Secom Co (9735) AI Stock Analysis

• Market Cap: ¥2.49T
• Dividend Yield: 1.77%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.38
• Revenue Growth: 5.39%
• EPS Growth: 4.89%
• Country: JP
• Employees: 64,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 59.15
• Shares Outstanding: 466,599,800
• 10 Day Avg. Volume: 1,270,470
• 30 Day Avg. Volume: 1,239,516
• PEG Ratio: 2.49
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 22.22
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥5,998.00 ▲(7.05% Upside)

Secom Co's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and solid cash flow management. The technical analysis presents a cautious outlook due to bearish momentum indicators, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Management

Robust cash flow management enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Balance Sheet Health

A strong equity position and low debt-to-equity ratio provide a solid foundation for growth and reduce financial risk.

Negative Factors

Cost Pressures

Rising costs can squeeze profit margins, potentially impacting profitability if not managed effectively over time.

Liabilities Monitoring

Increasing liabilities, if unchecked, could strain financial resources and limit the company's ability to invest in growth opportunities.

Gross Margin Pressure

Pressure on gross margins can reduce profitability, necessitating efficiency improvements to maintain competitive advantage.

Secom Co Business Overview & Revenue Model

Company Description

SECOM Co., Ltd. provides security services in Japan and internationally. The company's Security Services segment provides online security systems, static guard services, and armored car services. Its Fire Protection Services segment provides automatic fire alarm systems, fire extinguishing systems, other fire protection systems, and related maintenance services to office buildings, plants, tunnels, cultural properties, ships, and residences. The company's Medical Services segment offers home nursing, pharmaceutical dispensing, and other personal care services; support for affiliated medical institutions; operates the general hospital, pharmacies, and residences for seniors; provides electronic medical report systems; health and preventative care services; and sells medical equipment and pharmaceuticals. Its Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The company's Geospatial Information Services segment provides geospatial information services to public-sector entities, including national and local governments; private sector customers; and overseas government agencies. Its BPO and ICT Services segment offers data center services, disaster preparedness services, BCP and telework support services, information security services, cloud-based services, and business process outsourcing services. The Real Estate and Other Services segment provides real estate leasing, construction, installation, and home services. It also offers building management, real estate management, electrical engineering, general office, credit, clerical, and software development services; sells security and water-treatment equipment; operates PFI correctional facilities, and restaurants and shops at medical facilities; and provides lifestyle support and car maintenance services, as well as manufactures, sells, and maintains freight elevators. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Secom Co generates revenue primarily through the sale and installation of security systems, along with ongoing monitoring and maintenance services. The company has a recurring revenue model, as clients pay for continuous monitoring services, which provides a stable income stream. Key revenue streams include the installation of security systems in businesses and homes, monthly monitoring fees, and cash management solutions for financial institutions. Additionally, Secom collaborates with various partners, including technology providers, to enhance its service offerings and expand its market reach, which further contributes to its earnings.

Secom Co Financial Statement Overview

Summary

Secom Co exhibits strong financial health with consistent revenue growth, robust profitability margins, and solid cash flow management. The company maintains a low debt profile and a strong equity base, contributing to its stability. While cost pressures may slightly affect gross margins, the overall financial trajectory remains positive.

Income Statement

Secom Co has demonstrated consistent revenue growth with a 3.92% increase from 2024 to 2025 and a 4.85% increase from 2023 to 2024. The gross profit margin remains robust at approximately 29.33% for 2025. The company's EBIT margin of 12.02% and EBITDA margin of 21.13% for 2025 indicate strong operating efficiency. Net profit margin improved to 9.01% in 2025, showcasing enhanced profitability, although slightly lower gross profit compared to 2024 suggests potential cost pressures.

Balance Sheet

Secom Co maintains a strong equity position with an equity ratio of 59.23% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.06, suggesting conservative leverage. Return on equity improved to 8.51% in 2025, highlighting stronger profitability. The company’s low leverage and robust equity support its long-term stability, though the slightly increasing liabilities deserve monitoring.

