DENTSU SOKEN INC. (4812) AI Stock Analysis

• Market Cap: ¥435.32B
• Dividend Yield: 1.66%
• Average Volume (3M): 120.15K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.35
• Revenue Growth: 7.93%
• EPS Growth: 7.51%
• Country: JP
• Employees: 4,413
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 54.93
• Shares Outstanding: 65,182,480
• 10 Day Avg. Volume: 87,430
• 30 Day Avg. Volume: 120,150
• PEG Ratio: 8.15
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 16.28
• 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: ¥7,281.00
• Price Target Upside: 8.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥7,281.00 ▲(8.83% Upside)

DENTSU SOKEN INC. demonstrates strong financial performance with robust growth and profitability, which is the most significant factor in the overall score. The technical analysis indicates a neutral to slightly bearish short-term trend, while the valuation suggests moderate pricing. The absence of earnings call data and corporate events means these components do not influence the score.

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 information technology solutions and services. Operating within the technology sector, the company focuses on offering a wide range of IT-related services, including software development, system integration, and consulting services to a diverse clientele.

How the Company Makes Money

Dentsu Soken Inc. generates revenue through several key streams, primarily focusing on software development and system integration services. The company collaborates with various businesses to design, implement, and manage IT systems tailored to specific client needs, which forms a significant portion of its income. Dentsu Soken also earns from consulting services, where it provides expert advice on IT strategies and solutions to optimize business processes. Additionally, partnerships with other technology firms and strategic alliances play a critical role in expanding their market reach and enhancing their service offerings, contributing to the company's financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.79B	152.64B	142.61B	129.05B	112.08B	108.68B
Gross Profit	56.95B	56.12B	51.78B	46.79B	40.02B	37.47B
EBITDA	25.10B	25.21B	24.18B	20.78B	16.19B	13.85B
Net Income	15.11B	15.12B	14.66B	12.60B	8.94B	7.36B
Balance Sheet
Total Assets	145.78B	147.33B	133.33B	121.89B	108.19B	97.15B
Cash, Cash Equivalents and Short-Term Investments	5.37B	6.35B	58.03B	53.76B	50.15B	40.04B
Total Debt	2.44B	1.96B	2.10B	1.92B	1.96B	2.88B
Total Liabilities	54.04B	56.14B	50.36B	48.02B	42.72B	37.56B
Stockholders Equity	91.73B	91.19B	82.97B	73.84B	65.45B	59.56B
Cash Flow
Free Cash Flow	0.00	23.39B	10.67B	9.03B	14.54B	8.10B
Operating Cash Flow	0.00	23.72B	13.05B	11.91B	16.98B	9.99B
Investing Cash Flow	0.00	-11.89B	-2.36B	-3.13B	-2.81B	-3.23B
Financing Cash Flow	0.00	-7.98B	-6.70B	-5.42B	-4.46B	-3.94B

DENTSU SOKEN INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6690.00
• 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 6690 is above the 20-day moving average (MA) of 6560.50, above the 50-day MA of 6538.40, and above the 200-day MA of 6247.25, indicating a bullish trend. The MACD of 43.63 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 56.07 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
3923	76 Outperform	487.44B	51.06	36.42%	0.17%	25.22%	70.77%
9746	73 Outperform	222.96B	20.15	11.03%	2.43%	9.00%	3.63%
4812	73 Outperform	¥435.32B	28.20		1.66%	7.93%	7.51%
4722	73 Outperform	201.58B	20.24	0.00%	1.93%	13.51%	2.63%
8056	73 Outperform	570.60B	22.27	16.71%	1.60%	8.94%	10.67%
3788	69 Neutral	25.27B	32.82	9.03%	1.66%	5.38%	-8.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%