Want to see JP:5408 full AI Analyst Report?
Top Page
Nakayama Steel Works,Ltd.
(5408)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥721.00
▲(17.05% Upside)
Action:Reiterated
Date:08/09/26
Overall score reflects a strong balance sheet and improved recent cash flow, but is held back by multi-year revenue declines and sharply lower earnings versus 2023. Technicals are supportive with price above key moving averages and positive momentum indicators, while valuation is roughly fair with a modest dividend yield.
Positive Factors
Conservative balance sheet
Low leverage and steadily rising equity provide durable financial resilience for a cyclical steel business. This structural strength reduces refinancing risk, supports capital spending or downturn buffers, and preserves strategic optionality across 2–6 month cycles and longer industry swings.
Negative Factors
Three-year revenue decline and falling net income
Sustained top-line contraction and a steep profit drop erode scale economics, weaken bargaining power with suppliers and customers, and limit reinvestment capacity. Continued revenue shrinkage can structurally impair returns and the firm's ability to rebuild margins over several months to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and steadily rising equity provide durable financial resilience for a cyclical steel business. This structural strength reduces refinancing risk, supports capital spending or downturn buffers, and preserves strategic optionality across 2–6 month cycles and longer industry swings.
Read all positive factors
Nakayama Steel Works,Ltd. (5408) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥35.57B
Dividend Yield2.13%
Average Volume (3M)226.99K
Price to Earnings (P/E)14.5
Beta (1Y)0.67
Revenue Growth-12.42%
EPS Growth-56.79%
CountryJP
Employees1,285
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)45.43
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 primarily makes money by manufacturing and selling steel products produced via EAF-based operations. Its key revenue stream is sales of finished steel products (commonly including structural steel like H-beams and other rolled...
Nakayama Steel Works,Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 148.31B | 169.33B | 184.44B | 188.51B | 166.70B |
| Gross Profit | 18.54B | 22.08B | 25.16B | 26.06B | 19.80B |
| EBITDA | 6.64B | 11.52B | 15.05B | 16.61B | 9.46B |
| Net Income | 2.46B | 5.70B | 8.90B | 10.23B | 4.82B |
Balance Sheet | |||||
| Total Assets | 152.37B | 149.15B | 152.09B | 148.79B | 143.62B |
| Cash, Cash Equivalents and Short-Term Investments | 23.25B | 15.35B | 16.49B | 16.77B | 15.77B |
| Total Debt | 8.52B | 9.45B | 9.87B | 10.74B | 16.21B |
| Total Liabilities | 43.22B | 42.33B | 47.53B | 51.92B | 54.68B |
| Stockholders Equity | 109.15B | 106.81B | 104.55B | 96.86B | 88.93B |
Cash Flow | |||||
| Free Cash Flow | 10.16B | 2.99B | 1.35B | 9.28B | -11.29B |
| Operating Cash Flow | 15.24B | 7.38B | 5.15B | 13.01B | -8.76B |
| Investing Cash Flow | -5.00B | -4.88B | -2.30B | -3.46B | -2.31B |
| Financing Cash Flow | -2.33B | -3.63B | -3.14B | -8.54B | 8.39B |
Nakayama Steel Works,Ltd. Technical Analysis
Positive
616.00
Price Trends
626.10
Positive
627.44
Positive
616.79
Positive
Market Momentum
10.15
Negative
64.69
Neutral
87.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5408, the sentiment is Positive. The current price of 616 is below the 20-day moving average (MA) of 642.05, below the 50-day MA of 626.10, and below the 200-day MA of 616.79, indicating a bullish trend. The MACD of 10.15 indicates Negative momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 87.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ¥429.22B | 15.15 | ― | 3.26% | -6.84% | 5.08% | |
72 Outperform | ¥212.36B | 11.49 | 8.84% | 6.54% | -6.28% | 29.39% | |
66 Neutral | ¥35.57B | 14.46 | ― | 5.02% | -12.42% | -56.79% | |
63 Neutral | ¥84.40B | 9.30 | ― | 3.70% | 2.94% | -16.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥468.16B | 12.92 | 7.28% | 2.99% | 4.19% | 31.79% | |
60 Neutral | ¥193.51B | 18.70 | 4.46% | 2.87% | -12.89% | -45.51% |
* Basic Materials Sector Average
JP:5408
Nakayama Steel Works,Ltd.
668.00
18.13
2.79%
JP:5471
Daido Steel Co
2,304.00
1,107.34
92.54%
JP:5423
Tokyo Steel Manufacturing Co
1,776.00
200.11
12.70%
JP:5451
Yodogawa Steel Works
1,450.00
197.01
15.72%
JP:5440
Kyoei Steel Ltd.
1,888.00
-241.68
-11.35%
JP:5463
Maruichi Steel Tube Ltd.
1,831.50
675.17
58.39%
Nakayama Steel Works,Ltd. Corporate Events
Nakayama Steel Secures ¥49.8 Billion Commitment Line for Electric Furnace Investment
Aug 7, 2026
Nakayama Steel Works, Ltd. has approved the conclusion of a syndication commitment line agreement arranged by MUFG Bank to secure financing for its major new electric arc furnace investment project. The facility, with a borrowing limit of up to 49...
Nakayama Steel Taps Hanwa and Yodoko in Capital Alliance to Fund New Electric Arc Furnace
Aug 7, 2026
Nakayama Steel Works has agreed a capital and business alliance with trading house Hanwa and steel products maker Yodoko, issuing new shares and disposing of treasury stock via third-party allotments to fund a new electric arc furnace project. Fol...
Nakayama Steel Posts Higher Quarterly Profit and Lifts Dividend Forecast
Aug 7, 2026
Nakayama Steel Works reported consolidated net sales of ¥38.3 billion for the three months ended June 30, 2026, down 1.5% year on year, with operating and ordinary profits falling sharply, yet profit attributable to owners of parent surged 76...
Nakayama Steel Completes Treasury Share Disposal for Executive Restricted Stock Plan
Jul 24, 2026
Nakayama Steel Works has completed the disposal of 35,046 treasury shares to implement a restricted stock compensation plan for its directors and executive officers. The transaction, approved by the board in late June, was executed at a price of 6...
Nakayama Steel Works to Use Treasury Shares for Restricted Stock Compensation
Jun 25, 2026
Nakayama Steel Works, Ltd. has approved the disposal of 35,046 treasury shares at 602 yen per share, totaling about 21.1 million yen, to fund restricted share compensation for its directors and executive officers. The allotment will provide 21,758...
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...
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.