Densan System Holdings Co., Ltd. (3630) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

F&M Co., Ltd.

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Densan System Holdings Co., Ltd.

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YAMADA Consulting Group Co., Ltd.

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Chilled & Frozen Logistics Holdings Co., Ltd.

Studio Alice Co., Ltd.

Speee, Inc.

Why is Densan System Holdings Co., Ltd. ?

High Management Efficiency with a high ROE of 12.05%

Company has very low debt and has enough cash to service the debt requirements

Positive results in Mar 26

INTEREST COVERAGE RATIO(Q) Highest at 36,100
RAW MATERIAL COST(Y) Fallen by 1.92% (YoY)
NET PROFIT(9M) Higher at JPY 2,598.98 MM

With ROE of 12.12%, it has a fair valuation with a 1.28 Price to Book Value

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 12.37%, its profits have risen by 29.3% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 12.37% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 69.64%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Densan System Holdings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

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

Is Densan System Holdings Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Densan System Holdings Co., Ltd.

12.37%

0.24

53.77%

Japan Nikkei 225

71.75%

2.62

26.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.29%

EBIT Growth (5y)

5.03%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.75

Sales to Capital Employed (avg)

2.49

Tax Ratio

30.66%

Dividend Payout Ratio

33.21%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

12.05%

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

1.28

EV to EBIT

-2.13

EV to EBITDA

-1.73

EV to Capital Employed

0.52

EV to Sales

-0.11

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

-24.63%

ROE (Latest)

12.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 36,100

RAW MATERIAL COST(Y)

Fallen by 1.92% (YoY

NET PROFIT(9M)

Higher at JPY 2,598.98 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.99 times

OPERATING PROFIT(Q)

Highest at JPY 1,444 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.38 %

PRE-TAX PROFIT(Q)

Highest at JPY 1,300 MM

-3What is not working for the Company

INTEREST(9M)

At JPY 15 MM has Grown at 15.38%

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

Interest Coverage Ratio

Highest at 36,100

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 1,444 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 8.38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 1,300 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 6.99 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at JPY 2,598.98 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by 1.92% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 216 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 System Holdings Co., Ltd.

Interest

At JPY 15 MM has Grown at 15.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)