Fact based stock research
Dentsu (TSE:4324)

JP3551520004

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Dentsu stock research in summary

group.dentsu.com

ANALYSIS: With an Obermatt Combined Rank of 56 (better than 56% compared with investment alternatives), Dentsu (Advertising, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Dentsu are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), show above-average growth (Growth Rank of 67) but are riskily financed (Safety Rank of 25), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 56, is a buy recommendation based on Dentsu's financial characteristics. As the company Dentsu's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 63) and above-average growth (Obermatt Growth Rank of 67), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 25) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	63
Growth Rank	67
Safety Rank	25
Combined Rank	56

Country	Japan
Industry	Advertising
Index	Multimedia, Renewables Users, SDG 1, SDG 10, SDG 12, SDG 5, SDG 9, Nikkei 225
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Dentsu

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	71	91	91	63
GROWTH
GROWTH	91	45	13	67
SAFETY
SAFETY	53	29	10	25
SENTIMENT
SENTIMENT	n/a	43	11	^new
360° VIEW
360° VIEW	n/a	49	6	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Dentsu is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	71	91	91	63
GROWTH
GROWTH	91	45	13	67
SAFETY
SAFETY	53	29	10	25
COMBINED
COMBINED	83	60	16	56

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Dentsu the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), Dentsu shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Dentsu. Price-to-Sales is 71 which means that the stock price compared with what market professionals expect for future sales is lower than for 71% of comparable companies, indicating a good value for Dentsu's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 63% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 70. Compared with other companies in the same industry, dividend yields of Dentsu are expected to be higher than for 74% of all competitors (a Dividend Yield rank of 74). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on Dentsu's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Dentsu based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	81	78	75	71
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	81	82	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	71	84	84	70
DIVIDEND YIELD
DIVIDEND YIELD	80	78	88	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	71	91	91	63

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Dentsu; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), Dentsu shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Dentsu. Profit Growth has a rank of 100, which means that currently professionals expect the company to grow its profits more than 100% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 53 (above 53% of alternative investments). But Sales Growth has a below the median rank of 14, which means that, currently, professionals expect the company to grow less than 86% of its competitors, and Capital Growth also has a lower rank of 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Dentsu. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	56	12	14	14
PROFIT GROWTH
PROFIT GROWTH	1	94	6	100
CAPITAL GROWTH
CAPITAL GROWTH	n/a	13	52	31
STOCK RETURNS
STOCK RETURNS	86	85	33	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	91	45	13	67

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Dentsu.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 25 (better than 25% compared with alternatives), the company Dentsu has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Dentsu is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Dentsu. Liquidity is at 28, meaning that the company generates less profit to service its debt than 72% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 20, meaning the company has an above-average debt-to-equity ratio. It has more debt than 80% of its competitors. Finally, Refinancing is at a rank of 48 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 25 (worse than 75% compared with alternatives), Dentsu has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Dentsu because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	53	15	16	20
REFINANCING
REFINANCING	12	84	10	48
LIQUIDITY
LIQUIDITY	73	16	34	28
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	53	29	10	25

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Dentsu and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	16	13	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	67	31	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	65	15	^new
MARKET PULSE
MARKET PULSE	n/a	46	34	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	43	11	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Dentsu.
Upgrade to a Premium Account to access the latest ranks.