Dentsu Soken, Inc. (4812) 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 Soken, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.24%

Healthy long term growth as Net Sales has grown by an annual rate of 8.42% and Operating profit at 14.27%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Dec 25

INTEREST(HY) At JPY 22 MM has Grown at 22.22%
ROCE(HY) Lowest at 17.1%
DEBT-EQUITY RATIO (HY) Highest at -6.13 %

With ROE of 16.50%, it has a attractive valuation with a 4.72 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 -7.35%, its profits have risen by 1% ; the PEG ratio of the company is 28.6

Below par performance in long term as well as near term

Along with generating -7.35% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dentsu Soken, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

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

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

Is Dentsu Soken, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dentsu Soken, Inc.

-7.35%

-0.85

73.75%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.42%

EBIT Growth (5y)

14.27%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.71

Tax Ratio

29.30%

Dividend Payout Ratio

46.49%

Pledged Shares

Institutional Holding

ROCE (avg)

24.80%

ROE (avg)

16.24%

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

4.72

EV to EBIT

20.29

EV to EBITDA

17.08

EV to Capital Employed

4.95

EV to Sales

2.74

PEG Ratio

28.59

Dividend Yield

ROCE (Latest)

24.39%

ROE (Latest)

16.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 4.62

NET SALES(Q)

Highest at JPY 43,714 MM

OPERATING PROFIT(Q)

Highest at JPY 7,806 MM

PRE-TAX PROFIT(Q)

Highest at JPY 6,726 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 22 MM has Grown at 22.22%

ROCE(HY)

Lowest at 17.1%

DEBT-EQUITY RATIO (HY)

Highest at -6.13 %

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

Net Sales

Highest at JPY 43,714 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 7,806 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 6,726 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Dividend per share

Highest at JPY 4.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

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

Interest

At JPY 22 MM has Grown at 22.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -6.13 %

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