SECOM CO (SOMLY) AI Stock Analysis

• Market Cap: $17.04B
• Dividend Yield: 1.58%
• Average Volume (3M): 3.37K
• Price to Earnings (P/E): 22.2
• Beta (1Y): -0.10
• Revenue Growth: 6.03%
• EPS Growth: 21.69%
• Country: US
• Employees: 64,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.12
• Shares Outstanding: 1,866,399,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,368
• PEG Ratio: 0.04
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 7.29
• Enterprise Value/Market Cap: 111.80
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 8.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $10.50 ▲(17.06% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

SECOM CO's strong financial performance is the most significant factor, reflecting stability and growth potential. However, bearish technical indicators and fair valuation metrics suggest caution. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Recurring revenue model

A business built on recurring monitoring, maintenance and service contracts produces predictable, multi-year cash flows and high customer stickiness. That durable model supports steady revenue visibility, easier capital planning, and repeated upsell of new services and equipment over time.

Low leverage / strong balance sheet

Extremely low debt and a healthy equity ratio give SECOM financial flexibility to invest, pursue acquisitions, or withstand downturns without pressuring cash flow. Low leverage reduces refinancing risk and preserves the ability to fund recurring service operations and capex from internal resources.

Healthy margins and profitability

Sizable gross and net margins indicate operational efficiency across installation, monitoring and physical security services. Stable margins support durable free cash generation and the capacity to reinvest in technology and personnel, reinforcing competitive service delivery over time.

Negative Factors

Free cash flow volatility

Intermittent volatility in free cash flow can constrain strategic flexibility, including consistent capex, M&A or shareholder returns. Even with strong operating cash flow, uneven FCF undermines planning for multi-year investments and may necessitate conservative liquidity buffers.

Moderate return on equity

An ROE near 8% is modest for a stable services franchise and suggests limited incremental returns on invested capital. Over the medium term this can translate into slower equity value creation versus higher-return peers, constraining investor upside if growth remains modest.

Slow recent organic growth

Revenue expansion appears modest, reflecting a mature market and dependency on incremental service pricing or penetration. Slow organic growth limits leverage of fixed costs and could cap margin expansion and long-term earnings momentum absent new product lines or geographic expansion.

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 generates revenue through multiple streams, including subscription fees for its security monitoring services, sales of electronic security products, and installation services. The company charges monthly or annual fees for its monitoring services, which provide clients with 24/7 surveillance and emergency response. Additionally, SECOM benefits from direct sales of security equipment such as cameras and alarm systems, where they often partner with technology firms to enhance product offerings. Significant partnerships with local governments and businesses further bolster their revenue, as they provide tailored security solutions for large-scale projects. Furthermore, SECOM's focus on disaster prevention services presents additional revenue opportunities, particularly in areas prone to natural disasters, where businesses and homes seek enhanced safety measures.

SECOM CO Financial Statement Overview

Summary

SECOM CO exhibits strong financial health with consistent revenue growth, healthy profit margins, low leverage, and effective cash management. The income statement, balance sheet, and cash flow statement collectively reflect a stable financial foundation and growth potential.

Income Statement

SECOM CO has demonstrated consistent revenue growth with a 1.37% increase in the latest year. The company maintains healthy margins with a gross profit margin of approximately 30.9% and a net profit margin of around 9.0%. EBIT and EBITDA margins are strong, indicating efficient operations. The steady growth and robust profitability metrics reflect a well-managed income statement.

Balance Sheet

The balance sheet of SECOM CO shows a solid financial position with a low debt-to-equity ratio of approximately 0.06, indicating low leverage. The return on equity is stable at around 8.3%, showcasing effective use of equity. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

SECOM CO's cash flow statement indicates strong operating cash flow, with a high operating cash flow to net income ratio. The free cash flow growth rate is positive, although it has shown some volatility in previous years. The company maintains a good free cash flow to net income ratio, demonstrating effective cash management. Overall, the cash flow position is solid but could benefit from more consistent free cash flow growth.

Breakdown	TTM	Mar 2026	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.22T	1.20T	1.15T	1.05T	1.04T	1.06T
Gross Profit	377.08B	371.15B	357.28B	337.67B	330.57B	337.52B
EBITDA	222.06B	253.42B	236.61B	220.31B	201.68B	213.78B
Net Income	108.40B	108.11B	101.95B	94.27B	74.68B	89.08B
Balance Sheet
Total Assets	2.09T	2.15T	2.08T	1.91T	1.86T	1.82T
Cash, Cash Equivalents and Short-Term Investments	448.23B	584.63B	599.15B	685.86B	659.72B	587.55B
Total Debt	64.94B	72.34B	68.96B	67.63B	66.17B	70.66B
Total Liabilities	669.55B	697.84B	690.09B	651.72B	634.36B	642.63B
Stockholders Equity	1.25T	1.27T	1.22T	1.12T	1.08T	1.04T
Cash Flow
Free Cash Flow	0.00	72.58B	71.34B	101.24B	123.82B	105.77B
Operating Cash Flow	0.00	167.84B	165.76B	164.91B	181.93B	175.56B
Investing Cash Flow	0.00	-100.80B	-162.27B	-55.35B	-48.54B	-60.78B
Financing Cash Flow	0.00	-85.25B	-95.49B	-87.39B	-49.31B	-48.21B

SECOM CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 8.97 is below the 20-day moving average (MA) of 9.55, below the 50-day MA of 9.21, and below the 200-day MA of 9.11, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 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
NSSC	78 Outperform	$1.55B	32.96	26.42%	1.29%	-2.28%	-9.94%
BCO	74 Outperform	$5.39B	32.86	61.95%	0.85%	3.07%	48.57%
ALLE	72 Outperform	$14.01B	21.87	36.08%	1.27%	6.87%	13.53%
ADT	69 Neutral	$6.44B	11.22	17.24%	2.73%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SOMLY	63 Neutral	$17.04B	22.17	8.35%	1.58%	6.03%	21.69%
REZI	51 Neutral	$5.51B	-7.72	-20.90%	―	15.45%	-488.24%