TSE:9735

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 6.96% per year

Earnings grew by 3.2% over the past year

Pays a reliable dividend of 1.9%

Risk Analysis

No risks detected for 9735 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: 9735 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

9735

-0.1%

JP Commercial Services

0.3%

JP Market


1 Year Return

-9.4%

9735

-13.7%

JP Commercial Services

-0.5%

JP Market

Return vs Industry: 9735 exceeded the JP Commercial Services industry which returned -13.7% over the past year.

Return vs Market: 9735 underperformed the JP Market which returned -0.5% over the past year.


Shareholder returns

9735IndustryMarket
7 Day-1.0%-0.1%0.3%
30 Day-9.4%-4.7%-0.05%
90 Day-4.4%-3.3%3.8%
1 Year-7.7%-9.4%-11.8%-13.7%2.0%-0.5%
3 Year9.3%3.5%-7.5%-12.9%0.6%-6.4%
5 Year20.7%10.3%2.6%-6.9%22.0%8.5%

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?

22.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 9735 (¥8950) is trading above our estimate of fair value (¥7635.84)

Significantly Below Fair Value: 9735 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 9735 is poor value based on its PE Ratio (22.2x) compared to the JP Commercial Services industry average (14.9x).

PE vs Market: 9735 is poor value based on its PE Ratio (22.2x) compared to the JP market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 9735 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 9735 is overvalued based on its PB Ratio (1.9x) compared to the JP Commercial Services industry average (0.9x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9735's forecast earnings growth (7% per year) is above the savings rate (0.05%).

Earnings vs Market: 9735's earnings (7% per year) are forecast to grow slower than the JP market (17.5% per year).

High Growth Earnings: 9735's earnings are forecast to grow, but not significantly.

Revenue vs Market: 9735's revenue (2.9% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 9735's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9735'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?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9735 has high quality earnings.

Growing Profit Margin: 9735's current net profit margins (8.3%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 9735's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: 9735's earnings growth over the past year (3.2%) is below its 5-year average (4.2% per year).

Earnings vs Industry: 9735 earnings growth over the past year (3.2%) exceeded the Commercial Services industry -1.8%.


Return on Equity

High ROE: 9735's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is SECOM's financial position?


Financial Position Analysis

Short Term Liabilities: 9735's short term assets (¥879.7B) exceed its short term liabilities (¥332.7B).

Long Term Liabilities: 9735's short term assets (¥879.7B) exceed its long term liabilities (¥270.1B).


Debt to Equity History and Analysis

Debt Level: 9735's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: 9735's debt to equity ratio has reduced from 7.5% to 4.3% over the past 5 years.

Debt Coverage: 9735's debt is well covered by operating cash flow (351.1%).

Interest Coverage: 9735 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9735's dividend (1.9%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 9735's dividend (1.9%) is low compared to the top 25% of dividend payers in the JP market (3.19%).


Stability and Growth of Payments

Stable Dividend: 9735's dividends per share have been stable in the past 10 years.

Growing Dividend: 9735's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.2%), 9735'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?

1.3yrs

Average management tenure


CEO

Ichiro Ozeki

1.33yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Ichiro Ozeki
President & Representative Director1.33yrsno data0.14%
¥ 2.7b
Makoto Iida
Founder & Directorno datano data1.94%
¥ 38.0b
Masahiro Takeda
Managing Executive Officerno datano datano data
Yasuyuki Yoshida
Senior Executive Directorno datano data0.0014%
¥ 26.8m
Keitaro Arai
Managing Executive Officer3.33yrsno datano data
Tatsuro Fuse
Executive Directorno datano data0.0014%
¥ 26.8m
Kenichi Furukawa
Managing Executive Officerno datano datano data
Shokichi Ishimura
Managing Executive Officerno datano datano data
Toshiaki Mizuno
Managing Executive Officerno datano datano data
Osamu Ueda
Managing Executive Officerno datano datano data
Yoshinori Yamanaka
Managing Executive Officer0.75yrno datano data

1.3yrs

Average Tenure

65yo

Average Age

Experienced Management: 9735's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


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: 9735
  • Exchange: TSE
  • Founded: 1962
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: JP¥1.953t
  • Shares outstanding: 218.26m
  • Website: https://www.secom.co.jp

Number of Employees


Location

  • SECOM CO., LTD.
  • 1-5-1 Jingumae
  • 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’s Security Services segment provides online security systems, static guard services, armored car services. Its Fire Prot ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 15:15
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.