Company DescriptionJFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company's Engineering segment engages in the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects. Its Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JFE Holdings Financial Statement Overview

Summary

JFE Holdings demonstrates a solid recovery and improved financial health across its financial statements. The company enhanced its profitability and cash flow metrics, crucial for sustaining operations in the cyclical steel industry. Despite a high debt-to-equity ratio, improvements in margins and cash flow generation provide a positive outlook.

Income Statement

Positive

JFE Holdings shows a strong recovery in its profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 11.43% and the net profit margin is about 2.70%. The revenue growth rate from the previous year is negative, but the company managed to improve its EBIT and EBITDA margins to 4.43% and 7.07%, respectively. The steel industry is cyclical, and these figures suggest improved operational efficiency and cost management.

Balance Sheet

Positive

The company's balance sheet reflects a high debt-to-equity ratio of approximately 0.78, indicating substantial leverage. However, the return on equity (ROE) has improved to 5.37%, showing better profitability on shareholders' investments. The equity ratio stands at 44.10%, suggesting a balanced approach between debt and equity financing. While leverage remains a risk, the improved ROE is a positive sign.

Cash Flow

Positive

JFE Holdings has shown a significant increase in free cash flow, with a free cash flow growth rate of over 43% from the previous year. The operating cash flow to net income ratio is robust at 2.33, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio stands at 1.59, suggesting healthy conversion of profits into cash flow. This stability in cash flow is crucial for managing high debt levels.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
4.98T	5.17T	5.27T	4.37T	3.23T	3.73T
	Gross Profit
569.67B	656.18B	609.42B	670.46B	314.52B	395.61B
	EBIT
220.69B	247.50B	225.09B	-400.19B	7.57B	-200.93B
	EBITDA
352.64B	566.15B	492.24B	569.06B	231.37B	33.38B
	Net Income Common Stockholders
134.60B	197.42B	162.62B	288.06B	-21.87B	-197.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
149.64B	243.08B	138.33B	124.60B	155.78B	93.01B
	Total Assets
5.69T	5.75T	5.52T	5.29T	4.65T	4.65T
	Total Debt
1.95T	1.83T	1.86T	1.85T	1.81T	1.81T
	Net Debt
1.80T	1.59T	1.74T	1.75T	1.66T	1.73T
	Total Liabilities
3.13T	3.22T	3.33T	3.22T	2.89T	2.94T
	Stockholders Equity
2.51T	2.46T	2.12T	1.99T	1.68T	1.63T
Cash Flow		Free Cash Flow
213.88B	149.14B	106.60B	-14.59B	-60.85B	-91.77B
	Operating Cash Flow
313.06B	478.97B	395.80B	298.74B	247.27B	261.07B
	Investing Cash Flow
-94.64B	-325.26B	-274.31B	-288.03B	-164.22B	-358.38B
	Financing Cash Flow
-99.69B	-45.49B	-110.17B	-57.43B	-30.09B	103.90B

JFE Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JFEEF		$7.06B	13.79	3.62%	5.08%	―	―
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%
DDL		€1.31B	7.30	6.56%	4.84%	―	―
KBSTF		$4.40B	6.91	10.71%	4.80%	―	―
NISTF		$20.88B	9.16	6.77%	5.03%	―	―
TOKSF		$1.13B	7.37	10.08%	3.46%	―	―
5449	57 Neutral	¥103.65B	32.12		1.28%	-0.60%	3.40%

* Basic Materials Sector Average

Performance Comparison

JFEEF

JFE Holdings

13.06

-0.96

-6.85%

DE:DDL

Daido Steel Co

6.00

-2.45

-28.99%

KBSTF

Kobe Steel

13.80

1.77

14.71%

NISTF

NIPPON STEEL

20.45

-0.26

-1.26%

TOKSF

Tokyo Steel Manufacturing Co

9.58

3.56

59.14%

JP:5449

OSAKA STEEL CO., LTD.

2,652.00

293.16

12.43%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.