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FUSO DENTSU CO., LTD. (7505) AI Stock Analysis

JP:7505

FUSO DENTSU CO., LTD.

(TSE/TYO:7505)

Select Model
Rating:82Outperform
Price Target:JPY 2,049.00â–²(16.02% Upside)
Action:reiterated
Date:08/17/26

The overall score is driven primarily by strong and improving financial performance with solid profitability, conservative leverage, and normalized free cash flow, complemented by an attractive valuation with a low P/E and high dividend yield; technical indicators point to a neutral-to-soft momentum phase rather than strong upside, slightly tempering the otherwise favorable profile.

Positive Factors
Revenue and Margin ExpansionImproving revenue and expanding margins indicate stronger operating performance and better earnings conversion than in prior years. If maintained, this combination can support continued profit growth, provide more resources for investment, and strengthen the company’s financial foundation over the next several quarters.
Negative Factors
Cash Flow VolatilityAlthough recent cash conversion is strong, the history of negative operating and free cash flow shows that cash generation can vary materially by year. Modest operating cash flow coverage also means earnings may not consistently translate into ample cash for investment or distributions.

FUSO DENTSU CO., LTD. (7505) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%JP:7505+0.66%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 22.44B
Dividend Yield
0.45%
Average Volume (3M)
21.20K
Price to Earnings (P/E)
6.0
Beta (1Y)
0.77
Revenue Growth
24.62%
EPS Growth
81.88%
Country
Japan
Employees
1,005
Sector
General
Sector Strength
55
Industry
Information Technology Services

FUSO DENTSU CO., LTD. Business Overview & Revenue Model

Company Description

Fuso Dentsu Co., Ltd. is a Japanese company specializing in information and communication technology (ICT). Its operations are structured into three main divisions: Network Solution Business, SI Solution Business, and Facility Services. The company's...

FUSO DENTSU CO., LTD. Financial Statement Overview

Summary

Financial performance is strong, with improving revenue, EBIT, and net income, supported by healthier margins, solid equity growth, conservative leverage, and robust free cash flow, despite some historical volatility in cash generation.

Income Statement

84Very Positive

Balance Sheet

86Very Positive

Cash Flow

81Very Positive
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue63.35B54.68B46.78B41.14B36.47B43.39B
Gross Profit12.57B10.34B8.32B7.37B6.32B7.46B
EBITDA5.00B3.65B2.07B1.46B563.84M1.64B
Net Income3.42B2.52B1.43B971.71M327.49M1.11B
Balance Sheet
Total Assets44.12B41.08B30.61B28.02B24.47B25.86B
Cash, Cash Equivalents and Short-Term Investments13.96B9.96B7.37B7.86B6.65B9.11B
Total Debt1.35B1.34B1.59B1.66B1.81B1.35B
Total Liabilities25.81B25.67B18.09B16.93B14.90B15.85B
Stockholders Equity18.31B15.41B12.53B11.09B9.57B10.02B
Cash Flow
Free Cash Flow4.70B4.79B1.17B1.63B-1.86B2.31B
Operating Cash Flow4.83B4.88B1.31B1.69B-1.78B2.48B
Investing Cash Flow-1.07B-931.62M-839.92M-111.17M-959.52M-2.24B
Financing Cash Flow-1.55B-877.31M-469.43M-379.67M-216.69M-343.41M

FUSO DENTSU CO., LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price1766.00

Price Trends

50DMA1987.76Negative
100DMA2039.78Negative
200DMA1963.57Negative

Market Momentum

MACD-50.93Positive
RSI28.52Positive
STOCH5.09Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7505, the sentiment is Negative. The current price of 1766.00 is below the 20-day moving average (MA) of 1903.60, below the 50-day MA of 1987.76, and below the 200-day MA of 1963.57, indicating a bearish trend. The MACD of -50.93 indicates Positive momentum. The RSI at 28.52 is Positive, neither overbought nor oversold. The STOCH value of 5.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7505.

FUSO DENTSU CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7505 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7505JP:750582OutperformJPY 22.55B6.02―0.45%24.62%81.88%
JP:9715JP:971574OutperformJPY 137.71B10.999.06%3.81%5.92%-16.28%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4819JP:481953NeutralJPY 112.27B80.581.81%1.95%4.43%―
JP:5255JP:525542NeutralJPY 4.33B-31.42――-1.67%98.41%

* General Sector Average

Performance Comparison

-40%-20%0%20%JP:7505JP:4819JP:9715JP:5255Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7505 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7505FUSO DENTSU CO., LTD.1766.00-0.81-0.05%
JP:4819Digital Garage 2406.00-817.86-25.37%
JP:9715transcosmos 3675.00153.554.36%
JP:5255Monstarlab Holdings Inc.67.00-96.00-58.90%
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 17, 2026