SECOM CO (SOMLY) AI Stock Analysis

32 Followers

SECOM CO

(Other OTC:SOMLY)

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Rating:68Neutral

Price Target:$12.00▲(7.83% Upside)

Action:downgraded

Date:08/17/26

The score is driven primarily by strong financial performance—stable earnings profile and a very low-debt balance sheet—partly offset by inconsistent cash conversion. Technicals are neutral-to-soft in the near term (below short-term averages with slightly negative MACD), and valuation is reasonable but not compelling at a ~23.6 P/E with a ~1.42% dividend yield.

Positive Factors

Recurring Security Services ModelRecurring monitoring and response contracts create an ongoing revenue base rather than relying solely on one-time product sales. Equipment and adjacent safety services can deepen customer relationships, support retention, and provide multiple ways to monetize SECOM’s operating network over time.

Negative Factors

Inconsistent Cash ConversionAlthough FY2026 cash flow improved, earnings have not consistently converted into cash at the same pace. This inconsistency can make internally funded growth and shareholder distributions less predictable, while requiring closer monitoring of working-capital and cash-generation quality over coming periods.

SECOM CO (SOMLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $9.33B
Dividend Yield: 1.54%
Average Volume (3M): 83.81K
Price to Earnings (P/E): 24.9
Beta (1Y): -0.05
Revenue Growth: -1.10%
EPS Growth: 8.49%
Country: US
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 1962 and headquartered in Tokyo, Japan, is a global enterprise primarily known for its security services, complemented by a wide array of other offerings. Its Security Services division provides internet-connected secu...

How the Company Makes Money

SECOM primarily makes money by selling security services on an ongoing basis rather than through one-time product sales. A core revenue stream is recurring fees from monitored security contracts, where customers pay for continuous surveillance/monito...

SECOM CO Financial Statement Overview

Summary

Fundamentals are strong overall: steady multi-year revenue and net income growth with stable profitability (gross margin ~31%, net margin ~9%) and a conservatively financed balance sheet (debt-to-equity ~0.06). The main offset is cash-flow quality: operating cash flow and free cash flow have been volatile and cash conversion has often been below 1x versus net income.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	1.26T	1.20T	1.33T	1.15T	1.10T	1.05T
Gross Profit	385.27B	371.15B	402.62B	357.28B	342.46B	337.67B
EBITDA	240.93B	253.42B	255.32B	236.61B	223.18B	220.31B
Net Income	108.08B	108.11B	119.46B	101.95B	96.08B	94.27B
Balance Sheet
Total Assets	2.15T	2.15T	2.24T	2.08T	1.99T	1.91T
Cash, Cash Equivalents and Short-Term Investments	582.91B	584.63B	586.09B	599.15B	684.18B	685.86B
Total Debt	66.29B	72.34B	68.80B	68.96B	64.28B	67.63B
Total Liabilities	708.79B	697.84B	733.61B	690.09B	673.02B	651.72B
Stockholders Equity	1.26T	1.27T	1.32T	1.22T	1.16T	1.12T
Cash Flow
Free Cash Flow	40.72B	72.58B	137.83B	71.34B	85.09B	101.24B
Operating Cash Flow	60.73B	167.84B	212.57B	165.76B	146.43B	164.91B
Investing Cash Flow	-13.70B	-100.80B	-93.94B	-162.27B	-70.45B	-55.35B
Financing Cash Flow	-40.80B	-85.25B	-121.98B	-95.49B	-77.84B	-87.39B

SECOM CO Technical Analysis

Technical Analysis SentimentPositive

Last Price11.13

Price Trends

50DMA10.38Positive

100DMA10.32Positive

200DMA9.95Positive

Market Momentum

MACD0.15Negative

RSI61.96Neutral

STOCH62.14Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOMLY, the sentiment is Positive. The current price of 11.13 is above the 20-day moving average (MA) of 10.73, above the 50-day MA of 10.38, and above the 200-day MA of 9.95, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOMLY.

SECOM CO Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

SOMLY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALLE	82Outperform	$16.19B	23.79	32.68%	1.13%	10.33%	8.70%
NSSC	75Outperform	$1.08B	24.57	23.34%	2.02%	8.75%	-0.51%
ADT	72Outperform	$7.23B	12.38	17.00%	2.22%	2.02%	5.33%
SOMLY	68Neutral	$19.77B	24.90	9.16%	1.54%	-1.10%	8.49%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SNT	61Neutral	$45.73M	40.92	2.38%	―	―	―
BCO	60Neutral	$4.81B	30.43	55.36%	0.87%	7.28%	-3.05%

* Industrials Sector Average

Performance Comparison

SOMLY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SOMLY	SECOM CO	11.13	2.57	30.03%
BCO	Brink's	116.85	9.77	9.13%
SNT	Senstar Technologies Ltd.	1.96	-2.64	-57.39%
NSSC	Napco Security	30.22	-9.37	-23.67%
ALLE	Allegion PLC	191.98	34.32	21.77%
ADT	Adt, Inc.	9.90	2.12	27.22%

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

SECOM CO AI Stock Analysis