DENSO (DNZOY) AI Stock Analysis

• Market Cap: $32.87B
• Dividend Yield: 1.86%
• Average Volume (3M): 203.37K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.89
• Revenue Growth: -7.80%
• EPS Growth: 108.77%
• Country: US
• Employees: 162,029
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Auto - Parts
• EPS (TTM): 1.02
• Shares Outstanding: 2,910,979,700
• 10 Day Avg. Volume: 144,599
• 30 Day Avg. Volume: 203,365
• PEG Ratio: 0.11
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.94
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

DENSO's financial performance is the strongest factor, driven by robust revenue and cash flow growth, a low debt burden, and strong profitability metrics. While technical analysis indicates a bearish trend, the company's fair valuation and moderate P/E ratio provide a balanced view. The lack of specific guidance or sentiment from the earnings call results in a neutral impact. Overall, DENSO is well-positioned in terms of financial health, but cautious technical indicators suggest potential near-term volatility.

DENSO Business Overview & Revenue Model

Company Description

DENSO Corporation, traded as DNZOY, is a leading global automotive components manufacturer headquartered in Kariya, Aichi Prefecture, Japan. The company operates in multiple sectors within the automotive industry, providing advanced automotive technology, systems, and components. DENSO's core products include powertrain control systems, thermal systems, electronic systems, and information and safety systems, serving major automotive manufacturers worldwide.

How the Company Makes Money

DENSO makes money primarily through the design, manufacturing, and sale of automotive components and systems. The company's revenue model is centered around its extensive product portfolio, which caters to various segments of the automotive industry, including powertrain, electric, and electronic systems. Key revenue streams include the sale of these automotive components to global automakers, aftermarket products, and services. DENSO also engages in significant partnerships and collaborations with automotive manufacturers to innovate and develop new technologies, which can lead to joint ventures or exclusive supply contracts. These partnerships, along with the company's focus on research and development, contribute significantly to its earnings by ensuring a steady demand for its advanced automotive solutions.

DENSO Financial Statement Overview

Summary

DENSO demonstrates strong financial health with impressive growth in revenue and free cash flow. The company maintains a low debt burden and a high equity ratio, enhancing its financial stability. With robust profitability metrics and efficient cash flow management, DENSO is well-positioned for sustained growth in the vehicles industry.

Income Statement

DENSO has shown strong revenue growth with a 11.60% increase from the previous year. The gross profit margin stands at 15.25%, while the net profit margin is 4.38%. The company also achieved an EBIT margin of 5.24% and an EBITDA margin of 10.58%. These metrics indicate robust profitability and operational efficiency.

Balance Sheet

The debt-to-equity ratio is 0.15, reflecting a conservative leverage strategy. The return on equity is 5.65%, demonstrating effective use of equity to generate profits. The equity ratio stands at 60.85%, indicating a strong equity position relative to total assets. Overall, the balance sheet exhibits stability and low financial risk.

Cash Flow

DENSO's free cash flow has grown significantly by 173.51%. The operating cash flow to net income ratio is 3.07, and the free cash flow to net income ratio is 1.65, suggesting strong cash generation relative to net income. The cash flow metrics are indicative of healthy financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
7.19T	7.14T	6.40T	5.52T	4.94T	5.15T
	Gross Profit
1.37T	1.09T	1.40T	1.26T	1.12T	1.20T
	EBIT
399.08B	374.79B	420.69B	341.21B	149.69B	64.18B
	EBITDA
784.68B	756.05B	790.43B	701.51B	494.54B	377.96B
	Net Income Common Stockholders
321.79B	312.79B	314.63B	263.90B	125.06B	68.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
877.80B	837.79B	733.85B	867.81B	897.39B	597.82B
	Total Assets
5.65T	9.09T	7.41T	7.43T	6.77T	5.65T
	Total Debt
578.87B	850.72B	943.64B	1.05T	910.65B	522.07B
	Net Debt
-164.18B	61.33B	209.79B	179.55B	13.26B	-75.75B
	Total Liabilities
1.95T	3.35T	2.83T	2.94T	2.69T	2.09T
	Stockholders Equity
3.53T	5.53T	4.38T	4.30T	3.89T	3.40T
Cash Flow		Free Cash Flow
500.92B	515.42B	188.41B	23.49B	2.55B	128.69B
	Operating Cash Flow
937.00B	961.83B	602.72B	395.64B	437.24B	595.32B
	Investing Cash Flow
-165.19B	-459.49B	-363.68B	-301.58B	-395.90B	-447.39B
	Financing Cash Flow
-619.64B	-496.66B	-400.10B	-159.54B	238.66B	-240.95B

DENSO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNZOY, the sentiment is Negative. The current price of 12.44 is below the 20-day moving average (MA) of 13.18, below the 50-day MA of 13.19, and below the 200-day MA of 14.32, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 34.42 is Neutral, neither overbought nor oversold. The STOCH value of 10.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNZOY.

DENSO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	82 Outperform	$506.61M	3.42	10.41%	8.79%	-11.02%	-51.66%
JCI	77 Outperform	$52.88B	30.59	9.80%	1.86%	-4.53%	-14.72%
DNZOY	72 Outperform	$32.87B	12.19	8.63%	1.86%	-7.80%	108.77%
ALV	66 Neutral	$6.93B	11.11	26.69%	3.07%	-0.80%	39.95%
LEA	64 Neutral	$4.72B	9.81	10.81%	3.50%	-0.70%	-7.27%
BWA	62 Neutral	$6.29B	19.05	6.46%	1.56%	-11.10%	-46.32%
Sector *	59 Neutral	$12.24B	11.04	-1.00%	3.78%	1.30%	-19.54%