Central Security Patrols Co., Ltd. (9740) AI Stock Analysis

• Market Cap: ¥37.15B
• Dividend Yield: 2.4%
• Average Volume (3M): 31.53K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.58
• Revenue Growth: 9.05%
• EPS Growth: 14.38%
• Country: JP
• Employees: 6,539
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 31.32
• Shares Outstanding: 14,816,692
• 10 Day Avg. Volume: 59,320
• 30 Day Avg. Volume: 31,533
• PEG Ratio: -0.31
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 47.52
• 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: ¥2,855.00
• Price Target Upside: 11.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥2,855.00 ▲(11.13% Upside)

Central Security Patrols Co., Ltd. scores well due to its strong financial performance and reasonable valuation. The company's robust balance sheet and steady revenue growth are significant strengths. However, rising operational costs and reduced free cash flows are potential risks. Technical analysis shows moderate bullish momentum, supporting a positive outlook in the short term.

Central Security Patrols Co., Ltd. Business Overview & Revenue Model

Company Description

Central Security Patrols Co., Ltd. (9740) is a Japanese company specializing in security services. The company offers a wide range of security solutions, including on-site security personnel, mobile patrols, remote monitoring, and security consulting services. With a focus on both corporate and residential clients, Central Security Patrols Co., Ltd. is dedicated to ensuring the safety and protection of its customers through innovative and reliable security measures.

How the Company Makes Money

Central Security Patrols Co., Ltd. generates revenue primarily through its security service contracts. These contracts involve providing on-site security personnel, who are stationed at client locations to ensure safety and security. Additionally, the company offers mobile patrol services, where security personnel conduct regular sweeps of client premises. Remote monitoring services, utilizing advanced surveillance technology, allow the company to maintain oversight of client properties from a distance. Revenue is also derived from security consulting services, which involve advising clients on security strategy and planning. Significant partnerships with corporate clients and residential property managers contribute to the company's earnings by establishing long-term contracts that provide a steady stream of income.

Central Security Patrols Co., Ltd. Financial Statement Overview

Summary

Central Security Patrols Co., Ltd. demonstrates a strong financial position with steady revenue growth and robust balance sheet metrics. While operational efficiency remains high, rising operational costs and reduced free cash flows could pose challenges. Overall, the company is well-positioned financially, but careful management of expenses and capital investments will be crucial moving forward.

Income Statement

Central Security Patrols Co., Ltd. shows a consistent revenue growth trend from 2023 to 2025, with a notable increase of 5% in the latest year. Gross profit margins remain healthy, although there was a slight decline in the net profit margin due to increased costs. EBIT and EBITDA margins indicate strong operational efficiency, though a decrease in EBITDA margin in 2025 suggests rising operational costs.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio that is favorable, indicating low leverage and financial stability. Return on equity is strong, reflecting effective management of shareholder funds. The equity ratio suggests a robust equity base relative to total assets, supporting financial resilience.

Cash Flow

Cash flow performance is mixed. The operating cash flow to net income ratio remains strong, indicating effective cash generation from operations. However, there is a decline in free cash flow growth, reflecting higher capital expenditures which could impact future liquidity. The free cash flow to net income ratio also indicates a reduction in cash available after capital investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.13B	71.42B	68.01B	64.82B	69.07B	67.44B
Gross Profit	16.44B	15.74B	15.41B	14.09B	15.05B	14.73B
EBITDA	8.57B	7.99B	10.88B	6.98B	8.75B	7.81B
Net Income	3.56B	3.23B	5.38B	2.59B	3.67B	3.13B
Balance Sheet
Total Assets	69.81B	63.52B	64.44B	61.62B	59.79B	61.61B
Cash, Cash Equivalents and Short-Term Investments	22.08B	21.43B	25.28B	16.63B	18.62B	15.37B
Total Debt	6.43B	3.45B	4.75B	5.93B	8.11B	10.34B
Total Liabilities	26.96B	21.49B	24.67B	24.26B	26.36B	30.19B
Stockholders Equity	40.15B	39.41B	37.28B	34.98B	31.19B	29.41B
Cash Flow
Free Cash Flow	0.00	851.64M	2.98B	3.40B	5.21B	2.00B
Operating Cash Flow	0.00	2.94B	5.31B	4.99B	6.83B	6.84B
Investing Cash Flow	0.00	-2.90B	6.33B	-788.01M	-2.03B	-4.44B
Financing Cash Flow	0.00	-3.16B	-2.87B	-3.46B	-3.58B	-664.82M

Central Security Patrols Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2569.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9740, the sentiment is Positive. The current price of 2569 is above the 20-day moving average (MA) of 2552.50, above the 50-day MA of 2521.85, and below the 200-day MA of 2572.64, indicating a neutral trend. The MACD of 6.71 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9740.

Central Security Patrols Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9686	75 Outperform	¥16.78B	11.02	―	3.22%	24.48%	204.62%
9740	75 Outperform	¥37.15B	11.86	―	2.40%	9.05%	14.38%
9735	73 Outperform	$2.28T	19.67	8.93%	1.92%	4.84%	10.24%
7058	72 Outperform	¥4.16B	46.87	―	3.14%	6.83%	-59.50%
4264	66 Neutral	¥8.80B	70.42	―	―	12.33%	-44.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2331	62 Neutral	¥542.25B	17.62	―	2.44%	6.66%	17.57%