Conservative Balance Sheet / Low LeverageA debt-to-equity ratio of 0.076 indicates very low leverage, giving the company durable financial flexibility to absorb shocks, fund capex or dividends, and pursue selective M&A without materially increasing financial risk over the next several quarters.

Healthy Margins And Steady RevenueSustained gross margin near 37.5% and a double-digit net margin provide a durable earnings base, supporting reinvestment and cash generation. Combined with continued revenue growth, margins underpin long-term competitive positioning and pricing power.

Improving Cash Flow GenerationA marked turnaround in free cash flow and an OCF/net income ratio of 0.67 signal improving ability to convert earnings into cash. If sustained, this supports durable investments, lower external financing need, and more predictable shareholder distributions.

Bears Say

Pressure On Operating MarginsDeclining EBIT/EBITDA margins point to rising input or operating costs or limited pass-through pricing. If these trends persist, they could erode operating leverage, reduce cash available for reinvestment, and pressure long-term profitability.

Low Free Cash Flow ConversionA FCF/net income ratio around 0.28 means a large portion of accounting profit isn't becoming discretionary cash. Over months, weak conversion limits capacity to sustainably increase dividends, pay down debt, or fund growth without external financing.

Modest Return On EquityAn ROE near 6.8% is modest for a specialty chemicals business. Persistently moderate ROE can constrain long-term shareholder returns and suggests the company may struggle to generate high incremental returns on capital compared with higher-return peers.

4976 FAQ

What was Toyo Drilube Co., Ltd.’s price range in the past 12 months?

Toyo Drilube Co., Ltd. lowest stock price was ¥1006.67 and its highest was ¥1615.00 in the past 12 months.

What is Toyo Drilube Co., Ltd.’s market cap?

Toyo Drilube Co., Ltd.’s market cap is ¥6.25B.

When is Toyo Drilube Co., Ltd.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were Toyo Drilube Co., Ltd.’s earnings last quarter?

Currently, no data Available

Is Toyo Drilube Co., Ltd. overvalued?

According to Wall Street analysts Toyo Drilube Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Toyo Drilube Co., Ltd. pay dividends?

Toyo Drilube Co., Ltd. pays a Notavailable dividend of ¥50 which represents an annual dividend yield of 2.32%. See more information on Toyo Drilube Co., Ltd. dividends here

What is Toyo Drilube Co., Ltd.’s EPS estimate?

Toyo Drilube Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Toyo Drilube Co., Ltd. have?

Toyo Drilube Co., Ltd. has 4,065,000 shares outstanding.

What happened to Toyo Drilube Co., Ltd.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Toyo Drilube Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4976

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Toyo Drilube Co., Ltd.

Toyo Drilube Co., Ltd. engages in the research and development, manufacture, coating processing, and sale of solid film lubricants and function film coating agents in Japan and internationally. Its solid film lubricants are formulated with solid lubricants, such as molybdenum disulfide, fluorine resin, or graphite; and dispersed in binders. The company also exports lube products. It serves automobile, optical, electric/electronic, and office automation equipment. Toyo Drilube Co., Ltd. was incorporated in 1962 and is headquartered in Tokyo, Japan.