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Secom Co
(9735)
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Rating:64Neutral
Price Target:
¥7,308.00
▲(7.44% Upside)
Action:Downgraded
Date:05/14/26
The score is driven primarily by strong financial quality (low leverage and steady profitability), partially offset by weak technical momentum signals (oversold with negative MACD). Valuation is reasonable but not compelling, with only a modest dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity provide long-term financial resilience. This conservatism reduces bankruptcy and refinancing risk, preserves credit optionality for acquisitions or capex, and supports consistent capital returns and investment through downturns.
Negative Factors
Margin pressure
Gradual erosion of gross and operating margins can persistently compress profitability if structural cost or pricing pressures remain. Lower margins reduce reinvestment capacity and cash available for strategic initiatives, hindering long-term EPS and return expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity provide long-term financial resilience. This conservatism reduces bankruptcy and refinancing risk, preserves credit optionality for acquisitions or capex, and supports consistent capital returns and investment through downturns.
Read all positive factors
Secom Co (9735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.05T
Dividend Yield1.45%
Average Volume (3M)1.24M
Price to Earnings (P/E)24.9
Beta (1Y)0.27
Revenue Growth4.75%
EPS Growth6.29%
CountryJP
Employees65,094
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)276.29
Shares Outstanding466,599,800
10 Day Avg. Volume1,270,470
30 Day Avg. Volume1,239,516
Financial Highlights & Ratios
PEG Ratio3.51
Price to Book (P/B)1.87
Price to Sales (P/S)1.96
P/FCF Ratio18.94
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
EPS Forecast (FY)289.7
Revenue Forecast (FY)¥1.32T
Secom Co Business Overview & Revenue Model
Company Description
SECOM Co., Ltd., established in Tokyo in 1962, is a Japanese and international provider of a diverse range of services, with a strong emphasis on security. Its primary Security Services segment encompasses online monitoring systems, on-site guardi...
How the Company Makes Money
SECOM primarily makes money by charging customers for security services and related safety solutions. A core revenue stream is ongoing service fees from monitoring/guarding arrangements (e.g., alarm monitoring and dispatch/response services) provi...
Secom Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.26T | 1.20T | 1.15T | 1.10T | 1.05T |
| Gross Profit | 379.72B | 371.15B | 357.28B | 342.46B | 337.67B |
| EBITDA | 262.26B | 253.42B | 236.61B | 223.18B | 220.31B |
| Net Income | 112.66B | 108.11B | 101.95B | 96.08B | 94.27B |
Balance Sheet | |||||
| Total Assets | 2.23T | 2.15T | 2.08T | 1.99T | 1.91T |
| Cash, Cash Equivalents and Short-Term Investments | 583.55B | 584.63B | 599.15B | 684.18B | 685.86B |
| Total Debt | 68.50B | 72.64B | 68.96B | 64.28B | 67.63B |
| Total Liabilities | 730.44B | 697.84B | 690.09B | 673.01B | 651.72B |
| Stockholders Equity | 1.31T | 1.27T | 1.22T | 1.16T | 1.12T |
Cash Flow | |||||
| Free Cash Flow | 130.00B | 95.20B | 83.00B | 95.66B | 109.75B |
| Operating Cash Flow | 200.48B | 172.74B | 164.28B | 145.44B | 162.86B |
| Investing Cash Flow | -88.59B | -100.77B | -159.34B | -67.60B | -55.28B |
| Financing Cash Flow | -115.04B | -85.28B | -98.42B | -80.68B | -87.47B |
Secom Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥164.05B | 16.08 | ― | 1.39% | 12.59% | 26.40% | |
75 Outperform | ¥268.35B | 19.19 | ― | 2.42% | 4.46% | 23.01% | |
68 Neutral | ¥597.52B | 17.13 | ― | 2.14% | 8.18% | 23.29% | |
64 Neutral | ¥3.05T | 24.91 | 8.87% | 1.45% | 4.75% | 6.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥4.31B | 6.69 | ― | 3.03% | 14.54% | ― | |
62 Neutral | ¥40.65B | 18.39 | ― | 1.95% | 7.98% | -38.53% |
* Industrials Sector Average
JP:9735
Secom Co
6,676.00
1,038.22
18.42%
JP:2331
Sohgo Security Services Co., Ltd.
1,121.50
55.67
5.22%
JP:6744
Nohmi Bosai Ltd.
4,490.00
422.04
10.37%
JP:7058
Kyoei Security Service Co., Ltd.
2,963.00
437.81
17.34%
JP:7734
Riken Keiki Co., Ltd.
3,560.00
351.30
10.95%
JP:9740
Central Security Patrols Co., Ltd.
