NIPPON STEEL (5401) AI Stock Analysis

• Market Cap: $3.36T
• Dividend Yield: 4.5%
• Average Volume (3M): 20.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 1.31%
• EPS Growth: -101.19%
• Country: JP
• Employees: 113,639
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 15.78
• Shares Outstanding: 5,373,634,000
• 10 Day Avg. Volume: 19,655,670
• 30 Day Avg. Volume: 20,676,073
• PEG Ratio: -0.27
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 8.85
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 6.05
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: $3,020.52
• Price Target Upside: 387.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥655.00 ▲(5.66% Upside)

Nippon Steel's overall stock score reflects strong financial performance and operational efficiency, tempered by technical indicators suggesting short-term weakness and a negative P/E ratio. The attractive dividend yield provides some support, but valuation concerns and market momentum weigh on the score.

Positive Factors

Cash Generation Ability

Strong operating cash flows indicate efficient operations and the ability to fund growth initiatives and manage debt, supporting long-term stability.

Operational Efficiency

Operational efficiency enhances profitability and competitiveness, allowing the company to better navigate market fluctuations and sustain growth.

Balance Sheet Health

Balanced leverage and improved return on equity suggest effective capital management, providing financial stability and flexibility for future investments.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term financial performance.

High Capital Expenditures

High capital expenditures may strain cash flow, limiting the ability to invest in new opportunities or return capital to shareholders, affecting future growth.

Net Profit Margin Fluctuations

Fluctuating net profit margins can indicate instability in cost management or pricing power, posing risks to consistent profitability and financial health.

NIPPON STEEL Business Overview & Revenue Model

Company Description

NIPPON STEEL Corporation (5401) is one of the largest steel producers in Japan and a global leader in the steel industry. The company operates across various sectors including construction, automotive, energy, and machinery, providing a wide range of steel products. Its core offerings include flat products, long products, specialty steels, and various raw materials used in steel production and processing.

How the Company Makes Money

NIPPON STEEL generates revenue primarily through the production and sale of steel products. The company has several key revenue streams, including flat steel products for automotive and construction sectors, long steel products for infrastructure projects, and specialty steels for high-performance applications. Additionally, NIPPON STEEL engages in joint ventures and partnerships with other companies in the automotive and energy sectors, which provide opportunities for collaborative projects and increased market penetration. The company's ability to innovate and adapt to market demands, such as developing high-strength and lightweight steel, also contributes to its earnings. Fluctuations in global steel prices and demand in key markets further influence its overall revenue performance.

NIPPON STEEL Financial Statement Overview

Summary

Nippon Steel exhibits a robust financial position with commendable revenue growth and operational efficiency. Strong cash flow generation and balanced leverage are positives, but improvements in net profit margin and capital expenditure management are needed.

Income Statement

Nippon Steel has shown a consistent revenue growth trend over the past few years, with a strong recovery from the dip in 2020. The gross profit margin remains healthy, indicating effective cost management. However, the net profit margin has seen fluctuations, reflective of varying cost pressures and economic conditions. Overall, the income statement reveals a solid financial performance with room for improvement in net profitability.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, indicating balanced leverage. Return on equity has improved over the years, showcasing effective utilization of equity. However, the equity ratio suggests a moderate reliance on liabilities, which could pose risks if economic conditions worsen. Overall, the balance sheet reflects stability with some areas to monitor regarding debt levels.

