FFRI Security, Inc. (3692) AI Stock Analysis

1 Followers

FFRI Security, Inc.

(TSE/TYO:3692)

Select Model

Rating:83Outperform

Price Target:JPY 7,677.00▲(16.49% Upside)

Action:reiterated

Date:10/17/26

FFRI Security earns a strong overall score driven primarily by its exceptional fundamental health, including robust margin expansion, a debt-free balance sheet, and highly efficient cash flow generation. Solid bullish technical momentum further supports the stock. However, a premium valuation tempers the final score, reflecting the high growth expectations already priced into the shares.

Positive Factors

Revenue and Margin ExpansionAccelerating revenue growth alongside major operating and net-margin expansion indicates stronger earnings power and improving business economics. If sustained, this combination can support reinvestment, strengthen the company’s competitive position, and allow profitability to compound over the next several quarters.

Negative Factors

Gross Margin VolatilityUneven gross margins make the company’s profitability less predictable, even while operating and net margins have improved. If mix or cost dynamics continue to fluctuate, future earnings growth may be less consistent and management may have less certainty when planning investment and resource allocation.

FFRI Security, Inc. (3692) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 52.12B
Dividend Yield: 0.27%
Average Volume (3M): 556.32K
Price to Earnings (P/E): 53.9
Beta (1Y): 1.66
Revenue Growth: 14.84%
EPS Growth: -16.79%
Country: Japan
Employees: 236
Sector: General
Sector Strength: 55
Industry: Software - Application

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 dissemina...

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 implem...

FFRI Security, Inc. Financial Statement Overview

Summary

Exceptional financial health driven by outstanding top-line growth, margin expansion with net profit margins exceeding 25%, and a pristine, virtually debt-free balance sheet generating strong free cash flow.

Income Statement

92Very Positive

Balance Sheet

95Very Positive

Cash Flow

94Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.36B	4.35B	3.04B	2.45B	1.95B	1.78B
Gross Profit	2.62B	2.64B	2.03B	1.54B	1.17B	1.23B
EBITDA	1.38B	1.43B	925.15M	538.00M	257.32M	209.29M
Net Income	1.03B	1.10B	687.02M	432.17M	187.28M	120.98M
Balance Sheet
Total Assets	5.32B	5.88B	4.31B	3.38B	2.63B	2.45B
Cash, Cash Equivalents and Short-Term Investments	3.34B	3.33B	2.16B	2.08B	1.76B	1.64B
Total Debt	8.58M	8.94M	10.33M	0	0	0
Total Liabilities	1.56B	2.10B	1.53B	1.20B	881.15M	730.52M
Stockholders Equity	3.76B	3.78B	2.79B	2.18B	1.75B	1.72B
Cash Flow
Free Cash Flow	0	1.31B	618.01M	370.42M	276.17M	-48.47M
Operating Cash Flow	0	1.36B	641.50M	390.63M	302.31M	-16.31M
Investing Cash Flow	0	-76.78M	-477.61M	-20.72M	-26.10M	-157.98M
Financing Cash Flow	0	-112.25M	-79.64M	-50.09M	-161.52M	-275.08M

FFRI Security, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price6590.00

Price Trends

50DMA7514.00Negative

100DMA6296.75Positive

200DMA6654.98Negative

Market Momentum

MACD-225.12Positive

RSI40.24Neutral

STOCH40.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3692, the sentiment is Negative. The current price of 6590.00 is below the 20-day moving average (MA) of 7806.50, below the 50-day MA of 7514.00, and below the 200-day MA of 6654.98, indicating a bearish trend. The MACD of -225.12 indicates Positive momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 40.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3692.

FFRI Security, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3692 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3921	89Outperform	JPY 24.30B	13.09	―	3.33%	7.78%	9.63%
JP:2326	84Outperform	JPY 74.38B	18.62	―	1.83%	17.08%	25.63%
JP:3692	83Outperform	JPY 58.02B	53.91	―	0.27%	14.84%	-16.79%
JP:9692	81Outperform	JPY 69.75B	11.88	―	3.68%	17.89%	38.85%
JP:3905	65Neutral	JPY 51.14B	4.97	―	―	1178.31%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7527	43Neutral	JPY 4.76B	145.16	―	―	16.20%	―

* General Sector Average

Performance Comparison

JP:3692 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3692	FFRI Security, Inc.	6590.00	-2739.77	-29.37%
JP:2326	Digital Arts Inc.	5460.00	-1568.84	-22.32%
JP:3905	Datasection, Inc.	1215.00	-1125.00	-48.08%
JP:3921	NEOJAPAN Inc.	1744.00	55.55	3.29%
JP:7527	SystemSoft Corporation	45.00	-25.00	-35.71%
JP:9692	Computer Engineering & Consulting Ltd.	2171.00	76.32	3.64%

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.

Date of analysis: Oct 17, 2026

FFRI Security, Inc. AI Stock Analysis