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NIPPON STEEL CORP (JP:5401)
:5401
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NIPPON STEEL (5401) AI Stock Analysis

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JP:5401

NIPPON STEEL

(OTC:5401)

Rating:63Neutral
Price Target:
¥3,098.00
▲(2.58% Upside)
Nippon Steel's overall stock score is driven by its strong financial performance and operational efficiency, despite challenges in net profitability and high capital expenditures. Technical indicators suggest short-term bullish momentum, but valuation concerns due to a negative P/E ratio offset the attractive dividend yield.

NIPPON STEEL (5401) vs. iShares MSCI Japan ETF (EWJ)

NIPPON STEEL Business Overview & Revenue Model

Company DescriptionNippon Steel Corporation, together with its subsidiaries, engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company's steelmaking and steel fabrication business offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. Its engineering and construction business cover the manufacture and sale of industrial machinery; equipment and steel structures; construction projects under contract; waste processing and recycling; and supply of electricity, gas, and heat. The company's chemicals and materials comprise the manufacture and sale of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber and composite products, and products that utilize technologies for metal processing. Its system solutions business includes computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. Nippon Steel Corporation was founded in 1950 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNIPPON STEEL generates revenue primarily through the production and sale of steel products. Its key revenue streams include the sale of flat steel products such as sheets and plates, and long steel products like wire rods and pipes, which are essential for various industrial sectors. The company benefits from strategic partnerships with major industries, including automotive and construction, which drive demand for its products. Additionally, NIPPON STEEL invests in research and development to enhance its product offerings and maintain a competitive edge in the global market. The company's earnings are also influenced by factors such as raw material costs, production efficiency, and global steel market trends.

NIPPON STEEL Financial Statement Overview

Summary
Nippon Steel has demonstrated strong revenue growth and robust cash flow generation, indicating operational efficiency. The balance sheet reflects stability with balanced leverage, although improvements in net profit margin and management of capital expenditures are necessary.
Income Statement
78
Positive
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
70
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.70T8.87T7.98T6.81T4.83T
Gross Profit1.37T1.39T1.29T1.22T565.33B
EBITDA827.14B1.02T1.23T958.96B307.61B
Net Income350.23B549.37B694.02B637.32B-32.43B
Balance Sheet
Total Assets10.94T10.71T9.57T8.75T7.57T
Cash, Cash Equivalents and Short-Term Investments672.53B482.82B698.59B592.41B387.24B
Total Debt2.51T2.71T2.70T2.65T2.56T
Total Liabilities5.04T5.36T4.92T4.86T4.44T
Stockholders Equity5.38T4.78T4.18T3.47T2.76T
Cash Flow
Free Cash Flow360.40B543.81B191.26B148.73B-56.63B
Operating Cash Flow978.59B1.01T661.27B615.63B403.19B
Investing Cash Flow-462.43B-710.65B-366.58B-378.87B-389.04B
Financing Cash Flow-313.33B-543.95B-197.66B-61.30B52.69B

NIPPON STEEL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3020.00
Price Trends
50DMA
2847.62
Positive
100DMA
2905.24
Positive
200DMA
3005.86
Positive
Market Momentum
MACD
44.98
Negative
RSI
63.28
Neutral
STOCH
89.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5401, the sentiment is Positive. The current price of 3020 is above the 20-day moving average (MA) of 2944.05, above the 50-day MA of 2847.62, and above the 200-day MA of 3005.86, indicating a bullish trend. The MACD of 44.98 indicates Negative momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5401.

NIPPON STEEL Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$702.14B5.2112.39%5.61%-0.07%24.81%
75
Outperform
€266.31B9.206.87%3.78%-1.07%-43.26%
73
Outperform
¥267.49B11.98
3.48%-6.58%-4.38%
73
Outperform
$174.51B9.198.92%3.13%-14.44%-25.56%
64
Neutral
$1.07T15.912.90%5.52%-7.02%-57.67%
63
Neutral
¥3.13T8.32-0.24%5.30%-3.92%-100.05%
61
Neutral
$10.03B6.440.67%3.02%2.97%-45.32%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5401
NIPPON STEEL
3,020.00
-50.98
-1.66%
JP:5463
Maruichi Steel Tube Ltd.
3,763.00
480.87
14.65%
JP:5471
Daido Steel Co
1,244.50
-130.89
-9.52%
JP:5423
Tokyo Steel Manufacturing Co
1,618.00
-282.64
-14.87%
JP:5406
Kobe Steel
1,788.50
143.18
8.70%
JP:5411
JFE Holdings
1,812.50
-25.19
-1.37%

