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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

(5401)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
¥655.00
▲(2.87% 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.

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

NIPPON STEEL Business Overview & Revenue Model

Company DescriptionNIPPON 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 MoneyNIPPON 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 demonstrates strong revenue growth and operational efficiency, with healthy gross profit margins. However, net profit margin fluctuations and high capital expenditures are areas for improvement.
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.51T8.70T8.87T7.98T6.81T4.83T
Gross Profit1.31T1.37T1.39T1.29T1.22T565.33B
EBITDA687.81B827.14B1.02T1.23T958.96B307.61B
Net Income-3.17B350.23B549.37B694.02B637.32B-32.43B
Balance Sheet
Total Assets13.82T10.94T10.71T9.57T8.75T7.57T
Cash, Cash Equivalents and Short-Term Investments524.00B696.31B464.91B687.96B572.38B359.46B
Total Debt5.08T2.51T2.71T2.70T2.65T2.56T
Total Liabilities8.33T5.04T5.36T4.92T4.86T4.44T
Stockholders Equity4.99T5.38T4.78T4.18T3.47T2.76T
Cash Flow
Free Cash Flow0.00360.40B543.81B191.26B148.73B-56.63B
Operating Cash Flow0.00978.59B1.01T661.27B615.63B403.19B
Investing Cash Flow0.00-462.43B-710.65B-364.66B-375.98B-389.04B
Financing Cash Flow0.00-313.33B-543.95B-199.58B-64.19B52.69B

NIPPON STEEL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price636.70
Price Trends
50DMA
621.60
Positive
100DMA
589.63
Positive
200DMA
597.95
Positive
Market Momentum
MACD
3.81
Negative
RSI
59.62
Neutral
STOCH
79.39
Neutral
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 636.7 is above the 20-day moving average (MA) of 614.70, above the 50-day MA of 621.60, and above the 200-day MA of 597.95, indicating a bullish trend. The MACD of 3.81 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 79.39 is Neutral, 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
$689.32B5.0912.39%5.31%-0.07%24.81%
€269.94B9.816.87%2.92%-1.07%-43.26%
¥305.30B12.483.69%-6.58%-4.38%
$148.41B8.957.36%3.69%-18.72%-25.23%
$3.34T-10,311.88-0.24%4.40%-3.92%-100.05%
$1.05T15.562.90%5.13%-7.02%-57.67%
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5401
NIPPON STEEL
636.40
45.97
7.79%
JP:5471
Daido Steel Co
1,394.50
222.28
18.96%
JP:5411
JFE Holdings
1,755.00
-11.18
-0.63%
JP:5406
Kobe Steel
1,795.00
219.24
13.91%
JP:5423
Tokyo Steel Manufacturing Co
1,334.00
-143.43
-9.71%
JP:5463
Maruichi Steel Tube Ltd.
1,272.50
213.35
20.14%

NIPPON STEEL Corporate Events

Nippon Steel and Partners Resolve Legal Disputes to Focus on Steelmaking
Sep 3, 2025

Nippon Steel Corporation, along with its subsidiary Nippon Steel North America, U.S. Steel, and the United Steelworkers, has resolved all litigation related to their partnership, including dismissing a lawsuit against the USW International President and withdrawing an unfair labor practice charge. Additionally, Nippon Steel, U.S. Steel, and Cleveland-Cliffs Inc. have ended litigation concerning their partnership, dismissing all claims without financial exchanges, allowing them to concentrate on steelmaking and collective bargaining.

The most recent analyst rating on (JP:5401) stock is a Buy with a Yen3850.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

Nippon Steel Reports Loss Amid Strategic U.S. Merger
Aug 2, 2025

Nippon Steel Corporation is a leading global steel manufacturer, primarily involved in the production and distribution of steel products, operating in sectors such as automotive, construction, and energy. The company is listed on multiple stock exchanges in Japan.

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.

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: Oct 22, 2025