Strong Cash Generation (free Cash Flow)A >100% jump in free cash flow and an operating-cash-to-net-income ratio of 6.84 indicate durable cash conversion. Sustained FCF improves ability to fund capex, R&D, dividends, and debt service without reliance on external financing, strengthening medium-term financial flexibility.

Moderate Leverage And Stable Capital StructureA debt-to-equity near 0.67 and ~50% equity ratio suggest balanced leverage that supports investment while limiting solvency risk. This capital structure allows the company to manage growth and cyclicality over months without excessive refinancing pressure, preserving strategic optionality.

Improving Margins With Steady Revenue GrowthPositive top-line growth alongside rising gross margin reflects better operational efficiency and product mix. Even with a low net margin, the trend of improving profitability supports longer-term margin expansion potential from higher-value inserts and cost controls, aiding sustainable earnings.

Bears Say

Low Net Profit MarginA sub-3% net margin leaves limited buffer against cost shocks or volume declines. Persistently thin bottom-line profitability constrains reinvestment and dividend flexibility, and requires continued efficiency gains to meaningfully improve retained earnings and capital resilience over months.

High Exposure To Tungsten/raw Material CostsProduct economics depend on tungsten/carbide input prices, which can be volatile. Structural raw-material exposure can erode gross margins if price increases are sustained and difficult to fully pass to customers, posing a persistent operational margin risk over the medium term.

Cyclicality Of End-market DemandRevenue tied to cyclical manufacturing and automotive machining creates sensitivity to industrial cycles. Reduced OEM or machining activity can cut consumable insert replacements and tooling orders, producing multi-month volatility in sales and cash flow under weaker macro conditions.

6138 FAQ

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

Dijet Industrial Co., Ltd. lowest stock price was ¥620.00 and its highest was ¥1244.00 in the past 12 months.

What is Dijet Industrial Co., Ltd.’s market cap?

Dijet Industrial Co., Ltd.’s market cap is ¥3.65B.

When is Dijet Industrial Co., Ltd.’s upcoming earnings report date?

Dijet Industrial Co., Ltd.’s upcoming earnings report date is May 19, 2026 which is in 88 days.

How were Dijet Industrial Co., Ltd.’s earnings last quarter?

Dijet Industrial Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥86.31 earnings per share for the quarter, beating the consensus estimate of N/A by ¥86.31.

Is Dijet Industrial Co., Ltd. overvalued?

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

Does Dijet Industrial Co., Ltd. pay dividends?

Dijet Industrial Co., Ltd. pays a Annually dividend of ¥40 which represents an annual dividend yield of 2.66%. See more information on Dijet Industrial Co., Ltd. dividends here

What is Dijet Industrial Co., Ltd.’s EPS estimate?

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

How many shares outstanding does Dijet Industrial Co., Ltd. have?

Dijet Industrial Co., Ltd. has 2,992,999 shares outstanding.

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

Dijet Industrial Co., Ltd. reported an EPS of ¥86.31 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.192%.

Which hedge fund is a major shareholder of Dijet Industrial Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6138

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

Dijet Industrial Co., Ltd.

Dijet Industrial Co., Ltd. engages in the manufacture and sale of cemented carbide tools worldwide. It offers tuff modular system, drill, indexable and solid end mill, face mill, coated and non-coated inserts, sintered CBN and diamond inserts, cermet inserts, and wear and impact resistant tool products. The company was formerly known as Hyakunen Industrial Co., Ltd. and changed its name to Dijet Industrial Co., Ltd. in June 1954. Dijet Industrial Co., Ltd. was founded in 1938 and is headquartered in Osaka, Japan.