DENSO (DNZOY) AI Stock Analysis

• Market Cap: $37.29B
• Dividend Yield: 1.27%
• Average Volume (3M): 45.41K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.95
• Revenue Growth: 3.16%
• EPS Growth: 11.70%
• Country: US
• Employees: 162,029
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 2,910,979,700
• 10 Day Avg. Volume: 47,668
• 30 Day Avg. Volume: 45,405
• PEG Ratio: 0.34
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 17.21
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $17.98
• Price Target Upside: 32.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $14.50 ▲(6.46% Upside)

DENSO's overall stock score reflects a stable financial foundation with strong profitability and a solid balance sheet. However, the significant revenue decline and cash flow challenges are key risks. Technical indicators suggest a neutral to slightly bearish trend, while the valuation is reasonable, providing some support to the stock's attractiveness.

Positive Factors

Strong Partnerships

DENSO's strong partnerships with major OEMs ensure a steady demand for its products, enhancing market presence and revenue stability.

Research and Development

Continuous R&D investment positions DENSO to capitalize on trends in electric and autonomous vehicles, supporting long-term growth.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability and provides flexibility for strategic investments and growth.

Negative Factors

Revenue Decline

A significant revenue decline poses a risk to long-term growth and market competitiveness, requiring strategic adjustments.

Cash Flow Challenges

Challenges in cash flow conversion can impact liquidity and limit the company's ability to invest in growth opportunities.

Operating Cash Flow

Low operating cash flow relative to net income suggests potential liquidity issues, affecting financial flexibility and operations.

DENSO Business Overview & Revenue Model

Company Description

DENSO Corporation develops, manufactures, and sells automotive parts in Japan, rest of Asia, North America, Europe, and internationally. It offers air-conditioning systems, including heat pump air-conditioning systems, control system and refrigerant products, air-conditioning system heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. The company also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems, as well as motor generators, power control units, and emission control components; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, it offers automotive service parts and accessories comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, Plasmacluster ion generators, air conditioners for busses and construction vehicles, driver status monitors, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, the company provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse; and household air conditioning equipment and industrial systems. DENSO Corporation was incorporated in 1949 and is based in Kariya, Japan.

How the Company Makes Money

DENSO generates revenue through the manufacturing and sale of automotive components and systems to original equipment manufacturers (OEMs) and the aftermarket. Key revenue streams include the sale of electronic systems, thermal systems, and powertrain components. The company has established strong partnerships with major automotive manufacturers worldwide, enhancing its market presence and ensuring a steady demand for its products. Additionally, DENSO invests in research and development to innovate and adapt to changing automotive technologies, including electric and autonomous vehicles, which further contributes to its revenue growth.

DENSO Financial Statement Overview

Summary

DENSO demonstrates strong financial health with stable revenue growth and effective cost management. The balance sheet is robust with low leverage and efficient equity utilization. However, cash flow management shows room for improvement, particularly in free cash flow growth.

Income Statement

DENSO's income statement shows stable revenue growth with a slight increase in the TTM period. The gross profit margin has slightly decreased, indicating cost pressures. However, the net profit margin remains stable, reflecting effective cost management. The EBIT and EBITDA margins are healthy, suggesting strong operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, indicating conservative leverage. Return on equity is solid, reflecting efficient use of equity capital. The equity ratio is healthy, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could be a concern for future liquidity. However, the operating cash flow to net income ratio is reasonable, indicating good cash generation relative to earnings. The free cash flow to net income ratio is moderate, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.45T	7.16T	7.14T	6.40T	5.52T	4.94T
Gross Profit	850.81B	1.10T	1.09T	1.40T	1.26T	1.12T
EBITDA	656.43B	980.41B	756.05B	790.43B	701.51B	494.54B
Net Income	307.87B	419.08B	312.79B	314.63B	263.90B	125.06B
Balance Sheet
Total Assets	55.18B	8.13T	9.09T	7.41T	7.43T	6.77T
Cash, Cash Equivalents and Short-Term Investments	5.84B	1.10T	837.79B	767.57B	885.54B	912.92B
Total Debt	5.81B	699.38B	850.72B	943.64B	1.05T	854.22B
Total Liabilities	20.31B	2.94T	3.35T	2.83T	2.94T	2.69T
Stockholders Equity	33.57B	4.98T	5.53T	4.38T	4.30T	3.89T
Cash Flow
Free Cash Flow	257.42B	313.32B	515.42B	188.41B	23.49B	2.55B
Operating Cash Flow	530.44B	758.74B	961.83B	602.72B	395.64B	437.24B
Investing Cash Flow	-86.52B	121.90B	-459.49B	-363.68B	-301.58B	-395.90B
Financing Cash Flow	-415.33B	-677.43B	-496.66B	-400.10B	-159.54B	238.66B

DENSO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNZOY, the sentiment is Neutral. The current price of 13.62 is above the 20-day moving average (MA) of 13.20, below the 50-day MA of 13.77, and above the 200-day MA of 13.61, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 80.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DNZOY.

DENSO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	78 Outperform	$9.09B	12.35	31.09%	2.60%	0.84%	26.17%
LEA	75 Outperform	$6.04B	14.27	8.96%	2.63%	-1.90%	-13.86%
APTV	70 Outperform	$16.58B	61.61	3.25%	―	2.16%	-85.91%
BWA	65 Neutral	$9.55B	71.56	2.24%	1.25%	0.08%	-83.69%
DNZOY	65 Neutral	$37.29B	15.81	7.99%	1.27%	3.16%	11.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MBLY	44 Neutral	$8.23B	-24.30	-2.80%	―	7.61%	88.66%

DENSO Corporate Events

Denso Reports Modest Revenue Growth Amid Profit Decline

Denso Corporation, a leading global automotive components manufacturer, operates primarily in the automotive sector, focusing on developing advanced technologies and systems to enhance vehicle performance and safety.