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

• Market Cap: ¥2.69B
• Dividend Yield: 2.8%
• Average Volume (3M): 7.71K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.44
• Revenue Growth: 3.89%
• EPS Growth: N/A
• Country: JP
• Employees: 375
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.52
• Shares Outstanding: 2,992,999
• 10 Day Avg. Volume: 6,940
• 30 Day Avg. Volume: 7,710
• PEG Ratio: -0.04
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 2.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥974.00 ▲(7.62% Upside)

The overall stock score of 68 reflects a strong valuation and solid financial performance, which are offset by bearish technical indicators. The low P/E ratio and attractive dividend yield are significant positives, but the current market momentum suggests caution due to the oversold condition and downward price trend.

Positive Factors

Revenue Growth

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

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Dijet to invest in growth opportunities and manage debt effectively.

Profitability Margins

Improved margins reflect better operational efficiency, which can lead to sustainable profitability and competitive advantage over time.

Negative Factors

Debt Levels

While leverage is balanced, monitoring debt levels is crucial to prevent financial strain and ensure long-term stability.

Net Profit Margin

Low net profit margins suggest potential inefficiencies in cost management, which could affect long-term profitability if not addressed.

Market Conditions

Bearish market conditions may reflect broader industry challenges, potentially impacting Dijet's ability to maintain growth momentum.

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

Company Description

Dijet Industrial Co., Ltd. (6138) is a leading manufacturer based in Taiwan, specializing in the production of cutting tools and solutions for various industrial applications. The company is prominent in sectors such as metalworking, automotive, and aerospace, offering a diverse range of products including carbide cutting tools, high-speed steel tools, and customized machining solutions. Dijet is committed to innovation and quality, ensuring its products meet the stringent demands of its global customer base.

How the Company Makes Money

Dijet Industrial Co., Ltd. generates revenue primarily through the sale of its cutting tools and related products. The company's revenue model is based on direct sales to manufacturers and distributors in various industries, including automotive and aerospace. Key revenue streams include standard cutting tools, custom tooling solutions, and related services such as tool design and optimization. Dijet also benefits from strategic partnerships with industry leaders and distributors, which help expand its market reach and enhance its product offerings. The company's focus on research and development allows it to maintain a competitive edge, driving sales through innovative and high-quality products.

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	9.00B	8.79B	8.34B	8.80B	8.07B	7.09B
Gross Profit	3.19B	3.01B	2.71B	2.92B	2.34B	1.85B
EBITDA	1.45B	1.27B	1.24B	1.48B	1.08B	566.00M
Net Income	376.47M	205.42M	-130.97M	362.28M	64.77M	-643.49M
Balance Sheet
Total Assets	16.31B	15.96B	16.47B	16.39B	16.08B	16.15B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.35B	1.39B	1.24B	1.20B	1.58B
Total Debt	5.56B	5.31B	6.00B	6.09B	6.20B	6.45B
Total Liabilities	8.36B	8.02B	8.66B	8.89B	8.90B	9.20B
Stockholders Equity	7.95B	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: Negative
• Last Price: 905.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 905 is below the 20-day moving average (MA) of 914.45, below the 50-day MA of 998.74, and above the 200-day MA of 858.64, indicating a neutral trend. The MACD of -29.89 indicates Negative momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6998	71 Outperform	¥7.42B	10.77	―	3.43%	0.24%	20.23%
6138	68 Neutral	¥2.69B	7.48	―	2.80%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.44	―	2.72%	-17.16%	-47.34%
5858	62 Neutral	¥3.33B	10.80	―	0.85%	15.18%	-10.95%
2962	46 Neutral	¥3.68B	―	―	―	-19.32%	-171.53%
6433	43 Neutral	¥3.94B	-18.91	―	0.23%	-10.82%	-69.03%