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Godo Steel,Ltd. (JP:5410)
:5410
Japanese Market
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Godo Steel,Ltd. (5410) AI Stock Analysis

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JP:5410

Godo Steel,Ltd.

(5410)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
¥3,145.00
▼(-20.28% Downside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid financial resilience (stronger balance sheet from deleveraging and healthy free cash flow) and attractive valuation (low P/E and high dividend yield). These positives are tempered by a declining earnings trend and only mixed technicals, with longer-term price averages still pointing to a downtrend despite improving near-term momentum.
Positive Factors
Deleveraged Balance Sheet
Marked deleveraging materially reduces financial risk for a cyclical steel producer. With debt-to-equity near 0.18 and a larger equity base, Godo has greater flexibility to absorb demand shocks, fund targeted capex or R&D, and sustain payouts without relying on volatile external financing over coming months.
Negative Factors
Declining Profitability
Sustained erosion in net income and compressed margins weakens return on capital and reduces retained earnings for reinvestment. If margins do not stabilize, long-term competitiveness in specialty markets could suffer as resources for process upgrades, product development and customer service become constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged Balance Sheet
Marked deleveraging materially reduces financial risk for a cyclical steel producer. With debt-to-equity near 0.18 and a larger equity base, Godo has greater flexibility to absorb demand shocks, fund targeted capex or R&D, and sustain payouts without relying on volatile external financing over coming months.
Read all positive factors

Godo Steel,Ltd. (5410) vs. iShares MSCI Japan ETF (EWJ)

Godo Steel,Ltd. Business Overview & Revenue Model

Company Description
Godo Steel, Ltd., headquartered in Osaka, Japan, specializes in the production and distribution of a wide array of steel products. Its extensive portfolio includes wire rods, which find application in tire chains, stapler needles, and fencing. The...
How the Company Makes Money
null...

Godo Steel,Ltd. Financial Statement Overview

Summary
Overall financial health is solid but earnings are weakening. The balance sheet shows meaningful deleveraging (debt-to-equity down to ~0.18 in FY2026) and cash generation remains strong with healthy free cash flow (~¥12–13B in FY2025–FY2026). Offsetting this, profitability is cooling with net income declining from ¥15.2B (FY2024) to ¥8.1B (FY2026) alongside softer margins and modestly negative revenue growth over multiple years.
Income Statement
63
Positive
Balance Sheet
76
Positive
Cash Flow
70
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue199.72B191.77B205.20B222.85B235.39B204.20B
Gross Profit35.97B32.75B36.24B39.43B34.60B17.45B
EBITDA18.52B15.09B18.82B22.80B18.43B2.95B
Net Income11.43B8.05B11.32B15.19B12.51B-1.11B
Balance Sheet
Total Assets252.95B255.51B254.16B270.81B253.55B223.38B
Cash, Cash Equivalents and Short-Term Investments25.76B26.50B28.40B24.39B21.95B16.61B
Total Debt62.16B54.32B64.42B70.27B76.27B71.86B
Total Liabilities117.12B111.25B119.41B142.20B141.18B124.32B
Stockholders Equity135.38B143.79B134.30B128.18B111.96B98.66B
Cash Flow
Free Cash Flow0.0012.44B12.91B12.46B1.48B-7.94B
Operating Cash Flow0.0021.43B19.14B17.84B6.71B-2.13B
Investing Cash Flow0.00-9.59B-5.68B-4.94B-4.86B-5.25B
Financing Cash Flow0.00-13.73B-9.45B-10.46B3.50B9.54B

Godo Steel,Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3945.00
Price Trends
50DMA
2686.62
Positive
100DMA
2965.95
Negative
200DMA
3384.38
Negative
Market Momentum
MACD
57.28
Negative
RSI
66.28
Neutral
STOCH
82.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5410, the sentiment is Neutral. The current price of 3945 is above the 20-day moving average (MA) of 2810.60, above the 50-day MA of 2686.62, and above the 200-day MA of 3384.38, indicating a neutral trend. The MACD of 57.28 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 82.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5410.

Godo Steel,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥419.51B14.103.26%-1.88%20.80%
72
Outperform
¥42.43B7.396.27%-3.04%-49.39%
69
Neutral
¥789.76B11.697.80%4.03%-3.45%-50.06%
63
Neutral
¥204.55B18.585.08%1.80%2.78%24.29%
63
Neutral
¥82.92B9.203.70%2.94%-16.58%
61
Neutral
¥477.21B13.557.28%2.99%4.19%31.79%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5410
Godo Steel,Ltd.
2,925.00
-943.66
-24.39%
JP:5471
Daido Steel Co
2,331.50
1,135.81
94.99%
JP:5406
Kobe Steel
2,001.00
309.00
18.26%
JP:5482
Aichi Steel Corporation
3,170.00
778.91
32.58%
JP:5440
Kyoei Steel Ltd.
1,936.00
-236.04
-10.87%
JP:5463
Maruichi Steel Tube Ltd.
1,743.00
560.54
47.40%

Godo Steel,Ltd. Corporate Events

Godo Steel Launches ¥900 Million Share Buyback to Bolster Capital Flexibility
Jul 31, 2026
Godo Steel, Ltd. has approved a new share buyback program, authorizing the acquisition of up to 257,000 common shares, equivalent to 1.76% of its outstanding stock, for a maximum total of ¥900 million. The repurchases will be conducted via ma...
Godo Steel Cuts Interim Profit Forecasts Amid Surging Scrap Costs
Jul 31, 2026
Godo Steel has revised its consolidated forecast for the six months ending September 30, 2026, citing higher-than-expected iron scrap costs and a lag in passing improved sales prices through to shipment prices. While net sales are now expected to ...
Godo Steel Cuts Profit Outlook and Dividends Despite Higher Sales
Jul 31, 2026
Godo Steel, Ltd. reported consolidated net sales of ¥49.8 billion for the three months ended June 30, 2026, up 3.9% from a year earlier, but operating profit plunged 84.7%, ordinary profit fell 73.4%, and profit attributable to owners of pare...
Godo Steel Clarifies No Decision Yet on Treasury Share Acquisition
Jun 24, 2026
Godo Steel, Ltd. clarified that a discussion during its 120th Annual General Meeting of Shareholders may have given the impression that a decision had been made on acquiring treasury shares, but emphasized that no such decision has been finalized....
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.Date of analysis: Aug 06, 2026