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Secom Co
(9735)
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Rating:69Neutral
Price Target:
¥7,130.00
▲(4.82% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance—especially a very low-risk balance sheet and steady profitability—partly offset by weak near-term technical momentum (below key moving averages and negative MACD). Valuation is reasonable but not cheap given the P/E and modest dividend yield.
Positive Factors
Recurring Service Revenue
Continuing monitoring and response contracts can create recurring revenue and deepen customer relationships. This service-led model may support visibility and retention over the next several months, while equipment installation and maintenance add supporting revenue streams.
Negative Factors
Modest Margin Pressure
Gradually declining gross and operating margins could indicate rising delivery costs, pricing pressure or an unfavorable mix. If this trend persists, it may limit earnings growth even while revenue continues to expand and could reduce operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Service Revenue
Continuing monitoring and response contracts can create recurring revenue and deepen customer relationships. This service-led model may support visibility and retention over the next several months, while equipment installation and maintenance add supporting revenue streams.
Read all positive factors
Secom Co (9735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.86T
Dividend Yield1.55%
Average Volume (3M)1.24M
Price to Earnings (P/E)23.3
Beta (1Y)0.26
Revenue Growth4.15%
EPS Growth5.56%
CountryJP
Employees65,094
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)275.87
Shares Outstanding466,599,800
10 Day Avg. Volume1,270,470
30 Day Avg. Volume1,239,516
Financial Highlights & Ratios
PEG Ratio3.51
Price to Book (P/B)1.87
Price to Sales (P/S)1.96
P/FCF Ratio18.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)290.39
Revenue Forecast (FY)¥1.32T
Secom Co Business Overview & Revenue Model
Company Description
SECOM Co., Ltd., established in Tokyo in 1962, is a Japanese and international provider of a diverse range of services, with a strong emphasis on security. Its primary Security Services segment encompasses online monitoring systems, on-site guardi...
How the Company Makes Money
SECOM primarily makes money by charging customers for security services and related safety solutions. A core revenue stream is ongoing service fees from monitoring/guarding arrangements (e.g., alarm monitoring and dispatch/response services) provi...
Secom Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.27T | 1.26T | 1.20T | 1.15T | 1.10T | 1.05T |
| Gross Profit | 393.38B | 379.72B | 371.15B | 357.28B | 342.46B | 337.67B |
| EBITDA | 254.92B | 262.26B | 253.42B | 236.61B | 223.18B | 220.31B |
| Net Income | 111.82B | 112.66B | 108.11B | 101.95B | 96.08B | 94.27B |
Balance Sheet | ||||||
| Total Assets | 2.18T | 2.23T | 2.15T | 2.08T | 1.99T | 1.91T |
| Cash, Cash Equivalents and Short-Term Investments | 581.26B | 583.55B | 584.63B | 599.15B | 684.18B | 685.86B |
| Total Debt | 71.35B | 68.50B | 72.64B | 68.96B | 64.28B | 67.63B |
| Total Liabilities | 688.33B | 730.44B | 697.84B | 690.09B | 673.01B | 651.72B |
| Stockholders Equity | 1.31T | 1.31T | 1.27T | 1.22T | 1.16T | 1.12T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 130.00B | 95.20B | 83.00B | 95.66B | 109.75B |
| Operating Cash Flow | 0.00 | 200.48B | 172.74B | 164.28B | 145.44B | 162.86B |
| Investing Cash Flow | 0.00 | -88.59B | -100.77B | -159.34B | -67.60B | -55.28B |
| Financing Cash Flow | 0.00 | -115.04B | -85.28B | -98.42B | -80.68B | -87.47B |
Secom Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥263.83B | 18.14 | ― | 2.42% | 6.33% | 33.61% | |
72 Outperform | ¥157.01B | 14.92 | ― | 1.39% | 10.73% | 31.40% | |
69 Neutral | ¥2.86T | 23.33 | 8.87% | 1.45% | 4.15% | 5.56% | |
68 Neutral | ¥603.63B | 16.59 | ― | 2.14% | 6.69% | 18.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥4.27B | 6.63 | ― | 3.03% | 14.54% | ― | |
62 Neutral | ¥40.78B | 18.51 | ― | 1.95% | 7.98% | -38.53% |
* Industrials Sector Average
JP:9735
Secom Co
6,440.00
1,056.74
19.63%
JP:2331
Sohgo Security Services Co., Ltd.
