DENSO (DNZOY) AI Stock Analysis

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DENSO

(Other OTC:DNZOY)

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Rating:66Neutral

Price Target:$12.50▲(6.93% Upside)

Action:downgraded

Date:10/30/26

The score is driven primarily by solid financial performance (improving margins and a conservative balance sheet), supported by reasonable valuation and a strong dividend yield. This is offset by weak technical momentum (below key moving averages with negative MACD and low RSI), and cash-flow conversion/consistency remains the key fundamental risk to monitor.

Positive Factors

Improving ProfitabilityImproving net and EBIT margins indicate stronger profitability than in FY2024, supporting DENSO’s ability to retain more revenue as earnings. If sustained, this creates greater capacity to fund technology, manufacturing investment, and customer programs while strengthening resilience across vehicle cycles.

Negative Factors

Uneven Cash ConversionAlthough free cash flow is positive, converting only about 46% of TTM net income into free cash flow makes earnings quality less predictable. Working-capital needs or investment spending can materially swing cash outcomes, potentially limiting internally funded growth and reducing flexibility during weaker demand periods.

DENSO (DNZOY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $32.78B
Dividend Yield: 3.51%
Average Volume (3M): 122.80K
Price to Earnings (P/E): 11.5
Beta (1Y): 0.82
Revenue Growth: 1.52%
EPS Growth: 22.13%
Country: US
Employees: 154,716
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

DENSO Business Overview & Revenue Model

Company Description

DENSO Corp. engages in the manufacture and sale of automotive component and systems, industrial products, and home appliances. It operates through the following business divisions: Automotive, Consumer Products, Industrial Products, and New Business...

How the Company Makes Money

DENSO primarily makes money by selling automotive components and systems to original equipment manufacturers (OEMs) and, to a lesser extent, to the automotive aftermarket and other industrial customers. Its revenue model is largely business-to-busine...

DENSO Financial Statement Overview

Summary

Fundamentals are solid: profitability is improving (TTM net margin ~5.5%, EBIT margin ~7.2%) and leverage remains conservative (debt-to-equity ~0.23) with steady ROE (~8.2%). The main constraint is cash-flow consistency—free cash flow is positive (~310B) and growing, but conversion vs. earnings is uneven (FCF ~46% of net income) and prior-year FCF volatility raises predictability risk.

Income Statement

74Positive

Balance Sheet

78Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.86T	7.99T	7.16T	7.14T	6.40T	5.52T
Gross Profit	1.17T	1.24T	1.10T	1.09T	1.40T	1.26T
EBITDA	954.22B	1.01T	980.41B	756.05B	790.43B	701.51B
Net Income	437.85B	470.52B	419.08B	312.79B	314.63B	263.90B
Balance Sheet
Total Assets	8.73T	8.77T	8.13T	9.09T	7.41T	7.43T
Cash, Cash Equivalents and Short-Term Investments	1.26T	1.19T	1.10T	837.79B	767.57B	885.54B
Total Debt	1.21T	814.80B	699.38B	850.72B	943.64B	1.05T
Total Liabilities	3.37T	3.03T	2.94T	3.35T	2.83T	2.94T
Stockholders Equity	5.18T	5.52T	4.98T	5.53T	4.38T	4.30T
Cash Flow
Free Cash Flow	310.47B	149.35B	313.32B	515.42B	188.41B	23.49B
Operating Cash Flow	661.55B	541.84B	758.74B	961.83B	602.72B	395.64B
Investing Cash Flow	-57.58B	-17.90B	121.90B	-459.49B	-363.68B	-301.58B
Financing Cash Flow	-238.20B	-376.41B	-677.43B	-496.66B	-400.10B	-159.54B

DENSO Technical Analysis

Technical Analysis SentimentNeutral

Last Price11.69

Price Trends

50DMA11.91Negative

100DMA11.97Negative

200DMA12.32Negative

Market Momentum

MACD-0.07Negative

RSI48.28Neutral

STOCH40.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNZOY, the sentiment is Neutral. The current price of 11.69 is above the 20-day moving average (MA) of 11.64, below the 50-day MA of 11.91, and below the 200-day MA of 12.32, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DNZOY.

DENSO Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DNZOY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNZOY	66Neutral	$32.55B	11.49	8.22%	3.51%	1.52%	22.13%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BWA	60Neutral	$10.37B	21.60	8.61%	1.32%	0.42%	267.86%
VC	59Neutral	$1.81B	19.76	6.44%	1.91%	1.94%	-67.19%
DAN	53Neutral	$2.49B	-11.16	-16.24%	1.99%	-8.85%	-374.41%
MBLY	51Neutral	$5.07B	-1.20	-44.22%	―	3.41%	-1093.47%
APTV	48Neutral	$9.12B	41.84	2.41%	―	-5.40%	-75.68%

* Consumer Cyclical Sector Average

Performance Comparison

DNZOY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DNZOY	Denso	11.69	-2.24	-16.08%
BWA	Borgwarner Inc	51.63	8.32	19.21%
DAN	Dana Incorporated	23.11	2.84	14.00%
APTV	Aptiv PLC	43.93	-25.34	-36.58%
VC	Visteon	73.32	-32.17	-30.50%
MBLY	Mobileye Global, Inc. Class A	5.96	-7.13	-54.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026

DENSO AI Stock Analysis