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

• Market Cap: ¥44.87B
• Dividend Yield: 1.95%
• Average Volume (3M): 31.53K
• Price to Earnings (P/E): 21.4
• 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): 32.91
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 217.85
• Revenue Forecast (FY): ¥79.98B

• Rating: 80 Outperform
• Price Target: ¥3,226.00 ▲(5.94% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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. provides security services in Japan. The company offers resident security services, such as facility security, fire and disaster prevention safety management, and VIPs personal protection services; online and home security services; and transportation security for cash and valuables, as well as sells non-life insurance linked to machine security contracts. It also constructs and sells surveillance camera/image surveillance systems; and entrance/exit management systems, as well as undertakes crime, fire, and disaster prevention equipment and facilities installation works. The company was founded in 1966 and is headquartered in Tokyo, Japan.

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	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	75.36B	71.42B	68.01B	64.82B	69.07B	67.44B
Gross Profit	16.64B	15.02B	14.98B	13.76B	14.70B	14.41B
EBITDA	7.50B	7.19B	6.82B	6.62B	8.00B	7.31B
Net Income	3.10B	3.23B	5.38B	2.59B	3.67B	3.13B
Balance Sheet
Total Assets	69.35B	64.81B	65.54B	62.48B	60.61B	62.46B
Cash, Cash Equivalents and Short-Term Investments	22.27B	21.43B	25.28B	16.63B	16.85B	15.37B
Total Debt	6.05B	3.45B	4.75B	5.93B	8.11B	10.34B
Total Liabilities	25.62B	22.77B	25.77B	25.12B	27.18B	31.04B
Stockholders Equity	40.96B	39.41B	37.28B	34.98B	31.19B	29.41B
Cash Flow
Free Cash Flow	0.00	851.64M	3.82B	3.71B	5.67B	2.46B
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: 3045.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3045 is above the 20-day moving average (MA) of 2997.50, above the 50-day MA of 2948.59, and above the 200-day MA of 2646.28, indicating a bullish trend. The MACD of 25.24 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.85 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
9740	80 Outperform	¥44.87B	21.44	―	1.95%	9.05%	14.38%
7464	76 Outperform	¥3.26B	5.25	―	5.23%	-1.35%	-17.35%
9735	73 Outperform	¥2.65T	19.24	8.35%	1.77%	5.39%	4.89%
4264	66 Neutral	¥9.89B	42.27	―	―	5.80%	-43.56%
2331	64 Neutral	¥625.54B	16.50	―	2.14%	7.73%	30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7058	62 Neutral	¥4.34B	6.80	―	3.03%	6.87%	-1.10%

Central Security Patrols Co., Ltd. Corporate Events

Central Security Patrols Posts Strong Sales and Profit Growth Despite Lower Net Income

Central Security Patrols Co., Ltd. reported solid growth for the third quarter of the fiscal year ending February 2026, with net sales rising 10.3% year-on-year to ¥57.77 billion, supported by higher operating profit of ¥3.48 billion and ordinary profit of ¥3.59 billion, up 15.1% and 14.3% respectively. Despite stronger topline and operating performance, profit attributable to owners of parent declined 4.2% to ¥2.17 billion, leading to a slight drop in basic earnings per share to ¥150.32, while comprehensive income surged 49.3% to ¥3.17 billion and total assets and net assets increased to ¥69.38 billion and ¥42.94 billion, respectively, even as the capital adequacy ratio eased to 57.7%, indicating balance-sheet expansion and continued growth in its security services franchise.

The most recent analyst rating on (JP:9740) stock is a Buy with a Yen3226.00 price target. To see the full list of analyst forecasts on Central Security Patrols Co., Ltd. stock, see the JP:9740 Stock Forecast page.