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Nakayama Steel Works,Ltd. (JP:5408)
:5408
Japanese Market

Nakayama Steel Works,Ltd. (5408) AI Stock Analysis

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JP

Nakayama Steel Works,Ltd.

(5408)

Rating:63Neutral
Price Target:
¥693.00
▲(9.13%Upside)
Nakayama Steel Works is financially stable with strong equity and improving cash flow metrics, but faces significant challenges with declining margins and revenues. The stock's technical indicators show bearish momentum, suggesting potential further downward pressure. However, the low P/E ratio and high dividend yield offer some attractive valuation aspects. Overall, the stock reflects a mix of stability and risk, with technical weakness being a significant concern.

Nakayama Steel Works,Ltd. (5408) vs. iShares MSCI Japan ETF (EWJ)

Nakayama Steel Works,Ltd. Business Overview & Revenue Model

Company DescriptionNakayama Steel Works, Ltd. is a Japanese company engaged in the manufacture and sale of steel and steel-related products. Operating primarily in the steel industry, the company produces a wide range of products including steel bars, sheets, and structural steel components. Its offerings are utilized across various sectors such as construction, infrastructure, and manufacturing, providing essential materials for both domestic and international markets.
How the Company Makes MoneyNakayama Steel Works, Ltd. generates revenue through the production and sale of its steel products. The company operates manufacturing facilities where it processes raw materials into finished steel goods, which are then sold to customers in different industries. Revenue streams are driven by domestic and international sales, with key markets including construction firms, industrial manufacturers, and distributors. The company may also engage in strategic partnerships or collaborations to enhance its distribution network and market reach. Additionally, fluctuations in steel prices, production efficiency, and demand from the construction and manufacturing sectors significantly impact the company's earnings.

Nakayama Steel Works,Ltd. Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
175.87B184.44B188.51B166.70B113.28B136.25B
Gross Profit
22.95B25.16B26.06B19.80B13.85B17.10B
EBIT
9.53B12.33B13.64B7.25B2.35B4.52B
EBITDA
5.12B15.05B16.39B9.56B4.53B6.66B
Net Income Common Stockholders
6.91B8.90B10.23B4.82B2.35B2.91B
Balance SheetCash, Cash Equivalents and Short-Term Investments
14.47B16.49B16.77B15.77B18.33B18.53B
Total Assets
148.48B152.09B148.79B143.62B122.94B119.44B
Total Debt
9.20B9.63B10.28B15.99B6.75B7.76B
Net Debt
-5.27B-6.86B-6.50B227.00M-11.58B-10.77B
Total Liabilities
42.28B47.54B51.93B54.69B38.58B37.70B
Stockholders Equity
106.19B104.55B96.86B88.93B84.36B81.75B
Cash FlowFree Cash Flow
0.001.35B9.28B-11.29B779.00M2.25B
Operating Cash Flow
0.005.15B13.01B-8.76B4.12B5.08B
Investing Cash Flow
0.00-2.30B-3.46B-2.31B-2.65B-3.10B
Financing Cash Flow
0.00-3.14B-8.54B8.39B-1.68B-1.68B

Nakayama Steel Works,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price635.00
Price Trends
50DMA
684.60
Negative
100DMA
716.15
Negative
200DMA
728.24
Negative
Market Momentum
MACD
-15.68
Negative
RSI
34.80
Neutral
STOCH
48.96
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 635 is below the 20-day moving average (MA) of 643.15, below the 50-day MA of 684.60, and below the 200-day MA of 728.24, indicating a bearish trend. The MACD of -15.68 indicates Negative momentum. The RSI at 34.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.96 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥49.37B4.42
8.59%3.74%39.84%
77
Outperform
¥86.40B8.01
6.04%0.58%-21.95%
75
Outperform
¥54.93B4.85
7.38%-7.92%-25.47%
66
Neutral
¥57.94B4.69
1.04%-4.57%-12.16%
63
Neutral
¥34.11B5.99
6.98%-8.20%-36.06%
57
Neutral
¥103.22B31.98
1.43%-0.60%3.40%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5408
Nakayama Steel Works,Ltd.
630.00
-240.80
-27.65%
JP:5410
Godo Steel,Ltd.
3,795.00
-1,019.21
-21.17%
JP:5440
Kyoei Steel Ltd.
1,969.00
27.38
1.41%
JP:5445
Tokyo Tekko Co., Ltd.
5,510.00
710.30
14.80%
JP:5449
OSAKA STEEL CO., LTD.
2,706.00
389.71
16.82%
JP:5480
Nippon Yakin Kogyo Co., Ltd.
3,905.00
-404.62
-9.39%

