DENSO (DNZOY) AI Stock Analysis

• Market Cap: $39.98B
• Dividend Yield: 1.63%
• Average Volume (3M): 41.54K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.92
• Revenue Growth: -0.73%
• EPS Growth: 28.69%
• Country: US
• Employees: 162,029
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Auto - Parts
• EPS (TTM): 0.38
• Shares Outstanding: 2,910,979,700
• 10 Day Avg. Volume: 29,481
• 30 Day Avg. Volume: 41,536
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $16.00
• Price Target Upside: 10.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $16.00 ▲(10.34% Upside)

DENSO's overall stock score is supported by strong financial performance, robust technical indicators, and a fair valuation. The company exhibits solid revenue growth, improved profitability, and effective financial management. Positive market momentum adds to the attractiveness, but the low dividend yield may limit appeal to income-focused investors. The absence of earnings call and corporate events data did not affect the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability and market position.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Financial Stability

Low leverage and strong equity base provide a stable foundation, reducing financial risk and supporting long-term operational stability.

Negative Factors

Gross Profit Decline

A decline in gross profit could indicate rising costs or pricing pressures, potentially impacting future profitability if not addressed.

Free Cash Flow Conversion

Suboptimal conversion of profits to free cash flow may limit the company's ability to fund new projects or return capital to shareholders.

Asset Decrease

A reduction in total assets might signal divestments or underinvestment, potentially affecting the company's ability to expand or innovate.

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 primarily through the manufacturing and sale of automotive components and systems to major automotive manufacturers worldwide. The company's revenue model is built on long-term contracts with original equipment manufacturers (OEMs), which provide a stable income stream. Key revenue streams include the sale of electronic control units, thermal systems, and powertrain components, as well as aftermarket products and services. DENSO also invests in research and development to create innovative solutions, which can lead to new partnerships and contracts with OEMs. Additionally, the company's focus on electrification and sustainability aligns with the growing demand for electric vehicles, further enhancing its market position and revenue potential.

DENSO Financial Statement Overview

Summary

DENSO exhibits strong financial health with consistent revenue growth, improved profitability, and solid cash flow generation. The company's low leverage and strong equity base provide a stable foundation. Future focus on sustaining gross profit margins and enhancing free cash flow conversion would further strengthen DENSO's financial position.

Income Statement

DENSO has demonstrated robust revenue growth with a consistent upward trajectory, highlighted by a 12.25% increase in revenue from 2023 to 2024. The Gross Profit Margin is stable at approximately 15.4% TTM, indicating good cost management. The Net Profit Margin has improved to 5.85% TTM, reflecting enhanced profitability. However, the Gross Profit has seen a slight decline, which could be a concern if it continues.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.14 TTM, suggesting prudent financial management. Return on Equity is at a healthy 8.42% TTM, reflecting effective use of equity to generate profits. The Equity Ratio stands at 61.25% TTM, indicating strong capital structure and financial stability. However, the decrease in total assets over the period may warrant monitoring.

Cash Flow

DENSO's Free Cash Flow has grown significantly by 66.25% from 2023 to 2024, showcasing strong cash generation capabilities. The Operating Cash Flow to Net Income ratio is robust at 1.81 TTM, indicating high-quality earnings. However, the Free Cash Flow to Net Income ratio at 0.75 TTM, while decent, suggests room for improvement in converting profits into free cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.16T	7.16T	7.14T	6.40T	5.52T	4.94T
Gross Profit	1.10T	1.10T	1.09T	1.40T	1.26T	1.12T
EBITDA	895.55B	980.41B	756.05B	790.43B	701.51B	494.54B
Net Income	419.08B	419.08B	312.79B	314.63B	263.90B	125.06B
Balance Sheet
Total Assets	8.13T	8.13T	9.09T	7.41T	7.43T	6.77T
Cash, Cash Equivalents and Short-Term Investments	1.10T	1.10T	837.79B	733.85B	867.81B	897.39B
Total Debt	699.38B	699.38B	850.72B	943.64B	1.05T	910.65B
Total Liabilities	2.94T	2.94T	3.35T	2.83T	2.94T	2.69T
Stockholders Equity	4.98T	4.98T	5.53T	4.38T	4.30T	3.89T
Cash Flow
Free Cash Flow	378.67B	313.32B	515.42B	188.41B	23.49B	2.55B
Operating Cash Flow	758.74B	758.74B	961.83B	602.72B	395.64B	437.24B
Investing Cash Flow	121.90B	121.90B	-459.49B	-363.68B	-301.58B	-395.90B
Financing Cash Flow	-677.43B	-677.43B	-496.66B	-400.10B	-159.54B	238.66B

DENSO Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 14.5 is below the 20-day moving average (MA) of 14.53, above the 50-day MA of 14.07, and above the 200-day MA of 13.46, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 31.39 is Neutral, 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	79 Outperform	$9.80B	13.72	29.99%	2.34%	-0.98%	21.64%
APTV	79 Outperform	$17.77B	13.52	15.52%	―	-2.47%	-43.12%
LEA	76 Outperform	$5.81B	12.65	9.51%	2.82%	-3.12%	-8.23%
DNZOY	72 Outperform	$39.98B	15.47	7.99%	1.63%	-0.73%	28.69%
BWA	67 Neutral	$9.60B	46.09	3.66%	1.14%	-2.12%	-69.42%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
MBLY	57 Neutral	$11.59B	―	-22.06%	―	4.07%	-1211.52%