Densan System Holdings Co., Ltd.
Densan System Holdings Co., Ltd. Fundamental Analysis
Densan System Holdings Co., Ltd. (4072.T) shows moderate financial fundamentals with a PE ratio of 10.71, profit margin of 4.25%, and ROE of 12.36%. The company generates $68.3B in annual revenue with weak year-over-year growth of 2.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 4072.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4072.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4072.T trades at attractive valuation levels.
Growth Score
Weak4072.T faces weak or negative growth trends.
Financial Health Score
Excellent4072.T maintains a strong and stable balance sheet.
Profitability Score
Weak4072.T struggles to sustain strong margins.
Key Financial Metrics
Is 4072.T Expensive or Cheap?
P/E Ratio
4072.T trades at 10.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 4072.T's PEG of -1.01 indicates potential undervaluation.
Price to Book
The market values Densan System Holdings Co., Ltd. at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.43 times EBITDA. This signals the market has high growth expectations.
How Well Does 4072.T Make Money?
Net Profit Margin
For every $100 in sales, Densan System Holdings Co., Ltd. keeps $4.25 as profit after all expenses.
Operating Margin
Core operations generate 5.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.36 in profit for every $100 of shareholder equity.
ROA
Densan System Holdings Co., Ltd. generates $4.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Densan System Holdings Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Densan System Holdings Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
4072.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 4072.T Stacks Against Its Sector Peers
| Metric | 4072.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.71 | 34.43 | Better (Cheaper) |
| ROE | 12.36% | 1135.00% | Weak |
| Net Margin | 4.25% | -134663.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 5.77 | Neutral |
| ROA | 4.19% | -310462.00% (disorted) | Weak |
4072.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Densan System Holdings Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.13%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
9.12%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
11.04%
Industry Style: Growth, Innovation, High Beta
High Growth