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Densan System Holdings Co. Ltd. (JP:4072)
:4072
Japanese Market
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Densan System Holdings Co. Ltd. (4072) AI Stock Analysis

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JP:4072

Densan System Holdings Co. Ltd.

(4072)

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Outperform 78 (OpenAI - Gpt-5.6Sol)
Rating:78Outperform
Price Target:
¥3,716.00
▲(20.26% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial performance (notably a very conservative balance sheet and a 2025 earnings rebound) and attractive valuation (low P/E with a solid dividend yield). Technicals are supportive in the near term but capped by the stock still trading below its 200-day moving average.
Positive Factors
Multi-year revenue growth and 2025 earnings rebound
The sustained revenue uptrend indicates expanding business activity over several years, while the sharp 2025 profit rebound shows improved earnings power. Together, these trends support continued investment capacity and suggest the business has regained operating momentum beyond a single-period revenue increase.
Negative Factors
Margin volatility and lower recent profitability profile
Recent margins remaining below earlier peaks suggests profitability is not fully protected from pricing or cost pressures. Even with the 2025 rebound, this variability can limit the predictability of future earnings and make revenue growth less valuable if operating leverage does not remain durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth and 2025 earnings rebound
The sustained revenue uptrend indicates expanding business activity over several years, while the sharp 2025 profit rebound shows improved earnings power. Together, these trends support continued investment capacity and suggest the business has regained operating momentum beyond a single-period revenue increase.
Read all positive factors

Densan System Holdings Co. Ltd. (4072) vs. iShares MSCI Japan ETF (EWJ)

Densan System Holdings Co. Ltd. Business Overview & Revenue Model

Company Description
Densan System Holdings Co., Ltd., along with its affiliated companies, provides comprehensive information technology consulting and software development services throughout Japan. The firm's offerings span data processing, systems integration, and...

Densan System Holdings Co. Ltd. Financial Statement Overview

Summary
Strong overall fundamentals: revenue has risen steadily over multiple years with a meaningful 2025 acceleration, and net income rebounded sharply in 2025. The balance sheet is a major strength with very low and declining leverage and improving ROE. Offsetting factors are volatility in margins versus 2020–2022 and choppy cash flow conversion (operating cash flow modest relative to revenue and uneven year-to-year).
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue70.74B68.13B61.26B59.59B53.48B50.36B
Gross Profit11.47B11.02B9.29B10.60B9.98B9.23B
EBITDA4.75B4.57B3.21B4.01B4.06B3.84B
Net Income3.14B2.90B1.85B2.00B2.35B1.98B
Balance Sheet
Total Assets78.91B69.11B61.75B57.05B72.17B51.39B
Cash, Cash Equivalents and Short-Term Investments50.28B39.98B34.81B31.16B45.95B31.07B
Total Debt596.00M629.00M1.07B1.53B1.49B1.09B
Total Liabilities53.00B44.23B39.45B36.27B52.50B33.78B
Stockholders Equity25.68B24.64B22.08B20.58B19.46B17.41B
Cash Flow
Free Cash Flow0.004.10B2.73B4.69B1.34B1.92B
Operating Cash Flow0.004.33B3.02B5.51B1.91B2.53B
Investing Cash Flow0.00-1.02B239.00M-852.00M-1.72B-1.23B
Financing Cash Flow0.00-1.05B-765.00M-941.00M-5.00M-719.00M

Densan System Holdings Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3090.00
Price Trends
50DMA
3024.56
Positive
100DMA
2932.98
Positive
200DMA
3050.60
Positive
Market Momentum
MACD
53.15
Negative
RSI
65.81
Neutral
STOCH
86.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4072, the sentiment is Positive. The current price of 3090 is below the 20-day moving average (MA) of 3110.75, above the 50-day MA of 3024.56, and above the 200-day MA of 3050.60, indicating a bullish trend. The MACD of 53.15 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4072.

Densan System Holdings Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
¥29.55B13.52―3.90%5.74%-3.58%
79
Outperform
¥23.39B15.34―2.56%8.49%26.09%
78
Outperform
¥35.21B11.09―3.07%11.79%55.44%
75
Outperform
¥32.96B9.2210.39%5.12%3.46%6.90%
72
Outperform
¥30.18B10.23―2.83%10.22%30.07%
71
Outperform
¥28.12B14.94―2.37%15.42%27.83%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4072
Densan System Holdings Co. Ltd.
3,260.00
-222.08
-6.38%
JP:4725
CAC Holdings Corporation
1,952.00
-115.80
-5.60%
JP:2359
Core Corporation
2,118.00
23.70
1.13%
JP:3837
Ad-Sol Nissin Corp.
1,361.00
18.52
1.38%
JP:3916
Digital Information Technologies Corp.
961.00
-304.95
-24.09%
JP:4396
System Support, Inc.
1,353.00
-309.51
-18.62%
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: Aug 06, 2026