Vario Secure, Inc. (4494) AI Stock Analysis

• Market Cap: ¥3.70B
• Dividend Yield: N/A
• Average Volume (3M): 37.56K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.62
• Revenue Growth: 1.62%
• EPS Growth: 9.93%
• Country: JP
• Employees: 74
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 24.11
• Shares Outstanding: 4,522,961
• 10 Day Avg. Volume: 19,420
• 30 Day Avg. Volume: 37,556
• PEG Ratio: -4.63
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 8.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥979.00 ▲(24.87% Upside)

Vario Secure, Inc. scores well due to its strong financial performance and bullish technical indicators. The stock is reasonably valued, but investors should be cautious of the overbought technical signals and monitor the volatility in free cash flow growth.

Vario Secure, Inc. Business Overview & Revenue Model

Company Description

Vario Secure Inc. provides managed security services and network security appliance sales services. The company's managed security services include integrated security equipment and operation and maintenance systems; and integration services, such as design, procurement, installation, and configuration of security equipment. Vario Secure Inc. was founded in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Vario Secure generates revenue primarily through the sale of its cybersecurity software products and subscription-based services. The company employs a Software as a Service (SaaS) model, allowing clients to access its solutions via a recurring subscription fee. Additionally, Vario Secure offers consulting services for businesses seeking to enhance their cybersecurity posture, which contributes to its revenue. Strategic partnerships with technology providers and systems integrators also play a crucial role in expanding its market reach and driving sales. Furthermore, the company benefits from government contracts and grants aimed at improving national cybersecurity infrastructure, providing an additional revenue stream.

Vario Secure, Inc. Financial Statement Overview

Summary

Vario Secure, Inc. demonstrates strong financial performance with consistent revenue growth and efficient operations. The balance sheet is robust with low leverage, but there is a slight decline in net income and volatility in free cash flow growth, which require attention.

Income Statement

Vario Secure, Inc. has demonstrated steady revenue growth from 2020 to 2025 with marginal fluctuations, reflecting a resilient business model. The gross profit margin remains strong, indicating efficient cost control. However, there is a slight decline in net income over recent years, which could signal rising costs or competitive pressures. The EBIT and EBITDA margins are healthy, suggesting robust operating efficiency.

Balance Sheet

The company's balance sheet shows a stable equity position with a high equity ratio, indicating lower financial risk. The debt-to-equity ratio has improved over the years, reflecting prudent debt management. Return on equity is satisfactory but shows a downward trend, which could impact future profitability if not addressed.

Cash Flow

Vario Secure's cash flow statements reveal strong operating cash flows with consistent free cash flow generation. The free cash flow to net income ratio indicates efficient cash conversion. Nevertheless, the free cash flow growth rate has been volatile, which needs monitoring to ensure sustainable cash generation.

Breakdown	TTM	Dec 2024	Dec 2022	Dec 2021	Dec 2020	Dec 2018
Income Statement
Total Revenue	2.70B	2.67B	2.63B	2.57B	2.55B	2.30B
Gross Profit	1.38B	1.37B	1.39B	1.60B	1.56B	1.38B
EBITDA	826.76M	693.35M	758.74M	877.23M	881.99M	793.87M
Net Income	346.54M	342.23M	383.32M	500.48M	491.53M	235.41M
Balance Sheet
Total Assets	7.62B	7.58B	7.83B	7.12B	7.22B	6.00B
Cash, Cash Equivalents and Short-Term Investments	780.68M	759.91M	1.04B	389.85M	593.93M	288.32M
Total Debt	1.11B	1.17B	1.50B	1.82B	2.26B	3.00B
Total Liabilities	1.62B	1.68B	2.45B	2.80B	3.27B	3.67B
Stockholders Equity	6.00B	5.89B	5.38B	4.32B	3.95B	2.33B
Cash Flow
Free Cash Flow	342.27M	298.96M	383.62M	381.92M	412.02M	338.29M
Operating Cash Flow	432.79M	359.54M	522.29M	490.21M	524.23M	389.02M
Investing Cash Flow	-137.22M	-125.48M	-138.67M	-108.29M	-112.21M	-50.73M
Financing Cash Flow	-295.38M	-296.44M	266.50M	-586.14M	-450.32M	-401.00M

Vario Secure, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 784.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4494, the sentiment is Negative. The current price of 784 is below the 20-day moving average (MA) of 828.15, below the 50-day MA of 828.06, and above the 200-day MA of 729.63, indicating a neutral trend. The MACD of -13.02 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4494.

Vario Secure, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	76 Outperform	¥18.96B	34.83	―	0.16%	28.56%	-13.56%
4494	75 Outperform	¥3.70B	9.88	―	―	1.62%	9.93%
4417	75 Outperform	¥54.64B	45.76	―	0.66%	25.06%	37.24%
3914	72 Outperform	¥22.82B	61.81	―	―	3.17%	-16.66%
3042	62 Neutral	¥2.65B	25.41	―	0.58%	13.74%	-55.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3695	56 Neutral	¥8.40B	48.35	―	6.00%	14.59%	-71.29%

Vario Secure, Inc. Corporate Events

Vario Secure Inc. Reports Fiscal Year 2025 Financial Results

Vario Secure Inc. reported its non-consolidated financial results for the fiscal year ending February 28, 2025, showing a slight increase in revenue but a decline in operating profit and profit before tax compared to the previous year. Despite these challenges, the company forecasts a significant improvement in financial performance for the next fiscal year, indicating a positive outlook for stakeholders.