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Secom Co (JP:9735)
:9735

Secom Co (9735) AI Stock Analysis

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Secom Co

(OTC:9735)

Rating:68Neutral
Price Target:
¥5,674.00
▲(8.84%Upside)
Secom Co's strong financial performance, characterized by consistent growth and robust cash flow management, is the most significant factor driving its stock score. Despite technical indicators suggesting bearish momentum, the company's strong financial foundation and reasonable valuation provide a balanced outlook.

Secom Co (9735) vs. iShares MSCI Japan ETF (EWJ)

Secom Co Business Overview & Revenue Model

Company DescriptionSecom Co., Ltd. is a leading Japanese security services company, renowned for pioneering the concept of electronic security services in Japan. Established in 1962, Secom operates across various sectors including security services, medical services, insurance services, geographic information services, information and communication related services, real estate development, and other services. The company's core products and services include security systems for homes and businesses, medical and health care services, fire protection services, and disaster prevention solutions.
How the Company Makes MoneySecom Co., Ltd. generates revenue primarily through its comprehensive range of security services. The company's primary revenue stream is its security services division, which includes electronic security systems for homes and businesses, surveillance, and on-site security personnel services. Additionally, Secom earns income from its medical services, providing home medical and nursing care. The insurance services offered by Secom, such as fire insurance and personal accident insurance, also contribute to its revenue. Geographic information services, involving mapping and location-based services, as well as information and communication related services, provide additional streams of income. Real estate development and management, along with other diversified business activities, further bolster Secom's earnings.

Secom Co Financial Statement Overview

Summary
Secom Co exhibits strong financial health, particularly in profitability and balance sheet stability. The income statement is robust with strong profitability metrics. The balance sheet is solid with low debt and high equity ratio, enhancing financial stability. However, the recent lack of free cash flow generation represents a potential risk area, despite the company's historical resilience in managing cash effectively.
Income Statement
85
Very Positive
Secom Co's income statement shows strong profitability with a consistent Gross Profit Margin around 29.6% for TTM and 30.9% for the previous annual period. The Net Profit Margin is stable at approximately 8.9% for TTM. Revenue growth is moderate, with a TTM revenue increase of about 2.5% compared to the previous year. Strong EBIT and EBITDA margins further emphasize operational efficiency and profitability.
Balance Sheet
90
Very Positive
The company maintains a robust balance sheet with a low Debt-to-Equity ratio of 0.058 and a strong Equity Ratio of 58.6% for TTM. Return on Equity (ROE) is healthy at around 8.5% for TTM, indicating efficient use of equity capital. The high level of cash and short-term investments further enhances financial stability.
Cash Flow
70
Positive
Cash flow analysis reflects challenges in generating free cash flow in the TTM period, with both Operating Cash Flow and Free Cash Flow being notably low or zero. Historically, the company has demonstrated strong Free Cash Flow, which provides some assurance of cash flow management capabilities.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue1.18T1.15T1.10T1.05T1.04T1.06T
Gross Profit350.91B357.28B342.46B337.67B330.57B337.52B
EBITDA227.81B236.61B223.18B220.31B201.68B213.78B
Net Income105.05B101.95B96.08B94.27B74.68B89.08B
Balance Sheet
Total Assets2.10T2.08T1.99T1.91T1.86T1.82T
Cash, Cash Equivalents and Short-Term Investments397.19B599.15B684.18B685.86B659.72B587.55B
Total Debt70.98B68.96B64.28B67.63B66.17B70.66B
Total Liabilities699.69B690.09B673.02B651.72B634.36B642.63B
Stockholders Equity1.23T1.22T1.16T1.12T1.08T1.04T
Cash Flow
Free Cash Flow0.0071.34B85.09B101.24B123.82B105.77B
Operating Cash Flow0.00165.76B146.43B164.91B181.93B175.56B
Investing Cash Flow0.00-162.27B-70.45B-55.35B-48.54B-60.78B
Financing Cash Flow0.00-95.49B-77.84B-87.39B-49.31B-48.21B

Secom Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5213.00
Price Trends
50DMA
5319.88
Negative
100DMA
5226.36
Negative
200DMA
5238.49
Negative
Market Momentum
MACD
-29.66
Positive
RSI
43.13
Neutral
STOCH
35.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9735, the sentiment is Negative. The current price of 5213 is below the 20-day moving average (MA) of 5307.95, below the 50-day MA of 5319.88, and below the 200-day MA of 5238.49, indicating a bearish trend. The MACD of -29.66 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9735.

