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Kobe Steel Ltd (JP:5406)
:5406
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Kobe Steel (5406) Price & Analysis

3 Followers

5406 Stock Chart & Stats

¥2219.50
-¥6.50(-0.41%)
At close: 4:00 PM EST
¥2219.50
-¥6.50(-0.41%)

Bulls Say, Bears Say

Bulls Say
Diversified Business ModelKobe Steel's multi-segment structure—metals, advanced materials, and industrial machinery—provides durable revenue diversification across automotive, construction and energy end markets. This reduces single-market cyclicality, supports cross-selling, and lets higher-margin advanced materials offset commodity swings over months.
Strong Operating Cash GenerationConsistent operating cash conversion means Kobe Steel generates cash from core operations to fund capex, service debt, and support working capital. Over a 2–6 month horizon this underpins financial flexibility for project delivery and investments in higher-value products, reducing reliance on external funding.
Sustained Profitability And MarginsStable gross and operating margins with rising net income point to durable cost control and pricing capability across product lines. Margin resilience supports reinvestment into advanced materials and engineering, helping preserve profitability through modest demand swings over the medium term.
Bears Say
Recent Revenue Growth SlowdownA negative recent revenue growth rate signals slowing top-line momentum that can constrain scale benefits and limit reinvestment capacity. If sustained, it may pressure operating leverage and reduce free cash flow growth potential, hindering strategic initiatives over the coming months.
Free Cash Flow VariabilityVariability in free cash flow means cash available after investment is less predictable, complicating planning for dividends, debt reduction, or strategic M&A. In a cyclical industry, uneven FCF can force trade-offs between maintenance capex and growth projects, weakening medium-term optionality.
Significant Absolute Debt LevelWhile leverage ratios are moderate, a sizeable absolute debt stock raises interest and refinancing exposure in a cyclical sector. High nominal debt can limit capital allocation flexibility, constrain investment in higher-margin segments, and increase vulnerability to weaker cash flows over the next several months.

Kobe Steel News

5406 FAQ

What was Kobe Steel Ltd’s price range in the past 12 months?
Kobe Steel Ltd lowest stock price was ¥1503.50 and its highest was ¥2379.50 in the past 12 months.
    What is Kobe Steel Ltd’s market cap?
    Kobe Steel Ltd’s market cap is ¥731.39B.
      When is Kobe Steel Ltd’s upcoming earnings report date?
      Kobe Steel Ltd’s upcoming earnings report date is May 11, 2026 which is in 12 days.
        How were Kobe Steel Ltd’s earnings last quarter?
        Kobe Steel Ltd released its earnings results on Feb 06, 2026. The company reported ¥54.62 earnings per share for the quarter, missing the consensus estimate of ¥70.857 by -¥16.237.
          Is Kobe Steel Ltd overvalued?
          According to Wall Street analysts Kobe Steel Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Kobe Steel Ltd pay dividends?
            Kobe Steel Ltd pays a Semiannually dividend of ¥40 which represents an annual dividend yield of 4.68%. See more information on Kobe Steel Ltd dividends here
              What is Kobe Steel Ltd’s EPS estimate?
              Kobe Steel Ltd’s EPS estimate is 23.45.
                How many shares outstanding does Kobe Steel Ltd have?
                Kobe Steel Ltd has 396,345,980 shares outstanding.
                  What happened to Kobe Steel Ltd’s price movement after its last earnings report?
                  Kobe Steel Ltd reported an EPS of ¥54.62 in its last earnings report, missing expectations of ¥70.857. Following the earnings report the stock price went up 0.803%.
                    Which hedge fund is a major shareholder of Kobe Steel Ltd?
                    Currently, no hedge funds are holding shares in JP:5406
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Kobe Steel Ltd

                      Kobe Steel, Ltd. engages in the materials, machinery, and electric power businesses in Japan, North and South Americas, Europe, the Middle East, rest of Asia, and Oceania. The company offers steel sheet products, including high-tensile strength, hot rolled, cold rolled, electro-galvanized, and hot-dipped galvanized steel sheets; steel wire rods and bars; and aluminum and steel plates. It also provides steel casting and forging products, such as crankshafts, marine parts, chemical processing equipment, and rolls, as well as materials for plastic molding; and titanium products, copper sheets and strips, and steel powders. In addition, the company offers robots and electric power sources, and welding materials; and machinery products, such as standard compressors, tire and rubber machinery products, rotating machinery products, plastic processing machinery products, advanced technology equipment, rolling mill products, and ultra high pressure equipment, as well as LNG vaporizers, pressure vessels, brazed aluminum heat exchangers, and micro channel heat exchanger and reactors. Further, it provides signaling, communication, power supply, automatic fare collection, and platform screen door systems; hydraulic and mini hydraulic excavators, mini wheel loaders, and road machinery; construction, metal, forestry, and industrial waste recycling machinery; and crawler and wheel cranes. Additionally, the company generates and supplies electric power; offers material and structural analysis, testing, physical analysis, and other services; manufactures and sells target materials and test equipment; sells and rents detached homes; and provides brokerage, renovation, insurance, and other services, as well as operational management services of public facilities. It also offers services in the field of iron units; and water treatment, waste incineration, PCB detoxification, and soil remediation services. The company was founded in 1905 and is headquartered in Kobe, Japan.

                      Kobe Steel (5406) Earnings & Revenues

                      5406 Stock 12 Month Forecast

                      Average Price Target

                      ¥1,865.00
                      ▼(-15.97% Downside)
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