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Densan System Holdings Co. Ltd. (JP:4072)
:4072
Japanese Market
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Densan System Holdings Co. Ltd. (4072) AI Stock Analysis

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JP:4072

Densan System Holdings Co. Ltd.

(4072)

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Neutral 67 (OpenAI - 4o)
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)

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
75
Positive
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.
Balance Sheet
85
Very Positive
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.
Cash Flow
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue63.28B61.26B59.59B53.48B50.36B45.75B
Gross Profit9.64B9.29B10.60B9.98B9.23B8.02B
EBITDA3.96B3.21B4.01B4.06B3.84B3.60B
Net Income2.02B1.85B2.00B2.35B1.98B1.92B
Balance Sheet
Total Assets76.48B61.75B57.05B72.17B51.28B47.98B
Cash, Cash Equivalents and Short-Term Investments50.81B19.28B15.91B12.53B13.67B29.52B
Total Debt5.60B1.07B1.53B1.49B1.09B1.21B
Total Liabilities53.28B39.45B36.28B52.51B33.68B32.15B
Stockholders Equity22.98B22.08B20.58B19.45B17.41B15.65B
Cash Flow
Free Cash Flow0.002.73B4.69B1.34B1.92B1.87B
Operating Cash Flow0.003.02B5.51B1.91B2.53B2.76B
Investing Cash Flow0.00239.00M-852.00M-1.72B-1.23B-1.91B
Financing Cash Flow0.00-765.00M-941.00M-5.00M-719.00M2.69B

Densan System Holdings Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3335.00
Price Trends
50DMA
3436.24
Negative
100DMA
3012.48
Positive
200DMA
2720.40
Positive
Market Momentum
MACD
-20.25
Positive
RSI
45.15
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥31.87B21.711.60%22.28%19.79%
75
Outperform
¥38.39B16.012.26%6.33%37.17%
73
Outperform
¥25.53B10.751.22%9.56%7.39%
73
Outperform
¥27.65B25.330.63%11.47%17.60%
70
Outperform
¥30.52B19.374.83%3.32%225.36%
67
Neutral
¥37.09B18.182.40%5.55%18.43%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4072
Densan System Holdings Co. Ltd.
3,335.00
714.24
27.25%
JP:2349
Nippon Information Development Co., Ltd.
2,299.00
38.37
1.70%
JP:3655
BrainPad Inc.
1,262.00
438.72
53.29%
JP:4396
System Support, Inc.
3,070.00
1,217.16
65.69%
JP:9600
I-Net Corporation
2,525.00
1,004.74
66.09%
JP:9640
Saison Technology Co.Ltd.
1,863.00
158.74
9.31%
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.Date of analysis: Oct 18, 2025