Densan System Holdings Co. Ltd. (JP:4072)
:4072
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Densan System Holdings Co. Ltd.
(4072)
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Rating:69Neutral
Price Target:
¥2,989.00
▼(-17.20% Downside)
Action:DowngradedDate:03/24/26
The score is supported primarily by strong underlying financial health (low debt, improving earnings, and growing revenue) and a reasonable valuation with a solid dividend yield. These positives are meaningfully offset by weak technicals, with the stock in a broad downtrend and negative momentum indicators.
Positive Factors
Conservative balance sheet and low leverage
Very low and declining leverage (debt-to-equity ~0.026 in 2025) with consistent equity growth and improved ROE (~11.8%). This conservatism provides durable financial flexibility for capex, dividends, or opportunistic M&A and enhances resilience through downturns.
Negative Factors
Margin volatility and below-prior profile
Persistent margin variability and a step-down versus 2020–2022 suggest exposure to pricing pressure or rising costs. Variable margins reduce predictability of profits, constrain reinvestment capacity, and increase sensitivity to demand or input-cost shocks over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and low leverage
Very low and declining leverage (debt-to-equity ~0.026 in 2025) with consistent equity growth and improved ROE (~11.8%). This conservatism provides durable financial flexibility for capex, dividends, or opportunistic M&A and enhances resilience through downturns.
Read all positive factors
Densan System Holdings Co. Ltd. (4072) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥30.60B
Dividend Yield2.22%
Average Volume (3M)291.29K
Price to Earnings (P/E)13.3
Beta (1Y)0.63
Revenue Growth11.22%
EPS Growth55.88%
CountryJP
Employees1,005
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)61.75
Shares Outstanding10,800,677
10 Day Avg. Volume113,110
30 Day Avg. Volume291,286
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.57
Price to Sales (P/S)0.57
P/FCF Ratio9.41
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)252.2
Revenue Forecast (FY)¥70.70B
Densan System Holdings Co. Ltd. Business Overview & Revenue Model
Company Description
Densan System Holdings Co., Ltd., through its subsidiaries, provides information technology consulting and software development services in Japan. The company provides solutions in the areas of data processing, systems-integration, and software de...
Densan System Holdings Co. Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 63.28B | 68.13B | 61.26B | 59.59B | 53.48B | 50.36B |
| Gross Profit | 9.64B | 11.02B | 9.29B | 10.60B | 9.98B | 9.23B |
| EBITDA | 3.96B | 4.57B | 3.21B | 4.01B | 4.06B | 3.84B |
| Net Income | 2.02B | 2.90B | 1.85B | 2.00B | 2.35B | 1.98B |
Balance Sheet | ||||||
| Total Assets | 76.48B | 69.11B | 61.75B | 57.05B | 72.17B | 51.39B |
| Cash, Cash Equivalents and Short-Term Investments | 50.81B | 39.98B | 34.81B | 31.16B | 45.95B | 31.07B |
| Total Debt | 5.60B | 629.00M | 1.07B | 1.53B | 1.49B | 1.09B |
| Total Liabilities | 53.28B | 44.23B | 39.45B | 36.27B | 52.50B | 33.78B |
| Stockholders Equity | 22.98B | 24.64B | 22.08B | 20.58B | 19.46B | 17.41B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.10B | 2.73B | 4.69B | 1.34B | 1.92B |
| Operating Cash Flow | 0.00 | 4.33B | 3.02B | 5.51B | 1.91B | 2.53B |
| Investing Cash Flow | 0.00 | -1.02B | 239.00M | -852.00M | -1.72B | -1.23B |
| Financing Cash Flow | 0.00 | -1.05B | -765.00M | -941.00M | -5.00M | -719.00M |
Densan System Holdings Co. Ltd. Technical Analysis
Positive
3610.00
Price Trends
2980.54
Positive
3278.36
Negative
3241.30
Negative
Market Momentum
10.24
Negative
53.73
Neutral
74.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4072, the sentiment is Positive. The current price of 3610 is above the 20-day moving average (MA) of 2930.90, above the 50-day MA of 2980.54, and above the 200-day MA of 3241.30, indicating a neutral trend. The MACD of 10.24 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥25.19B | 15.44 | ― | 2.18% | 9.87% | 40.32% | |
77 Outperform | ¥28.73B | 8.18 | ― | 2.93% | 7.86% | 28.33% | |
74 Outperform | ¥27.92B | 16.05 | ― | 2.45% | 13.49% | 12.99% | |
71 Outperform | ¥22.28B | 11.39 | ― | 1.70% | 20.32% | 18.86% | |
69 Neutral | ¥30.60B | 13.32 | ― | 2.22% | 11.22% | 55.88% | |
65 Neutral | ¥30.17B | 10.75 | 10.34% | 4.82% | -2.83% | 5.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4072
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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.