NIPPON STEEL Corporate Events

Nippon Steel Plans Full Acquisition of Krosaki Harima
Aug 1, 2025

Nippon Steel Corporation has announced its intention to acquire all shares of Krosaki Harima Corporation through a tender offer, aiming to make Krosaki a wholly-owned subsidiary. This move is part of Nippon Steel’s strategy to consolidate its control over Krosaki, in which it already holds a significant stake. The acquisition is subject to regulatory approvals in Japan and India, with the tender offer expected to commence by early February 2026. Krosaki’s board has expressed support for the offer, recommending shareholders to tender their shares. This acquisition is expected to strengthen Nippon Steel’s position in the market and expand its capabilities in the refractory and ceramics sectors.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Announces Stock Split and Dividend Forecast Revision
Aug 1, 2025

Nippon Steel Corporation announced a stock split to make its shares more accessible, increasing the total number of shares issued from approximately 1.07 billion to over 5.37 billion. This move is accompanied by an amendment to the Articles of Incorporation to increase the authorized shares to 10 billion. Additionally, the company revised its dividend forecasts to reflect the stock split, maintaining the per-share dividend value but adjusting the total annual dividend calculation.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen3900.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Revises Financial Forecast Amidst Challenging Conditions
Aug 1, 2025

Nippon Steel Corporation has revised its financial forecasts for the fiscal year ending March 31, 2026, reflecting a challenging business environment despite increased revenue from a merger with U.S. Steel Corporation. The company anticipates a consolidated revenue of 10 trillion yen but expects a loss attributable to owners of 40 billion yen due to losses from the reorganization and transfer of equity interests in AM/NS Calvert LLC. Additionally, a stock split is planned to improve share liquidity.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Reports Extraordinary Income Following Merger
Aug 1, 2025

Nippon Steel Corporation announced an extraordinary income of 147.2 billion yen in its non-consolidated financial statements for the quarter ending June 30, 2025. This income resulted from an absorption-type merger with its wholly-owned subsidiary, Nippon Steel Stainless Steel Corporation, where the company recognized a gain on extinguishment of tie-in shares. This financial maneuver does not impact the consolidated financial statements, but it highlights Nippon Steel’s strategic efforts to streamline operations and enhance financial performance.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Reports Q1 Loss, Forecasts Improved Year-End Performance
Aug 1, 2025

Nippon Steel reported a consolidated revenue of ¥2,008.7 billion for the quarter ending June 30, 2025, with a notable one-off loss related to the U.S. Steel transaction, resulting in a profit attributable to owners of the parent of ¥(195.8) billion. Despite the losses, the company forecasts improved financial performance for the fiscal year ending March 31, 2026, with expected revenues of ¥10,000.0 billion and a business profit of ¥480.0 billion, indicating a transitional phase towards profit improvement.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Reports Losses and Announces Strategic Stock Split
Aug 1, 2025

Nippon Steel Corporation reported a significant decline in its financial performance for the three months ended June 30, 2025, with revenue dropping by 8.3% and substantial losses in operating profit and profit before taxes. The company announced a stock split effective October 1, 2025, and revised its dividend forecasts, reflecting strategic adjustments amidst challenging market conditions. The inclusion of United States Steel Corporation and its subsidiaries into its consolidation scope marks a notable expansion, potentially impacting its future market positioning.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Ends Litigation Against Biden and CFIUS
Jul 1, 2025

Nippon Steel Corporation has voluntarily dismissed its litigation against Former President Biden and the Committee on Foreign Investment in the United States (CFIUS). This decision follows the finalization of a partnership with U.S. Steel, which was approved by an executive order from President Trump. The dismissal marks a strategic move for Nippon Steel, potentially strengthening its position in the U.S. market and improving relations with key stakeholders.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Anticipates Restructuring Loss Amid Share Transfer
Jun 18, 2025

