DTS (9682) AI Stock Analysis

• Market Cap: ¥189.79B
• Dividend Yield: 2.63%
• Average Volume (3M): 487.64K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.74
• Revenue Growth: 11.90%
• EPS Growth: 60.66%
• Country: JP
• Employees: 6,157
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -8.25
• Shares Outstanding: 163,954,930
• 10 Day Avg. Volume: 359,190
• 30 Day Avg. Volume: 487,636
• PEG Ratio: 0.31
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 18.32
• 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): 70.45
• Revenue Forecast (FY): ¥136.26B

• Rating: 66 Neutral
• Price Target: ¥1,240.00 ▼(-3.58% Downside)

DTS's strong financial performance is the primary driver of its stock score, reflecting robust growth and stability. However, technical analysis indicates bearish momentum, which dampens the overall score. Valuation metrics are neutral, suggesting the stock is fairly valued.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to expand its customer base, supporting long-term business sustainability.

Cash Flow Management

Efficient cash flow management ensures liquidity and financial flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in strategic initiatives and withstand market volatility.

Negative Factors

Profit Margin Pressure

While currently healthy, profit margins could be squeezed by increased competition or cost pressures, impacting long-term profitability if not managed effectively.

Market Saturation

High competition in saturated markets can limit growth opportunities and pressure pricing strategies, challenging the company's ability to maintain its market share.

Dependence on Licensing

Heavy reliance on licensing revenue exposes DTS to risks from changes in licensing agreements or shifts in technology adoption, potentially affecting revenue stability.

DTS Business Overview & Revenue Model

Company Description

DTS (9682) is a technology company that specializes in digital audio solutions and immersive audio technologies. Operating primarily in the entertainment and consumer electronics sectors, DTS develops audio codecs, audio processing solutions, and streaming technologies that enhance audio quality for various platforms, including music, movies, and gaming. The company's core products include DTS:X, a revolutionary object-based audio technology, and various licensing solutions that cater to OEMs and content creators, ensuring high-quality sound experiences across devices.

How the Company Makes Money

DTS generates revenue through multiple channels, primarily by licensing its audio technologies and solutions to manufacturers of consumer electronics, automotive companies, and content providers. The company charges licensing fees for the use of its patented audio processing technologies in products such as TVs, soundbars, smartphones, and gaming consoles. Additionally, DTS earns revenue from partnerships with streaming services and media companies that integrate DTS audio technologies into their platforms. Significant collaborations with major industry players further enhance DTS's market presence and contribute to its earnings through both direct licensing agreements and technology integration fees.

DTS Financial Statement Overview

Summary

DTS presents a strong financial profile with consistent revenue and profit growth, minimal leverage, and robust cash flow generation. The company demonstrates effective management and financial stability, with minimal risks due to low debt levels.

Income Statement

DTS has demonstrated consistent revenue growth, with a 3.15% increase in the latest year. The company maintains strong profitability metrics, including a gross profit margin of 22.19% and a net profit margin of 8.45%. EBIT and EBITDA margins are also healthy at 12.02% and 12.92%, respectively, indicating efficient operations. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet is solid, with a very low debt-to-equity ratio of 0.34%, suggesting minimal leverage and financial risk. Return on equity is strong at 18.32%, indicating effective use of shareholder funds. The equity ratio stands at 72.23%, reflecting a stable financial structure. The balance sheet shows financial stability and prudent management of resources.

Cash Flow

DTS exhibits strong cash flow management, with a significant free cash flow to net income ratio of 94.51%. The operating cash flow to net income ratio is 47.29%, indicating efficient cash generation relative to earnings. The free cash flow growth rate is notably high, reflecting improved cash generation capabilities. Overall, the cash flow statement highlights effective cash management and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	129.93B	125.91B	115.73B	106.13B	94.45B	90.49B
Gross Profit	29.02B	27.94B	24.88B	20.79B	19.14B	18.05B
EBITDA	17.37B	16.27B	12.70B	12.44B	12.02B	11.71B
Net Income	11.29B	10.63B	7.29B	8.00B	7.85B	7.59B
Balance Sheet
Total Assets	74.77B	80.39B	84.88B	80.68B	79.12B	75.17B
Cash, Cash Equivalents and Short-Term Investments	26.89B	30.52B	39.40B	44.33B	47.32B	44.31B
Total Debt	504.00M	199.00M	600.00M	197.00M	233.36M	213.15M
Total Liabilities	17.77B	21.04B	21.48B	18.30B	16.98B	15.76B
Stockholders Equity	55.74B	58.06B	62.27B	61.42B	62.02B	59.27B
Cash Flow
Free Cash Flow	0.00	9.14B	9.71B	6.99B	7.30B	9.05B
Operating Cash Flow	0.00	9.18B	10.41B	7.64B	7.59B	9.37B
Investing Cash Flow	0.00	-2.32B	-8.52B	-931.00M	-139.38M	-694.59M
Financing Cash Flow	0.00	-16.09B	-7.82B	-9.10B	-5.03B	-3.85B

DTS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1286.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9682, the sentiment is Neutral. The current price of 1286 is above the 20-day moving average (MA) of 1214.85, above the 50-day MA of 1266.50, and above the 200-day MA of 1171.79, indicating a neutral trend. The MACD of -27.54 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 58.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9682.

DTS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	76 Outperform	¥193.15B	18.58	―	2.36%	13.82%	37.07%
9715	75 Outperform	$139.40B	10.17	11.52%	2.90%	4.00%	38.72%
4722	73 Outperform	¥188.65B	18.46	―	2.11%	9.29%	1.18%
9746	72 Outperform	¥211.88B	17.54	―	2.68%	10.98%	8.69%
9682	66 Neutral	¥189.79B	16.72	18.89%	2.63%	11.90%	60.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	46 Neutral	$151.83B	-13.95	4.18%	1.69%	19.61%	―

DTS Corporate Events

DTS Corporation Reports Strong H1 Results and Announces Stock Split

DTS Corporation reported a strong financial performance for the first six months of the fiscal year ending March 31, 2026, with significant increases in net sales and profits compared to the previous year. The company also announced a 4-for-1 stock split effective October 1, 2025, which reflects its confidence in sustained growth and aims to enhance shareholder value.

The most recent analyst rating on (JP:9682) stock is a Buy with a Yen1440.00 price target. To see the full list of analyst forecasts on DTS stock, see the JP:9682 Stock Forecast page.

DTS Corporation Completes Treasury Share Cancellation

DTS Corporation has completed the cancellation of 509,300 treasury shares, which represents 1.23% of its total shares outstanding before cancellation. This move is part of the company’s strategy to optimize its capital structure, potentially enhancing shareholder value and improving market perception.