Nakayama Steel Works,Ltd. (JP:5408)
:5408
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Nakayama Steel Works,Ltd.
(5408)
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Rating:55Neutral
Price Target:
¥686.00
▲(11.36% Upside)
Action:Reiterated
Date:05/09/26
The score is held up by a conservative balance sheet and improved recent cash flow, which are important positives in a cyclical steel industry. This is outweighed by a clear deterioration in revenue and earnings versus 2023 and a weak technical trend with price below major moving averages and negative MACD. Valuation is mixed: the dividend helps, but the negative P/E signals unstable earnings.
Positive Factors
Conservative balance sheet
Low leverage and steadily rising equity provide durable financial flexibility in cyclical steel markets. With debt-to-equity around 0.09–0.11 and equity growth from 84.4B to 109.1B, the company can better absorb downturns and has capacity to fund capex or weather cash flow variability without refinancing stress.
Negative Factors
Multi-year revenue decline
Three consecutive years of revenue decline and a -12.4% growth rate indicate structural demand or market share pressure. Persistent top‑line contraction limits scale economies, reduces pricing power, and makes margin recovery harder, constraining sustainable earnings improvement over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and steadily rising equity provide durable financial flexibility in cyclical steel markets. With debt-to-equity around 0.09–0.11 and equity growth from 84.4B to 109.1B, the company can better absorb downturns and has capacity to fund capex or weather cash flow variability without refinancing stress.
Read all positive factors
Nakayama Steel Works,Ltd. (5408) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥33.56B
Dividend Yield5.02%
Average Volume (3M)226.99K
Price to Earnings (P/E)13.7
Beta (1Y)0.65
Revenue Growth-12.42%
EPS Growth-56.79%
CountryJP
Employees1,247
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)93.74
Shares Outstanding63,079,254
10 Day Avg. Volume185,090
30 Day Avg. Volume226,986
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)0.30
Price to Sales (P/S)0.22
P/FCF Ratio3.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nakayama Steel Works,Ltd. Business Overview & Revenue Model
Company Description
Operating in Japan, Nakayama Steel Works, Ltd. is a diversified company with core operations in steel production, engineering, building materials, and real estate. Its extensive steel product portfolio includes various coil types such as hot-rolle...
How the Company Makes Money
Nakayama Steel Works makes money mainly by manufacturing and selling steel products. Its core revenue stream is sales of steel materials produced via electric-arc furnace operations (which typically melt scrap to produce crude steel) and then proc...
Nakayama Steel Works,Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 160.54B | 148.31B | 169.33B | 184.44B | 188.51B | 166.70B |
| Gross Profit | 21.20B | 18.54B | 22.08B | 25.16B | 26.06B | 19.80B |
| EBITDA | 10.71B | 7.97B | 11.52B | 15.05B | 16.61B | 9.46B |
| Net Income | 5.08B | 2.46B | 5.70B | 8.90B | 10.23B | 4.82B |
Balance Sheet | ||||||
| Total Assets | 148.85B | 152.37B | 149.15B | 152.09B | 148.79B | 143.62B |
| Cash, Cash Equivalents and Short-Term Investments | 15.47B | 23.25B | 15.35B | 16.49B | 16.77B | 15.77B |
| Total Debt | 8.92B | 8.52B | 9.45B | 9.87B | 10.74B | 16.21B |
| Total Liabilities | 42.04B | 43.22B | 42.33B | 47.53B | 51.92B | 54.68B |
| Stockholders Equity | 106.80B | 109.15B | 106.81B | 104.55B | 96.86B | 88.93B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 10.16B | 2.99B | 1.35B | 9.28B | -11.29B |
| Operating Cash Flow | 0.00 | 15.24B | 7.38B | 5.15B | 13.01B | -8.76B |
| Investing Cash Flow | 0.00 | -5.00B | -4.88B | -2.30B | -3.46B | -2.31B |
| Financing Cash Flow | 0.00 | -2.33B | -3.63B | -3.14B | -8.54B | 8.39B |
Nakayama Steel Works,Ltd. Technical Analysis
Neutral
616.00
Price Trends
628.98
Negative
626.18
Negative
621.59
Negative
Market Momentum
-7.64
Positive
48.12
Neutral
36.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5408, the sentiment is Neutral. The current price of 616 is below the 20-day moving average (MA) of 634.55, below the 50-day MA of 628.98, and below the 200-day MA of 621.59, indicating a bearish trend. The MACD of -7.64 indicates Positive momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5408.
Nakayama Steel Works,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥387.84B | 13.55 | ― | 3.26% | -6.84% | 4.65% | |
72 Outperform | ¥197.49B | 10.67 | 6.87% | 5.25% | -6.28% | 29.00% | |
62 Neutral | ¥472.38B | 14.11 | 6.16% | 2.99% | 0.55% | 20.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥187.50B | 15.22 | 7.36% | 3.42% | -17.96% | -43.14% | |
58 Neutral | ¥76.49B | 7.75 | ― | 3.70% | -2.40% | -8.59% | |
55 Neutral | ¥33.56B | 13.65 | ― | 5.02% | -12.42% | -56.79% |
* Basic Materials Sector Average
JP:5408
Nakayama Steel Works,Ltd.
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Nakayama Steel Works,Ltd. Corporate Events
Nakayama Steel to Extend Takeover Defense Policy with Minor Revisions
May 25, 2026
Nakayama Steel Works, Ltd. plans to extend its existing takeover response policy, a set of rules governing large-scale purchases of its shares, subject to shareholder approval at the upcoming annual general meeting. The plan, which has been period...
Nakayama Steel Works Lifts Year-End Dividend After Earnings Beat Forecasts
May 8, 2026
Nakayama Steel Works, Ltd. has approved a year-end dividend increase from its retained earnings for the fiscal year ended March 2026, raising the planned payout from 5 yen to 6 yen per share, subject to shareholder approval in June. The move refle...
Nakayama Steel’s Profit Halves as Sales Slide, but Cash and Equity Stay Strong
May 8, 2026
Nakayama Steel Works reported a sharp decline in performance for the fiscal year ended March 31, 2026, with net sales falling 12.4% to ¥148.3 billion and operating profit dropping 41.8% to ¥4.9 billion, while profit attributable to owner...
Nakayama Steel and Nippon Steel Launch NN STEEL Joint Venture for Electric Arc Furnace Slab Production
Apr 1, 2026
Nakayama Steel Works, Ltd. has completed the establishment of a new joint venture with Nippon Steel Corporation, forming NN STEEL LLC in Osaka to own and lease new electric arc furnace facilities and related buildings for steel slab production. Th...
Nakayama Steel Works Announces Leadership Transition and Confirms Board Continuity
Mar 31, 2026
Nakayama Steel Works, Ltd. has announced board-approved changes to its top management, with Representative Director and Chairman Kazuaki Hakomori scheduled to retire at the close of the 132nd Annual General Meeting of Shareholders on June 25, 2026...
Nakayama Steel to Sell Osaka Land to Fund New Electric Arc Furnace Investment
Mar 31, 2026
Nakayama Steel Works, Ltd. has decided to transfer a parcel of rental land in Hirakata City, Osaka Prefecture, as part of its efforts to secure funds for a previously announced investment in a new electric arc furnace. The undisclosed transfer pri...
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.