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DENTSU SOKEN INC.
(4812)
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Rating:80Outperform
Price Target:
¥3,294.00
▲(20.31% Upside)
Action:Reiterated
Date:10/04/26
The score is driven primarily by strong financial quality (steady growth, improving profitability, and very low leverage) and supportive technical momentum (price above major moving averages with positive MACD). These positives are partially offset by a relatively expensive valuation (high P/E and modest dividend yield).
Positive Factors
Consistent Revenue Growth
Sustained revenue growth across multiple years indicates durable demand for DENTSU SOKEN’s systems integration, consulting, and IT services. Continued expansion supports investment in delivery capabilities, strengthens customer relationships, and provides a foundation for recurring maintenance and operations revenue.
Negative Factors
Cash-Flow Volatility
Although free cash flow has remained positive, the pronounced year-to-year swings make cash generation less predictable than the company’s earnings trend. Such variability can complicate investment planning and capital allocation, even when the recent rebound indicates that the underlying business remains cash generative.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained revenue growth across multiple years indicates durable demand for DENTSU SOKEN’s systems integration, consulting, and IT services. Continued expansion supports investment in delivery capabilities, strengthens customer relationships, and provides a foundation for recurring maintenance and operations revenue.
Read all positive factors
DENTSU SOKEN INC. (4812) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥559.73B
Dividend Yield1.46%
Average Volume (3M)1.01M
Price to Earnings (P/E)31.8
Beta (1Y)0.41
Revenue Growth9.22%
EPS Growth13.00%
CountryJP
Employees4,618
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Services
Share Statistics
EPS (TTM)90.01
Shares Outstanding195,547,440
10 Day Avg. Volume496,870
30 Day Avg. Volume1,012,470
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)94.4
Revenue Forecast (FY)¥183.52B
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
DENTSU SOKEN generates revenue primarily by providing IT services to corporate clients under project-based and ongoing service arrangements. A major revenue stream is systems integration (SI), where the company earns fees for consulting, requireme...
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 | 173.28B | 164.87B | 152.64B | 142.61B | 129.05B | 112.08B |
| Gross Profit | 63.74B | 60.38B | 56.12B | 51.78B | 46.79B | 40.02B |
| EBITDA | 28.35B | 28.25B | 25.21B | 24.18B | 20.78B | 16.19B |
| Net Income | 17.56B | 16.36B | 15.12B | 14.66B | 12.60B | 8.95B |
Balance Sheet | ||||||
| Total Assets | 181.57B | 165.06B | 147.33B | 133.33B | 121.89B | 108.19B |
| Cash, Cash Equivalents and Short-Term Investments | 6.05B | 8.36B | 62.31B | 58.03B | 53.76B | 50.15B |
| Total Debt | 0.00 | 2.22B | 1.96B | 2.10B | 1.92B | 1.96B |
| Total Liabilities | 76.13B | 64.89B | 56.13B | 50.36B | 48.02B | 42.72B |
| Stockholders Equity | 105.40B | 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
2774.56
Positive
2494.53
Positive
2350.32
Positive
Market Momentum
29.20
Positive
65.26
Neutral
36.52
Neutral
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 below the 20-day moving average (MA) of 2859.55, below the 50-day MA of 2774.56, and above the 200-day MA of 2350.32, indicating a bullish trend. The MACD of 29.20 indicates Positive momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 36.52 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥559.73B | 31.82 | ― | 1.46% | 9.22% | 13.00% | |
76 Outperform | ¥31.46B | 38.48 | ― | ― | 24.82% | 82.75% | |
74 Outperform | ¥130.22B | 10.39 | 10.11% | 4.03% | 5.64% | -4.56% | |
71 Outperform | ¥76.71B | 9.22 | ― | 3.41% | 9.71% | 61.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ¥114.65B | 82.28 | 1.81% | 1.91% | 4.43% | ― |
* General Sector Average
JP:4812
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DENTSU SOKEN INC. Corporate Events
Dentsu Soken Backs G.K. VIC Tender Offer Ahead of Planned Take-Private
Aug 28, 2026
Dentsu Soken’s board has endorsed a planned tender offer for its common shares by G.K. VIC, stating its current support and recommending that shareholders tender their shares once the offer formally begins. The move is part of a broader tran...
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.