Kobe Steel Ltd (JP:5406)
:5406
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Kobe Steel
(5406)
Select Model
Select Model
Rating:80Outperform
Price Target:
¥2,602.00
▲(17.23% Upside)
Action:ReiteratedDate:11/28/25
Kobe Steel's strong financial performance and attractive valuation are the primary drivers of its high score. While technical indicators suggest bullish momentum, caution is advised due to potential overbought conditions. The absence of earnings call data and corporate events does not detract from the overall positive outlook.
Positive Factors
Diversified business model
Kobe 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.
Negative Factors
Recent revenue growth slowdown
A 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Kobe 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.
Read all positive factors
Kobe Steel (5406) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥763.23B
Dividend Yield4.68%
Average Volume (3M)1.84M
Price to Earnings (P/E)9.5
Beta (1Y)0.98
Revenue Growth-1.97%
EPS Growth47.63%
CountryJP
Employees38,050
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)54.62
Shares Outstanding396,345,980
10 Day Avg. Volume1,901,770
30 Day Avg. Volume1,835,069
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)0.59
Price to Sales (P/S)0.27
P/FCF Ratio19.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,100.00Price Target Upside-5.38% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)255.36
Revenue Forecast (FY)¥2.49T
Kobe Steel Business Overview & Revenue Model
Company Description
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, h...
How the Company Makes Money
Kobe Steel generates revenue through multiple key streams, primarily from the sale of steel products, which are essential for construction, automotive, and infrastructure projects. Their aluminum and copper segments also contribute significantly t...
Kobe Steel Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.53T | 2.56T | 2.54T | 2.47T | 2.08T | 1.71T |
| Gross Profit | 424.80B | 434.19B | 446.60B | 331.44B | 316.08B | 232.24B |
| EBITDA | 282.05B | 281.74B | 306.24B | 199.45B | 193.29B | 131.62B |
| Net Income | 148.81B | 120.18B | 109.55B | 72.57B | 60.08B | 23.23B |
Balance Sheet | ||||||
| Total Assets | 2.82T | 2.89T | 2.92T | 2.87T | 2.73T | 2.58T |
| Cash, Cash Equivalents and Short-Term Investments | 175.61B | 220.12B | 278.84B | 203.52B | 260.70B | 317.54B |
| Total Debt | 867.52B | 889.81B | 874.73B | 908.14B | 961.14B | 1.05T |
| Total Liabilities | 1.60T | 1.65T | 1.79T | 1.90T | 1.86T | 1.81T |
| Stockholders Equity | 1.15T | 1.16T | 1.06T | 913.96B | 815.33B | 710.36B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 34.99B | 110.42B | 20.73B | 12.36B | 21.58B |
| Operating Cash Flow | 0.00 | 148.26B | 205.28B | 119.69B | 168.81B | 194.80B |
| Investing Cash Flow | 0.00 | -113.87B | -53.72B | -97.27B | -147.81B | -141.85B |
| Financing Cash Flow | 0.00 | -96.23B | -81.21B | -85.56B | -82.84B | 118.44B |
Kobe Steel Technical Analysis
Negative
2219.50
Price Trends
2201.19
Negative
2082.12
Negative
1883.83
Positive
Market Momentum
-62.93
Positive
33.54
Neutral
16.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5406, the sentiment is Negative. The current price of 2219.5 is above the 20-day moving average (MA) of 2092.75, above the 50-day MA of 2201.19, and above the 200-day MA of 1883.83, indicating a neutral trend. The MACD of -62.93 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 16.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5406.
Kobe Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥763.23B | 9.48 | 10.78% | 4.68% | -1.97% | 47.63% | |
74 Outperform | ¥401.47B | 9.05 | 6.16% | 2.99% | -0.02% | -40.45% | |
73 Outperform | ¥173.64B | 7.83 | 7.36% | 3.42% | -18.72% | -25.26% | |
67 Neutral | ¥3.12T | 12.26 | -0.26% | 4.53% | 1.31% | -101.19% | |
67 Neutral | ¥184.64B | 11.58 | 5.06% | 1.80% | 4.10% | 152.90% | |
64 Neutral | ¥1.12T | 9.28 | 2.09% | 4.59% | -8.07% | -41.42% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:5406
Kobe Steel
1,979.00
200.16
11.25%
JP:5471
Daido Steel Co
1,950.50
694.06
55.24%
JP:5411
JFE Holdings
1,895.50
24.86
1.33%
JP:5401
NIPPON STEEL
590.00
-68.07
-10.34%
JP:5423
Tokyo Steel Manufacturing Co
1,590.00
-27.91
-1.72%
JP:5482
Aichi Steel Corporation
2,983.00
1,218.43
69.05%
Kobe Steel Corporate Events
Kobe Steel Slashes Fiscal 2025 Non‑Consolidated Earnings Forecast on Weak Demand and Steel Margin Pressure
Feb 6, 2026
Kobe Steel has cut its non-consolidated earnings forecast for fiscal 2025, lowering projected net sales from 1.39 trillion yen to 1.33 trillion yen and halving expected ordinary profit to 40 billion yen, with profit now seen at 75 billion yen. The...
Kobe Steel Profit Falls on Lower Sales; Cuts Annual Dividend Payout
Feb 6, 2026
Kobe Steel reported consolidated net sales of ¥1,778.1 billion for the nine months ended December 31, 2025, down 5.6% year-on-year, with operating profit falling 24.2% to ¥94.4 billion and profit attributable to owners of parent declinin...
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.