Dentsu Group, Inc. (4324) 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

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Why is Dentsu Group, Inc. ?

High Management Efficiency with a high ROE of 10.27%

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.26

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 5.26

Poor long term growth as Operating profit has grown by an annual rate 12.91% of over the last 5 years

With a growth in Net Profit of 540.41%, the company declared Very Positive results in Mar 26

NET PROFIT(Q) At JPY 42,588.59 MM has Grown at 499.36%
PRE-TAX PROFIT(Q) Highest at JPY 63,977 MM
RAW MATERIAL COST(Y) Fallen by 0.74% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -5.34%, its profits have risen by 94.7% ; the PEG ratio of the company is 0.1

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.34% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dentsu Group, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Dentsu Group, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Dentsu Group, Inc.

-100.0%

229.31

37.40%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.85%

EBIT Growth (5y)

12.91%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.19

Tax Ratio

34.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

13.60%

ROE (avg)

10.27%

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

2.02

EV to EBIT

6.27

EV to EBITDA

4.17

EV to Capital Employed

1.70

EV to Sales

0.65

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

27.11%

ROE (Latest)

29.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

19What is working for the Company

NET PROFIT(Q)

At JPY 42,588.59 MM has Grown at 499.36%

PRE-TAX PROFIT(Q)

Highest at JPY 63,977 MM

RAW MATERIAL COST(Y)

Fallen by 0.74% (YoY

EPS(Q)

Highest at JPY 154.05

-5What is not working for the Company

ROCE(HY)

Lowest at -54.27%

CASH AND EQV(HY)

Lowest at JPY 551,076 MM

DEBT-EQUITY RATIO (HY)

Highest at 46.98 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.98 times

Here's what is working for Dentsu Group, Inc.

Net Profit

At JPY 42,588.59 MM has Grown at 499.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 63,977 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 63,977 MM has Grown at 184.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 154.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 0.74% (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

Here's what is not working for Dentsu Group, Inc.

Cash and Eqv

Lowest at JPY 551,076 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 46.98 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 11.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.65 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income