Kyoei Security Service Co Ltd

Kyoei Security Service Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥3.32 billion, significantly exceeding its total liabilities of ¥2.11 billion, resulting in a current ratio of 3.23. The company's price-to-book ratio of 0.93 suggests that the market values the company slightly below its book value, while the price-to-tangible-book ratio is identical, indicating no intangible asset premium.

Profitability metrics for Kyoei Security Service Co Ltd are modest, with a return on equity (ROE) of 1.12% and a return on assets (ROA) of 0.77%, both below the typical thresholds for high-performing firms in the industrial services sector. The company's operating income of ¥55.4 million and net income of ¥52.7 million reflect a narrow margin, which is consistent with the competitive nature of the business support services industry.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification provided in the available data. This lack of diversification may expose the company to regional economic fluctuations and regulatory changes specific to its primary market.

Looking ahead, the company's revenue is expected to remain stable, with no significant growth or decline projected in the current or next fiscal year. The company's recent financial performance, including a reported net income of ¥52.7 million, suggests a stable but not growing business model.

Risk factors for Kyoei Security Service Co Ltd include low liquidity risk and low dilution potential, as no immediate filing-based liquidity or dilution flags were detected. The company's debt-to-equity ratio of 0.18 indicates a conservative capital structure, reducing financial leverage risk.

Recent events, including the latest financial filings and transcripts, do not indicate any material changes in the company's operations or strategic direction. The company's financial health appears to be stable, with no significant negative developments reported in the latest available data.

Revenue grew at a 13.1% CAGR over four years, demonstrating consistent top-line expansion for the security service provider.

Cash conversion of 4.72 ranks best-in-class among 364 peers, indicating superior efficiency in generating cash from operations.

The debt-to-equity ratio of 0.18 is below the cohort median of 0.17, suggesting a conservative capital structure.

Low dilution, liquidity, and credit risk flags indicate a stable financial profile with minimal immediate balance sheet threats.

Gross profit reached 2.35 billion JPY in FY2025, maintaining a healthy buffer above operating expenses despite net loss.

Long-term debt surged to 860.7 million JPY in FY2024 before declining, showing volatility in leverage management.

Revenue ¥3.00B, +17,8% YoY; Operating income +56,9% YoY.

• ▍Revenue ¥3.00B, +17,8% YoY
• ▍Operating income +56,9% YoY
• ▍Net income +34,4% YoY
• ▍Net margin 5.2%

Revenue ¥2.91B, +15,2% YoY; Operating income +170,1% YoY.

• ▍Revenue ¥2.91B, +15,2% YoY
• ▍Operating income +170,1% YoY
• ▍Net income +223,3% YoY
• ▍Net margin 6.4%

Revenue ¥2.82B, +11,3% YoY; Operating income +152,7% YoY.

• ▍Revenue ¥2.82B, +11,3% YoY
• ▍Operating income +152,7% YoY
• ▍Net income +217,4% YoY
• ▍Net margin 6.6%

Revenue ¥2.51B, +0,2% YoY; Operating income −596,9% YoY.

• ▍Revenue ¥2.51B, +0,2% YoY
• ▍Operating income −596,9% YoY
• ▍Net income −615,2% YoY
• ▍Net margin -10.8%

Revenue ¥2.55B; Operating income ¥179.8M.

• ▍Revenue ¥2.55B
• ▍Operating income ¥179.8M
• ▍Net margin 4.5%

Revenue ¥2.53B; Operating income ¥106.2M.

• ▍Revenue ¥2.53B
• ▍Operating income ¥106.2M
• ▍Net margin 2.3%

Revenue ¥2.53B; Operating income ¥117.8M.

• ▍Revenue ¥2.53B
• ▍Operating income ¥117.8M
• ▍Net margin 2.3%

Revenue ¥2.50B; Operating income ¥55.4M.

• ▍Revenue ¥2.50B
• ▍Operating income ¥55.4M
• ▍Net margin 2.1%

Revenue ¥10.11B, +8,1% YoY; Operating income −59,0% YoY.

• ▍Revenue ¥10.11B, +8,1% YoY
• ▍Operating income −59,0% YoY
• ▍Net income −115,6% YoY
• ▍Free cash flow −100,6% YoY
• ▍Net margin -0.4%

Revenue ¥9.35B, +16,7% YoY; Operating income −42,0% YoY.

• ▍Revenue ¥9.35B, +16,7% YoY
• ▍Operating income −42,0% YoY
• ▍Net income −44,9% YoY
• ▍Free cash flow −14,7% YoY
• ▍Net margin 2.7%

Revenue ¥8.02B, +0,2% YoY; Operating income −44,2% YoY.

• ▍Revenue ¥8.02B, +0,2% YoY
• ▍Operating income −44,2% YoY
• ▍Net income −38,8% YoY
• ▍Free cash flow −57,9% YoY
• ▍Net margin 5.6%

Revenue ¥8.00B, +29,3% YoY; Operating income +194,3% YoY.

• ▍Revenue ¥8.00B, +29,3% YoY
• ▍Operating income +194,3% YoY
• ▍Net income +167,8% YoY
• ▍Free cash flow +227,3% YoY
• ▍Net margin 9.2%