Sohgo Security Services Co Ltd
TSE:2331

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Sohgo Security Services Co Ltd
TSE:2331
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Price: 1 178.5 JPY -0.76% Market Closed
Market Cap: ¥601.3B

EV/IC

1.1
Current
14%
More Expensive
vs 3-y average of 0.9

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.1
=
Enterprise Value
¥451.5B
/
Invested Capital
¥413.3B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.1
=
Enterprise Value
¥451.5B
/
Invested Capital
¥413.3B

Valuation Scenarios

Sohgo Security Services Co Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (0.9), the stock would be worth ¥1 033.14 (12% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-24%
Maximum Upside
+9%
Average Downside
9%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 1.1 ¥1 178.5
0%
3-Year Average 0.9 ¥1 033.14
-12%
5-Year Average 0.8 ¥895.65
-24%
Industry Average 1.1 ¥1 286.06
+9%
Country Average 1 ¥1 075.06
-9%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
JP
Sohgo Security Services Co Ltd
TSE:2331
572.7B JPY 1.1 17.2
JP
Secom Co Ltd
TSE:9735
2.7T JPY 1.4 25
UK
Verisure PLC
STO:VSURE
10.9B EUR 1 -42.5
SE
Securitas AB
STO:SECU B
88.3B SEK 1.2 17.3
US
Brinks Co
NYSE:BCO
4.4B USD 1.3 22.1
SE
Loomis AB
STO:LOOMIS
28.6B SEK 1.1 18.1
US
Geo Group Inc
NYSE:GEO
2.6B USD 1.1 10
US
CoreCivic Inc
NYSE:CXW
2.1B USD 1.1 17.7
KR
S1 Corp
KRX:012750
2.9T KRW 1.5 16.3
AU
Threat Protect Australia Ltd
ASX:TPS
2.3B AUD 89.3 -148.7
ES
Prosegur Compania de Seguridad SA
MAD:PSG
1.4B EUR 0.7 12
P/E Multiple
Earnings Growth PEG
JP
Sohgo Security Services Co Ltd
TSE:2331
Average P/E: 17.3
17.2
15%
1.1
JP
Secom Co Ltd
TSE:9735
25
10%
2.5
UK
Verisure PLC
STO:VSURE
Negative Multiple: -42.5 N/A N/A
SE
Securitas AB
STO:SECU B
17.3
17%
1
US
Brinks Co
NYSE:BCO
22.1
39%
0.6
SE
Loomis AB
STO:LOOMIS
18.1
23%
0.8
US
Geo Group Inc
NYSE:GEO
10
N/A N/A
US
CoreCivic Inc
NYSE:CXW
17.7
N/A N/A
KR
S1 Corp
KRX:012750
16.3
12%
1.4
AU
Threat Protect Australia Ltd
ASX:TPS
Negative Multiple: -148.7 N/A N/A
ES
Prosegur Compania de Seguridad SA
MAD:PSG
12
11%
1.1

Market Distribution

In line with most companies in Japan
Percentile
55th
Based on 5 142 companies
55th percentile
1.1
Low
0 — 0.7
Typical Range
0.7 — 1.5
High
1.5 —
Distribution Statistics
Japan
Min 0
30th Percentile 0.7
Median 1
70th Percentile 1.5
Max 23 050 349

Sohgo Security Services Co Ltd
Glance View

Sohgo Security Services Co Ltd, widely recognized by its brand name ALSOK, has woven itself into the fabric of Japan’s security landscape since its inception in 1965. Founded initially to address the growing need for vigilant protection in a rapidly urbanizing society, the company has since expanded its expertise well beyond traditional security. It started with manned security services, providing professional guards to safeguard properties and personnel. Over the decades, Sohgo has adeptly navigated technological advancements, complementing its physical security services with sophisticated electronic security systems, such as alarm monitoring and access control. The blend of human and technological resources has allowed the company to tap into new sectors, including government contracts and corporate security, fortifying its standing as a comprehensive security solutions provider. Sohgo Security Services derives its revenue through a diversified model that balances steady, recurring income with strategic growth opportunities. Security services account for a significant portion of its earnings, with continuous contracts from commercial enterprises, residential complexes, and public institutions. The company’s foray into technology-driven solutions has proven lucrative, as businesses increasingly rely on integrated systems for surveillance and risk management. Moreover, Sohgo extends its reach through personal security services and cash-management solutions, such as transportation and safekeeping, ensuring a stronghold in financial security. By remaining attentive to both societal needs and technological trends, Sohgo has cemented its position as a key player in Japan’s security industry, with a business model designed to address a spectrum of protection needs.

Intrinsic Value
1 217.64 JPY
Undervaluation 3%
Intrinsic Value
Price ¥1 178.5
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