Dentsu Group (TYO: 4324)

Last close As at 24/06/2024


95.00 (2.44%)

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.

Customer Transformation and Technology should benefit from structural tailwinds as companies invest in optimising their responses to the increasing demands of their own customers, although short-term economic uncertainty has slowed the sales cycle for larger projects across the industry. Dentsu’s December update on forecast global ad spend indicated growth of 4.6% for FY24, 4.2% for FY25 and 4.3% for FY26 pencilled in. Digital spend is estimated at 59% of FY24 global ad spend, from 58% in FY23.

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Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Milo Bussell

Analyst, Consumer and TMT

Key Management

  • Hiroshi Igarashi

    President & CEO

  • Kate Stewart

    IR director

  • Yushin Soga


Balance Sheet

Forecast net debt (¥m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (4.3) (6.2) (16.6)
Relative (4.2) (3.7) (31.1)
52 week high/low ¥4897.0/¥3586.0


Dentsu’s Q1 results indicate a slow start to the year, with organic net revenue down by 3.7%. However, prospects are improving, buoyed by new business wins and weighted to H2, which leave full year expectations (and our forecasts) unchanged. The One dentsu initiative, bringing together skill sets in consulting, technology, media and creative, is supporting improved pitch win rates, and giving greater coherence and consistency to the group product and service offering. We expect this to be a central element of the new management medium-term strategy, set to be unveiled during H2. The rating remains at a substantial discount to global peers, which we anticipate will narrow as evidence of renewed growth builds.

Y/E Dec Revenue (¥m) EBITDA (¥m) PBT (¥m) EPS (fd) (¥) P/E (x) P/CF (x)
2022A 1243883.0 217500.0 187589.0 485.0 8.2 0.1
2023A 1289301.0 175742.0 151315.0 337.0 11.8 0.1
2024E 1356700.0 203377.0 159804.0 380.0 10.5 0.1
2025E 1393000.0 218527.0 178741.0 403.0 9.9 0.0




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