Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥52.73B
• Dividend Yield: 6.12%
• Average Volume (3M): 59.42K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.96
• Revenue Growth: -7.45%
• EPS Growth: -9.12%
• Country: JP
• Employees: 2,108
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 118.50
• Shares Outstanding: 17,145,212
• 10 Day Avg. Volume: 47,520
• 30 Day Avg. Volume: 59,420
• PEG Ratio: -0.20
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 4.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥3,861.00 ▲(8.15% Upside)

The overall stock score for Godo Steel, Ltd. is primarily influenced by its mixed financial performance and bearish technical indicators. While the company has a strong equity position and attractive valuation metrics, declining revenue and profit margins, along with negative market momentum, present challenges. The low P/E ratio and high dividend yield offer potential value, but the stock's technical weakness suggests caution.

Godo Steel,Ltd. Business Overview & Revenue Model

Company Description

Godo Steel, Ltd. (5410) is a prominent Japanese steel manufacturer specializing in the production and sale of a wide range of steel products including steel bars, plates, and sheets. The company operates primarily in the construction and automotive sectors, providing essential materials that meet the demands of various industrial applications. With a strong commitment to quality and innovation, Godo Steel aims to enhance its production capabilities and expand its market presence both domestically and internationally.

How the Company Makes Money

Godo Steel generates revenue primarily through the sale of its steel products to various industries, including construction, infrastructure, and automotive manufacturing. The company has established long-term contracts with key customers, ensuring a steady flow of orders and predictable revenue streams. Additionally, Godo Steel engages in value-added services such as steel processing and custom fabrication, which further enhance its earnings. Strategic partnerships with suppliers and distributors also play a vital role in its revenue model, allowing for efficient supply chain management and market penetration. The company's focus on innovation and sustainability, including the adoption of advanced manufacturing technologies, helps in reducing operational costs and improving profit margins.

Godo Steel,Ltd. Financial Statement Overview

Summary

Godo Steel, Ltd. exhibits a mixed financial performance. The company benefits from a strong equity position and efficient cash flow management. However, declining revenue and profit margins suggest operational challenges.

Income Statement

Godo Steel, Ltd. has shown fluctuating revenue and profit margins over the years. The gross profit margin in the most recent year is 17.66%, reflecting a decrease from the previous year. The net profit margin is 5.52%, which is modest but consistent with the industry. However, the recent decline in revenue growth and a shrinking EBIT margin indicate potential challenges in maintaining profitability.

Balance Sheet

The company's balance sheet displays a solid equity position with a debt-to-equity ratio of 0.48, indicating a relatively low level of leverage. The equity ratio stands at 52.83%, suggesting a strong asset base supported by equity. However, the total assets have slightly decreased, which could impact the company's future growth and expansion.

Cash Flow

Cash flow generation is stable, with a positive free cash flow in the latest year. The operating cash flow to net income ratio is 1.69, indicating efficient cash conversion. However, free cash flow growth has been inconsistent, which may pose challenges in funding future investments without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.72B	205.20B	222.85B	235.39B	204.20B	152.78B
Gross Profit	35.97B	36.24B	39.43B	34.60B	17.45B	24.28B
EBITDA	20.70B	21.23B	22.80B	20.20B	4.27B	13.97B
Net Income	11.43B	11.32B	15.19B	12.51B	-1.11B	4.99B
Balance Sheet
Total Assets	252.95B	254.16B	270.81B	253.55B	223.38B	210.88B
Cash, Cash Equivalents and Short-Term Investments	25.76B	28.40B	24.39B	21.95B	16.61B	14.45B
Total Debt	62.16B	64.42B	70.27B	76.27B	71.86B	61.68B
Total Liabilities	117.12B	119.41B	142.21B	141.19B	124.33B	110.25B
Stockholders Equity	135.38B	134.30B	128.18B	111.96B	98.66B	100.28B
Cash Flow
Free Cash Flow	0.00	12.91B	12.46B	1.48B	-7.94B	1.49B
Operating Cash Flow	0.00	19.14B	17.84B	6.71B	-2.13B	6.81B
Investing Cash Flow	0.00	-5.68B	-4.94B	-4.86B	-5.25B	-5.52B
Financing Cash Flow	0.00	-9.45B	-10.46B	3.50B	9.54B	-1.42B

Godo Steel,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3570.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5410, the sentiment is Negative. The current price of 3570 is below the 20-day moving average (MA) of 3740.75, below the 50-day MA of 3903.23, and below the 200-day MA of 3789.12, indicating a bearish trend. The MACD of -86.13 indicates Positive momentum. The RSI at 31.99 is Neutral, neither overbought nor oversold. The STOCH value of 25.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5410.

Godo Steel,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5445	72 Outperform	¥49.91B	4.63	―	6.72%	-8.44%	9.50%
5480	71 Outperform	¥62.09B	6.14	―	5.14%	-9.28%	-7.18%
5440	70 Outperform	¥96.96B	8.60	―	3.92%	-3.06%	1.15%
5408	64 Neutral	¥30.53B	6.02	―	7.09%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥52.73B	4.73	―	6.12%	-7.45%	-9.12%
5449	59 Neutral	¥76.74B	1,893.27	―	1.31%	-12.05%	-97.36%

Godo Steel,Ltd. Corporate Events

Godo Steel Revises Financial and Dividend Forecasts Amid Market Challenges

Godo Steel, Ltd. has revised its financial results and dividend forecasts for the fiscal year ending March 31, 2026, due to sluggish demand and increased costs. The company has lowered its net sales, operating profit, and ordinary profit projections, reflecting a challenging market environment. Additionally, the year-end dividend forecast has been reduced, aligning with the company’s strategy to maintain financial soundness while ensuring shareholder returns.

The most recent analyst rating on (JP:5410) stock is a Hold with a Yen4194.00 price target. To see the full list of analyst forecasts on Godo Steel,Ltd. stock, see the JP:5410 Stock Forecast page.

Godo Steel Reports Decreased Sales but Strong Income Growth

Godo Steel, Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a decrease in net sales by 8.7% compared to the previous year. Despite the drop in sales, the company maintained a stable operating profit with a slight decrease of 0.2%, and comprehensive income increased significantly by 104.4%. The company also revised its forecast for the fiscal year ending March 31, 2026, indicating a decrease in expected net sales and dividends per share, reflecting adjustments in their financial strategy.

The most recent analyst rating on (JP:5410) stock is a Hold with a Yen4194.00 price target. To see the full list of analyst forecasts on Godo Steel,Ltd. stock, see the JP:5410 Stock Forecast page.

Godo Steel Reports Decline in Quarterly Financial Performance

Godo Steel, Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales and profits showing a year-on-year decrease. Despite this, the company experienced a slight increase in profit attributable to owners of the parent. The forecast for the fiscal year ending March 31, 2026, indicates a further decline in net sales and profits, suggesting potential challenges ahead for the company and its stakeholders.