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Central Security Patrols Co., Ltd.
(9740)
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Rating:62Neutral
Price Target:
¥2,833.00
▼(-6.96% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by a stable, low-debt balance sheet and steady revenue growth. It is held back by margin volatility and a notable decline in free cash flow/cash conversion, alongside mixed-to-weak technical signals with the stock trading below key moving averages.
Positive Factors
Conservative balance sheet
Low leverage and growing equity provide durable financial flexibility to absorb demand swings or invest in capacity without heavy external financing. For a labor‑intensive security services firm this reduces default risk, supports contract performance, and enables opportunistic reinvestment over the medium term.
Negative Factors
Weak free cash flow conversion
A steep decline in free cash flow and conversion of only ~28–29% of net income constrains the company’s ability to fund dividends, reduce debt, or invest without external capital. Persistent low conversion suggests structural working capital pressure or higher reinvestment needs that weaken shareholder cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and growing equity provide durable financial flexibility to absorb demand swings or invest in capacity without heavy external financing. For a labor‑intensive security services firm this reduces default risk, supports contract performance, and enables opportunistic reinvestment over the medium term.
Read all positive factors
Central Security Patrols Co., Ltd. (9740) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥40.91B
Dividend Yield2.14%
Average Volume (3M)31.53K
Price to Earnings (P/E)18.4
Beta (1Y)0.37
Revenue Growth7.98%
EPS Growth-38.53%
CountryJP
Employees7,150
SectorGeneral
Sector StrengthN/A
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)151.47
Shares Outstanding14,816,692
10 Day Avg. Volume59,320
30 Day Avg. Volume31,533
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)1.06
Price to Sales (P/S)0.56
P/FCF Ratio28.00
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)178.55
Revenue Forecast (FY)¥79.83B
Central Security Patrols Co., Ltd. Business Overview & Revenue Model
Company Description
Central Security Patrols Co., Ltd. offers a comprehensive suite of security solutions across Japan. The company provides on-site security services for facilities, including fire and disaster preparedness, as well as personal protection for VIPs. I...
How the Company Makes Money
Detailed, company-specific information on Central Security Patrols Co., Ltd. (9740)'s revenue model, key revenue streams (e.g., contract types, service lines), and significant partnerships or other factors contributing to earnings is null....
Central Security Patrols Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.05B | 78.75B | 71.42B | 68.01B | 64.82B | 69.07B |
| Gross Profit | 16.51B | 16.35B | 15.02B | 14.98B | 13.76B | 14.70B |
| EBITDA | 6.96B | 7.47B | 7.19B | 6.82B | 6.62B | 8.00B |
| Net Income | 2.14B | 2.50B | 3.23B | 5.38B | 2.59B | 3.67B |
Balance Sheet | ||||||
| Total Assets | 70.25B | 71.74B | 64.81B | 65.54B | 62.48B | 60.61B |
| Cash, Cash Equivalents and Short-Term Investments | 20.97B | 16.64B | 21.43B | 25.28B | 16.63B | 16.85B |
| Total Debt | 5.26B | 5.43B | 3.45B | 4.75B | 5.93B | 8.11B |
| Total Liabilities | 26.13B | 27.55B | 22.77B | 25.77B | 25.12B | 27.18B |
| Stockholders Equity | 41.50B | 41.33B | 39.41B | 37.28B | 34.98B | 31.19B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.57B | 851.64M | 3.82B | 3.71B | 5.67B |
| Operating Cash Flow | 0.00 | 5.58B | 2.94B | 5.31B | 4.99B | 6.83B |
| Investing Cash Flow | 0.00 | -5.19B | -2.90B | 6.33B | -788.01M | -2.03B |
| Financing Cash Flow | 0.00 | -1.74B | -3.16B | -2.87B | -3.46B | -3.58B |
Central Security Patrols Co., Ltd. Technical Analysis
Positive
3045.00
Price Trends
2712.76
Positive
2751.48
Positive
2825.39
Negative
Market Momentum
18.02
Negative
56.23
Neutral
87.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9740, the sentiment is Positive. The current price of 3045 is above the 20-day moving average (MA) of 2755.25, above the 50-day MA of 2712.76, and above the 200-day MA of 2825.39, indicating a neutral trend. The MACD of 18.02 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 87.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9740.
Central Security Patrols Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.86T | 23.23 | 8.87% | 1.45% | 4.15% | 5.56% | |
68 Neutral | ¥607.45B | 16.58 | ― | 2.14% | 6.69% | 18.88% | |
62 Neutral | ¥40.91B | 18.43 | ― | 1.95% | 7.98% | -38.53% | |
62 Neutral | ¥9.16B | 35.27 | ― | ― | 19.47% | 84.83% | |
62 Neutral | ¥4.20B | 6.61 | ― | 3.03% | 14.54% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ¥3.02B | 26.82 | ― | 5.23% | -2.39% | -52.83% |
* General Sector Average
JP:9740
Central Security Patrols Co., Ltd.
2,803.00
355.36
14.52%
JP:9735
Secom Co
6,428.00
1,044.74
19.41%
JP:2331
Sohgo Security Services Co., Ltd.
1,191.50
77.38
6.95%
JP:4264
SECURE,INC.
1,460.00
-158.00
-9.77%
JP:7058
Kyoei Security Service Co., Ltd.
2,935.00
196.01
7.16%
JP:7464
Saftec Co., Ltd.
1,526.00
-37.77
-2.42%
Central Security Patrols Co., Ltd. Corporate Events
Central Security Patrols Reshapes Executive Team in Human Resources and Railway Security
Jul 7, 2026
Central Security Patrols Co., Ltd. has adjusted its leadership structure, expanding Executive Officer Kimio Shigihara’s responsibilities to include concurrent roles as General Manager of the Training Department and Tokyo Training Center, rei...
Central Security Patrols Posts Higher Sales but Lower Profit, Lifts Dividend Forecast
Jul 7, 2026
Central Security Patrols reported consolidated net sales of ¥21.5 billion for the three months ended May 31, 2026, up 6.4% year on year, with operating profit rising 6.4% to ¥1.9 billion and ordinary profit up 6.0% to ¥1.9 billion. ...
Central Security Patrols Marks 60th Anniversary With Higher Dividends
Jul 7, 2026
Central Security Patrols Co., Ltd., a TSE Prime-listed security services provider with a 60-year operating history, offers patrol and protective services in Japan’s security market. Its long tenure and focus on corporate value highlight a st...
Central Security Patrols Details Relationship and Independence from JR East
May 29, 2026
Central Security Patrols has clarified its status as an equity-method affiliate of East Japan Railway Company, which holds a 26.4% stake and contributes 27.5% of its consolidated sales, under a business alliance for security services and joint dev...
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.