Kobe Steel (5406) AI Stock Analysis

• Market Cap: $689.32B
• Dividend Yield: 5.31%
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.95
• Revenue Growth: -0.07%
• EPS Growth: 24.81%
• Country: JP
• Employees: 38,050
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 98.03
• Shares Outstanding: 396,345,980
• 10 Day Avg. Volume: 1,901,770
• 30 Day Avg. Volume: 1,835,069
• PEG Ratio: 0.58
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 19.50
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 6.34
• 1Y Price Target: $1,812.20
• Price Target Upside: 1.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,990.00 ▲(11.20% Upside)

Kobe Steel's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust profitability and effective cash flow management are significant strengths. While technical analysis shows mixed signals, the stock's low P/E ratio and high dividend yield enhance its appeal. The absence of earnings call and corporate event data means these factors do not influence the score.

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, 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.

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 to revenue, catering to industries such as aerospace, electronics, and packaging. Additionally, Kobe Steel earns income from its machinery and engineering services, which include the design and manufacturing of industrial equipment and systems. The company benefits from strategic partnerships and collaborations with other firms in various sectors, enhancing its market reach and technological capabilities. Moreover, factors such as global demand for steel and metals, fluctuations in commodity prices, and advancements in manufacturing processes play a crucial role in shaping its earnings.

Kobe Steel Financial Statement Overview

Summary

Kobe Steel exhibits strong financial performance with robust profitability and effective cash flow management. The company maintains a solid equity base with moderate leverage, though recent revenue growth has slowed, posing potential challenges.

Income Statement

Kobe Steel has demonstrated strong revenue growth over the years, particularly from 2021 to 2025. The company's gross profit margin has remained robust, and there's a consistent increase in net income, highlighting improved profitability. The EBIT and EBITDA margins also show a healthy operational performance. However, the revenue growth rate has slowed recently, indicating potential challenges in market expansion.

Balance Sheet

The company maintains a solid equity base, with a return on equity that reflects efficient utilization of shareholder funds. The debt-to-equity ratio is moderate, suggesting a balanced approach to leverage, though total debt remains significant. The equity ratio indicates a stable financial structure with a good proportion of assets funded by equity.

Cash Flow

Kobe Steel shows a strong operating cash flow to net income ratio, indicating effective cash generation from its operations. The free cash flow to net income ratio also underscores good cash conversion. However, fluctuations in free cash flow growth rate suggest variability in capital expenditure and investment activities over the period.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.53T	2.56T	2.54T	2.47T	2.08T	1.71T
Gross Profit	424.80B	423.22B	435.99B	321.29B	307.80B	223.19B
EBITDA	217.71B	277.44B	296.00B	223.91B	202.40B	131.25B
Net Income	134.77B	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	886.33B	863.47B	907.05B	959.87B	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	-161.51B	-141.85B
Financing Cash Flow	0.00	-96.23B	-81.21B	-85.56B	-69.14B	118.44B

Kobe Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1789.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5406, the sentiment is Positive. The current price of 1789.5 is above the 20-day moving average (MA) of 1756.00, above the 50-day MA of 1774.76, and above the 200-day MA of 1650.75, indicating a bullish trend. The MACD of 6.12 indicates Negative momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 85.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5406.

Kobe Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	―	$689.32B	5.09	12.39%	5.31%	-0.07%	24.81%
5471	―	€269.94B	9.81	6.87%	2.92%	-1.07%	-43.26%
5423	―	$148.41B	8.95	7.36%	3.69%	-18.72%	-25.23%
5482	―	€167.73B	19.03	4.65%	1.98%	2.65%	97.66%
5401	―	$3.34T	-10,311.88	-0.24%	4.40%	-3.92%	-100.05%
5411	―	$1.05T	15.56	2.90%	5.13%	-7.02%	-57.67%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kobe Steel Corporate Events

Kobe Steel Reports Mixed Financial Results Amid Challenges

Kobe Steel, Ltd., a prominent player in the steel and aluminum industry, operates across various sectors including advanced materials, welding, machinery, engineering, construction machinery, and electric power. The company is listed on the Tokyo and Nagoya Stock Exchanges.

Kobe Steel Reports Mixed Financial Results for Q1 2025

Kobe Steel reported a decline in net sales and ordinary profit for the three months ending June 30, 2025, compared to the previous year, despite a notable increase in profit attributable to owners of the parent. The company has revised its consolidated earnings forecast for fiscal 2025, indicating a challenging market environment and potential impacts on stakeholders.

The most recent analyst rating on (JP:5406) stock is a Hold with a Yen1740.00 price target. To see the full list of analyst forecasts on Kobe Steel stock, see the JP:5406 Stock Forecast page.