Dijet Industrial Co., Ltd. (6138) AI Stock Analysis

• Market Cap: ¥3.28B
• Dividend Yield: 2.26%
• Average Volume (3M): 8.60K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.37
• Revenue Growth: 8.06%
• EPS Growth: N/A
• Country: JP
• Employees: 375
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 53.58
• Shares Outstanding: 2,992,999
• 10 Day Avg. Volume: 7,340
• 30 Day Avg. Volume: 8,603
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,102.00
• Price Target Upside: -0.54% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,102.00 ▼(-0.54% Downside)

The overall stock score of 72 reflects a combination of solid financial performance and attractive valuation. The company's strong cash flow and revenue growth are positive indicators, while the low P/E ratio and decent dividend yield suggest undervaluation. However, technical indicators point to potential short-term overbought conditions, which could lead to a pullback.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Dijet's products, supporting long-term business expansion and market presence.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Dijet to invest in R&D and manage debt effectively, supporting sustainable growth.

Profitability Margins

Improved profitability margins reflect operational efficiency, allowing Dijet to reinvest in innovation and maintain competitive pricing.

Negative Factors

Debt Levels

While leverage is balanced, monitoring debt levels is crucial to ensure long-term financial stability and avoid potential cash flow constraints.

Net Profit Margin

Low net profit margins suggest potential inefficiencies, which could limit profitability and require strategic cost management to enhance earnings.

Balance Sheet Stability

While the capital structure is stable, maintaining balance sheet strength is essential to support growth initiatives and withstand economic fluctuations.

Dijet Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Dijet Industrial Co., Ltd. (6138) is a leading Japanese manufacturer specializing in the production of cutting tools and industrial components. The company operates primarily in the manufacturing sector, focusing on producing high-precision tools such as carbide cutting tools, end mills, and drills, which are essential for the automotive, aerospace, and machinery industries. Dijet Industrial is known for its innovation in tool technology, offering a wide range of products that cater to various machining needs and industrial applications.

How the Company Makes Money

Dijet Industrial Co., Ltd. generates revenue primarily through the manufacturing and sale of its cutting tools and industrial components. The company's key revenue streams include direct sales to industrial clients in the automotive, aerospace, and machinery sectors, as well as through distributors and retailers who supply to smaller manufacturing operations. Dijet leverages its advanced technology and reputation for quality to maintain strong relationships with major industrial clients, which are significant contributors to its earnings. Additionally, the company invests in research and development to innovate and expand its product offerings, ensuring it meets the evolving needs of its customers and maintains a competitive edge in the market.

Dijet Industrial Co., Ltd. Financial Statement Overview

Summary

Dijet Industrial Co., Ltd. demonstrates solid financial health characterized by revenue growth, improved profitability margins, and strong cash flow generation. While the balance sheet is stable, attention should be given to managing debt levels and further enhancing profitability to ensure sustainable growth.

Income Statement

The income statement shows a steady increase in revenue with a 5.38% growth in the latest year. Gross and net profit margins have improved to 34.24% and 2.34% respectively, reflecting better operational efficiency. However, the net profit margin remains relatively low, indicating room for improvement in cost management.

Balance Sheet

The balance sheet is moderately strong with a debt-to-equity ratio of 0.67, indicating a balanced leverage position. The equity ratio stands at 49.75%, showing a stable capital structure. However, there is a need to monitor the debt levels to ensure long-term stability.

Cash Flow

Cash flow performance is robust with a significant increase in free cash flow by 104.09%. The operating cash flow to net income ratio is favorable at 6.84, highlighting strong cash generation relative to net income. However, continued focus on maintaining positive free cash flow is essential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.79B	8.79B	8.34B	8.80B	8.07B	7.09B
Gross Profit	3.01B	3.01B	2.71B	2.92B	2.34B	1.85B
EBITDA	1.27B	1.27B	1.24B	1.48B	1.08B	566.00M
Net Income	205.26M	205.42M	-130.97M	362.28M	64.77M	-643.49M
Balance Sheet
Total Assets	15.96B	15.96B	16.47B	16.39B	16.08B	16.15B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.35B	1.39B	1.24B	1.20B	1.58B
Total Debt	5.31B	5.31B	6.00B	6.09B	6.20B	6.45B
Total Liabilities	8.02B	8.02B	8.66B	8.89B	8.90B	9.20B
Stockholders Equity	7.94B	7.94B	7.80B	7.50B	7.18B	6.95B
Cash Flow
Free Cash Flow	0.00	915.05M	448.30M	269.89M	-295.09M	87.66M
Operating Cash Flow	0.00	1.40B	718.22M	692.19M	104.52M	1.17B
Investing Cash Flow	0.00	-519.82M	-263.12M	-327.35M	-15.03M	-1.07B
Financing Cash Flow	0.00	-924.17M	-343.70M	-341.69M	-477.60M	213.20M

Dijet Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1108.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6138, the sentiment is Positive. The current price of 1108 is above the 20-day moving average (MA) of 1077.55, above the 50-day MA of 966.12, and above the 200-day MA of 772.90, indicating a bullish trend. The MACD of 41.10 indicates Positive momentum. The RSI at 68.16 is Neutral, neither overbought nor oversold. The STOCH value of 86.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6138.

Dijet Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5858	80 Outperform	¥3.60B	7.44		0.87%	23.97%	120.19%
6998	78 Outperform	¥6.82B	9.90		3.62%	4.95%	24.62%
6138	72 Outperform	¥3.28B	8.69		2.26%	8.06%	―
6150	72 Outperform	¥2.75B	9.50		2.67%	-10.50%	-31.23%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
6433	54 Neutral	¥2.90B	―		0.21%	-5.80%	2.65%
2962	38 Underperform	¥2.42B	―		―	-28.21%	-396.64%