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NIPPON STEEL CORP. (JP:5401)
:5401

NIPPON STEEL (5401) AI Stock Analysis

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NIPPON STEEL

(OTC:5401)

Rating:72Outperform
Price Target:
¥3,252.00
▲(12.20%Upside)
Nippon Steel's strong financial performance and attractive valuation are significant strengths. However, weak technical indicators reflect bearish momentum, which impacts the overall score. The stock's low P/E ratio and high dividend yield provide a cushion, suggesting potential value despite current market trends.

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

NIPPON STEEL Business Overview & Revenue Model

Company DescriptionNIPPON STEEL Corporation, headquartered in Tokyo, Japan, is one of the world's leading steel producers. The company operates in several sectors including steelmaking, engineering, chemicals, new materials, and system solutions. Its core products include a wide range of steel products used in various industries such as construction, automotive, infrastructure, and energy sectors. NIPPON STEEL is known for its advanced technology and high-quality production processes that cater to both domestic and international markets.
How the Company Makes MoneyNIPPON STEEL makes money primarily through the production and sale of steel products. Its revenue streams are diversified across several sectors, with the steelmaking segment being the most significant contributor. The company produces flat steel products, long steel products, and tubular products, serving industries such as construction, automotive, and manufacturing. Additionally, NIPPON STEEL generates revenue through its engineering and construction services, which include the design and implementation of large-scale infrastructure projects. The company also engages in the production of chemicals and new materials, which are used in various industrial applications. Key partnerships with global companies and strategic investments in technology and innovation also play a crucial role in enhancing its revenue potential.

NIPPON STEEL Financial Statement Overview

Summary
Nippon Steel shows strong revenue growth and operational efficiency, with robust cash flow generation. However, improvements are needed in net profit margins and managing capital expenditures for sustained free cash flow.
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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
8.78T8.70T8.87T7.98T6.81T4.83T
Gross Profit
1.37T1.37T1.39T1.29T1.22T565.33B
EBIT
654.15B555.84B676.48B883.65B840.90B11.38B
EBITDA
955.93B827.14B1.02T1.23T958.96B307.61B
Net Income Common Stockholders
470.54B350.23B549.37B694.02B637.32B-32.43B
Balance SheetCash, Cash Equivalents and Short-Term Investments
736.11B672.53B482.82B698.59B592.41B387.24B
Total Assets
11.02T10.94T10.71T9.57T8.75T7.57T
Total Debt
2.79T2.51T2.71T2.70T2.65T2.56T
Net Debt
2.05T1.83T2.26T2.03T2.10T2.20T
Total Liabilities
5.18T5.04T5.36T4.92T4.86T4.44T
Stockholders Equity
5.26T5.38T4.78T4.18T3.47T2.76T
Cash FlowFree Cash Flow
254.00B360.40B543.81B191.26B148.73B-56.63B
Operating Cash Flow
374.57B978.59B1.01T661.27B615.63B403.19B
Investing Cash Flow
-295.81B-462.43B-710.65B-366.58B-378.87B-389.04B
Financing Cash Flow
-210.85B-313.33B-543.95B-197.66B-61.30B52.69B

NIPPON STEEL Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2898.50
Price Trends
50DMA
2935.51
Negative
100DMA
3083.96
Negative
200DMA
3052.39
Negative
Market Momentum
MACD
-21.42
Negative
RSI
48.48
Neutral
STOCH
33.33
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 2898.5 is above the 20-day moving average (MA) of 2881.68, below the 50-day MA of 2935.51, and below the 200-day MA of 3052.39, indicating a neutral trend. The MACD of -21.42 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$636.71B5.3010.71%4.80%0.47%9.83%
75
Outperform
¥252.17B10.36
4.33%-3.56%3.19%
73
Outperform
$162.72B7.5310.08%3.35%-11.02%-21.84%
72
Outperform
$3.01T8.206.77%5.10%-1.95%-41.23%
70
Neutral
$1.00T11.583.62%5.11%-6.09%-55.53%
68
Neutral
€214.91B7.386.56%5.24%-1.09%-42.36%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5401
NIPPON STEEL
2,898.50
-335.42
-10.37%
JP:5463
Maruichi Steel Tube Ltd.
3,506.00
-121.87
-3.36%
JP:5471
Daido Steel Co
1,015.00
-438.62
-30.17%
JP:5423
Tokyo Steel Manufacturing Co
1,510.00
-106.47
-6.59%
JP:5406
Kobe Steel
1,638.50
-246.05
-13.06%
JP:5411
JFE Holdings
1,697.00
-492.65
-22.50%

NIPPON STEEL Corporate Events

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.

NS Solutions Reports Significant Profit Increase Due to Share Sale
Apr 28, 2025

NS Solutions Corporation, a subsidiary of Nippon Steel, reported a significant increase in profit for the fiscal year ending March 31, 2025, compared to the previous year. This rise is primarily attributed to the sale of shares in Recruit Holdings Co., Ltd., resulting in extraordinary income and a substantial profit boost of 188.8%, although the impact on Nippon Steel’s consolidated financial results is deemed immaterial.

Osaka Steel Reports Financial Variances Amid Industry Challenges
Apr 28, 2025

Osaka Steel Co., Ltd., a subsidiary of Nippon Steel Corporation, reported differences in its non-consolidated financial results for the fiscal year ended March 31, 2025, compared to the previous year. Despite a slight increase in net sales, operating and ordinary income decreased due to reduced shipment volumes caused by rising material prices and labor shortages in the construction industry. However, net income improved due to the absence of significant extraordinary losses recorded in the previous fiscal year.

Nippon Steel Subsidiary Suspends Treasury Share Cancellation
Apr 8, 2025

Nippon Steel Corporation announced that its subsidiary, Osaka Steel Co., Ltd., has decided to suspend the cancellation of its treasury shares, which was initially set to take effect on April 15, 2025. This decision may impact the company’s financial strategies and market positioning, as it reflects a shift in the subsidiary’s approach to managing its equity structure.

Nippon Steel Adjusts Timeline for U.S. Steel Acquisition
Mar 27, 2025

Nippon Steel Corporation announced a change in the estimated closing date for its acquisition of United States Steel Corporation, moving it from the first to the second quarter of 2025. This adjustment is due to ongoing collaboration and the need for regulatory approvals, with no expected impact on Nippon Steel’s consolidated performance.

Nippon Steel Completes Successful Tender Offer for Sanyo Special Steel
Mar 19, 2025

Nippon Steel Corporation has successfully completed its tender offer to acquire shares of Sanyo Special Steel Co., Ltd., with the total number of shares tendered exceeding the minimum requirement. This acquisition is expected to strengthen Nippon Steel’s position in the steel industry by expanding its portfolio and enhancing its market presence.

Nippon Steel Subsidiary Completes Share Tender Offer
Mar 18, 2025

Nippon Steel Corporation announced the completion of a tender offer by its subsidiary, Osaka Steel Co., Ltd., for its own shares. The offer, which began on February 17, 2025, concluded with Osaka Steel purchasing 9,000,000 shares of its common stock from Nippon Steel. This move is part of Nippon Steel’s strategic financial management, potentially impacting its market positioning and stakeholder interests.

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.