Secom Co (9735) AI Stock Analysis

• Market Cap: ¥2.31T
• Dividend Yield: 1.92%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.42
• Revenue Growth: 4.84%
• EPS Growth: 10.24%
• Country: JP
• Employees: 64,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 60.24
• Shares Outstanding: 466,599,800
• 10 Day Avg. Volume: 950,150
• 30 Day Avg. Volume: 1,045,080
• PEG Ratio: 2.49
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 22.22
• 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: ¥6,399.51
• Price Target Upside: 22.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥5,998.00 ▲(15.21% Upside)

Secom Co's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and solid cash flow management. The technical analysis presents a cautious outlook due to bearish momentum indicators, while the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events does not impact the score.

Secom Co Business Overview & Revenue Model

Company Description

Secom Co (9735) is a leading provider of security services based in Japan, specializing in comprehensive security solutions for residential, commercial, and industrial clients. The company operates in various sectors, including electronic security systems, cash management, and security personnel services. Secom is known for its innovative technologies and integrated security systems, which include alarm monitoring, surveillance systems, and emergency response services.

How the Company Makes Money

Secom Co generates revenue primarily through the sale and installation of security systems, along with ongoing monitoring and maintenance services. The company has a recurring revenue model, as clients pay for continuous monitoring services, which provides a stable income stream. Key revenue streams include the installation of security systems in businesses and homes, monthly monitoring fees, and cash management solutions for financial institutions. Additionally, Secom collaborates with various partners, including technology providers, to enhance its service offerings and expand its market reach, which further contributes to its earnings.

Secom Co Financial Statement Overview

Summary

Secom Co exhibits strong financial health with consistent revenue growth, robust profitability margins, and solid cash flow management. The company maintains a low debt profile and a strong equity base, contributing to its stability. While cost pressures may slightly affect gross margins, the overall financial trajectory remains positive.

Income Statement

Secom Co has demonstrated consistent revenue growth with a 3.92% increase from 2024 to 2025 and a 4.85% increase from 2023 to 2024. The gross profit margin remains robust at approximately 29.33% for 2025. The company's EBIT margin of 12.02% and EBITDA margin of 21.13% for 2025 indicate strong operating efficiency. Net profit margin improved to 9.01% in 2025, showcasing enhanced profitability, although slightly lower gross profit compared to 2024 suggests potential cost pressures.

Balance Sheet

Secom Co maintains a strong equity position with an equity ratio of 59.23% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.06, suggesting conservative leverage. Return on equity improved to 8.51% in 2025, highlighting stronger profitability. The company’s low leverage and robust equity support its long-term stability, though the slightly increasing liabilities deserve monitoring.

Cash Flow

Operating cash flow increased by 4.21% in 2025, reflecting improved cash-generating efficiency. Free cash flow grew by 33.45% from the previous year, underscoring strong cash flow management. The operating cash flow to net income ratio of 1.60 and free cash flow to net income ratio of 0.88 indicate healthy cash flow relative to net earnings, supporting liquidity and potential for reinvestment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22T	1.20T	1.15T	1.10T	1.05T	1.04T
Gross Profit	377.08B	351.97B	357.28B	342.46B	337.67B	330.57B
EBITDA	246.17B	253.42B	236.61B	223.18B	220.31B	201.68B
Net Income	108.40B	108.11B	101.95B	96.08B	94.27B	74.68B
Balance Sheet
Total Assets	2.09T	2.15T	2.08T	1.99T	1.91T	1.86T
Cash, Cash Equivalents and Short-Term Investments	448.23B	584.63B	599.15B	684.18B	685.86B	659.72B
Total Debt	64.94B	72.34B	68.96B	64.28B	67.63B	66.17B
Total Liabilities	669.55B	697.84B	690.09B	673.02B	651.72B	634.36B
Stockholders Equity	1.25T	1.27T	1.22T	1.16T	1.12T	1.08T
Cash Flow
Free Cash Flow	0.00	95.20B	71.34B	85.09B	101.24B	123.82B
Operating Cash Flow	0.00	172.74B	165.76B	146.43B	164.91B	181.93B
Investing Cash Flow	0.00	-100.77B	-162.27B	-70.45B	-55.35B	-48.54B
Financing Cash Flow	0.00	-85.28B	-95.49B	-77.84B	-87.39B	-49.31B

Secom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5206.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9735, the sentiment is Negative. The current price of 5206 is below the 20-day moving average (MA) of 5292.60, below the 50-day MA of 5439.44, and below the 200-day MA of 5263.99, indicating a bearish trend. The MACD of -69.82 indicates Positive momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9735.

Secom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9686	―	¥16.78B	11.02	―	3.14%	24.48%	204.62%
9740	―	¥37.15B	11.86	―	2.23%	9.05%	14.38%
6744	―	¥212.87B	19.55	―	2.64%	11.91%	21.70%
9735	―	¥2.31T	19.92	8.93%	1.92%	4.84%	10.24%
7058	―	¥4.16B	46.87	―	3.16%	6.83%	-59.50%
2331	―	¥542.25B	17.62	―	2.42%	6.66%	17.57%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Secom Co Corporate Events

SECOM Co., Ltd. Executes Share Buyback to Enhance Shareholder Value

SECOM Co., Ltd. announced the repurchase of 995,600 shares of its common stock for approximately JPY 5.5 billion, as part of a broader buyback plan authorized by the Board of Directors. This move is part of a strategic effort to optimize capital structure and enhance shareholder value, reflecting the company’s confidence in its financial health and future prospects.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen6400.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Co., Ltd. Announces Share Repurchase Program

SECOM Co., Ltd. announced the repurchase of 1,280,000 shares of its common stock for a total price of JPY 7,244,667,300, conducted through market purchases on the Tokyo Stock Exchange from August 1 to August 31, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 18,000,000 shares, reflecting the company’s commitment to optimizing its capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen6400.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

Secom Co. Reports Strong Q1 2025 Earnings Growth

Secom Co., Ltd., a prominent player in the security services industry, is known for its comprehensive safety solutions, including security systems, fire protection, medical services, and insurance. The company is listed on the Tokyo Stock Exchange and is recognized for its innovative approach to providing peace of mind and convenience to its customers.

Secom Co., Ltd. Reports Q1 2025 Financial Results with Increased Sales but Declining Profits

Secom Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a 6.3% increase in net sales compared to the previous year. Despite a 10.1% rise in operating profit, ordinary profit decreased by 3.7%. The company also announced a forecast for the fiscal year ending March 31, 2026, with expected net sales growth of 4.3% and a slight decline in ordinary profit by 3.7%. The announcement reflects Secom’s stable market position but indicates challenges in maintaining profit margins, which may impact stakeholders’ expectations.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.

SECOM Co., Ltd. Announces Share Repurchase

SECOM Co., Ltd. announced the repurchase of 2,583,800 shares of its common stock for JPY 13,662,073,000, as part of a resolution by its Board of Directors. This move is part of a larger plan to repurchase up to 18,000,000 shares, reflecting SECOM’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:9735) stock is a Hold with a Yen11000.00 price target. To see the full list of analyst forecasts on Secom Co stock, see the JP:9735 Stock Forecast page.