Dentsu Group Inc.
Dentsu Group Inc. Fundamental Analysis
Dentsu Group Inc. (DNTUF) shows moderate financial fundamentals with a PE ratio of -2.39, profit margin of -22.75%, and ROE of -58.98%. The company generates $1440.4B in annual revenue with moderate year-over-year growth of 8.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -40.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DNTUF's fundamental strength across five key dimensions:
Efficiency Score
WeakDNTUF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDNTUF trades at attractive valuation levels.
Growth Score
ModerateDNTUF shows steady but slowing expansion.
Financial Health Score
ModerateDNTUF shows balanced financial health with some risks.
Profitability Score
WeakDNTUF struggles to sustain strong margins.
Key Financial Metrics
Is DNTUF Expensive or Cheap?
P/E Ratio
DNTUF trades at -2.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DNTUF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Dentsu Group Inc. at 2.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.83 times EBITDA. This is generally considered low.
How Well Does DNTUF Make Money?
Net Profit Margin
For every $100 in sales, Dentsu Group Inc. keeps $-22.75 as profit after all expenses.
Operating Margin
Core operations generate 10.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-58.98 in profit for every $100 of shareholder equity.
ROA
Dentsu Group Inc. generates $-10.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dentsu Group Inc. generates limited operating cash flow of $117.69B, signaling weaker underlying cash strength.
Free Cash Flow
Dentsu Group Inc. produces free cash flow of $90.63B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $349.15 in free cash annually.
FCF Yield
DNTUF converts 11.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.59
vs 25 benchmark
ROA
Return on assets percentage
-0.10
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How DNTUF Stacks Against Its Sector Peers
| Metric | DNTUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.39 | 23.32 | Better (Cheaper) |
| ROE | -58.98% | 1104.00% | Weak |
| Net Margin | -22.75% | -55937.00% (disorted) | Weak |
| Debt/Equity | 1.25 | 1.38 | Neutral |
| Current Ratio | 1.07 | 1.56 | Neutral |
| ROA | -10.21% | -45352.00% (disorted) | Weak |
DNTUF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dentsu Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.60%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-183.06%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-19.44%
Industry Style: Growth, Technology, Streaming
Declining