Global Security Experts Inc. (4417) AI Stock Analysis

1 Followers

Global Security Experts Inc.

(TSE/TYO:4417)

Select Model

Rating:69Neutral

Price Target:JPY 9,286.00▲(9.63% Upside)

Action:downgraded

Date:10/09/26

The score is driven primarily by strong financial execution (rapid historical growth and expanded margins) and supportive technical momentum (price well above key moving averages with positive MACD). These positives are tempered by expensive valuation (high P/E with low yield) and some financial risk flags around leverage variability and weak operating cash flow relative to earnings.

Positive Factors

Strong revenue growth and margin expansionThe company has combined substantial revenue expansion with improving gross, operating, and net margins, indicating that growth has translated into stronger operating economics. This scaling can support reinvestment, earnings growth, and a more resilient competitive position over the next several quarters.

Negative Factors

Revenue growth has deceleratedAlthough growth remains healthy, the clear slowdown from earlier periods raises the execution hurdle for sustaining rapid expansion. Slower top-line growth could reduce operating leverage and make continued margin and earnings gains more dependent on efficiency improvements rather than broadening revenue momentum.

Global Security Experts Inc. (4417) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 127.14B
Dividend Yield: 0.51%
Average Volume (3M): 255.94K
Price to Earnings (P/E): 58.5
Beta (1Y): 0.78
Revenue Growth: 25.18%
EPS Growth: 85.59%
Country: Japan
Employees: 221
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Global Security Experts Inc. Business Overview & Revenue Model

Company Description

Global Security Experts Inc. is a cybersecurity-focused company providing services such as security consulting, vulnerability diagnostics, cybersecurity solutions, and comprehensive security education programs for various corporate clients in Japan.

Global Security Experts Inc. Financial Statement Overview

Summary

Strong multi-year revenue growth and meaningful margin expansion support a high-quality operating profile. Offsetting this, the balance sheet shows historically higher and somewhat volatile leverage, and cash-flow quality is mixed with consistently low operating cash flow relative to earnings despite improved free cash flow in 2026.

Income Statement

86Very Positive

Balance Sheet

72Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.21B	11.02B	8.80B	7.00B	5.56B	4.39B
Gross Profit	4.49B	4.00B	3.07B	2.28B	1.78B	1.36B
EBITDA	2.61B	2.30B	1.63B	1.17B	795.65M	471.50M
Net Income	2.18B	1.49B	1.01B	783.43M	488.12M	261.10M
Balance Sheet
Total Assets	11.80B	9.96B	8.14B	6.54B	4.14B	3.48B
Cash, Cash Equivalents and Short-Term Investments	2.64B	1.64B	1.39B	1.23B	1.08B	1.15B
Total Debt	1.20B	1.61B	1.93B	1.75B	221.64M	278.79M
Total Liabilities	6.24B	5.56B	5.06B	4.10B	2.42B	1.92B
Stockholders Equity	5.56B	4.40B	3.08B	2.43B	1.72B	1.57B
Cash Flow
Free Cash Flow	0	1.13B	739.50M	710.64M	550.79M	314.63M
Operating Cash Flow	0	1.13B	1.02B	713.55M	594.95M	328.22M
Investing Cash Flow	0	-151.23M	-411.37M	-2.01B	-212.16M	-294.65M
Financing Cash Flow	0	-725.70M	-457.42M	1.45B	-456.00M	460.63M

Global Security Experts Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price8470.00

Price Trends

50DMA6383.54Positive

100DMA5267.30Positive

200DMA3999.37Positive

Market Momentum

MACD618.85Positive

RSI72.96Negative

STOCH92.08Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4417, the sentiment is Positive. The current price of 8470.00 is above the 20-day moving average (MA) of 7994.50, above the 50-day MA of 6383.54, and above the 200-day MA of 3999.37, indicating a bullish trend. The MACD of 618.85 indicates Positive momentum. The RSI at 72.96 is Negative, neither overbought nor oversold. The STOCH value of 92.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4417.

Global Security Experts Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4417 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4475	83Outperform	JPY 86.86B	41.89	―	0.46%	17.01%	34.74%
JP:3040	79Outperform	JPY 54.84B	15.25	23.79%	2.23%	13.07%	28.70%
JP:4493	79Outperform	JPY 26.87B	23.33	―	0.19%	22.65%	74.18%
JP:4417	69Neutral	JPY 129.83B	58.50	―	0.51%	25.18%	85.59%
JP:3042	67Neutral	JPY 6.95B	248.84	―	0.55%	-0.89%	-77.64%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:4417 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4417	Global Security Experts Inc.	8470.00	4972.97	142.21%
JP:3040	Soliton Systems KK	2606.00	812.24	45.28%
JP:3042	SecuAvail, Inc.	754.00	399.23	112.53%
JP:4475	HENNGE K.K.	2391.00	1092.35	84.11%
JP:4493	Cyber Security Cloud, Inc.	2185.00	370.02	20.39%

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 09, 2026

Global Security Experts Inc. AI Stock Analysis