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FFRI Security, Inc.
(3692)
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Rating:69Neutral
Price Target:
¥6,143.00
▼(-13.48% Downside)
Action:Downgraded
Date:08/28/26
The score is primarily driven by strong financial performance: rapid growth, materially improved margins, and an extremely low-debt balance sheet with rising ROE. This is tempered by mixed technical signals (negative MACD and price below longer-term averages) and a demanding valuation (high P/E with minimal dividend yield).
Positive Factors
Accelerating Growth and Profitability
FY2026 revenue growth accelerated to 27.6% from roughly 24–25% in the prior two years, while operating and net margins reached about 31.4% and 25.3%. This indicates stronger demand and meaningful operating leverage, supporting durable earnings expansion if execution holds.
Negative Factors
Gross Margin Volatility
Gross margin has been high but volatile across the reported years, following an exceptionally high FY2021 level with lower and uneven outcomes. This suggests product mix or cost dynamics may affect profitability, making recent margin expansion less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Growth and Profitability
FY2026 revenue growth accelerated to 27.6% from roughly 24–25% in the prior two years, while operating and net margins reached about 31.4% and 25.3%. This indicates stronger demand and meaningful operating leverage, supporting durable earnings expansion if execution holds.
Read all positive factors
FFRI Security, Inc. (3692) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.58B
Dividend Yield0.32%
Average Volume (3M)975.63K
Price to Earnings (P/E)43.3
Beta (1Y)1.52
Revenue Growth27.86%
EPS Growth14.99%
CountryJP
Employees236
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)139.06
Shares Outstanding8,190,000
10 Day Avg. Volume1,531,580
30 Day Avg. Volume975,626
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)12.67
Price to Sales (P/S)11.00
P/FCF Ratio36.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FFRI Security, Inc. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, FFRI Security, Inc. was established in 2007 to deliver a range of cybersecurity products and services across Japan. The company actively engages in critical activities such as research, consulting, information dissem...
How the Company Makes Money
FFRI Security makes money primarily by selling its cybersecurity offerings to customers, which typically includes revenue from (1) software/product sales (e.g., security software delivered as licensed products) and (2) related services such as imp...
FFRI Security, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.35B | 3.04B | 2.45B | 1.95B | 1.78B |
| Gross Profit | 2.64B | 2.03B | 1.54B | 1.17B | 1.23B |
| EBITDA | 1.43B | 925.15M | 538.00M | 257.32M | 209.29M |
| Net Income | 1.10B | 687.02M | 432.17M | 187.28M | 120.98M |
Balance Sheet | |||||
| Total Assets | 5.88B | 4.31B | 3.38B | 2.63B | 2.45B |
| Cash, Cash Equivalents and Short-Term Investments | 3.33B | 2.16B | 2.08B | 1.76B | 1.64B |
| Total Debt | 8.94M | 10.33M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.10B | 1.53B | 1.20B | 881.15M | 730.52M |
| Stockholders Equity | 3.78B | 2.79B | 2.18B | 1.75B | 1.72B |
Cash Flow | |||||
| Free Cash Flow | 1.31B | 618.01M | 370.42M | 276.17M | -48.47M |
| Operating Cash Flow | 1.36B | 641.50M | 390.63M | 302.31M | -16.31M |
| Investing Cash Flow | -76.78M | -477.61M | -20.72M | -26.10M | -157.98M |
| Financing Cash Flow | -112.25M | -79.64M | -50.09M | -161.52M | -275.08M |
FFRI Security, Inc. Technical Analysis
Positive
7100.00
Price Trends
5068.10
Positive
5486.85
Positive
6906.85
Negative
Market Momentum
-15.64
Negative
62.50
Neutral
73.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3692, the sentiment is Positive. The current price of 7100 is above the 20-day moving average (MA) of 5068.75, above the 50-day MA of 5068.10, and above the 200-day MA of 6906.85, indicating a neutral trend. The MACD of -15.64 indicates Negative momentum. The RSI at 62.50 is Neutral, neither overbought nor oversold. The STOCH value of 73.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3692.
FFRI Security, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥81.31B | 14.23 | ― | 2.41% | 20.97% | 44.36% | |
79 Outperform | ¥22.97B | 12.50 | ― | 2.53% | 9.76% | 19.47% | |
69 Neutral | ¥39.58B | 43.27 | ― | 0.20% | 27.86% | 14.99% | |
67 Neutral | ¥61.89B | 16.99 | ― | 1.42% | 12.56% | 14.98% | |
57 Neutral | ¥52.74B | 6.30 | ― | ― | 1178.31% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
44 Neutral | ¥5.61B | 170.97 | ― | ― | -0.48% | ― |
* General Sector Average
JP:3692
FFRI Security, Inc.
5,710.00
-1,095.24
-16.09%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.