DENTSU SOKEN INC. (JP:4812)
:4812
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DENTSU SOKEN INC.
(4812)
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Rating:68Neutral
Price Target:
¥2,260.00
▼(-17.46% Downside)
Action:DowngradedDate: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
Conservative balance sheet
Extremely low leverage provides durable financial flexibility: the company can invest in systems, win/fulfill large client projects, and weather cyclical IT spending downturns without relying on external debt, supporting long-term strategic options and resilience.
Negative Factors
Volatile cash flow
Meaningful swings in operating and free cash flow across years reflect project timing and working-capital sensitivity; this variability can strain planning, weaken predictability of capex/dividend decisions, and increase funding risk during periods of weaker project activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage provides durable financial flexibility: the company can invest in systems, win/fulfill large client projects, and weather cyclical IT spending downturns without relying on external debt, supporting long-term strategic options and resilience.
Read all positive factors
DENTSU SOKEN INC. (4812) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥393.22B
Dividend Yield1.48%
Average Volume (3M)90.11K
Price to Earnings (P/E)28.7
Beta (1Y)0.29
Revenue Growth8.02%
EPS Growth20.57%
CountryJP
Employees4,413
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)23.82
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)92.6
Revenue Forecast (FY)¥182.14B
DENTSU SOKEN INC. Business Overview & Revenue Model
Company Description
Dentsu Soken Inc. provides information technology solutions. The company operates through Financial Solutions, Business Solutions, Manufacturing Solutions, and Communication IT segments. The Financial Solutions segment offers banking, capital mark...
How the Company Makes Money
The company primarily makes money by providing IT services to clients on a project and service basis. Key revenue streams typically include: (1) systems integration and development fees earned from consulting, designing, building, and implementing...
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 | 25.61B | 27.49B | 24.86B | 24.23B | 21.69B | 16.53B |
| 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
Negative
2738.00
Price Trends
2007.74
Positive
2298.89
Negative
2257.22
Negative
Market Momentum
11.16
Negative
51.25
Neutral
73.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4812, the sentiment is Negative. The current price of 2738 is above the 20-day moving average (MA) of 1980.80, above the 50-day MA of 2007.74, and above the 200-day MA of 2257.22, indicating a neutral trend. The MACD of 11.16 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | ¥78.13B | 7.46 | ― | 3.28% | 5.28% | 28.90% | |
75 Outperform | ¥147.64B | 9.34 | 11.52% | 2.76% | 4.00% | 38.72% | |
74 Outperform | ¥29.81B | 35.99 | ― | ― | 29.61% | 93.16% | |
68 Neutral | ¥393.22B | 28.74 | ― | 1.48% | 8.02% | 20.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | ¥99.24B | 15.20 | 2.57% | 1.97% | 19.61% | ― |
* Technology Sector Average
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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.