Nippon Steel Corporation has announced that it expects to incur a business restructuring loss due to the transfer of shares in its subsidiary, NS Kote, Inc., to ArcelorMittal S.A. This transfer, following the merger of its U.S. subsidiary with United States Steel Corporation, will result in a loss of approximately 230 billion yen in its consolidated financial statements. Despite this, the company anticipates minimal impact on its profit and loss due to changes in the restructuring scheme and maintains its full-year dividend forecast for fiscal 2025.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Finalizes Strategic Partnership with U.S. Steel
Jun 18, 2025

Nippon Steel Corporation has finalized a significant partnership with United States Steel Corporation, creating a world-leading steelmaker. This collaboration involves a massive investment of approximately $11 billion in U.S. Steel by 2028, aiming to boost steel production and secure jobs across multiple U.S. states. The partnership also includes a National Security Agreement with the U.S. Government, ensuring U.S. Steel’s operations remain American-centric and safeguarding national security interests. This move is expected to enhance Nippon Steel’s global production capacity, aligning with its strategic goals.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel and U.S. Steel Forge Historic Partnership with $11 Billion Investment
Jun 14, 2025

Nippon Steel Corporation, along with its subsidiary Nippon Steel North America, Inc., and United States Steel Corporation, have announced a historic partnership approved by President Trump. This collaboration is set to inject approximately $11 billion into the U.S. steelmaking industry by 2028, creating and safeguarding over 100,000 jobs. The partnership includes a National Security Agreement with the U.S. Government, which outlines commitments to governance, domestic production, and trade matters, and has received all necessary regulatory approvals, promising significant impacts on the steel industry and local communities.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen3900.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Opposes Shareholder Proposals to Maintain Governance Standards
May 16, 2025

Nippon Steel Corporation’s Board of Directors has decided to oppose shareholder proposals set to be presented at the upcoming General Meeting of Shareholders. The Board believes the proposals are unnecessary as the company already implements appropriate measures for managing its subsidiaries, ensuring independence, and protecting minority shareholders. This decision reflects Nippon Steel’s commitment to maintaining effective governance and transparency, which is crucial for its strategic positioning and stakeholder trust.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Introduces Performance-Linked Stock Compensation for Directors
May 16, 2025

Nippon Steel Corporation has announced the introduction of a performance-linked stock compensation system for its directors, excluding certain members, to align their interests with shareholders and enhance corporate value. This system aims to incentivize directors by linking their compensation to the company’s stock value, thereby encouraging them to focus on medium- to long-term performance and corporate growth. The proposal will be presented at the upcoming General Meeting of Shareholders, and if approved, a similar system will be introduced for executive officers.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Reports Extraordinary Losses Due to Facility Inactivation
May 9, 2025

NIPPON STEEL CORPORATION announced it has recorded extraordinary losses amounting to 118.4 billion yen due to the closure and demolition of certain facilities at its East Nippon Works Kashima Area. This reorganization reflects the company’s strategic decision to manage inactive facilities, impacting its financial statements for fiscal 2024.

Nippon Steel Reports Strong Fiscal 2024 Results Amid Global Challenges
May 9, 2025

Nippon Steel Corporation reported consolidated revenue of ¥8,695.5 billion and a business profit of ¥683.2 billion for fiscal 2024. Despite challenges such as a sluggish Chinese economy and falling prices of products and raw materials, the company aims to secure underlying business profit exceeding ¥700.0 billion by leveraging structural measures and completed capital investments. The company plans to maintain its dividend forecast for fiscal 2025, despite potential losses from a transaction with U.S. Steel, and anticipates business profit and profit attributable to owners of the parent to be at least ¥400.0 billion and ¥200.0 billion, respectively.

Nippon Steel Reports Fiscal 2024 Results and Forecasts for 2025
May 9, 2025

Nippon Steel Corporation reported its consolidated financial results for fiscal 2024, showing a decline in revenue by 1.9% compared to the previous year. Despite the revenue drop, the company achieved a significant increase in profit attributable to owners of the parent by 36.2%, indicating improved operational efficiency. The company also announced its financial forecasts for fiscal 2025, expecting a decrease in business profit and total equity attributable to owners of the parent. The impact of a significant transaction with U.S. Steel is not included in the current forecast, which may affect future financial results.

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.Date of analysis: Aug 07, 2025