DENSO (DNZOY) AI Stock Analysis

• Market Cap: $34.90B
• Dividend Yield: 1.9%
• Average Volume (3M): 94.86K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.89
• Revenue Growth: -4.93%
• EPS Growth: 30.32%
• Country: US
• Employees: 162,029
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Parts
• EPS (TTM): 0.52
• Shares Outstanding: 2,910,979,700
• 10 Day Avg. Volume: 85,486
• 30 Day Avg. Volume: 94,864
• PEG Ratio: 0.84
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.05
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ―

DENSO exhibits strong financial performance with impressive growth in revenue and cash flow, low debt levels, and high equity ratios. The technical analysis indicates cautious sentiment, with the stock trading below key moving averages. The valuation is favorable with a reasonable P/E ratio and a solid dividend yield, making it an attractive option for value and income investors. The lack of recent earnings call and corporate events data suggests no immediate catalysts or concerns.

DENSO Business Overview & Revenue Model

Company Description

DENSO Corporation, listed under the ticker DNZOY, is a leading global automotive components manufacturer headquartered in Japan. The company operates in sectors such as automotive, industrial, and consumer products, with a primary focus on the development, manufacturing, and distribution of advanced automotive technologies and components. DENSO's core products include powertrain systems, thermal systems, electrification systems, mobility electronics, and advanced safety and connectivity solutions, which are critical for the evolving landscape of the automotive industry.

How the Company Makes Money

DENSO makes money through its diversified revenue streams primarily derived from the sale of automotive components and systems to major automobile manufacturers worldwide. The company's revenue model is centered around its extensive product portfolio, which includes powertrain systems, thermal systems, electrification systems, mobility electronics, and advanced safety and connectivity solutions. These products are integral to the production of vehicles, and DENSO's strong relationships with global automakers ensure a steady demand for its offerings. Additionally, DENSO's focus on innovation and technological advancement positions it favorably in the market, allowing it to capitalize on trends such as vehicle electrification, autonomous driving, and connected cars. Strategic partnerships and investments in research and development further enhance DENSO's ability to generate sustainable earnings in the competitive automotive industry.

DENSO Financial Statement Overview

Summary

DENSO demonstrates strong financial health with impressive revenue and free cash flow growth. The company maintains a low debt burden and 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
1.07T	837.79B	733.85B	867.81B	897.39B	597.82B
	Total Assets
8.90T	9.09T	7.41T	7.43T	6.77T	5.65T
	Total Debt
771.19B	850.72B	943.64B	1.05T	910.65B	522.07B
	Net Debt
-301.32B	61.33B	209.79B	179.55B	13.26B	-75.75B
	Total Liabilities
3.21T	3.35T	2.83T	2.94T	2.69T	2.09T
	Stockholders Equity
5.48T	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: Positive
• Last Price: 13.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 13.1 is below the 20-day moving average (MA) of 13.33, above the 50-day MA of 12.97, and below the 200-day MA of 13.62, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNZOY.

DENSO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	83 Outperform	$2.53B	8.43	25.15%	―	-1.35%	-39.06%
APTV	79 Outperform	$15.06B	11.20	15.52%	―	-2.47%	-43.12%
BWA	76 Outperform	$7.33B	26.82	5.38%	1.32%	-8.22%	-52.61%
LEA	75 Outperform	$4.95B	10.85	10.00%	3.40%	-3.15%	-6.70%
ALV	75 Outperform	$8.51B	12.68	28.71%	2.54%	-2.29%	35.00%
DNZOY	71 Outperform	$34.90B	13.80	7.87%	1.90%	-4.93%	30.32%
Sector *	62 Neutral	$6.80B	11.04	2.79%	4.42%	2.67%	-25.07%