Secom Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥14.05B19.87
3.00%11.76%9.90%
74
Outperform
¥219.81B19.40
2.50%12.84%54.25%
72
Outperform
¥3.55B13.11
3.67%13.49%17.08%
69
Neutral
¥32.67B10.08
2.68%5.01%-39.78%
68
Neutral
$2.52B13.387.40%4.65%-0.87%8.24%
68
Neutral
¥2.34T20.258.55%1.90%3.91%7.86%
66
Neutral
¥512.20B18.15
0.20%5.85%4.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9735
Secom Co
5,213.00
568.18
12.23%
JP:2331
Sohgo Security Services Co., Ltd.
1,004.00
81.20
8.80%
JP:6744
Nohmi Bosai Ltd.
3,570.00
1,111.52
45.21%
JP:7058
Kyoei Security Service Co., Ltd.
2,477.00
-266.01
-9.70%
JP:9686
Toyo Tec Co., Ltd
1,345.00
157.86
13.30%
JP:9740
Central Security Patrols Co., Ltd.
2,288.00
-730.52
-24.20%

Secom Co Corporate Events

Secom Co., Ltd. Announces Share Repurchase to Optimize Capital Structure
Jul 1, 2025

Secom Co., Ltd. announced the repurchase of 1,770,300 shares of its own common stock for JPY 9,445,324,900, as part of a broader plan authorized by its Board of Directors. This move is part of a strategy to optimize capital structure and potentially enhance shareholder value, reflecting the company’s confidence in its financial health and future prospects.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Co. Announces Disposal of Treasury Stock for Director Compensation
Jun 26, 2025

SECOM Co., Ltd. has announced the disposal of 13,101 shares of its treasury stock as restricted stock compensation to six of its directors. This move is part of a broader plan to incentivize directors to enhance corporate value and align their interests with shareholders. The restricted stock plan, initially introduced in 2017, has undergone modifications to extend the non-transferable period until directors resign or retire, further promoting long-term value enhancement.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Co., Ltd. Evaluates Further Reduction of Investment Units
Jun 2, 2025

SECOM Co., Ltd. has announced its approach and policy regarding the reduction of investment units to increase stock market participation and enhance stock liquidity. The company, having already implemented a 2 for 1 stock split in October 2024, will continue to evaluate further investment unit reductions by considering various factors such as share price, stock liquidity, shareholder composition, and market demands.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Announces Share Repurchase Plan
Jun 2, 2025

SECOM CO., LTD. announced the repurchase of 1,687,400 of its own shares for a total price of JPY 9,027,126,700, as part of a resolution by its Board of Directors. This move, conducted through market purchases on the Tokyo Stock Exchange, is part of a larger plan to repurchase up to 18,000,000 shares, potentially impacting the company’s stock value and shareholder equity.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Board Opposes Shareholder Proposal on Management Amendments
May 22, 2025

SECOM Co., Ltd.’s Board of Directors has decided to oppose a shareholder proposal from LONGCHAMP SICAV to amend the Articles of Incorporation to include management actions conscious of cost of capital and stock price. The Board believes that SECOM’s existing strategies, including the SECOM Group Road Map 2027, already address these concerns and that such provisions should remain flexible to adapt to changing market conditions. The company aims to enhance corporate value and shareholder returns through strategic initiatives and financial measures.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

Secom Co. Receives Shareholder Proposal for Enhanced Capital Management
May 13, 2025

Secom Co., Ltd. has received a shareholder proposal from LONGCHAMP SICAV, represented by Dalton Investments, for amendments to its Articles of Incorporation to implement management practices conscious of cost of capital and stock price. The proposal aims to ensure Secom’s alignment with the Tokyo Stock Exchange’s request for transparency and efficiency in capital management, urging the company to disclose specific financial metrics and improve its capital allocation strategies to meet its medium- to long-term goals.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Co., Ltd. Announces Share Repurchase Plan to Boost Shareholder Value
May 12, 2025

SECOM Co., Ltd. announced a decision to repurchase up to 18 million of its own shares, representing 4.33% of total issued shares, with a maximum repurchase price of JPY 60 billion. This move aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s commitment to sustainable growth and strategic capital management.

Secom Co., Ltd. Announces New Executive Structure
May 12, 2025

Secom Co., Ltd. has announced its new director candidates and executive structure following a recent Board of Directors meeting. The appointments, including Yasuyuki Yoshida as President and Representative Director, will be finalized at the upcoming Ordinary General Meeting of Shareholders on June 26, 2025. This restructuring is expected to influence the company’s strategic direction and reinforce its leadership in the security services industry.

SECOM Co., Ltd. Reports Modest Financial Growth and Announces Stock Split
May 12, 2025

SECOM Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a modest increase in net sales and profits compared to the previous year. The company’s financial position remains strong with an increase in total assets and net assets, and it has announced a stock split and adjusted its dividend payouts accordingly. The forecast for the next fiscal year indicates continued growth in net sales and operating profit, although ordinary profit and profit attributable to owners of the parent are expected to decline slightly.

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.Date of analysis: Jul 04, 2025