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

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Kyoei Security Service Co., Ltd.

(7058)

Rating:72Outperform

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. (7058) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥3.43B

Dividend Yield3.8%

Average Volume (3M)1.13K

Price to Earnings (P/E)13.1

Beta (1Y)0.28

Revenue Growth13.49%

EPS Growth17.08%

CountryJP

Employees802

SectorIndustrials

Sector Strength93

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)-187.13

Shares Outstanding1,506,500

10 Day Avg. Volume1,110

30 Day Avg. Volume1,130

Financial Highlights & Ratios

PEG Ratio0.44

Price to Book (P/B)0.76

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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

Company DescriptionKyoei 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 MoneyKyoei 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

Positive

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

Very Positive

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

Neutral

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
10.11B	9.35B	8.02B	8.00B	6.18B	6.42B
	Gross Profit
2.34B	2.09B	1.91B	2.25B	1.59B	1.65B
	EBIT
487.80M	309.20M	489.29M	971.12M	329.00M	445.00M
	EBITDA
613.75M	513.67M	653.70M	1.07B	454.03M	486.00M
	Net Income Common Stockholders
284.65M	248.54M	451.13M	736.55M	274.99M	325.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.67B	3.32B	3.40B	3.73B	3.06B	2.71B
	Total Assets
6.77B	6.81B	5.85B	5.87B	4.88B	4.59B
	Total Debt
681.00M	860.71M	241.66M	316.66M	432.65M	5.01M
	Net Debt
-1.99B	-2.46B	-3.16B	-3.41B	-2.63B	-2.70B
	Total Liabilities
1.97B	2.11B	1.26B	1.51B	1.15B	783.00M
	Stockholders Equity
4.80B	4.71B	4.59B	4.35B	3.72B	3.77B
Cash Flow		Free Cash Flow
0.00	248.57M	-88.14M	912.28M	157.45M	234.00M
	Operating Cash Flow
0.00	248.57M	-88.14M	912.28M	157.45M	234.00M
	Investing Cash Flow
0.00	115.83M	-1.22B	-26.69M	93.30M	21.00M
	Financing Cash Flow
0.00	-236.52M	-458.92M	-222.25M	107.06M	-117.00M

Kyoei Security Service Co., Ltd. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2407.00

Price Trends

50DMA

2473.88

Negative

100DMA

2434.57

Negative

200DMA

2354.18

Positive

Market Momentum

MACD

-33.50

Positive

RSI

40.49

Neutral

STOCH

68.81

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7058, the sentiment is Negative. The current price of 2407 is below the 20-day moving average (MA) of 2425.85, below the 50-day MA of 2473.88, and above the 200-day MA of 2354.18, indicating a neutral trend. The MACD of -33.50 indicates Positive momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7058.

Kyoei Security Service Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2415	84 Outperform	¥17.27B	6.74		4.46%	4.62%	22.95%
2181	78 Outperform	$619.88B	16.87	18.49%	3.27%	9.35%	21.50%
9735	74 Outperform	¥2.35T	20.34	8.55%	1.76%	3.91%	7.86%
2374	73 Outperform	¥19.18B	12.71		3.91%	4.15%	-25.66%
7058	72 Outperform	¥3.43B	13.11		3.80%	13.49%	17.08%
9742	71 Outperform	¥34.16B	14.57		3.22%	0.01%	35.72%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%

* Industrials Sector Average

Performance Comparison

JP:7058

Kyoei Security Service Co., Ltd.

2,407.00

-308.99

-11.38%

JP:2374

Saint-Care Holding Corp.

780.00

-27.82

-3.44%

JP:2415

Human Holdings Co., Ltd.

1,699.00

311.74

22.47%

JP:9742

Ines Corporation

1,701.00

72.43

4.45%

JP:2181

PERSOL HOLDINGS CO

270.00

54.13

25.07%

JP:9735

Secom Co

5,272.00

518.17

10.90%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.