2,655.00
229.86
9.48%
Secom Co Corporate Events
Secom Advances Major Share Buyback Under Board-Approved Program
Aug 3, 2026
Secom Co., Ltd. is a Japanese security services provider listed on the Tokyo Stock Exchange Prime Market, focusing on security-related solutions and actively managing its capital structure through common stock issuance and repurchases. The company...
Secom Completes Restricted Stock Treasury Disposal for Executive Officers
Jul 24, 2026
Secom Co., Ltd. has completed the payment procedures for a disposal of treasury stock designated as restricted stock for its executive officers, following a resolution passed by its board of directors on June 26, 2026. The company disposed of 7,19...
Secom Completes Treasury Stock Disposal for Director Restricted Stock Compensation
Jul 24, 2026
Secom has completed the payment procedures for a previously approved disposal of treasury stock to be used as restricted stock compensation for its directors. The transaction involved issuing 11,432 shares of common stock at ¥6,374 per share,...
Secom Advances ¥100 Billion Share Buyback, Repurchases 3.5 Million Shares
Jul 1, 2026
Secom has been executing a share repurchase program authorized by its board in May 2026, under which it is allowed to buy back up to 23 million shares or 5.69% of its outstanding stock for a maximum of ¥100 billion through February 2027. The ...
Secom Introduces Restricted Stock Plan for Executive Officers
Jun 26, 2026
Secom is introducing a restricted stock compensation plan for its executive officers, excluding those who also serve as directors, by disposing of 7,199 shares of treasury stock at a price aligned with the market. The move aims to deepen managemen...
Secom to Use Treasury Shares for Restricted Stock Compensation to Directors
Jun 26, 2026
Secom will dispose of 11,432 shares of its treasury stock on July 24, 2026 to provide restricted stock compensation to six internal directors, at a disposal price of JPY 6,374 per share for a total of about JPY 72.9 million. The transaction forms ...
Secom Weighs Investment Unit Cut to Boost Share Liquidity
Jun 1, 2026
Secom has outlined its stance on potentially reducing the size of its investment units, viewing such a move as a way to broaden participation by individual investors and improve liquidity in its shares. The company frames investment unit reduction...
Secom Reports Initial Results of ¥100 Billion Share Buyback Program
Jun 1, 2026
Secom has disclosed the latest progress in its ongoing share repurchase program authorized by its board on May 12, 2026. The company is buying back common stock as part of a capital allocation initiative that could influence its share price and sh...
Secom Board Rejects Shareholder Proposal on Capital Policy and Governance Changes
May 21, 2026
Secom’s board has rejected a shareholder proposal from LONGCHAMP SICA V, represented by Dalton Investments, that sought amendments to the Articles of Incorporation to mandate management more explicitly focused on cost of capital and stock pr...
Secom Faces Shareholder Push for Stronger Capital-Efficient Management Disclosure
May 14, 2026
Secom has received a shareholder proposal from LONGCHAMP SICA V, represented by Dalton Investments, ahead of its June 26, 2026 annual general meeting, seeking amendments to the Articles of Incorporation. The proposals call for Secom to embed Tokyo...
Secom Introduces Restricted Stock Plan for Executive Officers
May 12, 2026
Secom has approved the introduction of a restricted stock plan that grants common shares to its executive officers, excluding those who also serve as directors, as part of a broader strategy to invest in and retain key human capital. The plan is d...
Secom Launches ¥100 Billion Share Buyback with Full Cancellation Plan
May 12, 2026
Secom’s board has approved a significant share buyback program, authorizing the repurchase of up to 23 million common shares, equivalent to about 5.69% of its outstanding stock, for a maximum of JPY 100 billion through market purchases on th...
Secom Raises Dividend Payout Target and Forecast Under Road Map 2027
May 12, 2026
Secom said its board has approved a dividend policy targeting a payout ratio of around 45%, aligning shareholder returns with the goals of its SECOM Group Road Map 2027 while maintaining a sound financial position. In line with this policy, the co...
Secom Sets 2040 Vision to Build Proactive, Data-Driven Security Platform
May 12, 2026
Secom has unveiled a new long-term management vision for 2040 that seeks to clarify its strategic direction amid increasingly complex and interconnected social challenges. Centered on the concept of delivering “Peace of Mind through Anticipa...
Secom Revamps Board and Audit Line-Up Ahead of June 2026 Shareholders Meeting
May 12, 2026
Secom has announced a refreshed leadership slate, confirming President and Representative Director Yasuyuki Yoshida and Senior Executive Director Tatsuro Fuse, while promoting directors Takashi Nakada and Makoto Inaba to executive director roles a...
Secom lifts profits and dividend as sales grow, warns of earnings pressure ahead
May 12, 2026
Secom reported consolidated net sales of ¥1.26 trillion for the year ended March 31, 2026, up 4.7% year on year, with operating profit rising 11.1% and profit attributable to owners of the parent increasing 4.2%. Profitability improved, as th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.