tiprankstipranks
Trending News
More News >
DENSO Corporation (DNZOY)
OTHER OTC:DNZOY
Advertisement

DENSO (DNZOY) AI Stock Analysis

Compare
43 Followers

Top Page

DNZOY

DENSO

(OTC:DNZOY)

Rating:72Outperform
Price Target:
$16.00
▲(16.53%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.

DENSO (DNZOY) vs. SPDR S&P 500 ETF (SPY)

DENSO Business Overview & Revenue Model

Company DescriptionDENSO 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 MoneyDENSO makes money primarily through the design, manufacture, and sale of automotive components and systems to vehicle manufacturers and aftermarket customers. The company's revenue model is centered around several key streams: the sale of thermal systems such as air conditioners and radiators, powertrain systems including fuel pumps and injectors, electrification solutions like hybrid and electric vehicle components, and advanced driver assistance systems (ADAS). Additionally, DENSO generates income from its electronics sector, which includes semiconductor sensors and microcontrollers. Significant partnerships with major automotive OEMs, investments in research and development for next-generation vehicles, and a focus on sustainability and innovation further bolster its earnings.

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
76
Positive
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
81
Very Positive
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
72
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue7.16T7.14T6.40T5.52T4.94T
Gross Profit1.10T1.09T1.40T1.26T1.12T
EBITDA980.41B756.05B790.43B701.51B494.54B
Net Income419.08B312.79B314.63B263.90B125.06B
Balance Sheet
Total Assets8.13T9.09T7.41T7.43T6.77T
Cash, Cash Equivalents and Short-Term Investments1.10T837.79B733.85B867.81B897.39B
Total Debt699.38B850.72B943.64B1.05T910.65B
Total Liabilities2.94T3.35T2.83T2.94T2.69T
Stockholders Equity4.98T5.53T4.38T4.30T3.89T
Cash Flow
Free Cash Flow313.32B515.42B188.41B23.49B2.55B
Operating Cash Flow758.74B961.83B602.72B395.64B437.24B
Investing Cash Flow121.90B-459.49B-363.68B-301.58B-395.90B
Financing Cash Flow-677.43B-496.66B-400.10B-159.54B238.66B

DENSO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.73
Price Trends
50DMA
13.42
Positive
100DMA
13.11
Positive
200DMA
13.45
Positive
Market Momentum
MACD
0.15
Negative
RSI
53.11
Neutral
STOCH
38.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNZOY, the sentiment is Positive. The current price of 13.73 is above the 20-day moving average (MA) of 13.55, above the 50-day MA of 13.42, and above the 200-day MA of 13.45, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 38.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNZOY.

DENSO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$3.02B10.5422.96%-3.26%-45.84%
75
Outperform
$8.47B12.0729.99%2.49%-0.98%21.64%
72
Outperform
$36.39B14.497.99%1.73%-0.73%28.69%
72
Outperform
$8.12B40.063.66%1.17%-2.12%-69.42%
68
Neutral
$14.30B10.8815.52%-2.47%-43.12%
68
Neutral
$4.95B10.879.51%3.27%-3.12%-8.23%
61
Neutral
$16.08B9.94-8.64%3.35%1.36%-20.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DNZOY
DENSO
13.73
-0.37
-2.62%
ALV
Autoliv
110.31
17.73
19.15%
BWA
BorgWarner
37.52
5.58
17.47%
APTV
Aptiv
65.65
-3.47
-5.02%
LEA
Lear
93.06
-13.45
-12.63%
VC
Visteon
110.54
8.52
8.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025