ScoreWhy is DENSO Corp. ?
1
Poor Management Efficiency with a low ROE of 6.90%
- The company has been able to generate a Return on Equity (avg) of 6.90% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 29.69
3
Low Debt Company with Strong Long Term Fundamental Strength
4
Flat results in Dec 25
- INTEREST(HY) At JPY 16,073 MM has Grown at 53.85%
- OPERATING CASH FLOW(Y) Lowest at JPY 576,945 MM
5
With ROE of 9.35%, it has a very attractive valuation with a 1.11 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 -4.63%, its profits have risen by 30.2% ; the PEG ratio of the company is 0.3
6
Majority shareholders : Non Institution
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -4.63% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to DENSO Corp. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DENSO Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
DENSO Corp.
-4.62%
133.90
30.37%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.80%
EBIT Growth (5y)
52.15%
EBIT to Interest (avg)
29.69
Debt to EBITDA (avg)
0.11
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
1.20
Tax Ratio
19.81%
Dividend Payout Ratio
44.13%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
7.59%
ROE (avg)
6.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.11
EV to EBIT
10.53
EV to EBITDA
6.00
EV to Capital Employed
1.12
EV to Sales
0.73
PEG Ratio
0.29
Dividend Yield
NA
ROCE (Latest)
10.62%
ROE (Latest)
9.35%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -3.6% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.26 times
NET SALES(Q)
Highest at JPY 1,905,061 MM
OPERATING PROFIT(Q)
Highest at JPY 264,471 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.88 %
PRE-TAX PROFIT(Q)
Highest at JPY 189,113 MM
NET PROFIT(Q)
Highest at JPY 142,317 MM
EPS(Q)
Highest at JPY 52.87
-10What is not working for the Company
INTEREST(HY)
At JPY 16,073 MM has Grown at 53.85%
OPERATING CASH FLOW(Y)
Lowest at JPY 576,945 MM
Here's what is working for DENSO Corp.
Net Sales
Highest at JPY 1,905,061 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 264,471 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13.88 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 189,113 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 142,317 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 142,317 MM has Grown at 58.31%
over average net sales of the previous four periods of JPY 89,900.25 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 52.87
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 6.26 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.6% (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 95,917 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for DENSO Corp.
Interest
At JPY 16,073 MM has Grown at 53.85%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Cash Flow
Lowest at JPY 576,945 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
