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FUSO DENTSU CO., LTD. (JP:7505)
:7505
Japanese Market
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FUSO DENTSU CO., LTD. (7505) AI Stock Analysis

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JP:7505

FUSO DENTSU CO., LTD.

(7505)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥2,098.00
▲(9.79% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial health (low leverage, improved profitability) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by weaker technical momentum and concerns about cash-flow consistency given the sharp TTM free cash flow decline versus the prior year.
Positive Factors
Low leverage / strong balance sheet
The company’s very low and falling debt-to-equity materially reduces financial risk and increases strategic optionality. Over a multi-month horizon this conservative capital structure supports resilience through downturns, funds recurring capital needs, and enables opportunistic investments or shareholder returns without raising leverage.
Negative Factors
Sharp free cash flow decline & volatility
A nearly 40% Y/Y drop in free cash flow and weaker operating cash flow signal meaningful volatility in cash generation. This undermines planning for capex, dividends, or buybacks and raises the risk that strong reported earnings may not consistently translate into available cash in the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
The company’s very low and falling debt-to-equity materially reduces financial risk and increases strategic optionality. Over a multi-month horizon this conservative capital structure supports resilience through downturns, funds recurring capital needs, and enables opportunistic investments or shareholder returns without raising leverage.
Read all positive factors

FUSO DENTSU CO., LTD. (7505) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Fuso Dentsu Co., Ltd. engages in the information and communication technology (ICT) business in Japan. It operates through Network Solution Business, SI Solution Business, and Facility Services segments. The company designs, constructs, sells, and...
How the Company Makes Money
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FUSO DENTSU CO., LTD. Financial Statement Overview

Summary
Overall financials are solid: profitability and margins improved versus prior years and the balance sheet is conservatively positioned with very low leverage and strong ROE. The main drag is cash-flow quality—free cash flow fell sharply versus FY2025 and cash generation has been volatile historically, despite decent TTM conversion of earnings to free cash flow.
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
58
Neutral
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue61.98B54.68B46.78B41.14B36.47B43.39B
Gross Profit12.34B10.34B8.32B7.37B6.32B7.46B
EBITDA4.98B3.65B2.07B1.46B563.84M1.64B
Net Income3.39B2.52B1.43B971.71M327.49M1.11B
Balance Sheet
Total Assets42.81B41.08B30.61B28.02B24.47B25.86B
Cash, Cash Equivalents and Short-Term Investments6.45B9.96B7.37B7.86B6.65B9.11B
Total Debt1.26B1.34B1.59B1.66B1.81B1.35B
Total Liabilities24.94B25.67B18.09B16.93B14.90B15.85B
Stockholders Equity17.87B15.41B12.53B11.09B9.57B10.02B
Cash Flow
Free Cash Flow1.90B4.79B1.17B1.63B-1.86B2.31B
Operating Cash Flow2.02B4.88B1.31B1.69B-1.78B2.48B
Investing Cash Flow-1.47B-931.62M-839.92M-111.17M-959.52M-2.24B
Financing Cash Flow-1.37B-877.31M-469.43M-379.67M-216.69M-343.41M

FUSO DENTSU CO., LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1911.00
Price Trends
50DMA
1917.21
Positive
100DMA
1956.82
Positive
200DMA
1805.47
Positive
Market Momentum
MACD
56.99
Negative
RSI
67.68
Neutral
STOCH
75.19
Neutral
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 1911 is below the 20-day moving average (MA) of 1964.00, below the 50-day MA of 1917.21, and above the 200-day MA of 1805.47, indicating a bullish trend. The MACD of 56.99 indicates Negative momentum. The RSI at 67.68 is Neutral, neither overbought nor oversold. The STOCH value of 75.19 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥26.94B7.254.59%28.73%104.31%
68
Neutral
¥145.77B11.1411.52%2.76%4.79%15.28%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
49
Neutral
¥94.47B72.722.57%1.97%9.27%
44
Neutral
¥6.34B-44.13-10.02%98.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7505
FUSO DENTSU CO., LTD.
2,110.00
1,119.60
113.05%
JP:4819
Digital Garage
2,034.00
-2,899.48
-58.77%
JP:9715
transcosmos
3,890.00
626.16
19.18%
JP:5255
Monstarlab Holdings Inc.
98.00
19.00
24.05%
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.Date of analysis: May 15, 2026