# DENSAN CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第61期(2025/04/01－2026/03/31) (S100YJ1O)
> Page: https://vizora.meequs.com/en/company/densan
> Retrieved: 2026-09-30T17:54:02.613Z

## Company

Densan, founded in 1966, is a company in IT Services & System Integration listed on TSE Standard. It has 585 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | DENSAN CO.,LTD. |
| Ticker | 3640 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3640.T) |
| Listing | TSE Standard |
| Head office | 長野県長野市鶴賀七瀬中町276番地6 |
| Representative (per filing) | 代表取締役社長 轟 一太 |
| Founded | Mar 1966 |
| Share capital | ¥1.4B |
| Employees (consolidated) | 585 |
| Average salary (parent only) | ¥8.1M |
| Fiscal year end | March |
| Website | www.ndensan.co.jp (https://www.ndensan.co.jp/) |
| Corporate number | 1100001002083 |
| EDINET | E24457 |
| Industries (Vizora) | IT Services & System Integration |

> Profile source: annual securities report (S100YJ1O, filed 2026-06-25). As of filing

## Five-axis industry profile

Primary industry: IT Services & System Integration (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 71 | 157 |
| Profitability | 94.1 | 196 |
| Cash conversion | 30 | 185 |
| Efficiency | 43.6 | 196 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 80% of Densan's sales come from public field, with industrial field making up much of the rest.
- Out of every ¥100 of sales, about ¥23 is left as operating profit.
- Revenue changed +49.3% from the prior year, operating profit +150.1%.

## Company structure

- Segment revenue mix: public field 80.5%、industrial field 19.5%
- Revenue → net income: ¥27987254000 → ¥4478269000
- Net income → operating cash flow: ¥4478269000 → ¥4310247000（difference ¥-168022000）
- Main uses of operating cash flow: CapEx ¥481007000 / dividends ¥210553000 / buybacks ¥820791000
- Change in cash: ¥1171897000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥28B |  |
| Operating income | ¥6.3B | Margin 22.5% |
| Net income | ¥4.48B | Margin 16.0% |
| Free cash flow | ¥3.83B |  |
| Largest business | public field | of segment revenue 80.5% |
| Employees (consolidated) | 585 |  |
| EPS | ¥785.25 |  |
| Diluted EPS | ¥784.41 |  |
| Book value per share | ¥2869.14 |  |
| Equity ratio | 63.3% |  |
| Shares outstanding | 5,837,200 |  |
| Treasury shares | 287,500 |  |
| Shareholders | 6,400 |  |
| Average salary (parent only) | ¥8.1M | Filing company only |
| Cash ratio | 11.6% | Cash ÷ revenue 10.6% |
| Vs. industry median margin | +13.6 pp | IT Services & System Integration |
| ROE | 31.8% | Derived from disclosed figures |
| ROA | 19.0% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 3.9× dividends
- FY2026, employees -1% while operating income rose 150%
- FY2026, one segment accounts for 91% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥16098419000 | ¥27987254000 | +73.9% |
| Operating income | ¥1154568000 | ¥6296461000 | +445.4% |
| Operating margin | 7.2% | 22.5% | +15.3 pp |
| Employees | 729 people | 585 people | -19.8% |
| Cash and equivalents | ¥390378000 | ¥2975070000 | +662.1% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 公共分野 → 公共分野 | 70.9% |
| 産業分野 → 産業分野 | 19.5% |
| 産業分野 → 事業再編・廃止 | 9.6% |
| 新設・再編 → 公共分野 | 9.6% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 27,987 | 100.0% | S100YJ1O |
| Cost of revenue | 17,396 | 62.2% | S100YJ1O |
| Gross profit | 10,591 | 37.8% | S100YJ1O |
| SG&A | 4,295 | 15.3% | S100YJ1O |
| Operating income | 6,296 | 22.5% | S100YJ1O |
| Ordinary income | 6,294 | 22.5% | S100YJ1O |
| Pretax income | 6,307 | 22.5% | S100YJ1O |
| Income tax | 1,829 | 6.5% | S100YJ1O |
| Net income | 4,478 | 16.0% | S100YJ1O |
| Net income attributable to owners | 4,478 | 16.0% | S100YJ1O |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 62 |
| SG&A | 15 |
| Operating income | 23 |
| (Ref.) Net income | 16 |

