Vario Secure, Inc. (4494) AI Stock Analysis

• Market Cap: ¥3.51B
• Dividend Yield: N/A
• Average Volume (3M): 8.25K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.56
• Revenue Growth: 1.13%
• EPS Growth: -1.12%
• Country: JP
• Employees: 74
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Infrastructure
• EPS (TTM): 23.29
• Shares Outstanding: 4,522,961
• 10 Day Avg. Volume: 6,950
• 30 Day Avg. Volume: 8,246
• 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: ¥831.00
• Price Target Upside: 7.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥831.00 ▲(7.23% Upside)

Vario Secure's strong financial performance, characterized by consistent revenue growth and efficient operations, underpins its stock score. Despite technical indicators suggesting a short-term bearish trend, the low P/E ratio indicates an attractive valuation. The absence of significant earnings call data or corporate events means these factors did not influence the score.

Vario Secure, Inc. Business Overview & Revenue Model

Company Description

Vario Secure, Inc. (4494) is a company specializing in providing comprehensive cybersecurity solutions tailored to protect businesses from evolving digital threats. The company operates primarily in the technology and cybersecurity sectors, offering a range of services including network security, managed security services, and cybersecurity consulting. Vario Secure is committed to delivering robust security frameworks that help organizations safeguard their data and IT infrastructure against potential cyber threats.

How the Company Makes Money

Vario Secure, Inc. generates revenue through a diversified portfolio of cybersecurity services. The company's primary revenue streams include subscription-based managed security services, where clients pay recurring fees for continuous protection and monitoring of their networks. Additionally, Vario Secure offers consultancy services for organizations seeking expert guidance on enhancing their cybersecurity posture, which contributes to project-based revenue. The company may also engage in strategic partnerships with technology vendors or other organizations to expand its service offerings and enhance its market reach, further boosting its revenue potential.

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: 775.00
• 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 775 is below the 20-day moving average (MA) of 775.60, above the 50-day MA of 771.46, and above the 200-day MA of 675.75, indicating a bullish trend. The MACD of 3.82 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 34.29 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
4493	77 Outperform	¥17.69B	32.50		0.16%	28.56%	-13.56%
4417	73 Outperform	¥48.21B	45.03		0.66%	25.30%	28.37%
4494	68 Neutral	¥3.51B	10.11		―	1.13%	-1.12%
3914	66 Neutral	¥16.11B	43.14		―	3.19%	-29.94%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
3695	61 Neutral	¥9.73B	56.02		5.19%	14.59%	-71.29%
3042	58 Neutral	¥2.51B	24.01		0.61%	13.74%	-55.69%

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.