Secom Posts $0.12 EPS on $2.04 Billion Quarterly Revenue

Secom Co., Ltd. reported earnings of $0.12 per share for the quarter on revenue of $2.04 billion, according to figures released Wednesday and compiled by Zacks. The result places Japan's pioneering security services provider squarely in the view of finance desks tracking cash-generative, low-leverage operators.

What do the numbers show?

The quarter delivered more than a headline profit figure. Secom posted a return on equity of 8.07% and a net margin of 9.25%, metrics that signal steady profitability rather than explosive growth. The company converted nearly one dollar in ten of revenue into net income.

The balance sheet tells a quieter but equally important story. Consider the liquidity picture:

• Quick ratio: 2.43
• Current ratio: 2.60
• Debt-to-equity ratio: 0.03

A debt-to-equity ratio of 0.03 is close to nothing. Secom funds its operations almost entirely without borrowed money, a structure that insulates the firm from rate shocks and refinancing risk. For chief financial officers watching leverage across their own supplier and partner networks, that figure stands out.

How did the stock react?

SOMLY, which trades over the counter in the United States, rose $0.32 in mid-day trading on Friday to reach $11.13. Volume stayed thin: 5,872 shares changed hands, against an average of 107,588.

The valuation and trading context:

• Market capitalization: $18.02 billion
• Price-to-earnings ratio: 24.21
• Beta: 0.28
• 50-day moving average: $10.33
• 200-day moving average: $9.91
• 52-week range: $8.09 to $11.15

At $11.13, the stock sits two cents below its 52-week high and well above both moving averages. A beta of 0.28 means the shares move far less than the broader market, a profile that appeals to treasurers and allocators seeking defensive exposure.

Who is Secom?

SECOM Co., Ltd. is a Japanese security services company founded in 1962 as Nippon Keibi Hosho. It provides alarm monitoring, access control, facility security and fire protection to businesses, public institutions and households, and is widely recognized as a pioneer of online security services in Japan.

The company has not stood still. Its business has expanded beyond traditional guarding and alarm systems into medical services, insurance, information and communications services, and geographic information services. That diversification helps explain the stability visible in the margin and leverage data.

What is the takeaway?

Secom delivered a $0.12 quarter on $2.04 billion of revenue, with a 9.25% net margin, a 0.03 debt-to-equity ratio, and a share price within pennies of its 52-week high. In plain words: a profitable, nearly debt-free company trading near its best level of the year.