1,192.50
78.38
7.03%
JP:6744
Nohmi Bosai Ltd.
4,310.00
476.17
12.42%
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Kyoei Security Service Co., Ltd.
2,900.00
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Riken Keiki Co., Ltd.
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JP:9740
Central Security Patrols Co., Ltd.
2,804.00
356.36
14.56%
Secom Co Corporate Events
Secom posts higher sales but lower profit and lifts annual dividend forecast
Aug 7, 2026
Secom Co., Ltd. reported consolidated net sales of ¥298.5 billion for the three months ended June 30, 2026, up 3.6% year on year, with operating profit rising 3.9% to ¥33.5 billion, while ordinary profit and profit attributable to owners...
Secom Advances Major Share Buyback Under Board-Approved Program
Aug 3, 2026
Secom Co., Ltd. is a Japanese security services provider listed on the Tokyo Stock Exchange Prime Market, focusing on security-related solutions and actively managing its capital structure through common stock issuance and repurchases. The company...
Secom Completes Restricted Stock Treasury Disposal for Executive Officers
Jul 24, 2026
Secom Co., Ltd. has completed the payment procedures for a disposal of treasury stock designated as restricted stock for its executive officers, following a resolution passed by its board of directors on June 26, 2026. The company disposed of 7,19...
Secom Completes Treasury Stock Disposal for Director Restricted Stock Compensation
Jul 24, 2026
Secom has completed the payment procedures for a previously approved disposal of treasury stock to be used as restricted stock compensation for its directors. The transaction involved issuing 11,432 shares of common stock at ¥6,374 per share,...
Secom Advances ¥100 Billion Share Buyback, Repurchases 3.5 Million Shares
Jul 1, 2026
Secom has been executing a share repurchase program authorized by its board in May 2026, under which it is allowed to buy back up to 23 million shares or 5.69% of its outstanding stock for a maximum of ¥100 billion through February 2027. The ...
Secom Introduces Restricted Stock Plan for Executive Officers
Jun 26, 2026
Secom is introducing a restricted stock compensation plan for its executive officers, excluding those who also serve as directors, by disposing of 7,199 shares of treasury stock at a price aligned with the market. The move aims to deepen managemen...
Secom to Use Treasury Shares for Restricted Stock Compensation to Directors
Jun 26, 2026
Secom will dispose of 11,432 shares of its treasury stock on July 24, 2026 to provide restricted stock compensation to six internal directors, at a disposal price of JPY 6,374 per share for a total of about JPY 72.9 million. The transaction forms ...
Secom Weighs Investment Unit Cut to Boost Share Liquidity
Jun 1, 2026
Secom has outlined its stance on potentially reducing the size of its investment units, viewing such a move as a way to broaden participation by individual investors and improve liquidity in its shares. The company frames investment unit reduction...
Secom Reports Initial Results of ¥100 Billion Share Buyback Program
Jun 1, 2026
Secom has disclosed the latest progress in its ongoing share repurchase program authorized by its board on May 12, 2026. The company is buying back common stock as part of a capital allocation initiative that could influence its share price and sh...
Secom Board Rejects Shareholder Proposal on Capital Policy and Governance Changes
May 21, 2026
Secom’s board has rejected a shareholder proposal from LONGCHAMP SICA V, represented by Dalton Investments, that sought amendments to the Articles of Incorporation to mandate management more explicitly focused on cost of capital and stock pr...
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.