### Margin funnel

Gross margin 37.8% → Operating margin 22.5% → Net margin 16.0%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +49.3%; Core profit growth: +150.1%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 3.04×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 18,741 | 27,987 | 9,246 | +49.3% |
| Gross profit | 6,490 | 10,591 | 4,101 | +63.2% |
| Operating income | 2,518 | 6,296 | 3,779 | +150.1% |
| Net income attributable to owners | 1,842 | 4,478 | 2,636 | +143.1% |
| Operating cash flow | 2,966 | 4,310 | 1,344 | +45.3% |
| Free cash flow | 2,263 | 3,829 | 1,566 | +69.2% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 14,870 | 301 | 2.0% | 261 | 1,372 | 907 | S100LPPG |
| FY ending Mar 2021 | 16,098 | 1,155 | 7.2% | 599 | 589 | -17 | S100OOXC |
| FY ending Mar 2022 | 17,306 | 1,246 | 7.2% | 859 | 2,373 | 1,971 | S100R55B |
| FY ending Mar 2023 | 17,805 | 2,503 | 14.1% | 1,612 | 1,463 | 1,055 | S100TTVM |
| FY ending Mar 2024 | 15,975 | 1,291 | 8.1% | 899 | 1,615 | 449 | S100W5V1 |
| FY ending Mar 2025 | 18,741 | 2,518 | 13.4% | 1,842 | 2,966 | 2,263 | S100YJ1O |
| FY ending Mar 2026 | 27,987 | 6,296 | 22.5% | 4,478 | 4,310 | 3,829 | S100YJ1O |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥47.8M |
| Operating income per employee (consolidated) | ¥10.8M |
| Net income per employee (consolidated) | ¥7.7M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 694 | 627 | 601 | 589 | 585 |
| Average salary (parent company) | ¥6.9M | ¥7M | ¥7.1M | ¥7.4M | ¥8.1M |
| Average age (parent company) | 44.3 years | 45.4 years | 45.4 years | 45.5 years | 45.4 years |
| Average tenure (parent company) | 19.5 years | 20.2 years | 19.9 years | 19.7 years | 19.6 years |

Year over year: Employees (consolidated) -0.7% · Revenue (consolidated) +49.3%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| public field | 22,529 | 80.5% | 5,765 | 25.6% |
| industrial field | 5,458 | 19.5% | 536 | 9.8% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| public field | 80.5% | 91.5% | 11.0 | 25.6% |
| industrial field | 19.5% | 8.5% | -11.0 | 9.8% |

Segment → industry: industrial field → IT Services & System Integration / public field → IT Services & System Integration

