Financials Dentsu Inc.

Equities

4324

JP3551520004

Advertising & Marketing

Market Closed - Japan Exchange Other stock markets 11:30:00 26/04/2024 am IST			5-day change	1st Jan Change
4,219 ^JPY	+0.76%		+2.25%	+16.61%

10/04	24 Seven, Inc acquired Filter, LLC from Dentsu Group Inc..	CI
02/04	Dentsu Group Buys Skips Share Buyback in March	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	10,48,507	8,62,270	11,22,691	10,96,082	9,56,509	11,15,603	-	-
Enterprise Value (EV) ¹	12,58,379	10,25,922	9,78,339	10,24,771	10,60,276	14,30,189	13,14,823	11,15,603
P/E ratio	-13.1 x	-5.37 x	10.5 x	18.6 x	-89.3 x	15.3 x	13.6 x	12 x
Yield	2.52%	2.32%	2.87%	3.75%	3.86%	3.49%	3.57%	3.61%
Capitalization / Revenue	1 x	0.92 x	1.03 x	0.88 x	0.73 x	0.82 x	0.79 x	0.77 x
EV / Revenue	1.2 x	1.09 x	0.9 x	0.82 x	0.81 x	1.05 x	0.94 x	0.77 x
EV / EBITDA	7.85 x	11.4 x	3.09 x	5.34 x	8.87 x	6.37 x	5.63 x	-
EV / FCF	322 x	15.3 x	8.24 x	-	22.9 x	32.1 x	11.3 x	13 x
FCF Yield	0.31%	6.52%	12.1%	-	4.37%	3.12%	8.84%	7.71%
Price to Book	1.07 x	1.14 x	1.33 x	1.24 x	1.14 x	1.18 x	1.12 x	1.12 x
Nbr of stocks (in thousands)	2,77,750	2,81,328	2,73,827	2,64,435	2,64,375	2,64,423	-	-
Reference price ²	3,775	3,065	4,100	4,145	3,618	4,219	4,219	4,219
Announcement Date	13/02/20	15/02/21	14/02/22	14/02/23	14/02/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	10,47,881	9,39,243	10,85,592	12,43,883	13,04,552	13,55,914	14,04,122	14,55,594
EBITDA ¹	1,60,280	90,061	3,16,717	1,91,787	1,19,482	2,24,630	2,33,700	-
EBIT ¹	-3,358	-1,40,625	2,41,841	1,17,617	45,312	1,42,345	1,56,730	1,72,296
Operating Margin	-0.32%	-14.97%	22.28%	9.46%	3.47%	10.5%	11.16%	11.84%
Earnings before Tax (EBT) ¹	-42,769	-1,41,133	2,08,833	1,00,908	33,103	1,26,043	1,38,964	1,56,954
Net income ¹	-80,893	-1,59,596	1,08,389	59,847	-10,714	72,767	82,699	92,221
Net margin	-7.72%	-16.99%	9.98%	4.81%	-0.82%	5.37%	5.89%	6.34%
EPS ²	-287.9	-571.2	388.8	223.3	-40.52	275.9	309.8	351.9
Free Cash Flow ¹	3,906	66,839	1,18,679	-	46,375	44,599	1,16,229	86,004
FCF margin	0.37%	7.12%	10.93%	-	3.55%	3.29%	8.28%	5.91%
FCF Conversion (EBITDA)	2.44%	74.22%	37.47%	-	38.81%	19.85%	49.73%	-
FCF Conversion (Net income)	-	-	109.49%	-	-	61.29%	140.55%	93.26%
Dividend per Share ²	95.00	71.25	117.5	155.2	139.5	147.3	150.5	152.2
Announcement Date	13/02/20	15/02/21	14/02/22	14/02/23	14/02/24	-	-	-

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	5,50,813	4,59,082	4,92,714	2,81,834	3,11,044	2,87,645	2,88,389	5,76,034	3,09,080	3,58,769	3,05,246	2,98,083	6,03,329	3,31,528	3,69,695	3,10,000	3,01,500	3,28,300	3,79,500
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	-21,433	28,745	84,380	1,27,496	29,965	40,722	26,068	66,790	24,680	26,147	25,778	-4,300	21,478	26,901	-3,067	33,400	18,800	28,900	53,400
Operating Margin	-3.89%	6.26%	17.13%	45.24%	9.63%	14.16%	9.04%	11.59%	7.98%	7.29%	8.44%	-1.44%	3.56%	8.11%	-0.83%	10.77%	6.24%	8.8%	14.07%
Earnings before Tax (EBT)	-45,462	32,130	63,104	1,17,129	28,600	41,924	28,653	70,577	18,850	11,481	23,132	752	23,884	22,065	-12,846	-	-	-	-
Net income ¹	-79,618	15,795	36,104	65,641	6,644	23,903	18,579	42,483	15,932	1,432	11,878	3,400	15,278	6,671	-32,663	15,500	4,000	14,300	28,700
Net margin	-14.45%	3.44%	7.33%	23.29%	2.14%	8.31%	6.44%	7.38%	5.15%	0.4%	3.89%	1.14%	2.53%	2.01%	-8.84%	5%	1.33%	4.36%	7.56%
EPS	-	56.93	128.3	234.9	25.54	87.48	-	156.6	60.42	-	44.94	-	57.95	25.23	-123.7	-	-	-	-
Dividend per Share	-	47.50	50.50	-	-	-	-	70.25	-	-	-	-	78.50	-	-	-	-	-	-
Announcement Date	13/02/20	13/08/20	11/08/21	12/11/21	14/02/22	16/05/22	12/08/22	12/08/22	14/11/22	14/02/23	15/05/23	14/08/23	14/08/23	14/11/23	14/02/24	-	-	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	2,09,872	1,63,652	-	-	1,03,767	3,14,587	1,99,220	-
Net Cash position ¹	-	-	1,44,352	71,311	-	-	-	-
Leverage (Debt/EBITDA)	1.309 x	1.817 x	-	-	0.8685 x	1.4 x	0.8525 x	-
Free Cash Flow ¹	3,906	66,839	1,18,679	-	46,375	44,599	1,16,229	86,004
ROE (net income / shareholders' equity)	-8%	-18.4%	13.7%	6.9%	-1.2%	8.06%	8.44%	9.28%
ROA (Net income/ Total Assets)	-1.15%	-3.93%	5.88%	2.7%	0.9%	2.51%	2.35%	2.9%
Assets ¹	70,30,506	40,57,457	18,42,777	22,12,786	-11,93,614	29,04,105	35,13,609	31,80,026
Book Value Per Share ²	3,523	2,690	3,088	3,330	3,183	3,564	3,762	3,776
Cash Flow per Share ²	32.30	-264.0	657.0	500.0	257.0	638.0	939.0	-
Capex ¹	32,244	21,474	21,036	18,526	28,892	37,867	40,040	39,500
Capex / Sales	3.08%	2.29%	1.94%	1.49%	2.21%	2.79%	2.85%	2.71%
Announcement Date	13/02/20	15/02/21	14/02/22	14/02/23	14/02/24	-	-	-

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 Inc.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

4,219 JPY

Average target price

4,404 JPY

Spread / Average Target

+4.39%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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