Want to see JP:5401 full AI Analyst Report?
Top Page
NIPPON STEEL
(5401)
Select Model
Select Model
Rating:50Neutral
Price Target:
¥672.00
▲(8.93% Upside)
Action:Reiterated
Date:05/17/26
The score is held down primarily by deteriorating financial quality (sharp margin/ROE decline, higher leverage, and negative free cash flow) and weak technical trend signals. Valuation is a partial offset, supported by a moderate P/E and a very high dividend yield.
Positive Factors
Diversified integrated steel platform
Nippon Steel's integrated footprint across raw steel, downstream processing and engineering creates durable revenue streams across autos, construction, shipbuilding and energy. This vertical breadth supports cross-cycle demand capture, downstream value capture and customer lock‑in over months to years.
Negative Factors
Sharp margin deterioration
Margins collapsing to single digits erode profitability sustainably, reducing internal funding for capex and dividends. Persistent margin pressure signals weaker pricing power or higher input costs, harming ROE and operational resilience across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified integrated steel platform
Nippon Steel's integrated footprint across raw steel, downstream processing and engineering creates durable revenue streams across autos, construction, shipbuilding and energy. This vertical breadth supports cross-cycle demand capture, downstream value capture and customer lock‑in over months to years.
Read all positive factors
NIPPON STEEL (5401) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.47T
Dividend Yield11.08%
Average Volume (3M)20.68M
Price to Earnings (P/E)198.0
Beta (1Y)0.67
Revenue Growth15.73%
EPS Growth-95.40%
CountryJP
Employees138,453
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)3.28
Shares Outstanding5,373,634,000
10 Day Avg. Volume19,655,670
30 Day Avg. Volume20,676,073
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)0.54
Price to Sales (P/S)0.30
P/FCF Ratio-17.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)49.28
Revenue Forecast (FY)¥11.21T
NIPPON STEEL Business Overview & Revenue Model
Company Description
Nippon Steel Corporation, a Tokyo-headquartered enterprise founded in 1950, conducts diverse industrial operations across Japan and globally. The company, which rebranded from Nippon Steel & Sumitomo Metal Corporation in April 2019, focuses its bu...
How the Company Makes Money
Nippon Steel primarily makes money by manufacturing and selling steel and steel-related products to customers in Japan and overseas. Its core revenue stream is the sale of steel products (e.g., sheet/plate used in automobiles, appliances, and indu...
NIPPON STEEL Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.06T | 8.70T | 8.87T | 7.98T | 6.81T |
| Gross Profit | 1.44T | 1.37T | 1.39T | 1.29T | 1.22T |
| EBITDA | 847.95B | 970.15B | 1.04T | 1.10T | 1.03T |
| Net Income | 17.16B | 350.23B | 549.37B | 694.02B | 637.32B |
Balance Sheet | |||||
| Total Assets | 14.66T | 10.94T | 10.71T | 9.57T | 8.75T |
| Cash, Cash Equivalents and Short-Term Investments | 461.26B | 696.31B | 464.91B | 687.96B | 572.38B |
| Total Debt | 5.17T | 2.51T | 2.71T | 2.70T | 2.65T |
| Total Liabilities | 8.64T | 5.04T | 5.36T | 4.92T | 4.86T |
| Stockholders Equity | 5.53T | 5.38T | 4.78T | 4.18T | 3.47T |
Cash Flow | |||||
| Free Cash Flow | -172.72B | 360.40B | 543.81B | 191.26B | 148.73B |
| Operating Cash Flow | 716.94B | 978.59B | 1.01T | 661.27B | 615.63B |
| Investing Cash Flow | -2.84T | -462.43B | -710.65B | -364.66B | -375.98B |
| Financing Cash Flow | 1.89T | -313.33B | -543.95B | -199.58B | -64.19B |
NIPPON STEEL Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥816.50B | 8.73 | 7.80% | 4.03% | -4.64% | -21.93% | |
63 Neutral | ¥189.25B | 17.46 | 5.08% | 1.80% | 2.78% | 24.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥468.16B | 12.92 | 7.28% | 2.99% | 4.19% | 31.79% | |
60 Neutral | ¥193.51B | 18.70 | 4.46% | 2.87% | -12.89% | -45.51% | |
50 Neutral | ¥3.47T | 198.05 | 0.33% | 11.30% | 15.73% | -95.40% | |
49 Neutral | ¥1.09T | 16.48 | 2.76% | 4.46% | -6.59% | -23.63% |
* Basic Materials Sector Average
JP:5401
NIPPON STEEL
683.50
118.85
21.05%
JP:5471
Daido Steel Co
2,300.00
1,120.31
94.97%
JP:5411
JFE Holdings
1,858.50
190.42
11.42%
JP:5406
Kobe Steel
2,016.50
382.47
23.41%
JP:5423
Tokyo Steel Manufacturing Co
1,752.00
191.61
12.28%
JP:5482
Aichi Steel Corporation
3,195.00
877.15
37.84%
NIPPON STEEL Corporate Events
Nippon Steel Lifts Full-Year Profit Outlook on Strong U.S. Steel Gains
Aug 4, 2026
Nippon Steel Corporation has raised its consolidated forecasts for the fiscal year ending March 31, 2027, signaling stronger expected performance despite a more challenging external environment. The company now projects revenue of 5.6 trillion yen...
