Financials Dentsu Soken Inc.

Equities

4812

JP3551530003

IT Services & Consulting

Delayed Japan Exchange Other stock markets 12:45:03 2024-05-14 am EDT			5-day change	1st Jan Change
5,200 ^JPY	+2.36%		-4.94%	-10.96%

Apr. 26	Dentsu Soken Inc. Provides Dividend Guidance for the End of Second Quarter of Fiscal Year Ending December 31, 2024	CI
Apr. 26	Dentsu Soken Inc. completed the acquisition of Mitsue-Links Co.,Ltd.	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	141,082	203,640	252,513	255,391	380,010	330,569	-	-
Enterprise Value (EV) ¹	140,278	202,859	250,587	252,403	376,487	330,569	330,569	330,569
P/E ratio	22.7 x	27.7 x	28.2 x	20.3 x	25.9 x	19.7 x	16.9 x	15.3 x
Yield	1.78%	1.47%	1.45%	1.99%	1.71%	2.22%	2.59%	2.87%
Capitalization / Revenue	1.4 x	1.87 x	2.25 x	1.98 x	2.66 x	2.12 x	1.96 x	1.8 x
EV / Revenue	1.4 x	1.87 x	2.25 x	1.98 x	2.66 x	2.12 x	1.96 x	1.8 x
EV / EBITDA	11.2 x	13.5 x	15.1 x	11.8 x	15.7 x	12.2 x	11 x	10 x
EV / FCF	13.8 x	21 x	17.8 x	29.1 x	35.6 x	21.6 x	19.1 x	17.7 x
FCF Yield	7.27%	4.77%	5.61%	3.44%	2.81%	4.64%	5.24%	5.65%
Price to Book	2.57 x	3.42 x	3.86 x	3.46 x	4.58 x	3.57 x	3.21 x	2.88 x
Nbr of stocks (in thousands)	65,165	65,165	65,165	65,068	65,070	65,073	-	-
Reference price ²	2,165	3,125	3,875	3,925	5,840	5,080	5,080	5,080
Announcement Date	2/10/20	2/10/21	2/9/22	2/10/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	100,679	108,679	112,085	129,054	142,608	155,988	168,815	183,296
EBITDA ¹	12,606	15,054	16,725	21,693	24,228	27,141	30,084	32,958
EBIT ¹	10,075	12,189	13,736	18,590	21,028	23,770	27,233	30,800
Operating Margin	10.01%	11.22%	12.25%	14.4%	14.75%	15.24%	16.13%	16.8%
Earnings before Tax (EBT) ¹	9,185	10,950	13,171	17,651	20,951	23,735	26,698	29,398
Net income ¹	6,226	7,362	8,944	12,598	14,663	16,816	19,532	21,656
Net margin	6.18%	6.77%	7.98%	9.76%	10.28%	10.78%	11.57%	11.81%
EPS ²	95.56	113.0	137.3	193.5	225.4	258.4	300.1	332.8
Free Cash Flow ¹	10,250	9,713	14,166	8,782	10,687	15,335	17,307	18,680
FCF margin	10.18%	8.94%	12.64%	6.8%	7.49%	9.83%	10.25%	10.19%
FCF Conversion (EBITDA)	81.31%	64.52%	84.7%	40.48%	44.11%	56.5%	57.53%	56.68%
FCF Conversion (Net income)	164.63%	131.93%	158.39%	69.71%	72.88%	91.19%	88.61%	86.26%
Dividend per Share ²	38.50	46.00	56.00	78.00	100.0	112.7	131.7	145.7
Announcement Date	2/10/20	2/10/21	2/9/22	2/10/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2021 S1	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4
Net sales ¹	51,494	55,020	54,293	25,591	32,200	29,982	31,476	61,458	32,350	35,245	34,779	35,069	69,849	35,418	37,340	37,099	38,144	38,967	41,382
EBITDA ¹	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	6,807	5,884	6,389	-
EBIT ¹	4,871	6,971	6,525	3,011	4,199	5,305	4,328	9,634	4,552	4,403	5,676	4,975	10,652	4,899	5,477	5,757	5,429	5,817	-
Operating Margin	9.46%	12.67%	12.02%	11.77%	13.04%	17.69%	13.75%	15.68%	14.07%	12.49%	16.32%	14.19%	15.25%	13.83%	14.67%	15.52%	14.23%	14.93%	-
Earnings before Tax (EBT)	-	6,743	6,443	2,915	3,813	5,567	4,313	9,880	3,617	-	5,403	-	10,544	4,909	5,498	5,974	-	-	-
Net income ¹	-	4,512	4,392	2,030	2,522	4,033	2,995	7,028	2,546	-	3,837	-	7,446	3,392	3,825	4,118	3,366	3,913	-
Net margin	-	8.2%	8.09%	7.93%	7.83%	13.45%	9.52%	11.44%	7.87%	-	11.03%	-	10.66%	9.58%	10.24%	11.1%	8.82%	10.04%	-
EPS ²	-	69.25	67.40	31.16	-	61.89	-	107.9	39.15	-	58.98	-	114.4	52.12	58.79	63.29	51.71	60.10	-
Dividend per Share ²	-	21.50	26.00	-	-	-	-	33.00	-	-	-	-	44.00	-	56.00	-	55.00	-	60.00
Announcement Date	2/10/20	7/30/20	7/29/21	10/28/21	2/9/22	4/28/22	7/28/22	7/28/22	10/31/22	2/10/23	4/27/23	7/31/23	7/31/23	10/31/23	2/14/24	4/26/24	-	-	-

¹JPY in Million²JPY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt	-	-	-	-	-	-	-	-
Net Cash position	804	781	1,926	2,988	3,523	-	-	-
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	10,250	9,713	14,166	8,782	10,687	15,335	17,307	18,680
ROE (net income / shareholders' equity)	11.8%	12.9%	14.3%	18.1%	18.7%	19.4%	19.9%	18.8%
ROA (Net income/ Total Assets)	11.5%	12.5%	12.9%	16%	16.6%	-	-	-
Assets ¹	54,070	59,030	69,439	78,962	88,081	-	-	-
Book Value Per Share ²	842.0	914.0	1,004	1,135	1,275	1,422	1,584	1,764
Cash Flow per Share	134.0	157.0	183.0	241.0	275.0	-	-	-
Capex ¹	1,953	303	2,439	2,888	2,378	2,600	2,800	3,000
Capex / Sales	1.94%	0.28%	2.18%	2.24%	1.67%	1.67%	1.66%	1.64%
Announcement Date	2/10/20	2/10/21	2/9/22	2/10/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Dentsu Soken Inc.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

5,080 JPY

Average target price

6,833 JPY

Spread / Average Target

+34.51%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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