SECOM CO (SOMLY) AI Stock Analysis

• Market Cap: $16.77B
• Dividend Yield: 1.58%
• Average Volume (3M): 3.37K
• Price to Earnings (P/E): 18.8
• Beta (1Y): -0.09
• 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: 113.36
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 8.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): $8.14B

• Rating: 63 Neutral
• Price Target: $10.00 ▲(11.48% 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 creates predictable, durable revenue and cash flow. That structural model supports stable margins, high customer retention, and repeatable cash generation over multi-year horizons, aiding long-term planning.

Low leverage / strong balance sheet

Very low debt-to-equity provides financial flexibility to fund capex, M&A or defend operations during downturns without large interest burdens. A strong capital structure reduces solvency risk and preserves capacity for strategic investments that support lasting competitive position.

Cash generation and healthy margins

Consistent operating cash flow combined with solid gross and net margins indicates enduring pricing power and operational efficiency. Reliable cash generation funds reinvestment, service delivery and steady shareholder returns, underpinning long-term business resilience.

Negative Factors

Modest recent revenue growth

Very low year-over-year revenue growth signals maturation in core markets and limited top-line expansion absent new offerings or geographic expansion. Sustained slow growth can constrain operating leverage and long-run earnings improvement unless management accelerates strategic initiatives.

Free cash flow volatility

Intermittent free cash flow swings complicate long-term capital allocation: they raise uncertainty around consistent dividend increases, opportunistic M&A, or aggressive reinvestment. Persistent volatility can reduce strategic optionality during investment windows.

Moderate return on equity

An ROE near 8.3% is modest for a mature, cash-generative services firm and suggests limited capital efficiency. Without stronger margin expansion or faster growth, this level may cap long-term shareholder returns relative to higher-return competitors.

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 primarily makes money by selling and servicing security and safety solutions under recurring service contracts and fees. A major revenue stream is ongoing monitoring and response services for alarm systems installed at customer sites (homes and businesses), where customers pay periodic fees for 24/7 monitoring and dispatch/response capabilities. SECOM also generates revenue from the installation, leasing, and maintenance of security equipment such as sensors, control panels, access control systems, and surveillance cameras, typically bundled with monitoring or maintenance agreements. In addition, SECOM earns service fees from physical security operations, including guard services and related on-site security support, and from cash logistics services (cash-in-transit and cash handling) where customers pay per service and/or contract-based fees. Any material company-specific partnerships driving earnings: null.

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: Negative

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 9.52, below the 50-day MA of 9.42, and below the 200-day MA of 9.13, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.58 is Negative, 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	$1.51B	27.53	27.45%	1.29%	-2.28%	-9.94%
ALLE	72 Outperform	$12.39B	21.24	34.76%	1.27%	6.87%	13.53%
ADT	70 Outperform	$5.36B	10.53	16.19%	2.73%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SOMLY	63 Neutral	$16.77B	18.83	8.51%	1.58%	6.03%	21.69%
BCO	62 Neutral	$4.14B	24.49	79.36%	0.85%	3.07%	48.57%
REZI	56 Neutral	$5.09B	9.68	-18.10%	―	15.45%	-488.24%