Kyoei Security Service Co., Ltd. (7058) AI Stock Analysis

• Market Cap: ¥4.16B
• Dividend Yield: 3.14%
• Average Volume (3M): 633.00
• Price to Earnings (P/E): 46.9
• Beta (1Y): 0.26
• Revenue Growth: 6.83%
• EPS Growth: -59.50%
• Country: JP
• Employees: 802
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 128.76
• Shares Outstanding: 1,506,500
• 10 Day Avg. Volume: 560
• 30 Day Avg. Volume: 633
• PEG Ratio: 0.82
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ―

Kyoei Security Service Co., Ltd. shows solid financial stability with a strong equity base and low leverage. While revenue growth is robust, declining profit margins and cash flow visibility pose risks. Despite short-term bearish trends, the stock offers attractive valuation metrics, balancing risk with income potential for investors.

Kyoei Security Service Co., Ltd. Business Overview & Revenue Model

Company Description

Kyoei Security Service Co., Ltd. (7058) is a Japanese company specializing in providing comprehensive security services. The company operates within the security and safety sector, offering a range of services including security guard dispatch, facility management, and electronic security systems. With a focus on both corporate and private clients, Kyoei Security Service Co., Ltd. aims to deliver high-quality security solutions tailored to meet the specific needs of its customers.

How the Company Makes Money

Kyoei Security Service Co., Ltd. generates revenue primarily through the provision of security services. The company's key revenue streams include fees from security personnel dispatch, where they provide trained security guards for various facilities such as commercial buildings, residential complexes, and event venues. Additionally, the company earns income from facility management services, which involve maintaining and overseeing the security aspects of properties. Another significant revenue source is the installation and maintenance of electronic security systems, such as surveillance cameras and access control systems. These services are often provided under contracts, ensuring a steady flow of income. Kyoei Security Service Co., Ltd. may also partner with other companies to expand its service offerings and enhance its technological capabilities, further contributing to its financial performance.

Kyoei Security Service Co., Ltd. Financial Statement Overview

Summary

Kyoei Security Service Co., Ltd. demonstrates solid revenue growth and financial stability with low leverage. However, declining profit margins and lack of visibility in cash flow are concerns that could impact future operational capability.

Income Statement

Kyoei Security Service Co., Ltd. has shown a strong revenue growth with a significant increase in total revenue from ¥8,017.84 million in 2023 to ¥9,354.75 million in 2024, representing a growth rate of 16.68%. The gross profit margin has remained stable at around 23% to 24% over the years, indicating efficient cost management. However, the net profit margin has declined from 5.62% in 2022 to 3.04% in TTM 2024, suggesting increased expenses or reduced efficiency in converting revenue into profit.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.14 in TTM 2024, indicating low financial leverage and reduced risk. The equity ratio is strong at 70.95%, reflecting a solid equity base and financial stability. However, there is a slight decrease in return on equity from 10.36% in 2022 to 5.93% in TTM 2024, highlighting a need for improved profitability relative to shareholder equity.

Cash Flow

The cash flow analysis reveals challenges, as there is no reported free cash flow or operating cash flow in TTM 2024, suggesting potential liquidity concerns or reporting issues. The operating cash flow to net income ratio was positive in previous years but is currently unobservable, potentially impacting operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.40B	10.11B	9.35B	8.02B	8.00B	6.18B
Gross Profit	2.48B	2.35B	2.09B	1.91B	2.25B	1.59B
EBITDA	525.13M	360.66M	513.67M	653.70M	1.07B	454.03M
Net Income	89.05M	-38.70M	248.54M	451.13M	736.55M	274.99M
Balance Sheet
Total Assets	6.60B	6.35B	6.81B	5.85B	5.87B	4.88B
Cash, Cash Equivalents and Short-Term Investments	2.26B	2.19B	3.32B	3.40B	3.73B	3.06B
Total Debt	427.16M	480.37M	860.71M	241.66M	316.66M	432.65M
Total Liabilities	2.01B	1.82B	2.11B	1.26B	1.51B	1.15B
Stockholders Equity	4.59B	4.53B	4.71B	4.59B	4.35B	3.72B
Cash Flow
Free Cash Flow	0.00	0.00	248.57M	-88.14M	912.28M	157.45M
Operating Cash Flow	0.00	398.67M	248.57M	-88.14M	912.28M	157.45M
Investing Cash Flow	0.00	-149.22M	115.83M	-1.22B	-26.69M	93.30M
Financing Cash Flow	0.00	-592.14M	-236.52M	-458.92M	-222.25M	107.06M

Kyoei Security Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2838.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7058, the sentiment is Positive. The current price of 2838 is below the 20-day moving average (MA) of 2846.40, above the 50-day MA of 2820.78, and above the 200-day MA of 2543.03, indicating a bullish trend. The MACD of 5.35 indicates Positive momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 55.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7058.

Kyoei Security Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9686	75 Outperform	¥16.78B	11.02	―	3.22%	24.48%	204.62%
9740	75 Outperform	¥37.15B	11.86	―	2.40%	9.05%	14.38%
4754	74 Outperform	¥7.18B	7.40	―	2.18%	5.24%	91.21%
7058	72 Outperform	¥4.16B	46.87	―	3.14%	6.83%	-59.50%
4264	66 Neutral	¥8.80B	70.42	―	―	12.33%	-44.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2331	62 Neutral	¥542.25B	17.62	―	2.44%	6.66%	17.57%