company background image
6902

DENSOTSE:6902 Stock Report

Last Price

JP¥9.19k

Market Cap

JP¥7.0t

7D

-5.7%

1Y

52.4%

Updated

20 Jan, 2022

Data

Company Financials +
6902 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends4/6

6902 Stock Overview

DENSO Corporation develops, manufactures, and sells automotive parts in Japan, rest of Asia, North America, Europe, and internationally.

DENSO Competitors

Koito Manufacturing

TSE:7276

JP¥1.0t

Stanley Electric

TSE:6923

JP¥455.8b

NGK Spark Plug

TSE:5334

JP¥408.8b

Tokai Rika

TSE:6995

JP¥139.7b

Price History & Performance

Summary of all time highs, changes and price drops for DENSO
Historical stock prices
Current Share PriceJP¥9,191.00
52 Week HighJP¥10,185.00
52 Week LowJP¥5,780.00
Beta1.11
1 Month Change1.52%
3 Month Change17.94%
1 Year Change52.42%
3 Year Change79.72%
5 Year Change84.08%
Change since IPO512.73%

Recent News & Updates

Shareholder Returns

6902JP Auto ComponentsJP Market
7D-5.7%-5.9%-4.3%
1Y52.4%21.3%1.2%

Return vs Industry: 6902 exceeded the JP Auto Components industry which returned 21.3% over the past year.

Return vs Market: 6902 exceeded the JP Market which returned 1.2% over the past year.

Price Volatility

Is 6902's price volatile compared to industry and market?
6902 volatility
6902 Average Weekly Movement3.9%
Auto Components Industry Average Movement4.5%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

Stable Share Price: 6902 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6902's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1949168,391Koji Arimahttps://www.denso.com/global/en/

DENSO Corporation develops, manufactures, and sells automotive parts in Japan, rest of Asia, North America, Europe, and internationally. It offers air-conditioning systems, including heat pump air-conditioning systems, control system and refrigerant products, air-conditioning system heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. The company also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems, as well as motor generators, power control units, and emission control components; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products.

DENSO Fundamentals Summary

How do DENSO's earnings and revenue compare to its market cap?
6902 fundamental statistics
Market CapJP¥7.04t
Earnings (TTM)JP¥308.91b
Revenue (TTM)JP¥5.44t

22.8x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6902 income statement (TTM)
RevenueJP¥5.44t
Cost of RevenueJP¥4.57t
Gross ProfitJP¥878.31b
ExpensesJP¥569.41b
EarningsJP¥308.91b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 02, 2022

Earnings per share (EPS)403.01
Gross Margin16.13%
Net Profit Margin5.67%
Debt/Equity Ratio21.2%

How did 6902 perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

38%

Payout Ratio

Does 6902 pay a reliable dividends?

See 6902 dividend history and benchmarks
When do you need to buy 6902 by to receive an upcoming dividend?
DENSO dividend dates
Ex Dividend DateMar 30 2022
Dividend Pay DateMay 25 2022
Days until Ex dividend68 days
Days until Dividend pay date124 days

Does 6902 pay a reliable dividends?

See 6902 dividend history and benchmarks

Valuation

Is DENSO undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6902 (¥9191) is trading below our estimate of fair value (¥12997.9)

Significantly Below Fair Value: 6902 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6902 is poor value based on its PE Ratio (22.8x) compared to the JP Auto Components industry average (6.9x).

PE vs Market: 6902 is poor value based on its PE Ratio (22.8x) compared to the JP market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6902 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 6902 is overvalued based on its PB Ratio (1.7x) compared to the JP Auto Components industry average (0.5x).


Future Growth

How is DENSO forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6902's forecast earnings growth (16.9% per year) is above the savings rate (0.02%).

Earnings vs Market: 6902's earnings (16.9% per year) are forecast to grow faster than the JP market (9.7% per year).

High Growth Earnings: 6902's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6902's revenue (7.2% per year) is forecast to grow faster than the JP market (4.8% per year).

High Growth Revenue: 6902's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6902's Return on Equity is forecast to be low in 3 years time (12.2%).


Past Performance

How has DENSO performed over the past 5 years?

-18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6902 has high quality earnings.

Growing Profit Margin: 6902 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 6902's earnings have declined by 18% per year over the past 5 years.

Accelerating Growth: 6902 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 6902 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (159.5%).


Return on Equity

High ROE: 6902's Return on Equity (8.1%) is considered low.


Financial Health

How is DENSO's financial position?


Financial Position Analysis

Short Term Liabilities: 6902's short term assets (¥2,744.8B) exceed its short term liabilities (¥1,443.6B).

Long Term Liabilities: 6902's short term assets (¥2,744.8B) exceed its long term liabilities (¥1,231.6B).


Debt to Equity History and Analysis

Debt Level: 6902 has more cash than its total debt.

Reducing Debt: 6902's debt to equity ratio has increased from 10.9% to 21.2% over the past 5 years.

Debt Coverage: 6902's debt is well covered by operating cash flow (68.5%).

Interest Coverage: 6902 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is DENSO current dividend yield, its reliability and sustainability?

1.52%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 21 2022Ex Dividend DateMar 30 2022Dividend Pay DateMay 25 202256 days from Ex DividendBuy in the next 68 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6902's dividend (1.52%) is higher than the bottom 25% of dividend payers in the JP market (1.5%).

High Dividend: 6902's dividend (1.52%) is low compared to the top 25% of dividend payers in the JP market (3.39%).


Stability and Growth of Payments

Stable Dividend: 6902's dividends per share have been stable in the past 10 years.

Growing Dividend: 6902's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), 6902's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Koji Arima (63 yo)

6.58yrs

Tenure

JP¥139,000,000

Compensation

Mr. Koji Arima has been Chief Executive Officer and President of Denso Corporation since June 19, 2015. Mr. Arima served as Senior Executive Officer of Denso Corporation since June 19, 2014. Mr. Arima serv...


CEO Compensation Analysis

Compensation vs Market: Koji's total compensation ($USD1.22M) is below average for companies of similar size in the JP market ($USD1.79M).

Compensation vs Earnings: Koji's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 6902's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: 6902's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DENSO Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: DENSO Corporation
  • Ticker: 6902
  • Exchange: TSE
  • Founded: 1949
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: JP¥7.045t
  • Shares outstanding: 766.49m
  • Website: https://www.denso.com/global/en/

Number of Employees


Location

  • DENSO Corporation
  • 1-1, Showa-cho
  • Kariya
  • Aichi
  • 448-8661
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 15:48
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.