DENSO CORPORATION (JP:6902)
:6902
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DENSO
(6902)
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Rating:68Neutral
Price Target:
¥2,066.00
▲(7.27% Upside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by solid fundamentals and a conservative balance sheet, tempered by weaker and more volatile cash flow in 2026. Valuation is favorable (low P/E and attractive yield), but technicals are a key near-term headwind with the stock trading below major moving averages and negative MACD.
Positive Factors
Conservative balance sheet
DENSO's very low leverage and rising equity provide structural financial resilience. A conservative capital structure reduces refinancing and solvency risk across auto cycles, supports multi-year OEM program commitments, and preserves capacity to invest in electrification and ADAS over the medium term.
Negative Factors
Volatile cash generation
Material declines and volatility in operating and free cash flow suggest working-capital swings or higher capex needs tied to technology transitions. Persistent cash inconsistency can constrain organic R&D/capex funding, pressure payout flexibility, and reduce buffer against industry downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
DENSO's very low leverage and rising equity provide structural financial resilience. A conservative capital structure reduces refinancing and solvency risk across auto cycles, supports multi-year OEM program commitments, and preserves capacity to invest in electrification and ADAS over the medium term.
Read all positive factors
DENSO (6902) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.18T
Dividend Yield2.98%
Average Volume (3M)5.54M
Price to Earnings (P/E)11.9
Beta (1Y)1.22
Revenue Growth5.28%
EPS Growth12.66%
CountryJP
Employees162,029
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)62.84
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
¥2,258.50Price Target Upside17.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)182.31
Revenue Forecast (FY)¥7.62T
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 refrigera...
How the Company Makes Money
DENSO makes money mainly by designing, manufacturing, and selling automotive components and systems to vehicle manufacturers (OEMs) and, to a lesser extent, to the automotive aftermarket and other industrial customers. Its revenue model is largely...
DENSO Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.54T | 7.16T | 7.14T | 6.40T | 5.52T |
| Gross Profit | 1.17T | 1.10T | 1.09T | 911.14B | 801.49B |
| EBITDA | 949.08B | 870.48B | 756.05B | 790.43B | 701.51B |
| Net Income | 443.75B | 419.08B | 312.79B | 314.63B | 263.90B |
Balance Sheet | |||||
| Total Assets | 8.73T | 8.13T | 9.09T | 7.41T | 7.43T |
| Cash, Cash Equivalents and Short-Term Investments | 1.19T | 986.53B | 789.39B | 733.85B | 867.81B |
| Total Debt | 811.28B | 738.58B | 898.34B | 943.64B | 1.05T |
| Total Liabilities | 3.02T | 2.94T | 3.35T | 2.83T | 2.94T |
| Stockholders Equity | 5.49T | 4.98T | 5.53T | 4.38T | 4.30T |
Cash Flow | |||||
| Free Cash Flow | 140.85B | 378.67B | 515.42B | 188.41B | 23.49B |
| Operating Cash Flow | 511.02B | 758.74B | 961.83B | 602.72B | 395.64B |
| Investing Cash Flow | -16.89B | 121.90B | -459.49B | -363.68B | -301.58B |
| Financing Cash Flow | -355.00B | -677.43B | -496.66B | -400.10B | -159.54B |
DENSO Technical Analysis
Neutral
1926.00
Price Trends
2016.05
Negative
2053.54
Negative
2056.41
Negative
Market Momentum
-20.13
Negative
45.85
Neutral
27.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6902, the sentiment is Neutral. The current price of 1926 is above the 20-day moving average (MA) of 1917.09, below the 50-day MA of 2016.05, and below the 200-day MA of 2056.41, indicating a neutral trend. The MACD of -20.13 indicates Negative momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 27.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6902.
