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Central Security Patrols Co., Ltd. (JP:9740)
:9740
Japanese Market
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Central Security Patrols Co., Ltd. (9740) AI Stock Analysis

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JP:9740

Central Security Patrols Co., Ltd.

(9740)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥2,814.00
▼(-7.59% Downside)
Action:Reiterated
Date:04/15/26
The score is primarily supported by stable top-line growth and a low-leverage balance sheet, but is held back by margin compression and weaker, more volatile free cash flow. Technical signals are mixed with the stock below key short/mid-term moving averages, while valuation appears reasonable with a moderate dividend yield.
Positive Factors
Stable Revenue Growth
Consistent 4–5% annual revenue growth over three years indicates stable demand and execution across contracts. Durable top-line expansion supports operational scalability, a predictable recurring revenue base, and room to absorb cost increases without relying on short-term market swings.
Negative Factors
Margin Compression
Sustained margin declines since 2024 point to cost pressure or reduced pricing leverage in core contracts. Long-term margin compression erodes returns on capital, limits internal funding for growth, and makes earnings more sensitive to wage inflation and contract-cost fluctuations.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Revenue Growth
Consistent 4–5% annual revenue growth over three years indicates stable demand and execution across contracts. Durable top-line expansion supports operational scalability, a predictable recurring revenue base, and room to absorb cost increases without relying on short-term market swings.
Read all positive factors

Central Security Patrols Co., Ltd. (9740) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Central Security Patrols Co., Ltd. offers a comprehensive suite of security solutions across Japan. The company provides on-site security services for facilities, including fire and disaster preparedness, as well as personal protection for VIPs. I...
How the Company Makes Money
Detailed, company-specific information on Central Security Patrols Co., Ltd. (9740)'s revenue model, key revenue streams (e.g., contract types, service lines), and significant partnerships or other factors contributing to earnings is null....

Central Security Patrols Co., Ltd. Financial Statement Overview

Summary
Steady revenue growth over the last three years and a conservatively financed balance sheet support stability. Offsetting this, margins have compressed since 2024 and free cash flow has declined sharply with uneven cash conversion, lowering overall quality and flexibility.
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
BreakdownTTMFeb 2025Feb 2024Feb 2023Feb 2022Feb 2021
Income Statement
Total Revenue80.05B78.75B71.42B68.01B64.82B69.07B
Gross Profit16.51B16.35B15.02B14.98B13.76B14.70B
EBITDA6.96B7.47B7.19B6.82B6.62B8.00B
Net Income2.14B2.50B3.23B5.38B2.59B3.67B
Balance Sheet
Total Assets70.25B71.74B64.81B65.54B62.48B60.61B
Cash, Cash Equivalents and Short-Term Investments20.97B16.64B21.43B25.28B16.63B16.85B
Total Debt5.26B5.43B3.45B4.75B5.93B8.11B
Total Liabilities26.13B27.55B22.77B25.77B25.12B27.18B
Stockholders Equity41.50B41.33B39.41B37.28B34.98B31.19B
Cash Flow
Free Cash Flow0.001.57B851.64M3.82B3.71B5.67B
Operating Cash Flow0.005.58B2.94B5.31B4.99B6.83B
Investing Cash Flow0.00-5.19B-2.90B6.33B-788.01M-2.03B
Financing Cash Flow0.00-1.74B-3.16B-2.87B-3.46B-3.58B

Central Security Patrols Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3045.00
Price Trends
50DMA
2685.54
Negative
100DMA
2792.02
Negative
200DMA
2812.80
Negative
Market Momentum
MACD
18.87
Positive
RSI
42.66
Neutral
STOCH
21.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9740, the sentiment is Negative. The current price of 3045 is above the 20-day moving average (MA) of 2780.25, above the 50-day MA of 2685.54, and above the 200-day MA of 2812.80, indicating a bearish trend. The MACD of 18.87 indicates Positive momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9740.

Central Security Patrols Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥597.52B17.132.14%8.18%23.29%
66
Neutral
¥9.73B36.4418.12%53.11%
64
Neutral
¥3.05T24.918.87%1.45%4.75%6.29%
63
Neutral
¥3.03B26.955.23%-2.39%-52.83%
62
Neutral
¥40.65B18.391.95%7.98%-38.53%
62
Neutral
¥4.31B6.693.03%14.54%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9740
Central Security Patrols Co., Ltd.
2,673.00
247.86
10.22%
JP:9735
Secom Co
6,624.00
986.22
17.49%
JP:2331
Sohgo Security Services Co., Ltd.
1,142.00
76.17
7.15%
JP:4264
SECURE,INC.
1,649.00
-54.00
-3.17%
JP:7058
Kyoei Security Service Co., Ltd.
2,941.00
415.81
16.47%
JP:7464
Saftec Co., Ltd.
1,540.00
-20.88
-1.34%

Central Security Patrols Co., Ltd. Corporate Events

Central Security Patrols Reshapes Executive Team in Human Resources and Railway Security
Jul 7, 2026
Central Security Patrols Co., Ltd. has adjusted its leadership structure, expanding Executive Officer Kimio Shigihara’s responsibilities to include concurrent roles as General Manager of the Training Department and Tokyo Training Center, rei...
Central Security Patrols Posts Higher Sales but Lower Profit, Lifts Dividend Forecast
Jul 7, 2026
Central Security Patrols reported consolidated net sales of ¥21.5 billion for the three months ended May 31, 2026, up 6.4% year on year, with operating profit rising 6.4% to ¥1.9 billion and ordinary profit up 6.0% to ¥1.9 billion. ...
Central Security Patrols Marks 60th Anniversary With Higher Dividends
Jul 7, 2026
Central Security Patrols Co., Ltd., a TSE Prime-listed security services provider with a 60-year operating history, offers patrol and protective services in Japan’s security market. Its long tenure and focus on corporate value highlight a st...
Central Security Patrols Details Relationship and Independence from JR East
May 29, 2026
Central Security Patrols has clarified its status as an equity-method affiliate of East Japan Railway Company, which holds a 26.4% stake and contributes 27.5% of its consolidated sales, under a business alliance for security services and joint dev...
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: Apr 15, 2026