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DENTSU SOKEN INC.
(4812)
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Rating:77Outperform
Price Target:
¥3,101.00
▲(13.26% Upside)
Action:Reiterated
Date:07/04/26
The score is driven primarily by strong financial performance (steady growth, improved profitability, and a very low-leverage balance sheet). Technicals are supportive due to a clear uptrend, but overbought signals temper the outlook. Valuation is the main headwind with a relatively high P/E and only a modest dividend yield.
Positive Factors
Conservative balance sheet / very low leverage
Debt levels near 2–3% of equity give the company durable financial flexibility. Low leverage reduces bankruptcy risk, preserves borrowing capacity for strategic investments or M&A, and lets management fund growth or shareholder returns without stressing operating cash flows through cycles.
Negative Factors
Cash flow volatility
Material swings in operating and free cash flows create forecasting and planning challenges. Volatility can force conservative capital allocation, constrain consistent buybacks or dividends, and increase funding risk in weak years, limiting management's ability to execute long-term plans reliably.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Debt levels near 2–3% of equity give the company durable financial flexibility. Low leverage reduces bankruptcy risk, preserves borrowing capacity for strategic investments or M&A, and lets management fund growth or shareholder returns without stressing operating cash flows through cycles.
Read all positive factors
DENTSU SOKEN INC. (4812) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥462.20B
Dividend Yield1.48%
Average Volume (3M)90.11K
Price to Earnings (P/E)27.3
Beta (1Y)0.38
Revenue Growth8.12%
EPS Growth11.91%
CountryJP
Employees4,618
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Services
Share Statistics
EPS (TTM)79.67
Shares Outstanding195,547,440
10 Day Avg. Volume107,990
30 Day Avg. Volume90,113
Financial Highlights & Ratios
PEG Ratio3.96
Price to Book (P/B)5.34
Price to Sales (P/S)3.24
P/FCF Ratio28.41
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)94.25
Revenue Forecast (FY)¥182.78B
DENTSU SOKEN INC. Business Overview & Revenue Model
Company Description
Dentsu Soken Inc. provides information technology solutions. It operates through four segments: Financial Solutions, Business Solutions, Manufacturing Solutions, and Communication IT. The Financial Solutions segment offers IT solutions that suppor...
How the Company Makes Money
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DENTSU SOKEN INC. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 158.65B | 164.87B | 152.64B | 142.61B | 129.05B | 112.08B |
| Gross Profit | 57.83B | 60.38B | 56.12B | 51.78B | 46.79B | 40.02B |
| EBITDA | 26.21B | 28.25B | 25.21B | 24.18B | 20.78B | 16.19B |
| Net Income | 15.55B | 16.36B | 15.12B | 14.66B | 12.60B | 8.95B |
Balance Sheet | ||||||
| Total Assets | 150.44B | 165.06B | 147.33B | 133.33B | 121.89B | 108.19B |
| Cash, Cash Equivalents and Short-Term Investments | 68.30B | 8.36B | 62.31B | 58.03B | 53.76B | 50.15B |
| Total Debt | 2.54B | 2.22B | 1.96B | 2.10B | 1.92B | 1.96B |
| Total Liabilities | 55.58B | 64.89B | 56.13B | 50.36B | 48.02B | 42.72B |
| Stockholders Equity | 94.85B | 100.16B | 91.19B | 82.97B | 73.84B | 65.45B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 18.81B | 23.47B | 13.00B | 11.54B | 16.89B |
| Operating Cash Flow | 0.00 | 19.12B | 23.80B | 13.19B | 11.99B | 17.18B |
| Investing Cash Flow | 0.00 | -3.02B | -11.97B | -2.50B | -3.21B | -3.01B |
| Financing Cash Flow | 0.00 | -8.55B | -7.98B | -6.70B | -5.42B | -4.46B |
DENTSU SOKEN INC. Technical Analysis
Positive
2738.00
Price Trends
2093.78
Positive
2025.84
Positive
2216.99
Positive
Market Momentum
21.80
Negative
75.77
Negative
85.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4812, the sentiment is Positive. The current price of 2738 is above the 20-day moving average (MA) of 2048.00, above the 50-day MA of 2093.78, and above the 200-day MA of 2216.99, indicating a bullish trend. The MACD of 21.80 indicates Negative momentum. The RSI at 75.77 is Negative, neither overbought nor oversold. The STOCH value of 85.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4812.
DENTSU SOKEN INC. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥462.20B | 27.31 | ― | 1.48% | 8.12% | 11.91% | |
77 Outperform | ¥71.48B | 7.13 | ― | 3.28% | 12.54% | 171.52% | |
70 Outperform | ¥21.16B | 38.56 | ― | ― | 31.09% | 75.74% | |
68 Neutral | ¥134.72B | 10.30 | 11.52% | 2.76% | 4.79% | 15.28% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ¥93.82B | 72.30 | 2.57% | 1.97% | 9.27% | ― |
* General Sector Average
JP:4812
DENTSU SOKEN INC.
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26.41%
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DENTSU SOKEN INC. Corporate Events
Dentsu Soken Posts Strong Q1 and Affirms 2026 Growth Outlook
Apr 28, 2026
Dentsu Soken Inc., listed on the Tokyo Stock Exchange, operates in the IT services and consulting sector, providing system integration, digital solutions and related technology services. The company focuses on enterprise clients in Japan, supporti...
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.