TSE:6902

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Executive Summary

DENSO Corporation manufactures and sells automotive components and systems, industrial products, and home appliances. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has DENSO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6902 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

6902

-1.1%

JP Auto Components

0.7%

JP Market


1 Year Return

-4.9%

6902

-9.3%

JP Auto Components

2.2%

JP Market

Return vs Industry: 6902 exceeded the JP Auto Components industry which returned -9.3% over the past year.

Return vs Market: 6902 underperformed the JP Market which returned 2.1% over the past year.


Shareholder returns

6902IndustryMarket
7 Day2.0%-1.1%0.7%
30 Day8.0%4.9%2.8%
90 Day15.3%7.2%4.0%
1 Year-1.6%-4.9%-6.5%-9.3%4.8%2.2%
3 Year-11.9%-19.0%-23.0%-29.1%7.5%0.0006%
5 Year-1.6%-14.0%-3.6%-15.6%31.5%17.1%

Price Volatility Vs. Market

How volatile is DENSO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

1.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 6902 (¥4593) is trading above our estimate of fair value (¥1528.36)

Significantly Below Fair Value: 6902 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6902 is unprofitable, so we can't compare its PE Ratio to the JP Auto Components industry average.

PE vs Market: 6902 is unprofitable, so we can't compare its PE Ratio to the JP market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6902's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6902 is overvalued based on its PB Ratio (1.1x) compared to the JP Auto Components industry average (0.5x).


Next Steps

Future Growth

How is DENSO forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

37.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6902 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.05%).

Earnings vs Market: 6902 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 6902's is expected to become profitable in the next 3 years.

Revenue vs Market: 6902's revenue (7.6% per year) is forecast to grow faster than the JP market (5.1% per year).

High Growth Revenue: 6902's revenue (7.6% 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 (8.9%).


Next Steps

Past Performance

How has DENSO performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6902 is currently unprofitable.

Growing Profit Margin: 6902 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6902 is unprofitable, and losses have increased over the past 5 years at a rate of 10.7% per year.

Accelerating Growth: Unable to compare 6902's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6902 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-45.4%).


Return on Equity

High ROE: 6902 has a negative Return on Equity (-2.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is DENSO's financial position?


Financial Position Analysis

Short Term Liabilities: 6902's short term assets (¥2,564.6B) exceed its short term liabilities (¥1,911.1B).

Long Term Liabilities: 6902's short term assets (¥2,564.6B) exceed its long term liabilities (¥676.6B).


Debt to Equity History and Analysis

Debt Level: 6902's debt to equity ratio (28.8%) is considered satisfactory.

Reducing Debt: 6902's debt to equity ratio has increased from 13.7% to 28.8% over the past 5 years.

Debt Coverage: 6902's debt is well covered by operating cash flow (39.2%).

Interest Coverage: Insufficient data to determine if 6902's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

3.05%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6902's dividend (3.05%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).

High Dividend: 6902's dividend (3.05%) is low compared to the top 25% of dividend payers in the JP market (3.15%).


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: 6902 is paying a dividend but the company is unprofitable.


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?

2.9yrs

Average management tenure


CEO

Koji Arima (62 yo)

5.25yrs

Tenure

JP¥128,000,000

Compensation

Mr. Koji Arima has been the Chief Executive Officer and President of Denso Corp. since June 19, 2015. Mr. Arima served as Senior Executive Director of Denso Corp. since June 19, 2014. Mr. Arima served as M ...


CEO Compensation Analysis

Compensation vs Market: Koji's total compensation ($USD1.22M) is below average for companies of similar size in the JP market ($USD1.92M).

Compensation vs Earnings: Koji's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Koji Arima
CEO, President & Director5.25yrsJP¥128.00m0.0040%
¥ 140.6m
Yasushi Matsui
Chief Financial Officer0.67yrno datano data
Yasushi Yamanaka
Chief Human Resources Office & Directorno datano data0.0027%
¥ 97.9m
Hiroyuki Wakabayashi
Executive VP & Director4.25yrsno data0.0026%
¥ 91.1m
Sadahiro Usui
Executive VP & Director0.25yrno data0.0015%
¥ 52.7m
Toshiyuki Kato
Executive Vice President2.42yrsno datano data
Katsuhisa Shimokawa
Head of Powertrain Systems Business Group & Senior Executive Officer12.25yrsno datano data
Hiroyuki Ina
Head of Electronic Systems Business Group & Senior Executive Officer11.25yrsno datano data
Shingo Kuwamura
Senior Executive Officer1.67yrsno datano data
Kazuaki Fujitani
Senior Executive Officer3.42yrsno datano data
Yoshifumi Kato
Senior Executive Officer1.67yrsno datano data
Yukihiro Shinohara
Chief Corporate Revolution Officer9.25yrsno datano data

2.9yrs

Average Tenure

62yo

Average Age

Experienced Management: 6902's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Koji Arima
CEO, President & Director5.25yrsJP¥128.00m0.0040%
¥ 140.6m
Yasushi Yamanaka
Chief Human Resources Office & Directorno datano data0.0027%
¥ 97.9m
Hiroyuki Wakabayashi
Executive VP & Director4.25yrsno data0.0026%
¥ 91.1m
Sadahiro Usui
Executive VP & Director0.25yrno data0.0015%
¥ 52.7m
Akio Toyoda
Director1.67yrsno data0.0065%
¥ 229.6m
Haruo Kitamura
Outside Audit & Supervisory Board Member1.67yrsno datano data
Atsuhiko Shimmura
Standing Audit & Supervisory Board Member6.25yrsno data0.00066%
¥ 23.5m
George C. Olcott
Independent Outside Director6.25yrsno data0.00025%
¥ 8.9m
Shigeki Kushida
Independent Outside Director1.67yrsno datano data
Yuko Mitsuya
Independent Outside Director1.67yrsno datano data
Motomi Niwa
Audit & Supervisory Board Member2.25yrsno data0.00066%
¥ 23.5m
Yasuko Gotoh
Outside Audit & Supervisory Board Member1.67yrsno datano data

1.7yrs

Average Tenure

62yo

Average Age

Experienced Board: 6902's board of directors are not considered experienced ( 1.7 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 company bio, 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
  • Market Cap: JP¥3.559t
  • Shares outstanding: 774.87m
  • Website: https://www.denso.com/global/en/

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNZO.YOTCPK (Pink Sheets LLC)ADR-EACH CNV INTO 0.50 ORD NPVUSUSDMar 1991
DNOADB (Deutsche Boerse AG)ADR-EACH CNV INTO 0.50 ORD NPVDEEURMar 1991
6902TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
DNZO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
DNODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

DENSO Corporation manufactures and sells automotive components and systems, industrial products, and home appliances. It offers air-conditioning systems for cars and buses; truck refrigeration units; radia ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 19:48
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.