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

• Market Cap: ¥27.80B
• Dividend Yield: 4.59%
• Average Volume (3M): 33.44K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.58
• Revenue Growth: 16.90%
• EPS Growth: 75.55%
• Country: JP
• Employees: 969
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 50.54
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥2,514.00 ▲(31.55% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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

Sustained top-line growth provides a durable base for reinvestment and market-share gains. A 7.58% year-over-year revenue increase indicates expanding demand and supports funding for capex, R&D and commercial expansion without relying solely on cost cuts, bolstering medium-term growth prospects.

Cash Flow Conversion

High free cash flow conversion strengthens financial flexibility and self-funding ability. Strong OCF-to-net-income conversion means the company can finance capex, service debt, and sustain dividends or buybacks from operations, reducing reliance on external financing across multiple quarters.

Balance Sheet Strength

Conservative leverage and a strong equity ratio provide resilience to cyclical shocks. Improved ROE shows efficient capital use, enabling the firm to pursue strategic investments or shareholder returns while retaining headroom for acquisitions or downside protection over the coming months.

Negative Factors

Rising Debt Trend

Although leverage is currently low, a continuing rise in total debt would reduce financial flexibility and increase interest burden risk. If elevated debt coincides with slower cash generation or higher rates, it could constrain capex, dividends or M&A activity over the medium term.

Margin Sustainability Risk

Current margin strength appears driven by operational efficiency; sustained profitability depends on continued cost control and pricing power. Input-cost inflation or intensified competitive pricing could compress margins, undermining earnings resilience if efficiencies prove hard to extend.

Limited Public Engagement

The absence of earnings call detail and notable corporate event disclosures limits visibility into guidance, strategic priorities and management cadence. Over a multi-quarter horizon this reduced transparency makes it harder for investors to validate execution and monitor structural strategy shifts.

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 maintains telecommunication, electrical, and information processing equipment; designs, constructs, and manages electrical and communications work; sells computer software, system development, and consulting services; and operates, monitors, and manages customer systems. It offers disaster prevention/mitigation, resident information, internal information, and water bill solutions for government offices/municipalities; electronic medical record and nursing care, medical accounting, rehabilitation support, comprehensive medical examination, and school lunch support systems for the medical/healthcare industry; library system for schools; production control and sales management for the manufacturing sector; sales management and logistics core systems for the restaurant industry, rice wholesalers, roadside stations and direct sales shops, and wholesale/retail industry; logistics center solutions for the logistics sector; and switching equipment, network construction service, security, information sharing, and others. Fuso Dentsu Co., Ltd. was incorporated in 1948 and is headquartered in Chuo, Japan.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	59.55B	54.68B	46.78B	41.14B	36.47B	43.39B
Gross Profit	11.37B	10.34B	8.45B	7.49B	6.41B	7.56B
EBITDA	4.47B	3.89B	2.28B	1.67B	722.02M	1.82B
Net Income	2.95B	2.52B	1.43B	971.71M	327.49M	1.11B
Balance Sheet
Total Assets	38.49B	39.72B	29.67B	27.23B	24.47B	25.86B
Cash, Cash Equivalents and Short-Term Investments	7.11B	9.96B	7.37B	7.86B	6.65B	9.11B
Total Debt	929.55M	1.34B	1.59B	1.66B	1.81B	1.35B
Total Liabilities	22.18B	24.31B	17.15B	16.14B	14.90B	15.85B
Stockholders Equity	16.31B	15.41B	12.53B	11.09B	9.57B	10.02B
Cash Flow
Free Cash Flow	3.16B	4.79B	1.08B	1.49B	-1.93B	2.22B
Operating Cash Flow	3.23B	4.88B	1.31B	1.69B	-1.78B	2.48B
Investing Cash Flow	-1.16B	-931.62M	-839.92M	-111.17M	-959.52M	-2.24B
Financing Cash Flow	-1.38B	-877.31M	-469.43M	-379.67M	-216.69M	-343.41M

FUSO DENTSU CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1911.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2049.90, below the 50-day MA of 1987.30, and above the 200-day MA of 1596.87, indicating a bullish trend. The MACD of 45.75 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 60.21 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2354	82 Outperform	¥14.28B	6.73	―	2.66%	―	―
7505	81 Outperform	¥27.80B	9.45	―	4.59%	16.90%	75.55%
3924	75 Outperform	¥16.21B	88.89	―	3.98%	-5.92%	3.16%
3683	67 Neutral	¥12.87B	9.17	―	1.19%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3968	56 Neutral	¥18.35B	17.48	―	1.72%	26.24%	29.73%
3657	50 Neutral	¥11.03B	18.85	―	5.03%	3.97%	63.06%