-138.67M	-108.29M	-112.21M
Financing Cash Flow	-296.44M	-296.44M	-458.65M	266.50M	-586.14M	-450.32M

Vario Secure, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 899.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4494, the sentiment is Positive. The current price of 899 is above the 20-day moving average (MA) of 810.30, above the 50-day MA of 783.78, and above the 200-day MA of 690.38, indicating a bullish trend. The MACD of 29.47 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4494.

Vario Secure, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4494	75 Outperform	¥4.07B	11.73	―	―	1.13%	-1.12%
4417	73 Outperform	¥48.21B	45.03	32.81%	0.85%	25.30%	28.37%
4493	73 Outperform	¥17.70B	32.52	33.70%	0.17%	28.56%	-13.56%
3914	67 Neutral	¥16.41B	44.44	15.18%	―	3.19%	-29.94%
3695	61 Neutral	¥9.81B	56.48	8.72%	5.15%	14.59%	-71.29%
3042	58 Neutral	¥2.60B	24.89	―	0.59%	13.74%	-55.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Vario Secure, Inc. Corporate Events

Vario Secure Inc. Reports Fiscal Year 2025 Financial Results

Vario Secure Inc. reported its non-consolidated financial results for the fiscal year ending February 28, 2025, showing a slight increase in revenue but a decline in operating profit and profit before tax compared to the previous year. Despite these challenges, the company forecasts a significant improvement in financial performance for the next fiscal year, indicating a positive outlook for stakeholders.