Nakayama Steel Works,Ltd. Corporate Events

Nakayama Steel Opposes Shareholder Dividend Proposal to Focus on Long-Term Growth
May 23, 2025

Nakayama Steel Works, Ltd. announced that its Board of Directors opposes a shareholder proposal to pay a full-year dividend equivalent to 3.5% of net assets per share. The board believes this approach could hinder the company’s long-term growth strategy, which includes significant investments in a new electric furnace aimed at reducing CO2 emissions and enhancing capital efficiency. The company emphasizes maintaining a stable dividend policy aligned with its long-term vision and financial strategies.

Nakayama Steel Works to Reinstate Community-Based Services
May 23, 2025

Nakayama Steel Works, Ltd. has proposed amendments to its Articles of Incorporation to reintroduce community-based services, specifically those in compliance with the Long-Term Care Insurance Act. This move aligns with the company’s long-term vision of contributing to society and collaborating with local communities, marking a strategic shift back to community-focused initiatives after a period of business revitalization.

Nakayama Steel Unveils Long-Term Growth Plan
May 16, 2025

Nakayama Steel Works, Ltd. has announced the establishment of its Long-Term Plan titled ‘Towards the New Growth Stage Based on the New Electric Furnace Project’ for the fiscal years 2025 to 2033. This plan signifies a strategic move towards growth and innovation, potentially impacting the company’s operational efficiency and market positioning in the steel industry.

Nakayama Steel Reports Decline in FY2024 Financial Results
May 9, 2025

Nakayama Steel Works, Ltd. reported a significant decrease in net sales and profits for FY2024, primarily due to reduced sales volume and lower prices for steel products. Despite improvements in spread and factory costs, the company faced increased fixed costs and transportation expenses, leading to a 34% drop in ordinary profit year-on-year.

Nakayama Steel and Nippon Steel Form Joint Venture for Eco-Friendly Furnace Facility
May 9, 2025

Nakayama Steel Works, Ltd. has announced a joint venture with Nippon Steel Corporation to construct a new electric furnace facility. This collaboration aims to increase the production capacity of electric furnace steel, which is more environmentally friendly due to lower CO2 emissions. The joint venture will be located at Nakayama’s Funamachi Plant, with the new facility expected to commence operations in 2030. This strategic move is part of Nakayama’s Medium-Term Management Plan to strengthen its market position by focusing on sustainable steel production.

Nakayama Steel Works Reports Decline in Financial Performance
May 9, 2025

Nakayama Steel Works, Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales dropping by 8.2% and operating profit decreasing by 31.6%. The company also announced a reduction in dividends, reflecting a cautious approach amid challenging market conditions. The financial forecast for the next fiscal year indicates continued pressure on profitability, with expected declines in net sales and profits.

Nakayama Steel Works Invests in New Electric Furnace for Sustainable Growth
May 9, 2025

Nakayama Steel Works, Ltd. has announced a significant investment in a new electric furnace as part of its long-term vision to enhance production capacity and reduce CO2 emissions. This initiative, in collaboration with Nippon Steel Corporation, aims to improve profitability and strengthen the company’s market position by increasing the use of in-house iron sources and expanding the application of electric furnace steel.

Nakayama Steel Works Announces Changes in Leadership
Mar 31, 2025

Nakayama Steel Works, Ltd. announced changes to its Representative Directors, with Kazuaki Hakomori transitioning to Representative Director and Chairman, and Nobuhiko Naito assuming the role of Representative Director and President. This leadership change, driven by executive personnel adjustments, is set to be finalized at the upcoming Annual General Meeting of Shareholders and Board of Directors meeting on June 26, 2025.

Nakayama Steel Works Introduces Comprehensive Human Rights Policy
Mar 17, 2025

Nakayama Steel Works, Ltd. has established a new Human Rights Policy to align with international standards and ensure respect for human rights across its operations. This policy applies to all employees and business partners, emphasizing compliance with laws, human rights due diligence, corrective measures, and stakeholder dialogue, which could enhance the company’s reputation and stakeholder trust.

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.