DTS (9682) AI Stock Analysis

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DTS

(TSE/TYO:9682)

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Rating:78Outperform

Price Target:JPY 1,410.00▲(21.55% Upside)

Action:upgraded

Date:11/06/26

DTS scores well on the strength of its fortress balance sheet — effectively zero debt, rising ROE near 18%, and dependable free cash flow that funds dividends and buybacks — alongside consistent revenue and earnings growth. Technicals reinforce the case, with the price trading above all key moving averages in a bullish trend and positive MACD momentum. Valuation is supportive, with a moderate 16.3x P/E and a ~3.0% dividend yield, while low beta (0.56) points to defensive characteristics. Offsetting factors include modest margins relative to global IT services peers, uneven cash flow growth, and projected deceleration in FY2026 revenue growth. With no earnings call commentary or corporate events available, the score reflects financial, technical and valuation factors only.

Positive Factors

Improving profitabilityExpanding operating and net margins indicate that DTS is converting revenue into earnings more effectively. If sustained, this improvement can strengthen internal funding capacity, support investment in the business, and provide greater resilience against normal cost or demand fluctuations over the next several quarters.

Negative Factors

Operating cash flow lagThe persistent gap between operating cash flow and net income indicates that accounting profits are not consistently converting into operating cash. Recurring working-capital or timing headwinds could restrict funding flexibility and make the company more dependent on careful cash management as operations expand.

DTS (9682) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.24B
Dividend Yield: 3.19%
Average Volume (3M): 561.15K
Price to Earnings (P/E): 15.8
Beta (1Y): 0.53
Revenue Growth: -0.18%
EPS Growth: 2.75%
Country: Japan
Employees: 6,135
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

DTS Business Overview & Revenue Model

Company Description

DTS Corporation, a systems integration expert founded in 1972 and headquartered in Tokyo, Japan, delivers a wide array of IT services across its four core segments: Finance and Society, Corporate Solutions, Operational Infrastructure BPO, and Regiona...

DTS Financial Statement Overview

Summary

DTS combines steady high-single-digit revenue growth (¥90.5B in FY2021 to an estimated ¥135.2B in FY2026) with stable, gradually improving margins and recovering profitability after a temporary FY2024 dip. The balance sheet is a standout: essentially zero debt, growing equity, and ROE improving to roughly 18%. Cash flow is reliable with excellent free cash flow conversion (93%-96% of net income), though year-over-year cash flow growth has been uneven and operating cash flow is projected to ease slightly in FY2026. Margins remain modest versus global IT services peers, and revenue growth is forecast to decelerate to about 4%.

Income Statement

74Positive

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	133.24B	125.91B	135.21B	115.73B	106.13B	94.45B
Gross Profit	29.92B	27.94B	29.27B	24.42B	20.65B	19.07B
EBITDA	18.47B	16.27B	18.14B	12.70B	12.41B	12.02B
Net Income	11.97B	10.63B	11.64B	7.29B	8.00B	7.85B
Balance Sheet
Total Assets	78.42B	81.35B	85.25B	85.77B	81.11B	79.43B
Cash, Cash Equivalents and Short-Term Investments	26.10B	30.52B	30.57B	39.40B	44.33B	47.32B
Total Debt	637.00M	199.00M	0	600.00M	197.00M	233.36M
Total Liabilities	17.49B	22.00B	20.56B	22.36B	18.73B	17.29B
Stockholders Equity	59.80B	58.06B	63.51B	62.27B	61.42B	62.02B
Cash Flow
Free Cash Flow	0	9.14B	8.49B	10.15B	7.36B	7.53B
Operating Cash Flow	0	9.67B	8.96B	10.43B	7.66B	7.67B
Investing Cash Flow	0	-2.81B	59.00M	-8.54B	-949.00M	-217.88M
Financing Cash Flow	0	-16.09B	-8.09B	-7.82B	-9.10B	-5.03B

DTS Technical Analysis

Technical Analysis SentimentNeutral

Last Price1160.00

Price Trends

50DMA1140.21Positive

100DMA1095.12Positive

200DMA1078.59Positive

Market Momentum

MACD8.42Positive

RSI48.64Neutral

STOCH31.58Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9682, the sentiment is Neutral. The current price of 1160.00 is below the 20-day moving average (MA) of 1189.60, above the 50-day MA of 1140.21, and above the 200-day MA of 1078.59, indicating a neutral trend. The MACD of 8.42 indicates Positive momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9682.

DTS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:9682 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2317	81Outperform	JPY 162.71B	14.48	―	3.76%	6.46%	8.76%
JP:3923	81Outperform	JPY 405.42B	16.25	―	0.63%	16.71%	161.67%
JP:4725	79Outperform	JPY 32.76B	9.24	10.39%	5.11%	3.46%	6.90%
JP:9682	78Outperform	JPY 180.35B	15.80	19.02%	3.19%	-0.18%	2.75%
JP:9889	74Outperform	JPY 142.29B	22.17	―	2.67%	8.90%	20.22%
JP:9715	71Outperform	JPY 128.35B	11.35	9.06%	4.03%	5.92%	-16.28%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:9682 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9682	DTS Corporation	1160.00	21.71	1.91%
JP:9715	transcosmos	3475.00	-56.09	-1.59%
JP:4725	CAC Holdings Corporation	1957.00	-1.72	-0.09%
JP:2317	Systena Corporation	452.00	-33.11	-6.83%
JP:3923	RAKUS Co., Ltd.	1112.50	-141.82	-11.31%
JP:9889	JBCC Holdings Inc.	2057.00	761.91	58.83%

DTS Corporate Events

DTS Reports Slight Declines in First-Half Revenue and Profit

Nov 2, 2026

DTS Corporation reported consolidated revenue of ¥64.454 billion for the six months ended September 30, 2026, down 3.7% year on year, while operating profit fell 1.3% to ¥7.977 billion, ordinary profit declined 0.8% to ¥8.165 billion, and profit attr...

DTS Cuts Fiscal 2027 Sales Forecast, Maintains Profit Outlook

Nov 2, 2026

DTS Corp. is a Japan-based IT services and systems integration company, with its business centered on core systems integration (SI) work. The Tokyo-listed company revised its fiscal 2027 financial outlook after recent business performance and project...

DTS Cancels 4.8 Million Treasury Shares to Tighten Capital Structure

Oct 1, 2026

DTS Corporation said it has completed the cancellation of 4,805,900 treasury shares, representing 2.93% of its outstanding shares prior to the move, under a previously approved resolution of its board of directors. Following the cancellation, the com...

DTS Completes ¥5 Billion Share Buyback and Announces Treasury Share Cancellation

Sep 24, 2026

DTS Corporation has completed a share repurchase program authorized by its board on May 1, 2026, buying back a total of 4,805,900 common shares for approximately ¥5.0 billion through market purchases on the Tokyo Stock Exchange. The latest tranche, c...

DTS Sues Premium Over Unpaid Core System Project Fees

Sep 11, 2026

DTS Corporation has initiated legal action against Premium Group Co., Ltd. over a dispute tied to a core system migration project previously operated by Premium. The lawsuit, filed with the Tokyo District Court, seeks payment of allegedly unpaid serv...

DTS Advances Share Buyback, Repurchasing 4.24 Million Shares Under Ongoing Program

Sep 1, 2026

DTS Corporation has continued its share buyback program, repurchasing 789,700 common shares for approximately ¥862.6 million on the Tokyo Stock Exchange between August 1 and August 31, 2026, through discretionary trading by a securities company. The...

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: Nov 06, 2026

DTS AI Stock Analysis