NIPPON STEEL CORP. (JP:5401)
:5401
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NIPPON STEEL
(5401)
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Rating:50Neutral
Price Target:
¥560.00
▼(-13.26% Downside)
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
Integrated, diversified product mix
Nippon Steel's integrated operations and broad product portfolio reduce reliance on any single end market. Downstream processing, coated products and engineering services help capture value beyond commodity steel, supporting more stable revenue streams and customer lock‑in over the medium term.
Negative Factors
Collapsed profitability
Sharp margin deterioration limits internal funds for capex, maintenance and strategic investments. Persistently thin operating and net margins make returns sensitive to raw material and energy swings, weakening long‑term earnings quality and management's ability to rebuild ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated, diversified product mix
Nippon Steel's integrated operations and broad product portfolio reduce reliance on any single end market. Downstream processing, coated products and engineering services help capture value beyond commodity steel, supporting more stable revenue streams and customer lock‑in over the medium term.
Read all positive factors
NIPPON STEEL (5401) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.93T
Dividend Yield4.53%
Average Volume (3M)20.68M
Price to Earnings (P/E)175.4
Beta (1Y)0.74
Revenue Growth15.73%
EPS Growth-95.40%
CountryJP
Employees113,639
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.61
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 Target
¥470.00Price Target Upside-27.20% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)67.98
Revenue Forecast (FY)¥11.27T
NIPPON STEEL Business Overview & Revenue Model
Company Description
Nippon 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 ...
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 | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.51T | 10.06T | 8.70T | 8.87T | 7.98T | 6.81T |
| Gross Profit | 1.31T | 1.44T | 1.37T | 1.39T | 1.29T | 1.22T |
| EBITDA | 842.46B | 1.02T | 970.15B | 1.04T | 1.10T | 1.03T |
| Net Income | -3.17B | 17.16B | 350.23B | 549.37B | 694.02B | 637.32B |
Balance Sheet | ||||||
| Total Assets | 13.82T | 14.66T | 10.94T | 10.71T | 9.57T | 8.75T |
| Cash, Cash Equivalents and Short-Term Investments | 524.00B | 461.26B | 696.31B | 464.91B | 687.96B | 572.38B |
| Total Debt | 5.08T | 5.17T | 2.51T | 2.71T | 2.70T | 2.65T |
| Total Liabilities | 8.33T | 8.64T | 5.04T | 5.36T | 4.92T | 4.86T |
| Stockholders Equity | 4.99T | 5.53T | 5.38T | 4.78T | 4.18T | 3.47T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -172.72B | 360.40B | 543.81B | 191.26B | 148.73B |
| Operating Cash Flow | 0.00 | 716.94B | 978.59B | 1.01T | 661.27B | 615.63B |
| Investing Cash Flow | 0.00 | -2.84T | -462.43B | -710.65B | -364.66B | -375.98B |
| Financing Cash Flow | 0.00 | 1.89T | -313.33B | -543.95B | -199.58B | -64.19B |
NIPPON STEEL Technical Analysis
Negative
645.60
Price Trends
581.65
Negative
609.64
Negative
604.67
Negative
Market Momentum
-10.41
Positive
33.37
Neutral
12.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5401, the sentiment is Negative. The current price of 645.6 is above the 20-day moving average (MA) of 573.32, above the 50-day MA of 581.65, and above the 200-day MA of 604.67, indicating a bearish trend. The MACD of -10.41 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 12.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5401.
NIPPON STEEL Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥180.35B | 27.66 | 5.06% | 1.80% | 1.69% | 71.95% | |
69 Neutral | ¥739.64B | 7.95 | 10.78% | 4.68% | -4.64% | -21.94% | |
62 Neutral | ¥377.70B | 8.38 | 6.16% | 2.99% | 0.55% | 20.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥196.35B | 19.21 | 7.36% | 3.42% | -17.96% | -43.14% | |
50 Neutral | ¥2.93T | 175.42 | -0.26% | 4.53% | 15.73% | -95.40% | |
49 Neutral | ¥992.82B | 16.46 | 2.09% | 4.59% | -6.59% | -23.63% |
* Basic Materials Sector Average
JP:5401
NIPPON STEEL
540.70
-11.74
-2.13%
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NIPPON STEEL Corporate Events
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...
NS Solutions Profit Drops on Lapsed One-Off Gain Despite Higher Sales
Apr 27, 2026
NS Solutions Corporation, an IT subsidiary of Nippon Steel, reported non-consolidated full-year results for the year ended March 31, 2026, showing higher net sales and ordinary profit but a sharp decline in profit. Net sales rose 5.3% year on year...
Nippon Steel Lifts Stake in Krosaki Harima After Successful Tender Offer
Mar 4, 2026
Nippon Steel has successfully completed its tender offer for common shares of Krosaki Harima Corporation, a refractory materials producer listed in Tokyo and Fukuoka, at a purchase price of 4,200 yen per share. The offer, conducted from February 2...
Nippon Steel Sets Terms for Dual Tranches of Zero-Coupon Convertible Bonds
Feb 24, 2026
Nippon Steel has set the final terms for two tranches of zero-coupon convertible bonds maturing in 2029 and 2031, each structured as bonds with stock acquisition rights that can be converted into shares at preset premiums to the current market pri...
Nippon Steel Lifts Zero-Coupon Convertible Bond Issue to ¥600 Billion
Feb 24, 2026
Nippon Steel has revised the terms of its planned zero-coupon convertible bond issuance, increasing the total aggregate principal amount from ¥550 billion to ¥600 billion. The change reflects strong investor demand identified during book...
Nippon Steel Confirms Interim Review as Profit Slumps Despite Higher Revenue
Feb 24, 2026
Nippon Steel reported consolidated revenue of ¥7.26 trillion for the nine months ended December 31, 2025, up 10.7% year on year, but saw business profit fall 37.1% and operating profit plunge 81.1%. The period swung to a net loss attributable...
Nippon Steel to Raise ¥550 Billion via Zero Coupon Convertible Bonds for U.S. Steel Deal and Growth Drive
Feb 24, 2026
Nippon Steel plans to issue zero coupon convertible bonds due 2029 and 2031 with a combined principal of ¥550 billion, potentially increasing the size depending on investor demand and market conditions. The proceeds are earmarked to refinance...
Nippon Steel to Use Treasury Shares for Performance-Linked Executive Stock Plan
Feb 24, 2026
Nippon Steel Corporation will dispose of 3,130,300 treasury shares, worth about ¥2.1 billion at ¥673.9 per share, to a trust managed by Sumitomo Mitsui Trust Bank for a newly introduced performance-linked stock compensation system. The m...
Nippon Steel Sets Broad Board and Executive Reshuffle Ahead of 2026 Shareholders Meeting
Feb 17, 2026
Nippon Steel Corporation has approved a broad slate of board and officer changes as it prepares for its 102nd Annual Meeting of Shareholders scheduled for late June 2026. The Board decided on candidates for directors, including Audit Supervisory ...
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.