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Saftec Co., Ltd. (7464) AI Stock Analysis
Saftec Co., Ltd.
(TSE/TYO:7464)
Saftec receives a very low overall score driven primarily by its severely deteriorating financial performance — an ~82% decline in net income over four years, compressing margins across all levels, and projected cash flow weakness represent the most significant risk factors. Technical indicators reinforce the bearish outlook, with the stock trading below all major moving averages and negative MACD momentum. Valuation offers no margin of safety, as the P/E of ~27x is unjustifiably high for a company with collapsing profitability. The 3.9% dividend yield provides limited support but its sustainability is in question. The low beta limits downside volatility but also caps recovery potential. Until management demonstrates an ability to reverse margin erosion and stabilize earnings, the risk-reward profile remains unfavorable.
Saftec Co., Ltd. (7464) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 2.57B
- Dividend Yield
- 4.09%
- Average Volume (3M)
- 1,564
- Price to Earnings (P/E)
- 21.9
- Beta (1Y)
- 0.15
- Revenue Growth
- -2.60%
- EPS Growth
- -47.67%
- Country
- Japan
- Employees
- 372
- Sector
- General
- Sector Strength
- 55
- Industry
- Security & Protection Services
Saftec Co., Ltd. Business Overview & Revenue Model
Company Description
Operating within Japan, Saftec Co.,Ltd. is a dedicated provider of extensive safety solutions for the construction industry. The company's diverse inventory features various signage options, including graphic designs (such as manga and arrow), standa...
How the Company Makes Money
null
Saftec Co., Ltd. Financial Statement Overview
Summary
Saftec's financial performance is deeply concerning. Net income has collapsed ~82% from FY2022 to FY2026E, with net margin compressing from 7.8% to under 2%. Gross margins are declining (50% to 44.7%), EBIT has fallen from ¥1.22B to ¥245M projected, and cash flow is projected to deteriorate sharply (FCF dropping to ¥149M in FY2026E). The balance sheet offers modest support with declining leverage (D/E at 0.46) and growing equity, but ROE has plummeted to 3.2%. The income statement score of 28, cash flow score of 35, and balance sheet score of 52 collectively paint a picture of a company with eroding earnings power and weakening cash generation despite a stable capital structure.
Income Statement
28NegativeBalance Sheet
52NeutralCash Flow
35Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.03B | 10.11B | 10.31B | 10.12B | 9.97B | 10.35B |
| Gross Profit | 4.45B | 4.42B | 4.61B | 4.68B | 4.84B | 5.06B |
| EBITDA | 968.94M | 1.03B | 1.18B | 1.34B | 1.70B | 2.06B |
| Net Income | 101.84M | 143.50M | 229.98M | 346.68M | 575.59M | 809.00M |
Balance Sheet | ||||||
| Total Assets | 11.86B | 11.66B | 12.42B | 12.42B | 12.28B | 12.18B |
| Cash, Cash Equivalents and Short-Term Investments | 3.68B | 3.94B | 4.45B | 4.13B | 4.26B | 4.32B |
| Total Debt | 3.31B | 3.18B | 3.35B | 3.39B | 3.35B | 3.48B |
| Total Liabilities | 4.69B | 4.37B | 5.20B | 5.29B | 5.23B | 5.57B |
| Stockholders Equity | 7.17B | 7.29B | 7.23B | 7.13B | 7.05B | 6.61B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 149.29M | 1.06B | 841.65M | 699.97M | 1.39B |
| Operating Cash Flow | 0 | 162.22M | 1.18B | 849.59M | 710.68M | 1.42B |
| Investing Cash Flow | 0 | -33.01M | -132.34M | 6.90M | -86.26M | -35.76M |
| Financing Cash Flow | 0 | -644.05M | -723.14M | -991.10M | -685.55M | -701.76M |
Saftec Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7464, the sentiment is Negative. The current price of 1466.00 is below the 20-day moving average (MA) of 1477.90, below the 50-day MA of 1506.44, and below the 200-day MA of 1568.24, indicating a bearish trend. The MACD of -13.57 indicates Negative momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 32.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7464.
Saftec Co., Ltd. Peers Comparison
Overall Rating
JP:674484Outperform
JP:973576Outperform
JP:773472Outperform
JP:233170Outperform
JP:426462Neutral- JP:746439Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6744 | 84Outperform | JPY 268.05B | 18.45 | ― | 2.79% | 6.33% | 33.61% |
| JP:9735 | 76Outperform | JPY 3.02T | 24.67 | 8.70% | 1.62% | 4.15% | 5.56% |
| JP:7734 | 72Outperform | JPY 163.34B | 15.50 | ― | 1.73% | 10.73% | 31.40% |
| JP:2331 | 70Outperform | JPY 610.76B | 16.63 | ― | 2.60% | 6.69% | 18.88% |
| JP:4264 | 62Neutral | JPY 7.78B | 28.86 | ― | ― | 19.47% | 84.83% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:7464 | 39Underperform | JPY 2.92B | 21.94 | ― | 4.09% | -2.60% | -47.67% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7464 | Saftec Co., Ltd. | 1466.00 | -101.62 | -6.48% | |
| JP:9735 | Secom Co | 6807.00 | 1734.19 | 34.19% | |
| JP:2331 | Sohgo Security Services Co., Ltd. | 1195.00 | 164.19 | 15.93% | |
| JP:4264 | SECURE,INC. | 1195.00 | -351.00 | -22.70% | |
| JP:6744 | Nohmi Bosai Ltd. | 4450.00 | 684.61 | 18.18% | |
| JP:7734 | Riken Keiki Co., Ltd. | 3470.00 | -45.83 | -1.30% |
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: Aug 09, 2026