Secom Co Ltd (JP:9735)
:9735
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Secom Co
(9735)
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Rating:64Neutral
Price Target:
¥6,522.00
▲(15.21% 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 rising equity provide durable financial flexibility. A conservative balance sheet lets the company invest in monitoring infrastructure, absorb cyclical shocks, and fund strategic initiatives without threatening solvency, supporting long-term stability and credit resilience.
Negative Factors
Margin pressure
Gradual margin erosion suggests structural cost or pricing pressures (labor, maintenance, equipment). For a service business reliant on personnel and infrastructure, sustained margin decline can compress free cash flow and limit reinvestment capacity unless offset by productivity gains or pricing power.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and rising equity provide durable financial flexibility. A conservative balance sheet lets the company invest in monitoring infrastructure, absorb cyclical shocks, and fund strategic initiatives without threatening solvency, supporting long-term stability and credit resilience.
Read all positive factors
Secom Co (9735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.82T
Dividend Yield1.77%
Average Volume (3M)1.24M
Price to Earnings (P/E)22.8
Beta (1Y)0.32
Revenue Growth4.75%
EPS Growth6.22%
CountryJP
Employees64,744
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)287.93
Revenue Forecast (FY)¥1.31T
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 autom...
How the Company Makes Money
SECOM primarily makes money by selling ongoing, subscription-like security services and related solutions, supplemented by product/system sales and other service businesses operated by the group. Key revenue streams typically include: (1) Security...
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 | 240.80B | 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 Technical Analysis
Positive
5661.00
Price Trends
6024.84
Positive
5917.39
Positive
5653.46
Positive
Market Momentum
156.47
Negative
58.83
Neutral
67.03
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 5661 is below the 20-day moving average (MA) of 6106.05, below the 50-day MA of 6024.84, and above the 200-day MA of 5653.46, indicating a bullish trend. The MACD of 156.47 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 67.03 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥171.32B | 16.73 | ― | 1.39% | 12.59% | 26.31% | |
75 Outperform | ¥297.30B | 21.26 | ― | 2.42% | 4.46% | 23.01% | |
65 Neutral | ¥573.58B | 16.45 | ― | 2.14% | 8.18% | 23.30% | |
64 Neutral | ¥2.82T | 22.84 | 8.35% | 1.77% | 4.75% | 6.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥4.35B | 6.76 | ― | 3.03% | 14.54% | ― | |
62 Neutral | ¥37.94B | 14.21 | ― | 1.95% | 10.26% | -21.50% |
* Industrials Sector Average
JP:9735
Secom Co
6,350.00
1,123.97
21.51%
JP:2331
Sohgo Security Services Co., Ltd.
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36.22%
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Kyoei Security Service Co., Ltd.
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Riken Keiki Co., Ltd.
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JP:9740
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2,600.00
197.36
8.21%
Secom Co Corporate Events
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.