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. ?

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

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 2.35%, its profits have risen by 94.7% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 2.35% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 70.84%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dentsu Group, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Dentsu Group, Inc.

2.35%

241.10

35.93%

Japan Nikkei 225

69.82%

2.78

25.51%

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)

1.11

Tax Ratio

34.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.07%

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

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 117,972 MM

NET SALES(Q)

Highest at JPY 420,929 MM

NET PROFIT(Q)

Highest at JPY 70,202 MM

-10What is not working for the Company

ROCE(HY)

Lowest at -61.14%

RAW MATERIAL COST(Y)

Grown by 5.75% (YoY

CASH AND EQV(HY)

Lowest at JPY 520,144 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.8 times

DIVIDEND PER SHARE(HY)

Lowest at JPY 0.8

INTEREST(Q)

Highest at JPY 8,432 MM

EPS(Q)

Lowest at JPY -1,024.99

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

Operating Cash Flow

Highest at JPY 117,972 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 420,929 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 70,202 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 70,202 MM has Grown at 126.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

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

Interest

At JPY 8,432 MM has Grown at 25.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 8,432 MM

in the last five periods and Increased by 25.89% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

EPS

Lowest at JPY -1,024.99

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 520,144 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at JPY 0.8

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (JPY)

Raw Material Cost

Grown by 5.75% (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