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Stock

Secom Co.

SOMLY
48
Security & Protection Services · Industrials
Price
$10.18
-0.01 (-0.10%)
Market Cap
$8.53B
Exchange
Other OTC
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Sep 8, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
Growth
Mixed
Cash Flow
Mixed
Stability
Exceptional
Valuation
Good
Dividends
Weak

Share count rising — dilution

+86.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 874.4M (2022) → 1.63B (2026)

§Winston Score History

The full picture

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 security systems, on-site guarding personnel, and secure armored transport solutions. The Fire Protection Services segment specializes in the provision and maintenance of automatic fire alarm systems, fire extinguishing systems, and various other fire prevention technologies for diverse environments such as corporate offices, industrial plants, tunnels, cultural heritage sites, marine vessels, and residential properties. Under its Medical Services umbrella, Secom delivers home nursing care, pharmaceutical dispensing, and personalized assistance. This segment also extends support to affiliated medical institutions, operates its own general hospital, pharmacies, and senior living communities, implements electronic medical record systems, promotes health and preventative care, and distributes medical equipment and pharmaceuticals. The Insurance Services segment offers various policies, including fire, automobile, and cancer treatment insurance. Secom's Geospatial Information Services division supplies crucial geospatial data and mapping solutions to public sector bodies (both national and local governments), private enterprises, and international governmental agencies. Its BPO and ICT Services encompass data center operations, disaster preparedness planning, business continuity planning (BCP) and telework support, information security, cloud-based solutions, and outsourced business processes. Finally, the extensive Real Estate and Other Services segment covers property leasing, construction, installation, and home services. It also manages buildings and real estate, performs electrical engineering, offers general office, credit, and clerical services, and engages in software development. Furthermore, this segment sells security and water-treatment equipment, operates Private Finance Initiative (PFI) correctional facilities, manages restaurants and shops within medical facilities, provides lifestyle and car maintenance services, and is involved in the manufacturing, sales, and maintenance of freight elevators.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-74.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

¥0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Cash Position

Cash flow positive

¥1.1T cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Secom Co. is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
30.0%
Modest — 30.0% gross margin
Profit after running costs
Operating Margin
11.2%
Modest — 11.2% operating margin
Return on the money invested
ROCE
12.2%
Good — 12.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+5.9%
Slow sales growth (+5.9% YoY)
Profit growth
EPS YoY
-73.3%
Earnings shrinking (-73.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
53%
Weak — only 53% of profit becomes cash
Spare cash per sale
FCF Margin
3.2%
Thin free cash flow (3.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.04
Conservative — low debt load (0.04)
Covers its interest
Interest Cover
103.06x
Comfortably covers interest (103.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
22.8x
Growth-priced — P/E 22.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+4.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (22.8 → 18.0)

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Dividends

Dividend
Dividend Yield
1.89%
Small dividend — 1.89% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
-46.5%
Dividend cut (-46.5% YoY) — warning sign

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