DENSO (DNZOY) AI Stock Analysis

• Market Cap: $38.23B
• Dividend Yield: 1.29%
• Average Volume (3M): 45.41K
• Price to Earnings (P/E): 16.2
• 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: 0.96
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $17.91
• Price Target Upside: 35.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $13.00 ▼(-1.59% Downside)

DENSO's overall stock score is driven by strong financial performance, characterized by stable revenue growth and a solid balance sheet. However, technical analysis indicates bearish momentum, which negatively impacts the score. Valuation is fair, providing some support to the overall assessment.

Positive Factors

Strong Balance Sheet

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

Revenue Model Stability

Long-term contracts with OEMs ensure predictable revenue, supporting sustained growth and reducing volatility in income.

Focus on Electrification

Emphasizing electrification positions DENSO well in the evolving automotive market, capitalizing on the shift towards electric vehicles.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth may limit the company's ability to invest in new projects and manage debt, impacting long-term financial health.

Cost Pressures

Decreasing gross profit margins suggest rising costs, which could erode profitability if not managed effectively over time.

Revenue Growth Concerns

Negative revenue growth indicates potential challenges in maintaining sales momentum, which could affect long-term market competitiveness.

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's financial performance is strong, with stable revenue growth and effective cost management. The balance sheet is robust with low leverage, though cash flow management shows room for improvement.

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	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	879.41B	980.41B	756.05B	790.43B	701.51B	494.54B
Net Income	403.89B	419.08B	312.79B	314.63B	263.90B	125.06B
Balance Sheet
Total Assets	8.03T	8.13T	9.09T	7.41T	7.43T	6.77T
Cash, Cash Equivalents and Short-Term Investments	1.14T	1.10T	837.79B	767.57B	885.54B	912.92B
Total Debt	859.00B	699.38B	850.72B	943.64B	1.05T	854.22B
Total Liabilities	3.02T	2.94T	3.35T	2.83T	2.94T	2.69T
Stockholders Equity	4.82T	4.98T	5.53T	4.38T	4.30T	3.89T
Cash Flow
Free Cash Flow	273.92B	313.32B	515.42B	188.41B	23.49B	2.55B
Operating Cash Flow	649.95B	758.74B	961.83B	602.72B	395.64B	437.24B
Investing Cash Flow	15.59B	121.90B	-459.49B	-363.68B	-301.58B	-395.90B
Financing Cash Flow	-534.61B	-677.43B	-496.66B	-400.10B	-159.54B	238.66B

DENSO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 13.21 is below the 20-day moving average (MA) of 13.46, below the 50-day MA of 14.21, and below the 200-day MA of 13.57, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 45.34 is Neutral, 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
LEA	75 Outperform	$5.59B	13.19	8.96%	2.96%	-1.90%	-13.86%
ALV	74 Outperform	$8.98B	12.22	31.09%	2.64%	0.84%	26.17%
BWA	72 Outperform	$9.19B	68.84	2.24%	1.10%	0.08%	-83.69%
APTV	64 Neutral	$16.60B	61.01	3.25%	―	2.16%	-85.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DNZOY	60 Neutral	$38.23B	16.20	7.99%	1.29%	3.16%	11.70%
MBLY	44 Neutral	$9.31B	―	-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.