DENSO (DNZOY) AI Stock Analysis

• Market Cap: $35.81B
• Dividend Yield: 1.86%
• Average Volume (3M): 69.02K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.88
• Revenue Growth: -4.93%
• EPS Growth: 30.34%
• Country: US
• Employees: 162,029
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): 0.52
• Shares Outstanding: 2,910,979,700
• 10 Day Avg. Volume: 43,492
• 30 Day Avg. Volume: 69,015
• PEG Ratio: -2.27
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.43
• 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: 72 Outperform
• Price Target: $15.00 ▲(12.19%Upside)

DENSO's strong financial performance and stable technical indicators contribute significantly to its stock score. The reasonable valuation supports the company's position in the market. Absence of earnings call and corporate events data did not impact the scoring.

DENSO Business Overview & Revenue Model

Company Description

DENSO Corporation (DNZOY) is a leading global supplier of advanced automotive technology, systems, and components, serving major automakers worldwide. Headquartered in Japan, the company operates across multiple sectors, including powertrain systems, electronics, thermal systems, and safety systems. DENSO’s core products and services include automotive air conditioning and heating systems, engine management systems, electronic components, and advanced safety and automated driving technologies.

How the Company Makes Money

DENSO 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 shows strong financial health with robust revenue growth, improved profitability, and solid cash flow generation. The company's low leverage and strong equity base provide a stable foundation. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.16T	7.14T	6.40T	5.52T	4.94T
Gross Profit	1.10T	1.09T	1.40T	1.26T	1.12T
EBITDA	980.41B	756.05B	790.43B	701.51B	494.54B
Net Income	419.08B	312.79B	314.63B	263.90B	125.06B
Balance Sheet
Total Assets	8.13T	9.09T	7.41T	7.43T	6.77T
Cash, Cash Equivalents and Short-Term Investments	1.10T	837.79B	733.85B	867.81B	897.39B
Total Debt	699.38B	850.72B	943.64B	1.05T	910.65B
Total Liabilities	2.94T	3.35T	2.83T	2.94T	2.69T
Stockholders Equity	4.98T	5.53T	4.38T	4.30T	3.89T
Cash Flow
Free Cash Flow	313.32B	515.42B	188.41B	23.49B	2.55B
Operating Cash Flow	758.74B	961.83B	602.72B	395.64B	437.24B
Investing Cash Flow	121.90B	-459.49B	-363.68B	-301.58B	-395.90B
Financing Cash Flow	-677.43B	-496.66B	-400.10B	-159.54B	238.66B

DENSO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.37
• 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 13.37 is above the 20-day moving average (MA) of 13.28, above the 50-day MA of 13.29, and below the 200-day MA of 13.53, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 45.89 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
APTV	79 Outperform	$15.08B	11.48	15.52%	―	-2.47%	-43.12%
VC	79 Outperform	$3.02B	10.37	25.15%	―	-1.35%	-39.06%
BWA	76 Outperform	$7.87B	28.79	5.38%	1.23%	-8.23%	-52.61%
ALV	75 Outperform	$9.10B	13.55	28.71%	2.38%	-2.29%	35.00%
LEA	74 Outperform	$5.70B	12.49	10.00%	2.89%	-3.15%	-6.70%
DNZOY	72 Outperform	$35.81B	14.06	7.87%	1.86%	-4.93%	30.34%
Sector *	63 Neutral	$16.85B	11.25	-7.01%	2.93%	1.72%	-24.85%