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Secom Co (JP:9735)
:9735
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Secom Co (9735) AI Stock Analysis

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JP:9735

Secom Co

(OTC:9735)

Rating:72Outperform
Price Target:
¥5,826.00
▲(7.08%Upside)
Secom Co's overall stock score reflects its strong financial performance, marked by consistent revenue growth and robust cash flow management. The technical analysis suggests a neutral stance with minor bearish signals, and the valuation is fair with a moderate P/E ratio and dividend yield. The absence of significant earnings call data or corporate events keeps the focus on financial fundamentals and technical indicators.

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

Secom Co Business Overview & Revenue Model

Company DescriptionSecom Co., Ltd. (9735) is a leading Japanese company specializing in comprehensive security services. Founded in 1962 and headquartered in Tokyo, Secom operates across various sectors, including physical security, cybersecurity, and medical services. The company offers a wide range of products and services, such as security systems for homes and businesses, surveillance solutions, and emergency medical response services. Secom also provides advanced technological solutions, including AI and IoT-based security systems, to enhance safety and security for its clients.
How the Company Makes MoneySecom Co., Ltd. generates revenue through multiple streams, primarily from its security services and systems. The company's core revenue comes from providing security systems and services to both residential and commercial clients. This includes the installation and maintenance of alarm systems, surveillance cameras, and access control systems. Secom also earns from its cybersecurity services, which protect businesses from digital threats. Another significant revenue stream is its medical services, where the company offers emergency medical response services and health monitoring systems. Secom's earnings are bolstered by its strategic partnerships with other companies to enhance its technological offerings, and its continuous investment in R&D to innovate and provide cutting-edge security solutions.

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
80
Positive
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
78
Positive
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
85
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.20T1.15T1.10T1.05T1.04T
Gross Profit351.97B357.28B342.46B337.67B330.57B
EBITDA253.42B236.61B223.18B220.31B201.68B
Net Income108.11B101.95B96.08B94.27B74.68B
Balance Sheet
Total Assets2.15T2.08T1.99T1.91T1.86T
Cash, Cash Equivalents and Short-Term Investments584.63B599.15B684.18B685.86B659.72B
Total Debt72.34B68.96B64.28B67.63B66.17B
Total Liabilities697.84B690.09B673.02B651.72B634.36B
Stockholders Equity1.27T1.22T1.16T1.12T1.08T
Cash Flow
Free Cash Flow95.20B71.34B85.09B101.24B123.82B
Operating Cash Flow172.74B165.76B146.43B164.91B181.93B
Investing Cash Flow-100.77B-162.27B-70.45B-55.35B-48.54B
Financing Cash Flow-90.17B-95.49B-77.84B-87.39B-49.31B

Secom Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5441.00
Price Trends
50DMA
5310.56
Positive
100DMA
5250.17
Positive
200DMA
5230.85
Positive
Market Momentum
MACD
15.46
Negative
RSI
62.07
Neutral
STOCH
73.87
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 5441 is above the 20-day moving average (MA) of 5258.75, above the 50-day MA of 5310.56, and above the 200-day MA of 5230.85, indicating a bullish trend. The MACD of 15.46 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 73.87 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥15.67B22.07
2.69%11.76%9.90%
74
Outperform
¥227.65B20.10
2.01%12.84%54.25%
73
Outperform
¥33.85B9.45
2.59%9.40%-32.82%
72
Outperform
¥532.57B18.87
2.37%5.85%4.84%
72
Outperform
¥2.41T20.588.55%1.79%3.91%7.86%
72
Outperform
¥3.81B13.11
3.42%13.49%17.08%
65
Neutral
€9.31B16.463.99%3.00%2.81%-19.06%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9735
Secom Co
5,441.00
856.08
18.67%
JP:2331
Sohgo Security Services Co., Ltd.
1,056.00
141.53
15.48%
JP:6744
Nohmi Bosai Ltd.
3,845.00
1,436.44
59.64%
JP:7058
Kyoei Security Service Co., Ltd.
2,631.00
-73.41
-2.71%
JP:9686
Toyo Tec Co., Ltd
1,486.00
289.17
24.16%
JP:9740
Central Security Patrols Co., Ltd.
2,331.00
-287.33
-10.97%

Secom Co Corporate Events

SECOM Completes Treasury Stock Disposal for Director Compensation
Jul 25, 2025

SECOM CO., LTD. has completed the payment procedures for the disposal of treasury stock as restricted stock compensation to its directors. This move, resolved by the Board of Directors, involved the disposal of 13,101 shares at a price of JPY 5,239 per share, totaling JPY 68,636,139, and is part of the company’s strategy to align director compensation with company performance.

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 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 17, 2025