Cash Flow

Nippon Steel's cash flow statements demonstrate strong operating cash flows, comfortably covering net income, which suggests efficient operations. Although free cash flow has shown variability, the company's ability to generate cash is a positive sign. However, capital expenditures remain high, which could impact future free cash flow if not managed carefully.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.51T	8.70T	8.87T	7.98T	6.81T	4.83T
Gross Profit	1.31T	1.37T	1.39T	1.29T	1.22T	565.33B
EBITDA	687.81B	827.14B	1.02T	1.23T	958.96B	307.61B
Net Income	-3.17B	350.23B	549.37B	694.02B	637.32B	-32.43B
Balance Sheet
Total Assets	13.82T	10.94T	10.71T	9.57T	8.75T	7.57T
Cash, Cash Equivalents and Short-Term Investments	524.00B	696.31B	464.91B	687.96B	572.38B	359.46B
Total Debt	5.08T	2.51T	2.71T	2.70T	2.65T	2.56T
Total Liabilities	8.33T	5.04T	5.36T	4.92T	4.86T	4.44T
Stockholders Equity	4.99T	5.38T	4.78T	4.18T	3.47T	2.76T
Cash Flow
Free Cash Flow	0.00	360.40B	543.81B	191.26B	148.73B	-56.63B
Operating Cash Flow	0.00	978.59B	1.01T	661.27B	615.63B	403.19B
Investing Cash Flow	0.00	-462.43B	-710.65B	-364.66B	-375.98B	-389.04B
Financing Cash Flow	0.00	-313.33B	-543.95B	-199.58B	-64.19B	52.69B

NIPPON STEEL Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 619.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5401, the sentiment is Neutral. The current price of 619.9 is below the 20-day moving average (MA) of 620.70, above the 50-day MA of 617.64, and above the 200-day MA of 599.39, indicating a neutral trend. The MACD of 1.19 indicates Negative momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 59.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5401.

NIPPON STEEL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	82 Outperform	€296.91B	10.23	6.84%	3.07%	-0.02%	-40.45%
5406	80 Outperform	$709.57B	5.28	10.78%	4.79%	-1.97%	47.63%
5463	74 Outperform	¥344.77B	11.17	―	3.32%	-7.77%	58.84%
5423	73 Outperform	$147.86B	8.92	7.36%	3.51%	-18.72%	-25.26%
5401	63 Neutral	$3.36T	-10,379.54	-0.26%	4.50%	1.31%	-101.19%
5411	62 Neutral	$1.10T	15.30	2.92%	4.68%	-8.07%	-41.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

NIPPON STEEL Corporate Events

Nippon Steel Expands Tender Offer for Krosaki Harima to Include U.S.

Nippon Steel Corporation has announced an amendment to its planned tender offer for Krosaki Harima Corporation, now including the United States in its scope. This decision follows a reexamination of relevant laws and confirms compliance with U.S. regulations, potentially expanding the offer’s reach and impact on stakeholders, including U.S. investors.

Nippon Steel Revises Financial Forecasts Amid Market Uncertainties

Nippon Steel Corporation has revised its financial forecasts for the fiscal year ending March 31, 2026, reflecting a decrease in expected business profit and profit attributable to owners. Despite improvements in profitability through cost reductions, the company faces challenges due to market uncertainties in the U.S. and anticipated losses from the reorganization involving Usinas Siderúrgicas de Minas Gerais S.A. The revised forecast indicates a consolidated loss attributable to owners of the parent amounting to 60 billion yen, highlighting the impact of external market conditions on the company’s financial outlook.

Nippon Steel Reports Better-Than-Expected Revenue Amid Challenging Conditions

Nippon Steel Corporation announced a significant deviation between its actual financial results for the first half of the fiscal year ending March 31, 2026, and its previous forecasts. Despite challenging market conditions, the company achieved higher revenue and business profit than anticipated, attributed to successful cost reduction efforts. However, the profit attributable to owners of the parent remained negative, reflecting ongoing challenges in the industry.

Nippon Steel Reports Revenue Growth Amid Profit Decline and Strategic Adjustments

Nippon Steel Corporation reported a revenue increase of 5.8% for the six months ending September 30, 2025, but faced significant declines in profits, with a notable loss of 98,910 million yen. The company implemented a stock split and revised its financial forecasts, indicating a challenging fiscal environment and strategic adjustments, including the consolidation of United States Steel Corporation and its subsidiaries, which may impact future performance and stakeholder interests.

Osaka Steel Reports Decline in Financial Results Amid Construction Sector Challenges

Osaka Steel Co., Ltd., a subsidiary of Nippon Steel Corporation, reported significant declines in its financial results for the first half of fiscal 2025 compared to the previous year, primarily due to rising material costs and labor shortages, which have slowed demand recovery in the construction sector. Despite these challenges, the impact on Nippon Steel’s consolidated financial results for the fiscal year ending March 31, 2026, is considered immaterial, indicating limited effects on the parent company’s overall financial health.