Densan Co., Ltd. (3640) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Densan Co., Ltd.

Photosynth, Inc.

Japan Process Development Co., Ltd.

Asahi Intelligence Service Co., Ltd.

PCI Holdings, Inc.

Cyber Com Co., Ltd.

Last One Mile Co., Ltd.

Jimoty, Inc.

SAKURA KCS Corp.

DLE, Inc.

Tokyo Nissan Computer System Co., Ltd.

Why is Densan Co., Ltd. ?

High Management Efficiency with a high ROCE of 13.66%

Healthy long term growth as Operating profit has grown by an annual rate 52.93%

With a growth in Operating Profit of 61.8%, the company declared Very Positive results in Jun 25

NET SALES(HY) At JPY 11,456.34 MM has Grown at 26.86%
NET PROFIT(9M) Higher at JPY 1,666.07 MM
CASH AND EQV(HY) Highest at JPY 6,740.37 MM

With ROCE of 19.18%, it has a very attractive valuation with a 1.12 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 107.89%, its profits have risen by 104.7% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 107.89% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Densan Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Densan Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Densan Co., Ltd.

102.3%

1.75

57.30%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.74%

EBIT Growth (5y)

52.93%

EBIT to Interest (avg)

94.64

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

1.23

Tax Ratio

26.99%

Dividend Payout Ratio

11.66%

Pledged Shares

Institutional Holding

ROCE (avg)

13.66%

ROE (avg)

13.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.13

EV to EBIT

5.86

EV to EBITDA

4.29

EV to Capital Employed

1.12

EV to Sales

0.79

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

19.18%

ROE (Latest)

14.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

NET SALES(HY)

At JPY 11,456.34 MM has Grown at 26.86%

NET PROFIT(9M)

Higher at JPY 1,666.07 MM

CASH AND EQV(HY)

Highest at JPY 6,740.37 MM

DEBT-EQUITY RATIO (HY)

Lowest at -15.53 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.96%

-14What is not working for the Company

INTEREST(HY)

At JPY 10.39 MM has Grown at 39.84%

RAW MATERIAL COST(Y)

Grown by 30.39% (YoY

PRE-TAX PROFIT(Q)

Lowest at JPY 86.32 MM

NET PROFIT(Q)

Lowest at JPY 52.27 MM

EPS(Q)

Lowest at JPY 8.99

Here's what is working for Densan Co., Ltd.

Net Sales

At JPY 4,238.16 MM has Grown at 18.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 6,740.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -15.53 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.96%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 393.38 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Densan Co., Ltd.

Interest

At JPY 10.39 MM has Grown at 39.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 86.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 52.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 8.99

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 30.39% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales