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Kobe Steel Ltd (JP:5406)
:5406

Kobe Steel (5406) Price & Analysis

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5406 Stock Chart & Stats

¥2219.50
-¥6.50(-0.41%)
At close: 4:00 PM EST
¥2219.50
-¥6.50(-0.41%)

Bulls Say, Bears Say

Bulls Say
Diversified Business ModelKobe Steel’s multi-segment footprint (metals, advanced materials, machinery/engineering) spreads cyclical risk across end markets like automotive, construction and energy. This durable diversification supports steadier revenue streams, cross-selling, and investment prioritization over a 2–6 month horizon and beyond.
Sustained Profitability And MarginsConsistently robust gross and operating margins indicate structural cost competitiveness and product mix toward higher-value items. Sustained profitability provides internal funding for capex and R&D, supports margin resilience in downturns, and underpins long-term competitiveness against lower-cost commodity producers.
Strong Cash GenerationHigh cash conversion from operations versus reported earnings gives Kobe Steel durable financial flexibility: funds maintenance capex, debt servicing, dividends and selective investments into advanced materials or machinery. Reliable OCF supports strategic execution even if near-term revenue softens.
Bears Say
Recent Revenue DeclineA negative revenue growth rate signals emerging demand softness or loss of volume in core steel/aluminum markets. Over a multi-month horizon, declining top-line pressures margins, reduces operating leverage benefits, and constrains the company’s ability to fund growth initiatives without relying on balance sheet adjustments.
Volatile Free Cash FlowVariability in free cash flow complicates medium-term planning: it can force trade-offs between dividends, capex and debt reduction. In a cyclical industry like steel, inconsistent FCF reduces the firm’s ability to sustain investments in higher-margin advanced materials or service capabilities when revenues dip.
Material Absolute Debt BurdenWhile leverage ratios appear balanced, the statement that total debt remains significant indicates refinancing and interest-cost risk. In prolonged industry weakness, sizable absolute debt can limit strategic flexibility, increase vulnerability to rate rises, and constrain opportunistic M&A or capex funding.

Kobe Steel News

5406 FAQ

What was Kobe Steel Ltd’s price range in the past 12 months?
Kobe Steel Ltd lowest stock price was ¥1446.50 and its highest was ¥2379.50 in the past 12 months.
    What is Kobe Steel Ltd’s market cap?
    Kobe Steel Ltd’s market cap is ¥879.20B.
      When is Kobe Steel Ltd’s upcoming earnings report date?
      Kobe Steel Ltd’s upcoming earnings report date is May 07, 2026 which is in 78 days.
        How were Kobe Steel Ltd’s earnings last quarter?
        Kobe Steel Ltd released its earnings results on Feb 06, 2026. The company reported ¥54.62 earnings per share for the quarter, missing the consensus estimate of ¥70.857 by -¥16.237.
          Is Kobe Steel Ltd overvalued?
          According to Wall Street analysts Kobe Steel Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Kobe Steel Ltd pay dividends?
            Kobe Steel Ltd pays a Semiannually dividend of ¥40 which represents an annual dividend yield of 4.68%. See more information on Kobe Steel Ltd dividends here
              What is Kobe Steel Ltd’s EPS estimate?
              Kobe Steel Ltd’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Kobe Steel Ltd have?
              Kobe Steel Ltd has 396,345,980 shares outstanding.
                What happened to Kobe Steel Ltd’s price movement after its last earnings report?
                Kobe Steel Ltd reported an EPS of ¥54.62 in its last earnings report, missing expectations of ¥70.857. Following the earnings report the stock price went up 0.803%.
                  Which hedge fund is a major shareholder of Kobe Steel Ltd?
                  Currently, no hedge funds are holding shares in JP:5406
                  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

                    Kobe Steel Ltd

                    Kobe Steel, Ltd. engages in the materials, machinery, and electric power businesses in Japan, North and South Americas, Europe, the Middle East, rest of Asia, and Oceania. The company offers steel sheet products, including high-tensile strength, hot rolled, cold rolled, electro-galvanized, and hot-dipped galvanized steel sheets; steel wire rods and bars; and aluminum and steel plates. It also provides steel casting and forging products, such as crankshafts, marine parts, chemical processing equipment, and rolls, as well as materials for plastic molding; and titanium products, copper sheets and strips, and steel powders. In addition, the company offers robots and electric power sources, and welding materials; and machinery products, such as standard compressors, tire and rubber machinery products, rotating machinery products, plastic processing machinery products, advanced technology equipment, rolling mill products, and ultra high pressure equipment, as well as LNG vaporizers, pressure vessels, brazed aluminum heat exchangers, and micro channel heat exchanger and reactors. Further, it provides signaling, communication, power supply, automatic fare collection, and platform screen door systems; hydraulic and mini hydraulic excavators, mini wheel loaders, and road machinery; construction, metal, forestry, and industrial waste recycling machinery; and crawler and wheel cranes. Additionally, the company generates and supplies electric power; offers material and structural analysis, testing, physical analysis, and other services; manufactures and sells target materials and test equipment; sells and rents detached homes; and provides brokerage, renovation, insurance, and other services, as well as operational management services of public facilities. It also offers services in the field of iron units; and water treatment, waste incineration, PCB detoxification, and soil remediation services. The company was founded in 1905 and is headquartered in Kobe, Japan.

                    Kobe Steel (5406) Earnings & Revenues

                    5406 Stock 12 Month Forecast

                    Average Price Target

                    ¥2,066.67
                    ▼(-6.89% Downside)
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