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Secom Co (9735) AI Stock Analysis

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JP:9735

Secom Co

(TSE/TYO:9735)

Select Model
Rating:76Outperform
Price Target:JPY 7,357.00â–²(8.75% Upside)
Action:reiterated
Date:08/17/26

Robust financial performance with strong balance sheet and stable profitability drives the score upward, supported by reasonable valuation; mixed technicals with long-term bullish trends offset by short-term weakness moderate the overall rating.

Positive Factors
Recurring Service RevenueContinuing 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 PressureGradually 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.

Secom Co (9735) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:9735+29.64%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 17.39B
Dividend Yield
1.63%
Average Volume (3M)
1.33M
Price to Earnings (P/E)
25.1
Beta (1Y)
0.27
Revenue Growth
4.25%
EPS Growth
14.23%
Country
Japan
Employees
65,094
Sector
Industrials
Sector Strength
63
Industry
Security & Protection Services

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 guarding...

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) provided...

Secom Co Financial Statement Overview

Summary

Strong balance sheet with low debt and growing assets scores 92, stable income with consistent margins at 85, and reliable cash flows despite some variability at 82, averaging to a solid financial profile in a steady industry.

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.25T1.20T1.26T1.15T1.10T1.05T
Gross Profit391.43B371.15B379.72B357.28B342.46B337.67B
EBITDA253.73B253.42B262.26B236.61B223.18B220.31B
Net Income107.13B108.11B112.66B101.95B96.08B94.27B
Balance Sheet
Total Assets2.15T2.15T2.23T2.08T1.99T1.91T
Cash, Cash Equivalents and Short-Term Investments582.51B584.63B583.55B599.15B684.18B685.86B
Total Debt66.24B72.64B68.50B68.96B64.28B67.63B
Total Liabilities708.31B697.84B730.44B690.09B673.01B651.72B
Stockholders Equity1.26T1.27T1.31T1.22T1.16T1.12T
Cash Flow
Free Cash Flow095.20B130.00B83.00B95.66B109.75B
Operating Cash Flow0172.74B200.48B164.28B145.44B162.86B
Investing Cash Flow0-100.77B-88.59B-159.34B-67.60B-55.28B
Financing Cash Flow0-85.28B-115.04B-98.42B-80.68B-87.47B

Secom Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:9735 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6744JP:674484OutperformJPY 261.12B16.21―2.76%11.62%53.88%
JP:2331JP:233176OutperformJPY 645.91B16.11―2.51%6.83%22.16%
JP:9735JP:973576OutperformJPY 3.02T25.068.70%1.63%4.25%14.23%
JP:7058JP:705874OutperformJPY 4.08B6.34―7.45%11.17%-9.36%
JP:7734JP:773472OutperformJPY 155.83B14.80―1.80%10.73%31.40%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:9740JP:974063NeutralJPY 39.31B21.12―2.62%6.94%-40.69%

* Industrials Sector Average

Performance Comparison

0%20%40%JP:9735JP:2331JP:6744JP:7058JP:7734JP:9740Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9735 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9735Secom Co 6765.001583.1730.55%
JP:2331Sohgo Security Services Co., Ltd.1280.50134.6611.75%
JP:6744Nohmi Bosai Ltd.4495.001074.1231.40%
JP:7058Kyoei Security Service Co., Ltd.2819.0084.823.10%
JP:7734Riken Keiki Co., Ltd.3335.00123.613.85%
JP:9740Central Security Patrols Co., Ltd.2672.0094.203.65%

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 of parent sl...

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 po...

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 7,199 s...

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, for a t...

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 initiati...

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 management p...

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 par...

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 as...

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 share...

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 price, as w...

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: Aug 17, 2026