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

• Market Cap: ¥23.83B
• Dividend Yield: 4.59%
• Average Volume (3M): 33.44K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.62
• 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: ¥2,354.00 ▲(23.18% 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

Free Cash Flow Generation

Sustained free cash flow growth and a strong operating cash flow-to-net income ratio improve the firm's ability to fund capex, acquisitions, or dividends without relying on external financing. This durable cash conversion underpins financial flexibility and long-term capital allocation options.

Margins & Operational Efficiency

Improving EBITDA and net margins alongside continued revenue growth indicate scalable operations and effective cost control. Sustainable margin expansion supports reinvestment and resilience to cost shocks, enhancing long-term profitability and return on invested capital.

Balance Sheet Strength

Low leverage and a strong equity ratio provide a durable financial cushion, enabling the company to pursue strategic investments or weather downturns. Rising ROE signals improving capital efficiency, supporting sustainable shareholder value creation over the medium term.

Negative Factors

Rising Debt Trend

A gradual uptick in total debt, even from a low base, reduces the margin of safety provided by low leverage. If the trend continues it could constrain investment flexibility, increase interest expense sensitivity, and limit strategic options over the next several quarters.

Limited Corporate Catalysts

An absence of announced partnerships, product launches, or strategic transactions limits visible structural catalysts for market-share gains. Reliance on organic growth without fresh strategic initiatives may slow acceleration of top-line expansion over the medium term.

Sparse Investor Guidance

Limited earnings-call disclosure and absence of forward guidance reduce transparency into management's outlook and execution priorities. Over months, this can make it harder for investors to assess operational trajectory and hold management accountable for strategic targets.

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

null

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	8.32B	7.37B	6.32B	7.46B
EBITDA	4.30B	3.65B	2.07B	1.46B	563.84M	1.64B
Net Income	2.95B	2.52B	1.43B	971.71M	327.49M	1.11B
Balance Sheet
Total Assets	38.49B	41.08B	30.61B	28.02B	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	25.67B	18.09B	16.93B	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	1.17B	1.63B	-1.86B	2.31B
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: Neutral
• Last Price: 1911.00
• 50DMA: Negative
• 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 Neutral. The current price of 1911 is below the 20-day moving average (MA) of 2070.20, below the 50-day MA of 2017.88, and above the 200-day MA of 1650.37, indicating a neutral trend. The MACD of -5.15 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 19.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥23.83B	9.45	―	4.59%	16.90%	75.55%
9715	75 Outperform	¥145.02B	9.34	11.52%	2.76%	4.00%	38.72%
202A	74 Outperform	¥56.74B	34.44	―	2.74%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	46 Neutral	¥90.48B	15.20	2.57%	1.97%	19.61%	―
5255	42 Neutral	¥6.21B	-28.24	―	―	-29.41%	79.74%