Nippon Steel lifts profit outlook as overseas steel gains offset domestic softness
Aug 4, 2026
Nippon Steel reported a sharp year-on-year rise in consolidated revenue to ¥2.82 trillion for the three months ended June 30, 2026, driven largely by overseas operations, including contributions from U.S. Steel, and a sizable positive swing i...
Nippon Steel Swings Back to Profit and Lifts Full-Year Outlook
Aug 4, 2026
Nippon Steel posted a sharp turnaround for the quarter ended June 30, 2026, with revenue rising 40.4% year on year to ¥2.82 trillion and business profit surging 58.1% to ¥145.5 billion, reversing heavy losses recorded in the same period ...
Nippon Steel Lowers Convertible Bond Conversion Prices After Dividend Payout
Jun 23, 2026
Nippon Steel has adjusted the conversion prices on its zero coupon convertible bonds due 2029 and 2031, lowering them to ¥716.9 and ¥723.5 respectively, effective April 1, 2026. The move alters the terms under which bondholders can conve...
Nippon Steel Board Rejects Shareholder Proposal on Subsidiary Governance
May 21, 2026
Nippon Steel’s board has formally opposed a shareholder proposal submitted by two investors holding less than 0.01% of voting rights, which was slated for discussion at the company’s upcoming general meeting. The board argues that the ...
Nippon Steel to Absorb Sanyo Special Steel in 2027 to Boost Global Specialty Steel Strategy
May 13, 2026
Nippon Steel will absorb its wholly owned subsidiary Sanyo Special Steel in an April 1, 2027, simplified merger, dissolving Sanyo Special Steel without issuing new shares or cash. The move follows Nippon Steel’s 2025 acquisition of full owne...
Nippon Steel Swings to Surprise Profit, Beating Forecasts but Lagging Prior Year
May 13, 2026
Nippon Steel reported consolidated revenue of ¥10.06 trillion for the fiscal year ended March 31, 2026, slightly above its prior forecast, while business profit beat expectations by more than 22% and profit attributable to owners of the paren...
Nippon Steel Posts Solid Underlying Earnings but Profit Hit by Restructuring Charges
May 13, 2026
Nippon Steel reported consolidated revenue of ¥10,063.2 billion for the fiscal year ended March 31, 2026, with business profit of ¥514.1 billion and profit attributable to owners of the parent of ¥17.1 billion, as large reorganizati...
Nippon Steel Profits Plunge Despite Higher Revenue as It Consolidates U.S. Steel and Eyes 2027 Rebound
May 13, 2026
Nippon Steel reported a 15.7% rise in revenue to ¥10.06 trillion for the year ended March 31, 2026, but business profit fell 24.8% and operating profit dropped 55.7%, with profit attributable to owners plunging 95.1% and basic earnings per sh...
Osaka Steel Misses Forecasts, Books Heavy Loss on Subsidiary Exit
May 12, 2026
Nippon Steel said its subsidiary Osaka Steel reported significant discrepancies between its non-consolidated financial forecasts and actual results for the fiscal year ended March 31, 2026, but the parent company expects the impact on its consolid...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.