DENSO Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥717.62B | 14.05 | 7.20% | 2.41% | 2.31% | 26.37% | |
73 Outperform | ¥1.67T | 12.67 | 13.69% | 2.65% | 11.98% | 22.34% | |
72 Outperform | ¥7.95T | 15.56 | 8.97% | 1.38% | 6.56% | 38.17% | |
68 Neutral | ¥5.18T | 11.95 | 6.98% | 2.98% | 5.28% | 12.66% | |
66 Neutral | ¥608.97B | 43.48 | 3.35% | 3.18% | 2.15% | -6.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥1.87T | 9.32 | 8.34% | 2.03% | 4.53% | 65.12% |
* Consumer Cyclical Sector Average
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DENSO Corporate Events
DENSO Drops ROHM Share Acquisition Bid but Deepens Semiconductor Partnership
Apr 28, 2026
DENSO Corporation has withdrawn its proposal to acquire shares of semiconductor maker ROHM Co., Ltd. after failing to secure support from ROHM’s board and special committee, concluding that pursuing the transaction now would not necessarily ...
DENSO Details Strategic but Independent Ties to Major Shareholder Toyota
Apr 28, 2026
DENSO has clarified its relationship with Toyota Motor Corporation, confirming that Toyota holds 22.25% of its voting rights and that DENSO is treated as an equity‑method affiliate. Despite this significant stake and the fact that sales to t...
DENSO Raises Year-End Dividend, Lifts Annual Payout to ¥67 per Share
Apr 28, 2026
DENSO CORPORATION’s board has approved a higher year-end dividend of ¥35 per share for the fiscal year ended March 31, 2026, up from the previous forecast of ¥32 and above last year’s ¥32 payout. This brings the total an...
DENSO Launches New Share Buyback via Tender Offer Under CORE 2030 Plan
Apr 28, 2026
DENSO has approved a new share repurchase program via a tender offer for its own shares under Japan’s Companies Act, following earlier written board resolutions and the completion of Toyota Asset Preparatory’s tender offer for Toyota I...
DENSO Lifts Dividend as FY2026 Profit Rises, Signals Softer Outlook for FY2027
Apr 28, 2026
DENSO reported consolidated revenue of ¥7.54 trillion for the fiscal year ended March 31, 2026, up 5.3% year on year, with operating profit rising 6.5% to ¥552.5 billion and profit attributable to owners of the parent increasing 5.9% to ...
DENSO Weighs Options After ROHM Fails to Back Share Acquisition Proposal
Apr 27, 2026
DENSO CORPORATION has addressed media reports about a potential acquisition of ROHM Co., Ltd., clarifying that no official announcement has been made by the company regarding such a deal. The automotive supplier confirmed it has proposed acquiring...
DENSO Unveils “CORE 2030” Plan to Drive Growth, AI-Led Manufacturing and Diversified Mobility
Mar 31, 2026
DENSO has adopted a new mid-term management plan, “CORE 2030,” covering fiscal 2027 to 2031, aimed at strengthening its earnings base after missing profitability targets under its prior policy despite progress in electrification and AD...
DENSO advances ROHM share acquisition proposal to expand semiconductor reach
Mar 24, 2026
DENSO CORPORATION said it has formally submitted a proposal to acquire shares of ROHM Co., Ltd., advancing discussions under their existing semiconductor strategic partnership. The move underscores DENSO’s effort to strengthen its semiconduc...
DENSO Denies Formal ROHM Takeover Proposal but Confirms Strategic Talks
Mar 9, 2026
DENSO has responded to media reports suggesting it has made an acquisition proposal for semiconductor maker ROHM, clarifying that no such announcement has been issued by the company. The clarification aims to correct market speculation and ensure ...
DENSO Lifts Expected Gain as Toyota Industries Tender Offer Terms Improve
Mar 6, 2026
DENSO said it will proceed with tendering all of its shares in Toyota Industries Corporation under an amended takeover bid led by Toyota Fudosan’s affiliated vehicle. Following Toyota Fudosan’s move to raise the expected purchase price...
DENSO Lifts Revenue Outlook but Cuts Profit Forecast on Tariffs, Costs and FX
Feb 3, 2026
DENSO has revised its consolidated full-year forecast for the fiscal year ending March 31, 2026, projecting higher revenue of ¥7.42 trillion but sharply lower profits compared with its previous outlook issued in October 2025. While revenue is...
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.