Denso Corp
6902: XTKS (JPN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥8,449.00 | Fjbxlj | Mbhgcmpys |
Denso Earnings: Unexpected Quality-Related Costs Dent Margins but Outlook Unchanged
We leave our fair value estimate for Denso unchanged at JPY 2,375 with September-quarter operating margin disappointingly lower and dampening better-than-expected revenue growth. While we tweak our fiscal 2023 (ending March 2024) assumptions, our medium-term outlook remains intact. We believe Denso’s shares are fairly valued. Our fair value estimate prices Denso at 15.9 times fiscal 2023 price/earnings. We forecast five-year EPS to average 16.9% growth.