SECOM CO (SOMLY) AI Stock Analysis

• Market Cap: $17.33B
• Dividend Yield: 0.93%
• Average Volume (3M): 6.72K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.04
• Revenue Growth: 4.35%
• EPS Growth: 46.80%
• Country: US
• Employees: 64,744
• Sector: Industrials
• Sector Strength: 78
• Industry: Security & Protection Services
• EPS (TTM): 0.10
• Shares Outstanding: 1,866,399,200
• 10 Day Avg. Volume: 13,369
• 30 Day Avg. Volume: 6,721
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

SECOM CO shows strong financial health with robust profit margins and a solid balance sheet, contributing significantly to the score. However, technical indicators suggest a bearish trend with weak momentum, which temper enthusiasm. The valuation is reasonable but not compelling, providing a balanced outlook for the stock.

SECOM CO Business Overview & Revenue Model

Company Description

Secom Co., Ltd. provides security services in Japan and internationally. The company's Security Services segment provides online security systems, static guard services, and armored car services. Its Fire Protection Services segment provides automatic fire alarm systems, fire extinguishing systems, other fire protection systems, and related maintenance services to office buildings, plants, tunnels, cultural properties, ships, and residences. The company's Medical Services segment offers home nursing, pharmaceutical dispensing, and other personal care services; support for affiliated medical institutions; operates the general hospital, pharmacies, and residences for seniors; provides electronic medical report systems; health and preventative care services; and sells medical equipment and pharmaceuticals. Its Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The company's Geospatial Information Services segment provides geospatial information services to public-sector entities, including national and local governments; private sector customers; and overseas government agencies. Its BPO and ICT Services segment offers data center services, disaster preparedness services, BCP and telework support services, information security services, cloud-based services, and business process outsourcing services. The Real Estate and Other Services segment provides real estate leasing, construction, installation, and home services. It also offers building management, real estate management, electrical engineering, general office, credit, clerical, and software development services; sells security and water-treatment equipment; operates PFI correctional facilities, and restaurants and shops at medical facilities; and provides lifestyle support and car maintenance services, as well as manufactures, sells, and maintains freight elevators. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SECOM CO generates revenue primarily through its comprehensive security solutions. The company's key revenue streams include the installation and maintenance of electronic security systems, ongoing monitoring and response services, and cyber security solutions. Additionally, SECOM earns from its medical services, including remote health monitoring and emergency medical services. Strategic partnerships with technology providers enhance its offerings, and its diverse service portfolio allows SECOM to maintain a steady income from recurring subscription fees and long-term contracts with businesses and individuals.

SECOM CO Financial Statement Overview

Summary

Overall, SECOM CO displays strong financial health with consistent revenue growth, robust profit margins, and a solid balance sheet. While cash flow generation is efficient, attention to free cash flow trends is advisable. The company is well-positioned for sustained growth in the Corporate Services industry.

Income Statement

SECOM CO has demonstrated solid revenue growth over the years, with a revenue increase of 4.85% from 2023 to 2024. Gross profit margin stands robust, reflecting efficient cost management. The net profit margin is healthy, indicating strong profitability. EBIT and EBITDA margins are also impressive, suggesting stable operational performance.

Balance Sheet

The company's balance sheet is strong, highlighted by a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is healthy, showcasing a solid capital structure. However, the return on equity could be improved to enhance shareholder returns.

Cash Flow

SECOM CO's cash flow statements show a consistent operating cash flow, which exceeds net income, indicating efficient cash generation from operations. However, free cash flow has seen a decline recently, which may need attention to sustain future growth.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.15T	1.10T	1.05T	1.04T	1.06T
Gross Profit	357.28B	342.46B	337.67B	330.57B	337.52B
EBITDA	236.61B	223.18B	220.31B	201.68B	213.78B
Net Income	101.95B	96.08B	94.27B	74.68B	89.08B
Balance Sheet
Total Assets	2.08T	1.99T	1.91T	1.86T	1.82T
Cash, Cash Equivalents and Short-Term Investments	599.15B	684.18B	685.86B	659.72B	587.55B
Total Debt	68.96B	64.28B	67.63B	66.17B	70.66B
Total Liabilities	690.09B	673.02B	651.72B	634.36B	642.63B
Stockholders Equity	1.22T	1.16T	1.12T	1.08T	1.04T
Cash Flow
Free Cash Flow	71.34B	85.09B	101.24B	123.82B	105.77B
Operating Cash Flow	165.76B	146.43B	164.91B	181.93B	175.56B
Investing Cash Flow	-162.27B	-70.45B	-55.35B	-48.54B	-60.78B
Financing Cash Flow	-95.49B	-77.84B	-87.39B	-49.31B	-48.21B

SECOM CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.71
• 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 SOMLY, the sentiment is Positive. The current price of 9.71 is above the 20-day moving average (MA) of 9.47, above the 50-day MA of 9.23, and above the 200-day MA of 8.86, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOMLY.

SECOM CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALLE	79 Outperform	$14.35B	23.23	38.99%	1.17%	5.49%	14.46%
ADT	78 Outperform	$7.19B	12.96	17.13%	2.49%	3.80%	-3.18%
MSA	75 Outperform	$6.64B	24.18	24.23%	1.21%	0.55%	1.85%
REZI	75 Outperform	$4.67B	64.31	-26.27%	―	20.00%	-547.75%
SOMLY	68 Neutral	$17.33B	22.31	8.93%	0.93%	4.35%	46.80%
BCO	67 Neutral	$4.59B	29.52	56.23%	0.90%	2.17%	25.34%
Sector *	64 Neutral	$10.78B	16.39	5.87%	2.08%	2.65%	-16.28%