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DENSO
(6902)
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Rating:71Outperform
Price Target:
¥2,174.00
▲(5.74% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid financial strength (growth, steady margins, and moderate leverage) tempered by weaker recent cash-flow conversion. Valuation is supportive with a modest P/E and strong dividend yield, while technicals are mixed due to the stock sitting below key short- and long-term moving averages.
Positive Factors
Conservative balance sheet
Low trailing leverage (D/E 0.26) and sizeable equity provide financial flexibility to fund R&D, capex and absorb auto-cycle shocks. This conservative positioning supports long-term program delivery to OEMs and reduces solvency risk across 2–6 month horizons and beyond.
Negative Factors
Weak cash conversion
Earnings are not translating proportionally into cash, with FCF only ~36% of net income. Persistent weak cash conversion can constrain funding for capex, working-capital cycles, dividends or M&A without raising external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low trailing leverage (D/E 0.26) and sizeable equity provide financial flexibility to fund R&D, capex and absorb auto-cycle shocks. This conservative positioning supports long-term program delivery to OEMs and reduces solvency risk across 2–6 month horizons and beyond.
Read all positive factors
DENSO (6902) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.42T
Dividend Yield3.41%
Average Volume (3M)5.54M
Price to Earnings (P/E)12.3
Beta (1Y)1.18
Revenue Growth7.51%
EPS Growth13.94%
CountryJP
Employees154,716
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)160.42
Shares Outstanding2,910,979,700
10 Day Avg. Volume5,690,590
30 Day Avg. Volume5,540,833
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)0.97
Price to Sales (P/S)0.70
P/FCF Ratio37.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,098.13Price Target Upside2.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)163.39
Revenue Forecast (FY)¥7.73T
DENSO Business Overview & Revenue Model
Company Description
Headquartered in Kariya, Japan, and established in 1949, DENSO Corporation is a global enterprise engaged in the design, production, and sale of automotive components across Japan, Asia, North America, and Europe. Its extensive product portfolio f...
How the Company Makes Money
DENSO makes money primarily by selling automotive systems and components to vehicle manufacturers (OEMs) and, to a lesser extent, the aftermarket and other industrial customers. Its revenue model is largely B2B and program-based: DENSO wins supply...
DENSO Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.70T | 7.54T | 7.16T | 7.14T | 6.40T | 5.52T |
| Gross Profit | 1.17T | 1.17T | 1.10T | 1.09T | 911.14B | 801.49B |
| EBITDA | 960.88B | 1.03T | 870.48B | 756.05B | 790.43B | 701.51B |
| Net Income | 432.36B | 443.75B | 419.08B | 312.79B | 314.63B | 263.90B |
Balance Sheet | ||||||
| Total Assets | 8.80T | 8.73T | 8.13T | 9.09T | 7.41T | 7.43T |
| Cash, Cash Equivalents and Short-Term Investments | 1.43T | 1.19T | 986.53B | 789.39B | 733.85B | 867.81B |
| Total Debt | 1.35T | 811.28B | 738.58B | 898.34B | 943.64B | 1.05T |
| Total Liabilities | 3.48T | 3.02T | 2.94T | 3.35T | 2.83T | 2.94T |
| Stockholders Equity | 5.11T | 5.49T | 4.98T | 5.53T | 4.38T | 4.30T |
Cash Flow | ||||||
| Free Cash Flow | 213.23B | 140.85B | 378.67B | 515.42B | 188.41B | 23.49B |
| Operating Cash Flow | 585.61B | 511.02B | 758.74B | 961.83B | 602.72B | 395.64B |
| Investing Cash Flow | -184.25B | -16.89B | 121.90B | -459.49B | -363.68B | -301.58B |
| Financing Cash Flow | -205.68B | -355.00B | -677.43B | -496.66B | -400.10B | -159.54B |
DENSO Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥5.42T | 12.26 | 8.64% | 3.26% | 7.51% | 13.94% | |
71 Outperform | ¥1.87T | 9.94 | 15.50% | 2.17% | 16.35% | 111.68% | |
71 Outperform | ¥760.94B | 33.41 | 2.64% | 2.28% | 6.85% | -54.33% | |
69 Neutral | ¥6.91T | 17.00 | 14.96% | 1.56% | 12.30% | 103.31% | |
63 Neutral | ¥1.60T | 9.89 | 8.25% | 2.92% | 5.69% | 27.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥705.43B | 36.56 | 1.57% | 2.96% | 4.64% | 106.98% |
* Consumer Cyclical Sector Average
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DENSO
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DENSO Corporate Events
DENSO Nudges Full-Year Revenue Forecast Higher on Strong Auto Demand and Weak Yen
Jul 31, 2026
DENSO CORPORATION has modestly raised its consolidated full-year revenue forecast for the fiscal year ending March 31, 2027, lifting expected sales from 7.67 trillion yen to 7.75 trillion yen. Forecasts for operating profit, pretax profit, net inc...
DENSO Delivers Higher Sales but Lower Profits and Cuts Full-Year Earnings Outlook
Jul 31, 2026
DENSO reported consolidated revenue of ¥1.91 trillion for the three months ended June 30, 2026, up 9.1% year on year, but operating profit fell 21.5% to ¥84.2 billion and profit attributable to owners dropped 14.4% to ¥67.9 billion,...
DENSO to Consolidate In-Vehicle Software Units in 2029 Internal Reorganization
Jul 13, 2026
DENSO will streamline its software operations by absorbing its wholly owned subsidiary DENSO CREATE through an absorption-type merger and taking over the in-vehicle software business of another wholly owned unit, DENSO TECHNO, via an absorption-ty...
DENSO Completes 7.2 Billion Yen Disposal of Treasury Shares
Jun 19, 2026
DENSO Corporation announced it has completed a previously approved disposal of treasury shares, advancing its capital management strategy and potentially improving liquidity in its stock. The transaction may influence the company’s sharehold...
DENSO Launches Trust-Based Stock Remuneration, Disposes of Treasury Shares
Jun 18, 2026
DENSO has secured shareholder approval to introduce a performance-linked, trust-based share remuneration program, the Board Benefit Trust-Restricted Stock, aimed at granting stock to directors and senior executives as compensation. The move aligns...
DENSO Completes ¥313.6 Billion Share Buyback via Tender Offer
Jun 2, 2026
DENSO Corporation has completed a major share repurchase via a tender offer for its own common stock, approved by its board on April 28, 2026 and conducted from April 30 to June 1, 2026. The buyback, priced at 1,696 yen per share, reached a total ...
DENSO to Launch Trust-Based Performance Share Plan, Dispose of Treasury Stock
May 22, 2026
DENSO will introduce a new trust-based, performance-linked share remuneration system for its directors and executive officers, replacing its existing restricted stock framework once shareholders approve it at the June 18, 2026 general meeting. Und...
DENSO Overhauls Executive Pay to Tie Incentives to CORE 2030 Targets
May 22, 2026
DENSO has approved a significant revision to its director remuneration framework, aimed at aligning executive incentives more closely with its 2030 mid-term management plan, CORE 2030, and with shareholder interests. The changes are designed to su...
DENSO to Allocate Treasury Stock for Expanded Employee Restricted Share Plan
May 22, 2026
DENSO will implement an Employee Shareholding Association – Restricted Stock (ESA-RS) incentive plan for the current fiscal year, mirroring a program used previously to align employees with long-term corporate value creation. The company pla...
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.