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

• Market Cap: ¥37.57B
• Dividend Yield: 2.17%
• Average Volume (3M): 31.53K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥3,226.00 ▲(9.95% Upside)

Central Security Patrols Co., Ltd. is well-positioned with strong financial performance and technical indicators. The stock's valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. While the technical analysis suggests strong momentum, potential overbought conditions should be monitored. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market penetration, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial resilience and provides flexibility for strategic investments and growth.

Operational Efficiency

Strong operational efficiency reflects effective cost management and resource utilization, contributing to sustained profitability.

Negative Factors

Rising Operational Costs

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

Reduced Free Cash Flow

Reduced free cash flow limits the company's ability to reinvest in growth opportunities and may affect liquidity if capital expenditures remain high.

Decreased EBITDA Margin

A declining EBITDA margin indicates potential challenges in maintaining cost efficiency, which could affect long-term profitability.

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

Company Description

Central Security Patrols Co., Ltd. (9740) is a leading provider of security services in the Asia-Pacific region, specializing in comprehensive security solutions for both commercial and residential clients. The company operates in the security sector, offering a range of services including manned guarding, mobile patrols, event security, and risk management consulting. With a focus on leveraging advanced technology and trained personnel, Central Security Patrols aims to ensure safety and peace of mind for its clients across various industries.

How the Company Makes Money

Central Security Patrols generates revenue primarily through its security service contracts, which include monthly retainer agreements for ongoing security personnel and mobile patrol services. The company earns additional income from one-time services such as event security and risk assessment consultations. Key revenue streams include long-term contracts with corporate clients, recurring revenue from residential security services, and fees from special projects. Strategic partnerships with technology providers enhance its offerings, allowing for the integration of advanced security systems, which can lead to additional service contracts and higher margins.

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	7.13B	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: 2934.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2934 is above the 20-day moving average (MA) of 2684.00, above the 50-day MA of 2627.90, and above the 200-day MA of 2554.63, indicating a bullish trend. The MACD of 66.18 indicates Negative momentum. The RSI at 73.99 is Negative, neither overbought nor oversold. The STOCH value of 92.59 is Negative, 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
9740	80 Outperform	¥37.57B	11.99	―	2.17%	9.05%	14.38%
2331	77 Outperform	¥538.69B	17.49	―	2.20%	7.73%	30.92%
9686	77 Outperform	¥16.55B	7.74	―	2.97%	34.15%	324.87%
9735	73 Outperform	$2.41T	21.05	8.35%	1.90%	5.39%	4.89%
7058	72 Outperform	¥3.95B	44.49	―	3.17%	6.87%	-1.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4264	60 Neutral	¥8.68B	69.47	―	―	5.80%	-43.56%