DENTSU SOKEN INC. (4812) AI Stock Analysis

• Market Cap: ¥445.08B
• Dividend Yield: 1.7%
• Average Volume (3M): 141.99K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.37
• Revenue Growth: 7.49%
• EPS Growth: 1.09%
• Country: JP
• Employees: 4,413
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 63.15
• Shares Outstanding: 65,182,480
• 10 Day Avg. Volume: 106,030
• 30 Day Avg. Volume: 141,990
• PEG Ratio: 0.49
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥7,504.00 ▲(8.91%Upside)

DENTSU SOKEN INC. demonstrates strong financial performance with significant revenue and profit growth, operational efficiency, and solid cash flow generation, which supports a high overall score. Technical indicators suggest continued positive momentum, though caution is advised due to the RSI and valuation metrics. The relatively high P/E ratio and modest dividend yield may pose valuation concerns, but the company's financial stability and growth potential provide a strong foundation.

DENTSU SOKEN INC. Business Overview & Revenue Model

Company Description

DENTSU SOKEN INC. (4812) is a Japanese company primarily engaged in the development and provision of marketing research and consulting services. It operates within the advertising and marketing industry, offering a range of solutions that include consumer behavior analysis, brand strategy development, and media effectiveness studies. The company leverages data-driven insights to help businesses optimize their marketing strategies and improve their market presence.

How the Company Makes Money

DENTSU SOKEN INC. generates revenue primarily through its marketing research and consulting services. The company earns fees from clients for conducting comprehensive market studies, providing strategic marketing advice, and delivering actionable insights based on data analysis. Key revenue streams include project-based consulting fees, subscription services for ongoing market intelligence, and bespoke research solutions tailored to specific client needs. Partnerships with other marketing and advertising firms, as well as collaborations with technology providers to enhance data analytics capabilities, contribute significantly to its earnings.

DENTSU SOKEN INC. Financial Statement Overview

Summary

DENTSU SOKEN INC. presents a robust financial profile with strong growth, profitability, and cash flow generation. The company shows consistent revenue and profit growth, efficient operational management, and a solid balance sheet with low leverage. Cash flow metrics further emphasize liquidity strength, making the company well-positioned for future investments and shareholder returns.

Income Statement

DENTSU SOKEN INC. has demonstrated robust revenue growth with a 7.03% increase from 2023 to 2024. Gross profit margin stands at 36.76% for 2024, highlighting strong operational efficiency. The net profit margin is healthy at 9.90%, with consistent EBIT and EBITDA margins of 13.78% and 16.29%, respectively, indicating stable profitability. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 61.89% and a favorable debt-to-equity ratio of 0.04, indicating low leverage. Return on equity is solid at 16.58%, showcasing effective use of shareholder funds. The balance sheet suggests financial stability with a low risk of solvency issues.

Cash Flow

DENTSU SOKEN INC. exhibits impressive cash flow performance with a remarkable free cash flow growth rate of 119.16% from 2023 to 2024. The operating cash flow to net income ratio is particularly strong at 1.57, and free cash flow to net income ratio stands at 1.55, indicating excellent cash generation relative to net income. The cash flow statement underscores the company's strong liquidity and capacity for reinvestment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.64B	142.61B	129.05B	112.08B	108.68B
Gross Profit	56.12B	51.78B	46.79B	40.02B	37.47B
EBITDA	25.21B	24.18B	21.67B	16.53B	15.04B
Net Income	15.12B	14.66B	12.60B	8.94B	7.36B
Balance Sheet
Total Assets	147.33B	133.33B	121.89B	108.19B	97.15B
Cash, Cash Equivalents and Short-Term Investments	6.35B	58.03B	4.91B	3.90B	3.71B
Total Debt	1.96B	2.10B	1.92B	1.96B	2.88B
Total Liabilities	56.14B	50.36B	48.02B	42.72B	37.56B
Stockholders Equity	91.19B	82.97B	73.84B	65.45B	59.56B
Cash Flow
Free Cash Flow	23.39B	10.67B	9.03B	14.54B	8.10B
Operating Cash Flow	23.72B	13.05B	11.91B	16.98B	9.99B
Investing Cash Flow	-11.89B	-2.36B	-3.13B	-2.81B	-3.23B
Financing Cash Flow	-7.98B	-6.70B	-5.42B	-4.46B	-3.94B

DENTSU SOKEN INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6890.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6890 is above the 20-day moving average (MA) of 6706.91, above the 50-day MA of 6523.22, and above the 200-day MA of 5903.44, indicating a bullish trend. The MACD of 73.30 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 52.44 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9746	78 Outperform	¥216.52B	19.43		2.38%	6.15%	2.06%
8056	76 Outperform	¥547.26B	21.93		1.67%	9.15%	8.68%
3923	76 Outperform	¥419.42B	52.40		0.19%	27.33%	91.27%
4812	75 Outperform	¥445.08B	29.46		1.70%	7.49%	1.09%
4722	73 Outperform	¥194.23B	19.19		2.10%	19.53%	9.84%
3788	64 Neutral	¥23.95B	33.11		1.75%	7.60%	-6.99%
Sector *	62 Neutral	£571.22M	24.42	-6.00%	2.36%	3.52%	-29.29%