DENSO (6902) AI Stock Analysis

• Market Cap: ¥5.89T
• Dividend Yield: 2.99%
• Average Volume (3M): 5.54M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.23
• Revenue Growth: 2.41%
• EPS Growth: 11.03%
• Country: JP
• Employees: 162,029
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 2,910,979,700
• 10 Day Avg. Volume: 5,690,590
• 30 Day Avg. Volume: 5,540,833
• PEG Ratio: 0.33
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 14.07
• 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: ¥2,666.25
• Price Target Upside: 24.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,341.00 ▲(9.42% Upside)

DENSO's overall stock score reflects its strong financial performance and fair valuation. The company's robust balance sheet and consistent revenue growth are significant strengths. However, technical indicators suggest caution due to potential bearish momentum and overbought conditions. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Financial Health

DENSO's robust financial health, characterized by consistent revenue growth and profitability, ensures long-term stability and capacity to invest in innovation.

Solid Balance Sheet

A low debt-to-equity ratio indicates prudent financial leverage, providing DENSO with financial flexibility to navigate industry challenges and seize growth opportunities.

Operational Efficiency

High EBIT and EBITDA margins reflect DENSO's efficient operations, enabling sustained profitability and competitive advantage in the automotive components sector.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow could constrain DENSO's ability to fund new projects and investments, potentially impacting future growth.

Asset Utilization

Suboptimal asset utilization suggests inefficiencies that could limit DENSO's ability to maximize returns, necessitating strategic adjustments to improve performance.

Moderate Cash Conversion Efficiency

Moderate cash conversion efficiency indicates potential challenges in turning profits into cash, which could affect liquidity and investment capacity.

DENSO Business Overview & Revenue Model

Company Description

DENSO Corporation develops, manufactures, and sells automotive parts in Japan, rest of Asia, North America, Europe, and internationally. It offers air-conditioning systems, including heat pump air-conditioning systems, control system and refrigerant products, air-conditioning system heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. The company also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems, as well as motor generators, power control units, and emission control components; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, it offers automotive service parts and accessories comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, Plasmacluster ion generators, air conditioners for busses and construction vehicles, driver status monitors, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, the company provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse; and household air conditioning equipment and industrial systems. DENSO Corporation was incorporated in 1949 and is based in Kariya, Japan.

How the Company Makes Money

DENSO makes money primarily through the design, manufacture, and sale of automotive components and systems to major automobile manufacturers worldwide. Its revenue model is heavily reliant on its position as a Tier 1 supplier to leading automakers, providing essential components such as engine management systems, air conditioning units, and various electronic and safety systems. Key revenue streams include its powertrain systems, which improve fuel efficiency and reduce emissions, and its thermal systems, which manage vehicle climate control. DENSO also generates income from its aftermarket services, offering repair and maintenance parts for vehicles. Significant partnerships with automotive giants, along with continuous investment in research and development for next-generation automotive technologies, further bolster its revenue. The company's commitment to innovation in areas like electrification, autonomous driving, and connectivity plays a crucial role in sustaining its competitive edge and profitability.

DENSO Financial Statement Overview

Summary

DENSO shows strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and effective equity utilization. However, the decline in free cash flow growth and slight decrease in net income are areas to watch.

Income Statement

DENSO has demonstrated consistent revenue growth with a TTM revenue growth rate of 0.4% and a strong historical growth trajectory. The company maintains healthy profitability margins, with a TTM gross profit margin of 15.31% and a net profit margin of 5.64%. The EBIT and EBITDA margins are also robust at 8.11% and 13.33%, respectively, indicating efficient operational management. However, the slight decline in net income from the previous annual report suggests a need for cautious monitoring.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.18, indicating conservative leverage. The return on equity is strong at 8.01%, showcasing effective utilization of shareholder funds. The equity ratio stands at 59.98%, highlighting a stable capital structure. Nonetheless, the decrease in stockholders' equity compared to the previous period warrants attention.

