DTS (9682) AI Stock Analysis

• Market Cap: ¥193.44B
• Dividend Yield: 2.81%
• Average Volume (3M): 487.64K
• Price to Earnings (P/E): 17.0
• 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 ▲(1.31% Upside)

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 Corporation provides systems integration services in Japan. The company operates through four segments: Finance and Society; Corporate Solutions; Operational Infrastructure BPO; and Regional, Overseas, Etc. It develops and maintains information systems; designs and executes electrical and telecommunications construction work related to information systems; develops, purchases, sells, and leases educational equipment and materials related to the information systems; and publishes, edits, and translates work related to the information systems. The company also installs, operates, and maintains computer systems and networks; manufactures, develops, purchases, sells, and leases computers, and other information related equipment and software; processes and provides information and commercial transactions; creates, purchases, sells, and leases multimedia related content; and acquires, develops, licenses, manages, and transfers intellectual property, such as copyrights. In addition, it engages in worker dispatch business; and contracting for planning, surveying, researching, training, educating, and consulting activities related to information systems. Further, the company offers multimedia; enterprise resource planning; and network integration systems. It serves financial industry, communications industry, public institutions, and distribution and transportation industries. DTS Corporation was founded in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DTS generates revenue primarily through licensing fees for its audio technologies, which are integrated into a wide range of consumer electronics, including TVs, smartphones, and gaming consoles. The company also earns income from partnerships with automotive manufacturers, providing audio solutions for in-car entertainment systems. Additionally, DTS may engage in software sales and provide technical support services to clients, further contributing to its revenue streams. The strategic collaborations with industry leaders enhance its market presence and drive sales growth.

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: 1224.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1224 is above the 20-day moving average (MA) of 1202.60, below the 50-day MA of 1236.60, and above the 200-day MA of 1185.11, indicating a neutral trend. The MACD of -2.33 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 is Negative, 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	¥188.44B	18.12	―	2.31%	13.82%	37.07%
9715	75 Outperform	¥140.90B	10.28	11.52%	2.82%	4.00%	38.72%
9746	73 Outperform	¥210.34B	17.61	―	2.67%	10.98%	8.65%
4722	73 Outperform	¥172.54B	16.89	―	2.26%	9.29%	1.18%
9682	66 Neutral	¥193.44B	17.04	18.89%	2.81%	11.90%	60.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4819	55 Neutral	¥131.93B	40.34	4.18%	1.90%	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.