DB:XSC

Stock Analysis Report

Executive Summary

SECOM CO., LTD. provides security services in Japan and internationally.

Rewards

Trading at 14.1% below its fair value

Earnings are forecast to grow 5.96% per year

Pays a reliable dividend of 1.91%

Risk Analysis

No risks detected for XSC from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has SECOM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XSC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.1%

XSC

-0.5%

DE Commercial Services

2.2%

DE Market


1 Year Return

-1.1%

XSC

-32.0%

DE Commercial Services

-17.2%

DE Market

Return vs Industry: XSC exceeded the German Commercial Services industry which returned -32.2% over the past year.

Return vs Market: XSC exceeded the German Market which returned -17.7% over the past year.


Shareholder returns

XSCIndustryMarket
7 Day12.1%-0.5%2.2%
30 Day6.5%-22.0%-15.7%
90 Day-6.3%-34.0%-24.0%
1 Year0.8%-1.1%-29.6%-32.0%-14.9%-17.2%
3 Year18.4%11.9%-27.1%-33.4%-16.4%-23.3%
5 Year30.3%18.8%-35.0%-44.1%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is SECOM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SECOM undervalued compared to its fair value and its price relative to the market?

13.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XSC (€73) is trading below our estimate of fair value (€85.01)

Significantly Below Fair Value: XSC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: XSC is good value based on its PE Ratio (21.5x) compared to the Commercial Services industry average (95.2x).

PE vs Market: XSC is poor value based on its PE Ratio (21.5x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: XSC is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: XSC is good value based on its PB Ratio (1.9x) compared to the DE Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is SECOM forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XSC's forecast earnings growth (6% per year) is above the savings rate (-0.4%).

Earnings vs Market: XSC's earnings (6% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: XSC's earnings are forecast to grow, but not significantly.

Revenue vs Market: XSC's revenue (2.7% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: XSC's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XSC's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has SECOM performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XSC has high quality earnings.

Growing Profit Margin: XSC's current net profit margins (8.6%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: XSC's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: XSC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: XSC had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Commercial Services industry average (10.4%).


Return on Equity

High ROE: XSC's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is SECOM's financial position?


Financial Position Analysis

Short Term Liabilities: XSC's short term assets (¥886.6B) exceed its short term liabilities (¥380.0B).

Long Term Liabilities: XSC's short term assets (¥886.6B) exceed its long term liabilities (¥269.9B).


Debt to Equity History and Analysis

Debt Level: XSC's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: XSC's debt to equity ratio has reduced from 9.1% to 4.9% over the past 5 years.

Debt Coverage: XSC's debt is well covered by operating cash flow (260%).

Interest Coverage: XSC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: XSC has a high level of physical assets or inventory.

Debt Coverage by Assets: XSC's debt is covered by short term assets (assets are 15.5x debt).


Next Steps

Dividend

What is SECOM's current dividend yield, its reliability and sustainability?

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: XSC's dividend (1.91%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: XSC's dividend (1.91%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: XSC's dividends per share have been stable in the past 10 years.

Growing Dividend: XSC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.1%), XSC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Ichiro Ozeki

0.67

Tenure

Mr. Ichiro Ozeki serves as President and Director at SECOM General Insurance Co.,Ltd. Mr. Ozeki served as Executive Director of SECOM CO.,LTD. until 2019 and served as its Executive Officer. He serves as P ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SECOM CO., LTD.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SECOM CO., LTD.
  • Ticker: XSC
  • Exchange: DB
  • Founded: 1962
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: JP¥1.959t
  • Listing Market Cap: JP¥16.428b
  • Shares outstanding: 218.26m
  • Website: https://www.secom.co.jp

Number of Employees


Location

  • SECOM CO., LTD.
  • 5-1, Jingumae 1-chome
  • Shibuya-ku
  • Tokyo
  • 150-0001
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOML.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 1986
SOML.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
9735TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
XSCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

SECOM CO., LTD. provides security services in Japan and internationally. The company provides online security; remote imaging security; and building management systems for condominiums and apartments, shops, offices, warehouses, factories, and other commercial and industrial establishments, as well as financial institutions; emergency medical alert system for seniors; large-scale proprietary; and camera systems. It also offers automatic fire alarm, environmental monitoring systems, and fire and smoke control systems; foam, dry chemical, and inert gas fire extinguishing systems, as well as fire sprinklers; inspection, maintenance, and repair services; and parking lot control systems, as well as assembles and sells printed circuit boards. In addition, the company provides pharmaceutical and home nursing services, and consulting and support services for physicians; caregivers to assist with personal hygiene and other daily activities; housekeeping services; electronic medical report system for home medical care; remote image diagnosis support services; robots that enable people with impaired upper body mobility to eat with minimal assistance; residences for seniors; and health care club services. Further, it offers fire, cancer treatment, and automobile insurance products, as well as hospital referrals and treatment related consulting services; geographic information services; and data center, disaster response, information security, business process outsourcing, and cloud-based services. Additionally, the company develops and sells condominiums and suites; leases and manages real estate properties; sells security, medical, water-treatment equipment; operates PFI correctional facilities, pharmacies, and restaurants and shops at medical facilities; and offers electrical engineering, general office, credit, clerical, software development, lifestyle support, and car maintenance services. The company was founded in 1962 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:12
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.