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Kyoei Security Service Co., Ltd. (7058) AI Stock Analysis

JP:7058

Kyoei Security Service Co., Ltd.

(TSE/TYO:7058)

Select Model
Rating:70Outperform
Price Target:JPY 3,130.00â–²(11.75% Upside)
Action:reiterated
Date:10/24/26

The score is supported primarily by strong valuation, a conservative balance sheet, and sustained revenue growth. These strengths are offset by weak technical positioning, volatile profitability, and inconsistent free cash flow.

Positive Factors
Revenue GrowthRevenue expanded substantially from 2021 through 2026, including double-digit growth in the latest year. This sustained top-line progress suggests a growing contracted service base and provides a durable platform for operating scale and continued investment.
Negative Factors
Earnings VolatilityThe 2025 net loss and subsequent rebound show that earnings are not yet consistently predictable. Such volatility can complicate planning, reduce confidence in recurring profitability, and make future shareholder returns more dependent on annual operating fluctuations.

Kyoei Security Service Co., Ltd. (7058) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:7058+6.77%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 4.05B
Dividend Yield
7.50%
Average Volume (3M)
1,676
Price to Earnings (P/E)
6.3
Beta (1Y)
0.32
Revenue Growth
11.17%
EPS Growth
-9.36%
Country
Japan
Employees
750
Sector
Industrials
Sector Strength
63
Industry
Security & Protection Services

Kyoei Security Service Co., Ltd. Business Overview & Revenue Model

Company Description

Operating across Japan, Kyoei Security Service Co., Ltd. delivers a comprehensive suite of security solutions. These include facility guarding, providing reception and concierge services, event security management, highway safety patrols, traffic con...

How the Company Makes Money

Kyoei Security Service Co., Ltd. primarily makes money by providing contracted security services to corporate and institutional customers and charging service fees under service agreements. Its core revenue stream is typically labor-based: the compan...

Kyoei Security Service Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth, low leverage, and improving operating cash flow support the score. Volatile profitability, a 2025 loss, and inconsistent free cash flow prevent a higher rating.

Income Statement

73Positive

Balance Sheet

82Very Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue10.40B11.58B10.11B9.35B8.02B8.00B
Gross Profit2.48B2.75B2.35B2.09B1.91B2.25B
EBITDA551.50M1.20B360.66M513.67M653.70M1.07B
Net Income89.05M643.01M-38.70M248.54M451.13M736.55M
Balance Sheet
Total Assets6.60B7.13B6.36B6.81B5.85B5.87B
Cash, Cash Equivalents and Short-Term Investments2.26B1.94B2.20B3.35B3.40B3.73B
Total Debt427.16M809.81M480.37M860.71M241.66M316.66M
Total Liabilities2.01B2.11B1.83B2.11B1.26B1.52B
Stockholders Equity4.59B5.02B4.53B4.71B4.59B4.35B
Cash Flow
Free Cash Flow000248.57M-88.14M912.28M
Operating Cash Flow0697.61M398.67M248.57M-88.14M912.28M
Investing Cash Flow0-1.63B-149.22M115.83M-1.22B-26.69M
Financing Cash Flow01.66B-592.14M-236.52M-458.92M-222.25M

Kyoei Security Service Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2801.00

Price Trends

50DMA2993.78Negative
100DMA2984.40Negative
200DMA2941.94Negative

Market Momentum

MACD-51.00Positive
RSI31.36Neutral
STOCH4.98Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7058, the sentiment is Negative. The current price of 2801.00 is below the 20-day moving average (MA) of 2994.00, below the 50-day MA of 2993.78, and below the 200-day MA of 2941.94, indicating a bearish trend. The MACD of -51.00 indicates Positive momentum. The RSI at 31.36 is Neutral, neither overbought nor oversold. The STOCH value of 4.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7058.

Kyoei Security Service Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:7058 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6744JP:674484OutperformJPY 268.05B18.43―2.79%6.33%33.61%
JP:9735JP:973576OutperformJPY 3.02T24.658.70%1.62%4.15%5.56%
JP:7734JP:773472OutperformJPY 163.34B15.54―1.72%10.73%31.40%
JP:7058JP:705870OutperformJPY 4.06B6.30―7.50%11.17%-9.36%
JP:2331JP:233170OutperformJPY 610.76B16.68―2.59%6.69%18.88%
JP:9740JP:974070OutperformJPY 38.50B20.63―2.65%6.94%-40.69%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

0%20%JP:7058JP:9735JP:2331JP:6744JP:7734JP:9740Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7058 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7058Kyoei Security Service Co., Ltd.2801.00142.915.38%
JP:9735Secom Co 6801.001681.0432.83%
JP:2331Sohgo Security Services Co., Ltd.1199.00172.0916.76%
JP:6744Nohmi Bosai Ltd.4445.00762.1020.69%
JP:7734Riken Keiki Co., Ltd.3480.0023.090.67%
JP:9740Central Security Patrols Co., Ltd.2639.00-21.76-0.82%
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 24, 2026