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Densan Co., Ltd. (3640) AI Stock Analysis
Densan Co., Ltd.
(TSE/TYO:3640)
Densan Co., Ltd. earns a high overall score driven primarily by an exceptionally low P/E valuation and outstanding financial execution, including surging revenues and strong cash generation. Solid short-to-medium term technical momentum further supports this bullish fundamental outlook.
Densan Co., Ltd. (3640) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 13.65B
- Dividend Yield
- 6.22%
- Average Volume (3M)
- 9,941
- Price to Earnings (P/E)
- 3.4
- Beta (1Y)
- 0.45
- 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...
How the Company Makes Money
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Densan Co., Ltd. Financial Statement Overview
Summary
The company exhibits an outstanding financial profile highlighted by over 44% revenue growth, doubled net income, aggressive multi-year deleveraging, and highly efficient free cash flow conversion.
Income Statement
90Very PositiveBalance Sheet
92Very PositiveCash Flow
90Very Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.15B | 27.99B | 18.74B | 15.97B | 17.80B | 17.31B |
| Gross Profit | 11.19B | 10.59B | 6.49B | 5.53B | 6.51B | 4.69B |
| EBITDA | 8.06B | 7.94B | 3.46B | 2.03B | 3.06B | 2.08B |
| Net Income | 4.72B | 4.48B | 1.84B | 898.61M | 1.61B | 859.28M |
Balance Sheet | ||||||
| Total Assets | 21.46B | 25.65B | 21.54B | 19.59B | 20.21B | 20.80B |
| Cash, Cash Equivalents and Short-Term Investments | 7.08B | 4.11B | 2.55B | 1.60B | 1.33B | 1.50B |
| Total Debt | 1.46B | 2.21B | 3.85B | 4.89B | 6.25B | 6.59B |
| Total Liabilities | 5.69B | 9.39B | 8.83B | 8.76B | 11.29B | 13.39B |
| Stockholders Equity | 15.77B | 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 2460.00 is below the 20-day moving average (MA) of 2706.95, below the 50-day MA of 2740.34, and below the 200-day MA of 2814.07, indicating a bearish trend. The MACD of -24.60 indicates Positive momentum. The RSI at 28.75 is Positive, neither overbought nor oversold. The STOCH value of 13.23 is Positive, 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:364089Outperform
JP:751082.7Outperform
JP:815077Outperform
JP:808470.3Outperform
JP:313262Neutral
JP:273752Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3640 | 89Outperform | JPY 13.19B | 3.44 | ― | 6.22% | 18.76% | 49.20% |
| JP:7510 | 83Outperform | JPY 44.20B | 11.52 | ― | 3.35% | 14.70% | 32.49% |
| JP:8150 | 77Outperform | JPY 40.40B | 8.30 | 10.90% | 5.78% | 7.86% | 23.62% |
| JP:8084 | 70Outperform | JPY 101.40B | 19.75 | 6.65% | 3.50% | 12.73% | -1.28% |
| JP:3132 | 62Neutral | JPY 687.54B | 19.69 | ― | 2.02% | 34.79% | 85.37% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:2737 | 52Neutral | JPY 163.57B | 5.40 | ― | 2.24% | 157.17% | 378.49% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3640 | Densan Co., Ltd. | 2460.00 | -639.12 | -20.62% | |
| JP:8084 | Ryoden Corporation | 2217.00 | 725.02 | 48.59% | |
| JP:8150 | Sanshin Electronics Co., Ltd. | 3285.00 | 542.53 | 19.78% | |
| JP:2737 | Tomen Devices Corp. | 24100.00 | 14512.52 | 151.37% | |
| JP:3132 | MACNICA HOLDINGS INC. | 3705.00 | 1561.49 | 72.85% | |
| JP:7510 | Takebishi Corporation | 2657.00 | 701.92 | 35.90% |
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