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 4,310 | 15.4% | S100YJ1O |
| Capital expenditure | 481 | 1.7% | S100YJ1O |
| Free cash flow | 3,829 | 13.7% | 算出 |
| Investing cash flow | -862 | -3.1% | S100YJ1O |
| Financing cash flow | -2,278 | -8.1% | S100YJ1O |
| Dividends paid | 211 | 0.8% | S100YJ1O |
| Share buyback | 821 | 2.9% | S100YJ1O |
| Change in cash | 1,172 | 4.2% | S100YJ1O |
| Cash and equivalents | 2,975 | 10.6% | S100YJ1O |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 1,217 | 1,046 | 1,054 | 1,803 | 2,975 | S100TTVM, S100W5V1, S100YJ1O |
| Total assets | 20,773 | 20,179 | 19,548 | 21,464 | 25,646 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Net assets | 7,413 | 8,921 | 10,831 | 12,711 | 16,256 | S100TTVM, S100W5V1, S100YJ1O |
| Share capital | 1,395 | 1,395 | 1,395 | 1,395 | 1,395 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Property, plant and equipment | 6,715 | 6,671 | 6,382 | 6,206 | 5,959 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Intangible assets excluding goodwill | 2,089 | 1,517 | 1,926 | 2,005 | 1,116 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Investment securities | 363 | 395 | 423 | 581 | 686 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Current assets | 10,599 | 10,500 | 9,815 | 11,724 | 16,866 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Current liabilities | 10,552 | 7,461 | 5,782 | 6,388 | 7,824 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Short-term borrowings | 3,072 | 2,652 | 2,172 | 1,692 | 1,202 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Long-term borrowings | 701 | 1,294 | 730 | 460 | — | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Total liabilities | 13,361 | 11,258 | 8,717 | 8,752 | 9,389 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Equity attributable to owners of parent | 7,348 | 8,813 | 10,693 | 12,348 | 15,836 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Retained earnings | 6,736 | 8,173 | 8,354 | 9,968 | 14,236 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |
| Treasury stock | -1,871 | -1,842 | -102 | -60 | -842 | S100R55B, S100TTVM, S100W5V1, S100YJ1O |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 12% | S100YJ1O |
| Property, plant and equipment | 23% | S100YJ1O |
| Intangibles and goodwill | 4% | S100YJ1O |
| Investment securities | 3% | S100YJ1O |
| Other assets | 58% | S100YJ1O |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 37% | S100YJ1O |
| Equity | 63% | S100YJ1O |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 20,773 | 20,179 | 19,548 | 21,464 | 25,646 |
| Equity | 7,413 | 8,921 | 10,831 | 12,711 | 16,256 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 1,217 | 1,046 | 1,054 | 1,803 | 2,975 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 21.3% | S100YJ1O |
| Fixed assets ÷ total assets | 23.2% | S100YJ1O |
| Goodwill ÷ parent equity | — | —, S100YJ1O |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 11.6% |
| Cash ÷ revenue | 10.6% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 68.5% |
| Cash vs. profit gap | -168 JPY mn (of net income -3.8%) |
| Shareholder returns / net income | 23.0% |
| Shareholder returns / FCF | 26.9% |
| Shareholder payments — dividends / net income | 4.7% |
| Shareholder payments — dividends / FCF | 5.5% |
| CapEx intensity (capex ÷ revenue) | 1.7% |
| Investing CF relative to operating CF | 20.0% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 5.0% | 0.83× | 4.1% | 2.83× | 11.7% | S100R55B |
| 2023 | 9.1% | 0.87× | 7.9% | 2.53× | 19.9% | S100TTVM |
| 2024 | 5.6% | 0.80× | 4.5% | 2.04× | 9.2% | S100W5V1 |
| 2025 | 9.8% | 0.91× | 9.0% | 1.78× | 16.0% | S100YJ1O |
| 2026 | 16.0% | 1.19× | 19.0% | 1.67× | 31.8% | S100YJ1O |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 信越放送株式会社 | Major shareholder | 36.9% | 2026-03-31 |
| TOPPANエッジ株式会社 | Major shareholder | 15.9% | 2026-03-31 |
| 信濃毎日新聞株式会社 | Major shareholder | 5.2% | 2026-03-31 |
| 電算従業員持株会 | Major shareholder | 3.2% | 2026-03-31 |
| 株式会社八十二長野銀行 | Major shareholder | 2.2% | 2026-03-31 |
| 株式会社エステート長野 | Major shareholder | 1.7% | 2026-03-31 |
| 轟 一太 | Major shareholder | 1.3% | 2026-03-31 |
| 大和証券株式会社 | Major shareholder | 1.2% | 2026-03-31 |
| 株式会社SBCハウジング | Major shareholder | 0.7% | 2026-03-31 |
| 野村證券株式会社 | Major shareholder | 0.7% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第61期(2025/04/01－2026/03/31) | S100YJ1O | 2026-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YJ1O,, |
| 有価証券報告書－第60期(2024/04/01－2025/03/31) | S100W5V1 | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W5V1,, |
| 有価証券報告書－第59期(2023/04/01－2024/03/31) | S100TTVM | 2024-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TTVM,, |
| 有価証券報告書－第58期(2022/04/01－2023/03/31) | S100R55B | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R55B,, |
| 訂正有価証券報告書－第57期(令和3年4月1日－令和4年3月31日) | S100OOXC | 2022-07-08 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OOXC,, |
| 有価証券報告書－第56期(令和2年4月1日－令和3年3月31日) | S100LPPG | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LPPG,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).