Nakayama Steel Works,Ltd. (JP:5408)
:5408
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Nakayama Steel Works,Ltd.
(5408)
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Rating:64Neutral
Price Target:
¥658.00
▲(6.82% Upside)
Action:DowngradedDate:11/05/25
Nakayama Steel Works has a solid financial foundation with low leverage and strong cash flow management, contributing positively to its score. However, the stock is currently facing bearish technical indicators, which weigh down the overall score. Despite this, the stock's attractive valuation with a low P/E ratio and high dividend yield provides a compelling case for potential value investors.
Positive Factors
Balance sheet strength
Very low leverage and a ~71.6% equity ratio provide durable financial resilience. This conservatism reduces bankruptcy risk, preserves borrowing capacity for downturns or capex, and supports steady operations and supplier/customer confidence over the next several months.
Negative Factors
Declining revenue and earnings
Double-digit revenue decline and nearly 59% EPS contraction signal weakened demand or pricing pressure. Sustained top-line and EPS deterioration compresses internal funding for investment and raises risk that margins and returns will remain under pressure for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a ~71.6% equity ratio provide durable financial resilience. This conservatism reduces bankruptcy risk, preserves borrowing capacity for downturns or capex, and supports steady operations and supplier/customer confidence over the next several months.
Read all positive factors
Nakayama Steel Works,Ltd. (5408) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥33.89B
Dividend Yield5.02%
Average Volume (3M)226.99K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-13.64%
EPS Growth-45.74%
CountryJP
Employees1,247
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.83
Shares Outstanding63,079,254
10 Day Avg. Volume185,090
30 Day Avg. Volume226,986
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.38
Price to Sales (P/S)0.24
P/FCF Ratio13.42
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
Nakayama Steel Works, Ltd. engages in the steel, engineering, building materials, and real estate businesses in Japan. It offers steel coil products, including hot, pickling, plated, slit, and striped /pattern coils; and steel sheet products, such...
How the Company Makes Money
Nakayama Steel Works makes money primarily by selling steel products manufactured through its steelmaking and rolling/processing operations. Its main revenue stream is product sales: (1) steel materials (e.g., standard steel products produced from...
Nakayama Steel Works,Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
75
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 160.54B | 169.33B | 184.44B | 188.51B | 166.70B | 113.28B |
| Gross Profit | 21.20B | 22.08B | 25.16B | 26.06B | 19.80B | 13.85B |
| EBITDA | 10.71B | 11.52B | 15.05B | 16.61B | 9.46B | 5.09B |
| Net Income | 5.08B | 5.70B | 8.90B | 10.23B | 4.82B | 2.35B |
Balance Sheet | ||||||
| Total Assets | 148.85B | 149.15B | 152.09B | 148.79B | 143.62B | 122.98B |
| Cash, Cash Equivalents and Short-Term Investments | 15.47B | 15.35B | 16.49B | 16.77B | 15.77B | 18.33B |
| Total Debt | 8.92B | 9.45B | 9.87B | 10.74B | 16.21B | 6.87B |
| Total Liabilities | 42.04B | 42.33B | 47.53B | 51.92B | 54.68B | 38.62B |
| Stockholders Equity | 106.80B | 106.81B | 104.55B | 96.86B | 88.93B | 84.36B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.99B | 1.35B | 9.28B | -11.29B | 779.00M |
| Operating Cash Flow | 0.00 | 7.38B | 5.15B | 13.01B | -8.76B | 4.12B |
| Investing Cash Flow | 0.00 | -4.88B | -2.30B | -3.46B | -2.31B | -2.65B |
| Financing Cash Flow | 0.00 | -3.63B | -3.14B | -8.54B | 8.39B | -1.68B |
Nakayama Steel Works,Ltd. Technical Analysis
Negative
616.00
Price Trends
629.08
Negative
610.70
Positive
624.29
Negative
Market Momentum
-3.30
Positive
47.87
Neutral
38.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5408, the sentiment is Negative. The current price of 616 is below the 20-day moving average (MA) of 619.20, below the 50-day MA of 629.08, and below the 200-day MA of 624.29, indicating a bearish trend. The MACD of -3.30 indicates Positive momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥349.33B | 12.83 | ― | 3.26% | -7.77% | 58.84% | |
74 Outperform | ¥406.61B | 9.05 | 6.16% | 2.99% | -0.02% | -40.45% | |
74 Outperform | ¥239.21B | 14.50 | 6.87% | 5.25% | -1.43% | 171.44% | |
73 Outperform | ¥175.38B | 7.83 | 7.36% | 3.42% | -18.72% | -25.26% | |
70 Outperform | ¥103.74B | 10.61 | ― | 3.70% | -3.06% | 1.15% | |
64 Neutral | ¥33.89B | -185.54 | ― | 5.02% | -13.64% | -45.74% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:5408
Nakayama Steel Works,Ltd.
626.00
-148.43
-19.17%
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Nakayama Steel Works,Ltd. Corporate Events
Nakayama Steel Sells Subsidiary Land to Help Fund New Electric Arc Furnace
Feb 27, 2026
Nakayama Steel Works has resolved to transfer land held by its logistics subsidiary Mitsuboshi Kaiun Kaisha in Osaka, currently used as a parking lot, generating an estimated capital gain of 1,298 million yen. The sale is intended to help fund a n...
Nakayama Steel Suffers Profit Slump but Holds to Lower Full-Year Outlook and Dividend Cut
Feb 5, 2026
Nakayama Steel Works reported a sharp deterioration in earnings for the nine months ended December 31, 2025, as net sales fell 15.4% year on year to ¥109.7 billion and profit attributable to owners of parent plunged 63.2% to ¥1.67 billio...
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.