Dentsu Group (TYO: 4324)

Currency in JPY

Last close As at 30/03/2023


115.00 (2.60%)

Market capitalisation


Dentsu Group is a holding company, operating in over 145 countries. It provides a wide range of client-centric integrated communications, media and digital services.

CT&T benefits from structural tailwinds as companies look to invest to optimise to meet the demands of their own customers, a process which may even accelerate as economic pressures become more pronounced. Dentsu’s latest global ad spend forecast is +3.8% for FY23, revised down from +5.4%, with 4.8% for FY24 and 4.5% for FY25 pencilled in. Digital spend is forecast at 57% of FY23 global ad spend. The Japanese ad market still lags the digital transition curve, with a digital share of 49%, and with TV remaining prominent at 26%.

Dentsu Group_resized



Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

  • Hiroshi Igarashi

    President & CEO

  • Kate Stewart

    IR director

Balance Sheet

Forecast net cash (¥m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 3.8 10.6 (8.8)
Relative 3.7 5.1 (8.9)
52 week high/low ¥5020.0/¥4045.0


Dentsu reported record FY22 headline results, bolstered by a Q4 in which it delivered organic net revenue growth of 3.5%. Good progress continues in Customer Transformation and Technology (CT&T), up 17.5% y-o-y and constituting 32% of FY22 revenues. Management forecasts FY23 organic revenue growth at 4%, reflecting a tougher macro backdrop. Guidance on FY23 underlying operating margin is for a dip to 17.5% as the group invests more in CT&T and the One dentsu initiative. It is set to rebound to 18.0% in FY24 as benefits start to flow. Year-end net cash of ¥71.3bn and an appetite for leverage of 1.0–1.5x provide ample resource for both capex and M&A. Our FY23 estimates are under review.

Y/E Dec Revenue (¥m) EBITDA (¥m) PBT (¥m) EPS (fd) (¥) P/E (x) P/CF (x)
2020A 939242.0 91013.0 123471.0 249.0 18.2 N/A
2021A 1085592.0 226326.0 146020.0 389.0 11.7 0.0
2022E 1240000.0 221152.0 172461.0 437.0 10.4 0.1
2023E 1264862.0 219840.0 172569.0 457.0 9.9 0.1