Densan Co., Ltd. AI Stock Analysis
Want to see JP:3640 full AI Analyst Report?
Densan Co., Ltd. (3640) AI Stock Analysis
Densan Co., Ltd.
(TSE/TYO:3640)
The company's outstanding financial performance, characterized by high profitability and a pristine balance sheet, is the primary driver of the score. This is complemented by an extremely low valuation, with a P/E of 3.29, which presents a compelling value opportunity. Technical indicators are moderately positive but warrant caution as momentum could be peaking in the near term.
Densan Co., Ltd. (3640) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 12.59B
- Dividend Yield
- 6.09%
- Average Volume (3M)
- 10.23K
- Price to Earnings (P/E)
- 3.5
- Beta (1Y)
- 0.58
- Revenue Growth
- 18.76%
- EPS Growth
- 49.20%
- Country
- Japan
- Employees
- 585
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
Densan Co., Ltd. Business Overview & Revenue Model
Company Description
Established in Nagano, Japan, in 1966, Densan Co., Ltd. serves as a comprehensive information technology service provider within the country. Its operations are organized into two primary divisions: the Public Sector and the Industrial Field. The Pub...
Densan Co., Ltd. Financial Statement Overview
Summary
Exceptional financial health. Revenue surged 44.3% with a 16% net margin, the balance sheet is fortress-like with a 0.14 debt-to-equity ratio, and free cash flow reached ¥4.02 billion, enabling strong shareholder returns.
Income Statement
94Very PositiveBalance Sheet
98Very PositiveCash Flow
96Very Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.18B | 27.99B | 18.74B | 15.97B | 17.80B | 17.31B |
| Gross Profit | 10.32B | 10.59B | 6.49B | 5.53B | 6.51B | 4.69B |
| EBITDA | 6.75B | 7.94B | 3.46B | 2.03B | 3.06B | 2.08B |
| Net Income | 3.98B | 4.48B | 1.84B | 898.61M | 1.61B | 859.28M |
Balance Sheet | ||||||
| Total Assets | 21.27B | 25.65B | 21.54B | 19.59B | 20.21B | 20.80B |
| Cash, Cash Equivalents and Short-Term Investments | 4.73B | 4.11B | 2.55B | 1.60B | 1.33B | 1.50B |
| Total Debt | 662.00M | 2.21B | 3.85B | 4.89B | 6.25B | 6.59B |
| Total Liabilities | 5.08B | 9.39B | 8.83B | 8.76B | 11.29B | 13.39B |
| Stockholders Equity | 16.19B | 16.26B | 12.71B | 10.83B | 8.92B | 7.41B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 4.02B | 2.79B | 1.17B | 1.08B | 2.00B |
| Operating Cash Flow | 0 | 4.31B | 2.97B | 1.62B | 1.46B | 2.37B |
| Investing Cash Flow | 0 | -861.56M | -930.29M | -1.41B | -432.90M | -540.78M |
| Financing Cash Flow | 0 | -2.28B | -1.29B | -194.26M | -1.20B | -1.01B |
Densan Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3640, the sentiment is Negative. The current price of 2512.00 is below the 20-day moving average (MA) of 2610.15, below the 50-day MA of 2690.18, and below the 200-day MA of 2797.39, indicating a bearish trend. The MACD of -68.51 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 56.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3640.
Densan Co., Ltd. Peers Comparison
Overall Rating
- JP:364085Outperform
JP:815077Outperform
JP:751070Outperform
JP:273756Neutral
JP:808455Neutral
JP:313253Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3640 | 85Outperform | JPY 12.50B | 3.52 | ― | 6.09% | 18.76% | 49.20% |
| JP:8150 | 77Outperform | JPY 39.54B | 9.27 | 9.51% | 5.83% | 1.30% | -8.31% |
| JP:7510 | 70Outperform | JPY 41.70B | 11.31 | ― | 3.41% | 14.70% | 32.49% |
| JP:2737 | 56Neutral | JPY 172.27B | 5.70 | ― | 2.12% | 157.17% | 378.49% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:8084 | 55Neutral | JPY 94.87B | 19.91 | 6.65% | 3.47% | 12.73% | 27.80% |
| JP:3132 | 53Neutral | JPY 572.03B | 14.34 | ― | 2.55% | 34.79% | 85.37% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3640 | Densan Co., Ltd. | 2512.00 | -692.01 | -21.60% | |
| JP:8084 | Ryoden Corporation | 2235.00 | 709.33 | 46.49% | |
| JP:8150 | Sanshin Electronics Co., Ltd. | 3260.00 | 395.64 | 13.81% | |
| JP:2737 | Tomen Devices Corp. | 25420.00 | 14713.02 | 137.42% | |
| JP:3132 | MACNICA HOLDINGS INC. | 3133.00 | 848.44 | 37.14% | |
| JP:7510 | Takebishi Corporation | 2609.00 | 630.71 | 31.88% |
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: Aug 19, 2026