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Kobe Steel Ltd (JP:5406)
:5406
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Kobe Steel (5406) Price & Analysis

3 Followers

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
Deleveraging / Balance Sheet ResilienceA materially lower debt-to-equity ratio versus earlier years increases financial flexibility and resilience in a cyclical steel industry. This durable improvement reduces refinancing risk, supports investment or M&A optionality, and strengthens the company's ability to withstand demand downturns without forcing asset sales or deep cuts to capex.
Improved Profitability & MarginsSustained margin recovery since FY2023 indicates better pricing, cost control, or mix toward higher-value products. Higher and more stable operating margins provide a lasting earnings buffer in downturns, support reinvestment and dividends, and imply improved operational discipline that can compound returns over multiple cycles.
Diversified Industrial Portfolio & Strategic Tie-upsA diversified business mix (steel, aluminum, welding, machinery, engineering) combined with strategic investments in physical AI expands exposure to higher-value, tech-enabled applications. This structural move can create long-term OEM partnerships, boost aftermarket/service revenue, and help shift mix toward less cyclical, higher-margin offerings.
Bears Say
Revenue SoftnessA decline in top-line sales in FY2026 signals demand weakness or competitive pressure in core markets. In a capital-intensive materials business, prolonged revenue weakness can reduce capacity utilization, erode scale economics, and make it harder to sustain investment and employment levels, increasing cyclicality risk over the medium term.
Margin Compression From FY2024 HighsEasing margins from their FY2024 peak suggest the company has less pricing power or is facing higher input costs. This structural margin pressure reduces the earnings cushion against downturns, limits ability to fund growth organically, and increases sensitivity to commodity cycles and customer mix shifts over the medium term.
Inconsistent Free Cash Flow ConversionVolatile free cash flow conversion reflects working-capital swings and lumpy investment needs, undermining predictability of internal funding for capex, debt reduction, and dividends. In cyclical industries this inconsistency can force external financing in weaker periods and constrain long-term strategic planning.

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 ¥1503.50 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 ¥739.64B.
      When is Kobe Steel Ltd’s upcoming earnings report date?
      Kobe Steel Ltd’s upcoming earnings report date is Aug 11, 2026 which is in 82 days.
        How were Kobe Steel Ltd’s earnings last quarter?
        Kobe Steel Ltd released its earnings results on May 11, 2026. The company reported ¥23.69 earnings per share for the quarter, beating the consensus estimate of ¥23.453 by ¥0.237.
          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 is 64.42.
                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 ¥23.69 in its last earnings report, beating expectations of ¥23.453. Following the earnings report the stock price went up 3.872%.
                    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

                      ¥1,960.00
                      ▼(-11.69% Downside)
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