| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2544.33 | -13 |
| Intrinsic value (DCF) | 1948.00 | -33 |
| Graham-Dodd Method | 2914.30 | 0 |
| Graham Formula | 2867.26 | -2 |
Central Security Patrols Co., Ltd. (9740.T) is a leading Japanese security services provider headquartered in Tokyo. Established in 1966, the company specializes in comprehensive security solutions, including facility security, VIP protection, online and home security, and transportation security for cash and valuables. Additionally, it offers non-life insurance linked to machine security contracts and provides surveillance system construction, including camera and entrance/exit management systems. Operating in Japan's security and protection services industry, Central Security Patrols plays a critical role in crime, fire, and disaster prevention. With a market capitalization of approximately ¥35.4 billion, the company serves a broad clientele, leveraging its expertise in both physical and technological security solutions. Its diversified service portfolio positions it as a key player in Japan's industrial security sector, catering to residential, commercial, and high-profile clients.
Central Security Patrols Co., Ltd. presents a stable investment opportunity with low beta (0.195), indicating lower volatility relative to the market. The company reported solid financials, including ¥71.4 billion in revenue and ¥3.2 billion in net income for the fiscal year ending February 2025. With a strong cash position (¥18.2 billion) and manageable debt (¥3.4 billion), the company maintains financial flexibility. However, the security services industry is highly competitive, and growth may be constrained by Japan's aging population and economic stagnation. The dividend yield, based on a ¥60 per share payout, may appeal to income-focused investors, but investors should monitor operational efficiency and market expansion efforts.
Central Security Patrols Co., Ltd. holds a competitive position in Japan's security services market through its diversified offerings, including high-margin technological solutions like surveillance systems and entrance management. Its long-standing reputation (founded in 1966) and integrated services (physical security + insurance) provide a differentiation edge. However, the company faces intense competition from larger security firms and niche players specializing in digital security. Its reliance on the domestic market (Japan) limits exposure to global growth opportunities. The company’s strengths lie in its cash-rich balance sheet and established client base, but it must innovate to counter rising competition from tech-driven security providers. Expansion into AI-based surveillance and cybersecurity could enhance its competitive positioning.