Vario Secure, Inc. (4494) AI Stock Analysis

• Market Cap: ¥3.70B
• Dividend Yield: N/A
• Average Volume (3M): 37.56K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.62
• Revenue Growth: 1.62%
• EPS Growth: 9.93%
• Country: JP
• Employees: 74
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 24.11
• Shares Outstanding: 4,522,961
• 10 Day Avg. Volume: 19,420
• 30 Day Avg. Volume: 37,556
• PEG Ratio: -4.63
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 8.54
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥851.00 ▲(11.24% Upside)

Vario Secure, Inc. scores well on valuation due to its low P/E ratio, suggesting it may be undervalued. Financial performance is strong, supported by steady revenue growth and efficient operations, although there are concerns about declining net income and return on equity. Technical analysis indicates bearish market momentum, which could pose short-term challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a resilient business model and strong market demand for Vario Secure's cybersecurity solutions.

Balance Sheet Health

A stable balance sheet with a high equity ratio suggests lower financial risk and prudent debt management, supporting long-term stability.

Cash Flow Generation

Efficient cash conversion and consistent free cash flow generation enhance financial flexibility and support future growth initiatives.

Negative Factors

Declining Net Income

A decline in net income could indicate rising costs or competitive pressures, potentially impacting profitability if not addressed.

Return on Equity Trend

A downward trend in return on equity may affect future profitability and investor confidence if not reversed.

Volatile Free Cash Flow Growth

Volatility in free cash flow growth needs monitoring to ensure sustainable cash generation and maintain financial health.

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 strong financial performance with steady revenue growth and efficient operations. The balance sheet is robust with low leverage, and cash flow is solid despite some volatility in free cash flow growth. However, a slight decline in net income and downward trend in return on equity are areas of concern.

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	2.70B	2.67B	2.64B	2.63B	2.57B	2.55B
Gross Profit	1.38B	1.37B	1.46B	1.39B	1.60B	1.56B
EBITDA	826.76M	693.35M	706.05M	758.74M	877.23M	881.99M
Net Income	346.54M	342.23M	347.60M	383.32M	500.48M	491.53M
Balance Sheet
Total Assets	7.62B	7.58B	7.65B	7.83B	7.12B	7.22B
Cash, Cash Equivalents and Short-Term Investments	780.68M	759.91M	822.30M	1.04B	389.85M	593.93M
Total Debt	1.11B	1.17B	1.33B	1.50B	1.82B	2.26B
Total Liabilities	1.62B	1.68B	2.10B	2.45B	2.80B	3.27B
Stockholders Equity	6.00B	5.89B	5.55B	5.38B	4.32B	3.95B
Cash Flow
Free Cash Flow	342.27M	298.96M	241.00M	383.62M	381.92M	412.02M
Operating Cash Flow	432.79M	359.54M	414.90M	522.29M	490.21M	524.23M
Investing Cash Flow	-137.22M	-125.48M	-173.91M	-138.67M	-108.29M	-112.21M
Financing Cash Flow	-295.38M	-296.44M	-458.65M	266.50M	-586.14M	-450.32M

Vario Secure, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 765.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 765 is below the 20-day moving average (MA) of 782.35, below the 50-day MA of 826.36, and above the 200-day MA of 744.11, indicating a neutral trend. The MACD of -16.44 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥18.79B	27.26	―	0.16%	31.39%	13.12%
4494	67 Neutral	¥3.70B	9.88	―	―	1.62%	9.93%
3914	67 Neutral	¥22.82B	61.81	―	―	3.17%	-16.66%
3695	65 Neutral	¥8.78B	27.64	―	5.70%	26.41%	-20.60%
3042	62 Neutral	¥2.65B	25.41	―	0.55%	25.37%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4417	60 Neutral	¥54.64B	45.76	―	0.66%	25.06%	37.24%