DENSO CORPORATION (JP:6902)
:6902
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DENSO
(6902)
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Rating:67Neutral
Price Target:
¥2,022.00
▲(3.61% Upside)
Action:DowngradedDate:02/05/26
The score is driven primarily by strong financial fundamentals (improving margins and low leverage), partially offset by weaker cash flow conversion and bearish technical momentum. Valuation is supportive with a mid-teens P/E and ~3.1% dividend yield.
Positive Factors
Diversified product portfolio
DENSO's broad product set across electrification, thermal, powertrain and ADAS creates multiple durable revenue streams tied to long model cycles and rising electronics content per vehicle. This diversification supports steadier revenues as automakers shift to EVs and advanced safety systems.
Negative Factors
Weak free cash flow conversion
Free cash flow materially lags reported earnings and has shown volatility, reducing internal funding for capex, dividends, or M&A. Over 2-6 months this limits flexibility to accelerate strategic investments or absorb shocks despite solid accounting profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified product portfolio
DENSO's broad product set across electrification, thermal, powertrain and ADAS creates multiple durable revenue streams tied to long model cycles and rising electronics content per vehicle. This diversification supports steadier revenues as automakers shift to EVs and advanced safety systems.
Read all positive factors
DENSO (6902) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.32T
Dividend Yield2.98%
Average Volume (3M)5.54M
Price to Earnings (P/E)10.2
Beta (1Y)1.20
Revenue Growth2.41%
EPS Growth11.03%
CountryJP
Employees162,029
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)19.20
Shares Outstanding2,910,979,700
10 Day Avg. Volume5,690,590
30 Day Avg. Volume5,540,833
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.07
Price to Sales (P/S)0.74
P/FCF Ratio14.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,252.74Price Target Upside15.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)187.52
Revenue Forecast (FY)¥7.57T
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
84
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.37T | 7.16T | 7.14T | 6.40T | 5.52T | 4.94T |
| Gross Profit | 1.15T | 1.10T | 1.09T | 911.14B | 801.49B | 661.49B |
| EBITDA | 881.52B | 870.48B | 756.05B | 790.43B | 701.51B | 494.54B |
| Net Income | 380.01B | 419.08B | 312.79B | 314.63B | 263.90B | 125.06B |
Balance Sheet | ||||||
| Total Assets | 8.65T | 8.13T | 9.09T | 7.41T | 7.43T | 6.77T |
| Cash, Cash Equivalents and Short-Term Investments | 1.03T | 986.53B | 789.39B | 733.85B | 867.81B | 897.39B |
| Total Debt | 970.60B | 738.58B | 898.34B | 943.64B | 1.05T | 910.65B |
| Total Liabilities | 3.15T | 2.94T | 3.35T | 2.83T | 2.94T | 2.69T |
| Stockholders Equity | 5.29T | 4.98T | 5.53T | 4.38T | 4.30T | 3.89T |
Cash Flow | ||||||
| Free Cash Flow | 201.18B | 378.67B | 515.42B | 188.41B | 23.49B | 2.55B |
| Operating Cash Flow | 576.95B | 758.74B | 961.83B | 602.72B | 395.64B | 437.24B |
| Investing Cash Flow | -259.82B | 121.90B | -459.49B | -363.68B | -301.58B | -395.90B |
| Financing Cash Flow | -357.82B | -677.43B | -496.66B | -400.10B | -159.54B | 238.66B |
DENSO Technical Analysis
Positive
1951.50
Price Trends
2035.20
Negative
2061.21
Negative
2054.73
Negative
Market Momentum
-27.66
Negative
48.42
Neutral
66.06
Neutral
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 1951.5 is above the 20-day moving average (MA) of 1915.74, below the 50-day MA of 2035.20, and below the 200-day MA of 2054.73, indicating a neutral trend. The MACD of -27.66 indicates Negative momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ¥719.46B | 14.05 | 7.20% | 2.41% | -0.73% | 88.36% | |
72 Outperform | ¥8.25T | 15.56 | 8.97% | 1.38% | 4.96% | 8.64% | |
67 Neutral | ¥5.32T | 10.20 | 6.98% | 2.98% | 2.41% | 11.03% | |
67 Neutral | ¥1.64T | 11.45 | 13.69% | 2.65% | 6.53% | 11.14% | |
63 Neutral | ¥561.86B | 15.03 | 3.35% | 3.18% | 0.44% | -11.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | ¥1.71T | 14.23 | 8.34% | 2.03% | 4.33% | 524.86% |
* Consumer Cyclical Sector Average
JP:6902
DENSO
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DENSO Corporate Events
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...
DENSO Raises Price Cap and Revises Timing for Large-Scale Share Buyback Tender Offer
Jan 14, 2026
DENSO Corporation has revised the pricing conditions and expected start date for its planned tender offer to repurchase its own shares, a transaction tied to acquiring the DENSO shares currently held by Toyota Industries via a proposal from Toyota...
DENSO Lifts Expected Gain as Toyota Industries Tender Offer Price Raised
Jan 14, 2026
DENSO has confirmed it will proceed with tendering all of its common shares in Toyota Industries Corporation into a tender offer led via a vehicle ultimately owned by Toyota Fudosan, following the formal launch of the offer. The terms have been re...
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.