Cash Flow

DENSO's cash flow statement reveals a decline in free cash flow growth by 27.66% TTM, which could impact future investments. The operating cash flow to net income ratio is 0.29, suggesting adequate cash generation relative to earnings. The free cash flow to net income ratio of 0.42 indicates reasonable cash flow conversion. Despite these strengths, the negative free cash flow growth trend is a concern.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.28T	7.16T	6.40T	7.14T	5.52T	4.94T
Gross Profit	1.12T	1.10T	911.14B	1.09T	801.49B	661.49B
EBITDA	910.93B	971.41B	875.11B	846.45B	765.38B	561.38B
Net Income	359.60B	419.08B	314.63B	312.79B	263.90B	125.06B
Balance Sheet
Total Assets	8.15T	8.13T	7.41T	9.09T	7.43T	6.77T
Cash, Cash Equivalents and Short-Term Investments	862.28B	986.53B	767.57B	789.39B	885.54B	912.92B
Total Debt	857.92B	699.38B	889.27B	850.72B	991.43B	854.22B
Total Liabilities	3.00T	2.94T	2.83T	3.35T	2.94T	2.69T
Stockholders Equity	4.96T	4.98T	4.38T	5.53T	4.30T	3.89T
Cash Flow
Free Cash Flow	184.34B	378.67B	188.41B	515.42B	23.49B	2.55B
Operating Cash Flow	559.11B	758.74B	602.72B	961.83B	395.64B	437.24B
Investing Cash Flow	-246.60B	121.90B	-363.68B	-459.49B	-301.58B	-395.90B
Financing Cash Flow	-575.26B	-677.43B	-400.10B	-496.66B	-159.54B	238.66B

DENSO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2139.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6902, the sentiment is Positive. The current price of 2139.5 is above the 20-day moving average (MA) of 2072.32, above the 50-day MA of 2131.22, and above the 200-day MA of 1997.92, indicating a bullish trend. The MACD of 5.49 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 89.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6902.

DENSO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6923	78 Outperform	¥402.32B	14.93	6.37%	2.89%	4.86%	10.95%
7259	77 Outperform	¥2.28T	13.50	8.34%	1.98%	4.33%	524.86%
7276	76 Outperform	$659.07B	14.22	7.20%	2.40%	-0.73%	88.36%
5802	74 Outperform	$4.92T	22.76	8.97%	1.44%	4.96%	8.64%
3116	74 Outperform	¥446.78B	21.64	4.51%	3.44%	2.10%	-50.33%
6902	72 Outperform	¥5.89T	16.82	6.98%	2.99%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

DENSO Corporate Events

DENSO Updates Timeline for Tender Offer of Own Shares

DENSO Corporation has announced an update on its plan to commence a tender offer for its own shares, contingent upon the successful completion of a tender offer for Toyota Industries by Toyota Fudosan. Initially planned for mid-January 2026, the commencement is now expected in or after March 2026 due to procedural requirements under various regulatory frameworks. This strategic move is part of DENSO’s broader financial strategy and could impact its market positioning and shareholder value.

The most recent analyst rating on (JP:6902) stock is a Buy with a Yen2700.00 price target. To see the full list of analyst forecasts on DENSO stock, see the JP:6902 Stock Forecast page.

DENSO Announces Progress in Treasury Stock Repurchase Plan

DENSO CORPORATION announced the status of its treasury stock repurchase, revealing that it acquired 13,201,300 shares at a total cost of 28,596,092,700 yen during September 2025. This move is part of a larger repurchase plan approved in October 2024, aiming to buy back up to 280 million shares by October 2025, reflecting the company’s strategy to optimize capital structure and enhance shareholder value.

The most recent analyst rating on (JP:6902) stock is a Buy with a Yen2700.00 price target. To see the full list of analyst forecasts on DENSO stock, see the JP:6902 Stock Forecast page.

DENSO Reports Progress on Share Repurchase Plan

DENSO CORPORATION announced the status of its treasury stock repurchase, acquiring 16,251,200 shares at a total cost of 34,434,448,350 yen during August 2025. This move is part of a larger plan authorized in October 2024 to repurchase up to 280,000,000 shares, reflecting DENSO’s strategy to optimize capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:6902) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on DENSO stock, see the JP:6902 Stock Forecast page.

DENSO Announces Progress in Treasury Stock Repurchase Plan

DENSO Corporation announced the status of its treasury stock repurchase, revealing that it acquired 19,832,200 shares at a total cost of 39,319,245,600 yen during July 2025. This repurchase is part of a larger plan approved in October 2024, allowing for the acquisition of up to 280 million shares by October 2025, indicating a strategic move to optimize capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:6902) stock is a Buy with a Yen2800.00 price target. To see the full list of analyst forecasts on DENSO stock, see the JP:6902 Stock Forecast page.

DENSO CORPORATION Reports Mixed Q1 2025 Results

DENSO CORPORATION, a leading global supplier of advanced automotive technology, systems, and components, has released its financial results for the first quarter of the fiscal year 2025. The company operates primarily in the automotive sector, focusing on creating a sustainable and safe mobility environment.

DENSO Revises Full-Year Revenue Forecast Upwards

DENSO Corporation has revised its consolidated full-year financial results forecast for the fiscal year ending March 31, 2026, increasing its revenue projection by 2.13% to 7.2 trillion yen. This adjustment reflects the company’s first-quarter performance and anticipated sales growth due to tariff cost reflections from the second quarter onwards, while other financial metrics remain unchanged.

The most recent analyst rating on (JP:6902) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on DENSO stock, see the JP:6902 Stock Forecast page.