Cash Flow

Operating cash flow increased by 4.21% in 2025, reflecting improved cash-generating efficiency. Free cash flow grew by 33.45% from the previous year, underscoring strong cash flow management. The operating cash flow to net income ratio of 1.60 and free cash flow to net income ratio of 0.88 indicate healthy cash flow relative to net earnings, supporting liquidity and potential for reinvestment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22T	1.20T	1.15T	1.10T	1.05T	1.04T
Gross Profit	377.08B	351.97B	357.28B	342.46B	337.67B	330.57B
EBITDA	246.17B	253.42B	236.61B	223.18B	220.31B	201.68B
Net Income	108.40B	108.11B	101.95B	96.08B	94.27B	74.68B
Balance Sheet
Total Assets	2.09T	2.15T	2.08T	1.99T	1.91T	1.86T
Cash, Cash Equivalents and Short-Term Investments	448.23B	584.63B	599.15B	684.18B	685.86B	659.72B
Total Debt	64.94B	77.57B	68.96B	64.28B	67.63B	66.17B
Total Liabilities	669.55B	697.84B	690.09B	673.02B	651.72B	634.36B
Stockholders Equity	1.25T	1.27T	1.22T	1.16T	1.12T	1.08T
Cash Flow
Free Cash Flow	0.00	95.20B	71.34B	85.09B	101.24B	123.82B
Operating Cash Flow	0.00	172.74B	165.76B	146.43B	164.91B	181.93B
Investing Cash Flow	0.00	-100.77B	-162.27B	-70.45B	-55.35B	-48.54B
Financing Cash Flow	0.00	-85.28B	-95.49B	-77.84B	-87.39B	-49.31B

Secom Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5603.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9735, the sentiment is Positive. The current price of 5603 is above the 20-day moving average (MA) of 5499.25, above the 50-day MA of 5345.50, and above the 200-day MA of 5321.51, indicating a bullish trend. The MACD of 80.71 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 72.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9735.

Secom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9740	80 Outperform	¥44.06B	14.06	―	1.95%	9.05%	14.38%
9686	77 Outperform	¥16.66B	7.79	―	3.28%	34.15%	324.87%
2331	76 Outperform	¥633.69B	18.94	―	2.14%	7.73%	30.92%
6744	74 Outperform	¥237.30B	21.72	―	2.42%	9.55%	9.52%
9735	73 Outperform	¥2.49T	21.68	8.35%	1.77%	5.39%	4.89%
7058	72 Outperform	¥4.34B	19.89	―	3.03%	6.87%	-1.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Secom Co Corporate Events

SECOM Completes Share Repurchase Program

SECOM Co., Ltd. has completed the repurchase of 617,800 shares of its own common stock for a total price of JPY 3,234,926,900, as part of a resolution by its Board of Directors. This move is part of a broader strategy to repurchase up to 18 million shares, potentially impacting shareholder value and market perception positively.

SECOM Co., Ltd. Reports Mixed Financial Results for H1 2025

SECOM Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 6% increase in net sales to ¥593,547 million. Despite the rise in sales, the company experienced a decline in ordinary profit and profit attributable to owners of the parent, with decreases of 5.4% and 2.6% respectively. The company’s equity-to-asset ratio improved slightly to 59.6%, and it maintained its dividend forecast, reflecting stability in its financial strategy. These results indicate a mixed performance, with growth in sales but challenges in profitability, impacting its market positioning and shareholder returns.

SECOM Co., Ltd. Announces Share Repurchase

SECOM Co., Ltd. announced the repurchase of 2,255,200 shares of its common stock for JPY 11,839,760,200, as part of a broader plan authorized by its Board of Directors. This move is part of a strategic effort to manage the company’s capital structure and potentially enhance shareholder value, with a maximum repurchase limit set at 18,000,000 shares by December 2025.

SECOM Co., Ltd. Executes Share Buyback to Enhance Shareholder Value

SECOM Co., Ltd. announced the repurchase of 995,600 shares of its common stock for approximately JPY 5.5 billion, as part of a broader buyback plan authorized by the Board of Directors. This move is part of a strategic effort to optimize capital structure and enhance shareholder value, reflecting the company’s confidence in its financial health and future prospects.