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Densan System Holdings Co. Ltd. (JP:4072)
:4072
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Densan System Holdings Co. Ltd.
(4072)
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Select Model
Rating:67Neutral
Price Target:
¥3,618.00
▲(8.49% Upside)
Densan System Holdings Co. Ltd. has a strong financial foundation with a robust balance sheet and steady income growth, which are the most significant factors in its overall score. However, technical indicators suggest a bearish trend, and valuation metrics indicate the stock is fairly valued. The absence of earnings call data and corporate events means these factors do not influence the score.
Densan System Holdings Co. Ltd. (4072) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥37.09B
Dividend Yield2.4%
Average Volume (3M)301.03K
Price to Earnings (P/E)18.2
Beta (1Y)0.66
Revenue Growth5.55%
EPS Growth18.43%
CountryJP
Employees1,005
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)40.47
Shares Outstanding10,798,341
10 Day Avg. Volume118,470
30 Day Avg. Volume301,026
Financial Highlights & Ratios
PEG Ratio-1.97
Price to Book (P/B)1.21
Price to Sales (P/S)0.44
P/FCF Ratio9.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,618.00Price Target Upside8.49% Upside
Rating ConsensusHold
Number of Analyst Covering0
Densan System Holdings Co. Ltd. Business Overview & Revenue Model
Company DescriptionDensan System Holdings Co. Ltd. (4072) is a Japan-based company that specializes in providing comprehensive information technology solutions and services. The company operates primarily in the fields of system integration, software development, and IT consulting. Its core offerings include tailored software solutions, cloud services, and digital transformation consulting aimed at enhancing operational efficiency for businesses across various sectors, including finance, manufacturing, and retail.
How the Company Makes MoneyDensan System Holdings generates revenue through multiple streams, primarily by providing custom software development and system integration services to its clients. The company charges fees for its consulting services, project management, and ongoing support and maintenance of IT systems. Additionally, it earns income from licensing proprietary software products and providing cloud-based solutions. Strategic partnerships with other technology providers and enterprises in various industries enhance its market reach and contribute significantly to its earnings by expanding service offerings and client access.
Densan System Holdings Co. Ltd. Financial Statement Overview
Summary
Densan System Holdings Co. Ltd. shows a solid financial foundation with strong balance sheet metrics and steady income growth. However, there are minor concerns in operational efficiency and cash flow management that the company should address to enhance profitability and liquidity.Income Statement
Densan System Holdings Co. Ltd. has demonstrated consistent revenue growth with a substantial increase of 3% from 2023 to 2024. The gross profit margin is healthy at 15.2% for 2024, although it has slightly decreased from the previous year. Net profit margin stands at 3.0%, indicating modest profitability. However, there is a decline in EBIT and EBITDA margins compared to the previous year, suggesting some challenges in operational efficiency.75
Positive
Balance Sheet
The company maintains strong financial stability with a debt-to-equity ratio of 0.05, indicating low leverage. Equity ratio is robust at 35.8%, reflecting a solid capital structure. Return on equity is 8.4%, showcasing efficient use of equity to generate profits. Overall, the balance sheet indicates a financially healthy organization with low risk.85
Very Positive
Cash Flow
Operating cash flow is positive, but a decline from the previous year suggests potential cash flow management issues. Free cash flow remains positive with a growth rate of -41.9%, reflecting a decrease in liquidity. The operating cash flow to net income ratio is 1.63, indicating decent conversion of income to cash. Overall, the cash flow position is stable but has room for improvement.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 63.28B | 61.26B | 59.59B | 53.48B | 50.36B | 45.75B |
| Gross Profit | 9.64B | 9.29B | 10.60B | 9.98B | 9.23B | 8.02B |
| EBITDA | 3.96B | 3.21B | 4.01B | 4.06B | 3.84B | 3.60B |
| Net Income | 2.02B | 1.85B | 2.00B | 2.35B | 1.98B | 1.92B |
Balance Sheet | ||||||
| Total Assets | 76.48B | 61.75B | 57.05B | 72.17B | 51.28B | 47.98B |
| Cash, Cash Equivalents and Short-Term Investments | 50.81B | 19.28B | 15.91B | 12.53B | 13.67B | 29.52B |
| Total Debt | 5.60B | 1.07B | 1.53B | 1.49B | 1.09B | 1.21B |
| Total Liabilities | 53.28B | 39.45B | 36.28B | 52.51B | 33.68B | 32.15B |
| Stockholders Equity | 22.98B | 22.08B | 20.58B | 19.45B | 17.41B | 15.65B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.73B | 4.69B | 1.34B | 1.92B | 1.87B |
| Operating Cash Flow | 0.00 | 3.02B | 5.51B | 1.91B | 2.53B | 2.76B |
| Investing Cash Flow | 0.00 | 239.00M | -852.00M | -1.72B | -1.23B | -1.91B |
| Financing Cash Flow | 0.00 | -765.00M | -941.00M | -5.00M | -719.00M | 2.69B |
Densan System Holdings Co. Ltd. Technical Analysis
Negative
3335.00
Price Trends
3436.24
Negative
3012.48
Positive
2720.40
Positive
Market Momentum
-20.25
Positive
45.15
Neutral
31.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4072, the sentiment is Negative. The current price of 3335 is below the 20-day moving average (MA) of 3520.25, below the 50-day MA of 3436.24, and above the 200-day MA of 2720.40, indicating a neutral trend. The MACD of -20.25 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4072.
Densan System Holdings Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥31.87B | 21.71 | ― | 1.60% | 22.28% | 19.79% | |
75 Outperform | ¥38.39B | 16.01 | ― | 2.26% | 6.33% | 37.17% | |
73 Outperform | ¥25.53B | 10.75 | ― | 1.22% | 9.56% | 7.39% | |
73 Outperform | ¥27.65B | 25.33 | ― | 0.63% | 11.47% | 17.60% | |
70 Outperform | ¥30.52B | 19.37 | ― | 4.83% | 3.32% | 225.36% | |
67 Neutral | ¥37.09B | 18.18 | ― | 2.40% | 5.55% | 18.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4072
Densan System Holdings Co. Ltd.
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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.