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DENTSU SOKEN INC.
(4812)
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Rating:68Neutral
Price Target:
¥2,334.00
▼(-14.76% Downside)
Action:Downgraded
Date:02/18/26
Score is driven by strong financial quality (steady growth, improving profitability, and very low leverage), partially offset by very weak technicals (price below all key moving averages and negative MACD, despite oversold readings). Valuation is moderately supportive with a reasonable P/E and a ~2.1% dividend yield.
Positive Factors
Consistent Revenue Growth
Sustained mid-to-high single-digit revenue growth across 2020–2025 indicates durable demand for Dentsu Soken’s IT services and DX offerings. This steady top-line expansion provides a reliable base for reinvestment, supports scale economies in delivery, and reduces reliance on one-off projects over a multi-quarter horizon.
Negative Factors
Cash Flow Volatility
Material year‑to‑year swings in operating and free cash flow undermine predictability of internally available funds. While recent FCF is strong, volatility complicates budgeting for multi‑year investments, raises sensitivity to project timing and working capital, and increases execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained mid-to-high single-digit revenue growth across 2020–2025 indicates durable demand for Dentsu Soken’s IT services and DX offerings. This steady top-line expansion provides a reliable base for reinvestment, supports scale economies in delivery, and reduces reliance on one-off projects over a multi-quarter horizon.
Read all positive factors
DENTSU SOKEN INC. (4812) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥418.43B
Dividend Yield1.48%
Average Volume (3M)90.11K
Price to Earnings (P/E)24.7
Beta (1Y)0.26
Revenue Growth8.12%
EPS Growth11.91%
CountryJP
Employees4,618
SectorTechnology
Sector Strength88
IndustrySoftware - Services
Share Statistics
EPS (TTM)79.67
Shares Outstanding195,547,440
10 Day Avg. Volume107,990
30 Day Avg. Volume90,113
Financial Highlights & Ratios
PEG Ratio3.96
Price to Book (P/B)5.34
Price to Sales (P/S)3.24
P/FCF Ratio28.41
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)92.83
Revenue Forecast (FY)¥182.60B
DENTSU SOKEN INC. Business Overview & Revenue Model
Company Description
Dentsu Soken Inc. provides information technology solutions. It operates through four segments: Financial Solutions, Business Solutions, Manufacturing Solutions, and Communication IT. The Financial Solutions segment offers IT solutions that suppor...
How the Company Makes Money
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DENTSU SOKEN INC. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 158.65B | 164.87B | 152.64B | 142.61B | 129.05B | 112.08B |
| Gross Profit | 57.83B | 60.38B | 56.12B | 51.78B | 46.79B | 40.02B |
| EBITDA | 26.21B | 28.25B | 25.21B | 24.18B | 20.78B | 16.19B |
| Net Income | 15.55B | 16.36B | 15.12B | 14.66B | 12.60B | 8.95B |
Balance Sheet | ||||||
| Total Assets | 150.44B | 165.06B | 147.33B | 133.33B | 121.89B | 108.19B |
| Cash, Cash Equivalents and Short-Term Investments | 68.30B | 8.36B | 62.31B | 58.03B | 53.76B | 50.15B |
| Total Debt | 2.54B | 2.22B | 1.96B | 2.10B | 1.92B | 1.96B |
| Total Liabilities | 55.58B | 64.89B | 56.13B | 50.36B | 48.02B | 42.72B |
| Stockholders Equity | 94.85B | 100.16B | 91.19B | 82.97B | 73.84B | 65.45B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 18.81B | 23.47B | 13.00B | 11.54B | 16.89B |
| Operating Cash Flow | 0.00 | 19.12B | 23.80B | 13.19B | 11.99B | 17.18B |
| Investing Cash Flow | 0.00 | -3.02B | -11.97B | -2.50B | -3.21B | -3.01B |
| Financing Cash Flow | 0.00 | -8.55B | -7.98B | -6.70B | -5.42B | -4.46B |
DENTSU SOKEN INC. Technical Analysis
Positive
2738.00
Price Trends
2090.33
Positive
2028.42
Positive
2215.73
Negative
Market Momentum
-13.33
Negative
62.10
Neutral
70.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4812, the sentiment is Positive. The current price of 2738 is above the 20-day moving average (MA) of 2033.23, above the 50-day MA of 2090.33, and above the 200-day MA of 2215.73, indicating a neutral trend. The MACD of -13.33 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 70.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4812.
DENTSU SOKEN INC. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥70.29B | 7.01 | ― | 3.28% | 12.54% | 171.52% | |
70 Outperform | ¥21.46B | 39.11 | ― | ― | 31.09% | 75.74% | |
68 Neutral | ¥418.43B | 24.72 | ― | 1.48% | 8.12% | 11.91% | |
68 Neutral | ¥134.72B | 10.30 | 11.52% | 2.76% | 4.79% | 15.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥88.16B | 67.93 | 2.57% | 1.97% | 9.27% | ― |
* Technology Sector Average
JP:4812
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DENTSU SOKEN INC. Corporate Events
Dentsu Soken Posts Strong Q1 and Affirms 2026 Growth Outlook
Apr 28, 2026
Dentsu Soken Inc., listed on the Tokyo Stock Exchange, operates in the IT services and consulting sector, providing system integration, digital solutions and related technology services. The company focuses on enterprise clients in Japan, supporti...
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.