FUSO DENTSU CO., LTD. (7505) AI Stock Analysis

• Market Cap: ¥22.79B
• Dividend Yield: 4.85%
• Average Volume (3M): 33.44K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.58
• Revenue Growth: 16.90%
• EPS Growth: 75.60%
• Country: JP
• Employees: 969
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 75.61
• Shares Outstanding: 13,921,960
• 10 Day Avg. Volume: 17,170
• 30 Day Avg. Volume: 33,440
• PEG Ratio: 0.10
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 3.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥2,129.00 ▲(18.48% Upside)

FUSO DENTSU CO., LTD. receives a strong overall stock score due to its robust financial performance, attractive valuation metrics, and positive technical indicators. The company's solid financial health and undervaluation suggest potential for future growth, while technical analysis supports a bullish outlook. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and effectively meet client demands, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation provides financial flexibility, allowing for strategic investments and shareholder returns, which is crucial for long-term growth.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and supporting sustainable growth and investment capacity.

Negative Factors

Debt Monitoring

Rising debt levels, even if slight, can increase financial risk and limit flexibility, necessitating careful management to maintain long-term stability.

Earnings Call Data Absence

Lack of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Corporate Events Data Absence

Absence of corporate events data may indicate a lack of recent strategic initiatives or changes, potentially affecting investor perception of growth prospects.

FUSO DENTSU CO., LTD. Business Overview & Revenue Model

Company Description

FUSO DENTSU CO., LTD. (7505) is a leading advertising and marketing services company based in Japan. It operates primarily in the advertising sector, offering a wide range of services including digital marketing, media planning and buying, brand strategy, and creative development. The company serves various industries, providing innovative solutions to enhance brand visibility and consumer engagement.

How the Company Makes Money

FUSO DENTSU generates revenue through multiple streams, primarily by providing advertising and marketing services to businesses across various sectors. The company earns income from media buying, where it purchases advertising space on behalf of clients and charges a commission. Additionally, it generates revenue from project-based fees for creative services, brand consulting, and digital marketing strategies. The company may also have partnerships with media outlets and technology platforms that enhance its service offerings and contribute to its earnings. The combination of these services allows FUSO DENTSU to capitalize on the growing demand for integrated marketing solutions.

FUSO DENTSU CO., LTD. Financial Statement Overview

Summary

FUSO DENTSU CO., LTD. demonstrates strong financial health with consistent revenue and profit growth, a solid balance sheet with low leverage, and robust cash flows. These factors position the company well for future growth and stability, although careful monitoring of debt levels is advisable.

Income Statement

FUSO DENTSU CO., LTD. has shown strong revenue growth with a 7.58% increase in the latest year. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins have improved, reflecting operational efficiency. Overall, the income statement demonstrates robust financial performance with positive growth trends.

Balance Sheet

The company has a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity has improved, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a stable financial position. However, the slight increase in total debt over the years warrants monitoring.

Cash Flow

FUSO DENTSU CO., LTD. exhibits impressive free cash flow growth, enhancing its ability to reinvest in the business or return capital to shareholders. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. The company has effectively converted earnings into free cash flow, supporting its financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	54.68B	54.68B	46.78B	41.14B	36.47B	43.39B
Gross Profit	10.51B	10.34B	8.45B	7.49B	6.41B	7.56B
EBITDA	3.82B	3.89B	2.28B	1.67B	722.02M	1.82B
Net Income	2.52B	2.52B	1.43B	971.71M	327.49M	1.11B
Balance Sheet
Total Assets	39.72B	39.72B	29.67B	27.23B	24.47B	25.86B
Cash, Cash Equivalents and Short-Term Investments	9.96B	9.96B	7.37B	7.86B	6.65B	9.11B
Total Debt	1.39B	1.39B	1.59B	1.66B	1.81B	1.35B
Total Liabilities	24.31B	24.31B	17.15B	16.14B	14.90B	15.85B
Stockholders Equity	15.41B	15.41B	12.53B	11.09B	9.57B	10.02B
Cash Flow
Free Cash Flow	4.79B	4.79B	1.08B	1.49B	-1.93B	2.22B
Operating Cash Flow	4.88B	4.88B	1.31B	1.69B	-1.78B	2.48B
Investing Cash Flow	-930.67M	-931.62M	-839.92M	-111.17M	-959.52M	-2.24B
Financing Cash Flow	-876.69M	-877.31M	-469.43M	-379.67M	-216.69M	-343.41M

FUSO DENTSU CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1797.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7505, the sentiment is Positive. The current price of 1797 is above the 20-day moving average (MA) of 1769.00, above the 50-day MA of 1729.44, and above the 200-day MA of 1281.88, indicating a bullish trend. The MACD of 21.50 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 15.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7505.

FUSO DENTSU CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7505	81 Outperform	¥22.79B	8.23	―	4.85%	16.90%	75.60%
3968	78 Outperform	¥23.13B	26.90	―	1.67%	26.24%	29.73%
3924	69 Neutral	¥16.57B	14.94	―	3.97%	-5.92%	3.16%
3683	68 Neutral	¥14.63B	11.53	―	1.20%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3657	50 Neutral	¥11.03B	-15.79	―	5.10%	3.97%	63.06%