Densan Co., Ltd. (JP:3640)
:3640
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Densan Co., Ltd.
(3640)
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Rating:76Outperform
Price Target:
¥2,772.00
▼(-9.26% Downside)
Action:Reiterated
Date:05/19/26
The score is driven mainly by strong financial performance (sharp FY2026 earnings/cash-flow rebound and a notably de-risked balance sheet) and very low valuation (P/E ~3.9 with a dividend). These positives are partially offset by weak technicals, with the stock trading below key moving averages and bearish momentum despite oversold readings.
Positive Factors
Revenue & Profit Rebound
A sharp FY2026 top-line and profit recovery reflects regained demand and operating leverage, converting growth into meaningful earnings. Sustainably higher profits over the next 2–6 months support reinvestment, dividend capacity and more predictable cash generation versus the weak prior year.
Negative Factors
Historical Volatility
Repeated multi-year swings in revenue and cash flow reduce visibility for planning and increase execution risk. Even with a strong recent year, cyclicality can re-emerge, making earnings and investment outcomes uncertain over a 2–6 month horizon and complicating capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profit Rebound
A sharp FY2026 top-line and profit recovery reflects regained demand and operating leverage, converting growth into meaningful earnings. Sustainably higher profits over the next 2–6 months support reinvestment, dividend capacity and more predictable cash generation versus the weak prior year.
Read all positive factors
Densan Co., Ltd. (3640) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥11.68B
Dividend Yield1.23%
Average Volume (3M)48.27K
Price to Earnings (P/E)3.9
Beta (1Y)0.38
Revenue Growth49.34%
EPS Growth151.38%
CountryJP
Employees601
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)313.15
Shares Outstanding5,837,200
10 Day Avg. Volume20,740
30 Day Avg. Volume48,270
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.08
Price to Sales (P/S)0.62
P/FCF Ratio4.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Densan Co., Ltd. Business Overview & Revenue Model
Company Description
Densan Co., Ltd. operates as an information service company in Japan. The company operates in two segments, Public Sector and Industrial Field. The Public Sector segment engages in the development and sale of package systems, operation support, an...
How the Company Makes Money
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Densan Co., Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.39B | 27.99B | 18.74B | 15.97B | 17.80B | 17.31B |
| Gross Profit | 6.29B | 10.59B | 6.49B | 5.53B | 6.51B | 4.69B |
| EBITDA | 3.62B | 7.91B | 3.44B | 2.08B | 3.33B | 2.06B |
| Net Income | 1.82B | 4.48B | 1.84B | 898.61M | 1.61B | 859.28M |
Balance Sheet | ||||||
| Total Assets | 20.29B | 25.65B | 21.54B | 19.59B | 20.21B | 20.80B |
| Cash, Cash Equivalents and Short-Term Investments | 4.19B | 4.11B | 2.55B | 1.60B | 1.33B | 1.50B |
| Total Debt | 2.21B | 2.21B | 3.85B | 4.89B | 6.25B | 6.59B |
| Total Liabilities | 7.55B | 9.39B | 8.83B | 8.76B | 11.29B | 13.39B |
| Stockholders Equity | 12.74B | 16.26B | 12.71B | 10.83B | 8.92B | 7.41B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.02B | 2.79B | 1.17B | 1.08B | 2.00B |
| Operating Cash Flow | 0.00 | 4.31B | 2.97B | 1.62B | 1.46B | 2.37B |
| Investing Cash Flow | 0.00 | -861.56M | -930.29M | -1.41B | -432.90M | -540.78M |
| Financing Cash Flow | 0.00 | -2.28B | -1.29B | -194.26M | -1.20B | -1.01B |
Densan Co., Ltd. Technical Analysis
Negative
3055.00
Price Trends
3130.78
Negative
3157.58
Negative
3006.51
Negative
Market Momentum
-159.88
Positive
20.19
Positive
2.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3640, the sentiment is Negative. The current price of 3055 is above the 20-day moving average (MA) of 2882.55, below the 50-day MA of 3130.78, and above the 200-day MA of 3006.51, indicating a bearish trend. The MACD of -159.88 indicates Positive momentum. The RSI at 20.19 is Positive, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3640.
Densan Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥11.68B | 3.90 | ― | 1.23% | 49.34% | 151.38% | |
73 Outperform | ¥72.34B | 9.45 | 5.37% | 3.41% | -1.40% | 13.91% | |
71 Outperform | ¥544.93B | 14.85 | ― | 2.87% | 17.41% | 10.46% | |
66 Neutral | ¥11.71B | 6.69 | 11.46% | 4.65% | 9.55% | 40.52% | |
63 Neutral | ¥35.16B | 17.69 | ― | 3.02% | 8.81% | 11.05% | |
62 Neutral | ¥95.90B | 7.40 | ― | 2.41% | 50.28% | 79.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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.