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Densan System Holdings Co. Ltd.
(4072)
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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)
Market Cap
¥35.21B
Dividend Yield3.07%
Average Volume (3M)28.39K
Price to Earnings (P/E)11.1
Beta (1Y)0.63
Revenue Growth11.79%
EPS Growth55.44%
CountryJP
Employees1,036
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)293.85
Shares Outstanding10,800,677
10 Day Avg. Volume22,720
30 Day Avg. Volume28,393
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.57
Price to Sales (P/S)0.57
P/FCF Ratio9.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)252.2
Revenue Forecast (FY)¥70.70B
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
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.74B | 68.13B | 61.26B | 59.59B | 53.48B | 50.36B |
| Gross Profit | 11.47B | 11.02B | 9.29B | 10.60B | 9.98B | 9.23B |
| EBITDA | 4.75B | 4.57B | 3.21B | 4.01B | 4.06B | 3.84B |
| Net Income | 3.14B | 2.90B | 1.85B | 2.00B | 2.35B | 1.98B |
Balance Sheet | ||||||
| Total Assets | 78.91B | 69.11B | 61.75B | 57.05B | 72.17B | 51.39B |
| Cash, Cash Equivalents and Short-Term Investments | 50.28B | 39.98B | 34.81B | 31.16B | 45.95B | 31.07B |
| Total Debt | 596.00M | 629.00M | 1.07B | 1.53B | 1.49B | 1.09B |
| Total Liabilities | 53.00B | 44.23B | 39.45B | 36.27B | 52.50B | 33.78B |
| Stockholders Equity | 25.68B | 24.64B | 22.08B | 20.58B | 19.46B | 17.41B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.10B | 2.73B | 4.69B | 1.34B | 1.92B |
| Operating Cash Flow | 0.00 | 4.33B | 3.02B | 5.51B | 1.91B | 2.53B |
| Investing Cash Flow | 0.00 | -1.02B | 239.00M | -852.00M | -1.72B | -1.23B |
| Financing Cash Flow | 0.00 | -1.05B | -765.00M | -941.00M | -5.00M | -719.00M |
Densan System Holdings Co. Ltd. Technical Analysis
Positive
3090.00
Price Trends
3024.56
Positive
2932.98
Positive
3050.60
Positive
Market Momentum
53.15
Negative
65.81
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥29.55B | 13.52 | ― | 3.90% | 5.74% | -3.58% | |
79 Outperform | ¥23.39B | 15.34 | ― | 2.56% | 8.49% | 26.09% | |
78 Outperform | ¥35.21B | 11.09 | ― | 3.07% | 11.79% | 55.44% | |
75 Outperform | ¥32.96B | 9.22 | 10.39% | 5.12% | 3.46% | 6.90% | |
72 Outperform | ¥30.18B | 10.23 | ― | 2.83% | 10.22% | 30.07% | |
71 Outperform | ¥28.12B | 14.94 | ― | 2.37% | 15.42% | 27.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4072
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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.