Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥61.95B
• Dividend Yield: 5.64%
• Average Volume (3M): 71.55K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.02
• Revenue Growth: -7.29%
• EPS Growth: -17.17%
• Country: JP
• Employees: 2,108
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 200.75
• Shares Outstanding: 17,145,212
• 10 Day Avg. Volume: 74,330
• 30 Day Avg. Volume: 71,550
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,271.00
• Price Target Upside: 0.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥4,271.00 ▲(0.38% Upside)

Godo Steel, Ltd. scores well due to its attractive valuation, featuring a low P/E ratio and a strong dividend yield. The stock's positive technical indicators further support its potential for price appreciation. However, the mixed financial performance with declining revenue and profit margins presents a risk that needs to be monitored. The absence of recent earnings call data and notable corporate events leaves the focus on the company's fundamentals and market trends.

Positive Factors

Strong Equity Position

A strong equity position with low leverage provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Efficient Cash Flow Management

Efficient cash flow management ensures the company can meet its operational needs and invest in strategic initiatives without relying heavily on external financing.

Industry Demand

Serving critical industries like construction and automotive ensures steady demand for steel products, supporting long-term revenue stability and growth potential.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive positioning, potentially impacting long-term profitability and market share.

Shrinking Profit Margins

Shrinking profit margins indicate rising costs or pricing pressures, which could hinder the company's ability to sustain profitability and invest in future growth.

Inconsistent Free Cash Flow Growth

Inconsistent free cash flow growth may limit the company's ability to fund new projects and respond to market opportunities without seeking additional financing.

Godo Steel,Ltd. Business Overview & Revenue Model

Company Description

Godo Steel, Ltd. (5410) is a Japanese company engaged in the manufacture and sale of steel products. The company operates in the steel industry, focusing on the production of a wide range of steel products including steel bars, wire rods, and other related materials. Godo Steel serves various sectors such as construction, automotive, and industrial manufacturing, providing essential materials that support infrastructure development and industrial applications.

How the Company Makes Money

Godo Steel, Ltd. generates revenue primarily through the production and sale of its steel products. The company's key revenue streams include the sale of steel bars and wire rods to industries such as construction and automotive manufacturing. These sectors rely heavily on high-quality steel for building infrastructure, manufacturing vehicles, and producing machinery. Godo Steel's ability to maintain strong relationships with its industrial clients, along with its focus on efficient production processes and quality control, contribute to its earnings. The company may also engage in strategic partnerships with other industry players to enhance its market position and expand its customer base.

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. Maintaining financial discipline and exploring growth opportunities will be key to improving future performance.

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	205.20B	205.20B	222.85B	235.39B	204.20B	152.78B
Gross Profit	36.24B	36.24B	39.43B	34.60B	17.45B	24.28B
EBITDA	20.45B	21.23B	22.80B	20.20B	4.27B	13.97B
Net Income	11.32B	11.32B	15.19B	12.51B	-1.11B	4.99B
Balance Sheet
Total Assets	254.16B	254.16B	270.81B	253.55B	223.38B	210.88B
Cash, Cash Equivalents and Short-Term Investments	28.40B	28.40B	24.39B	21.95B	16.61B	14.45B
Total Debt	64.42B	64.42B	70.27B	76.27B	71.86B	61.68B
Total Liabilities	119.41B	119.41B	142.21B	141.19B	124.33B	110.25B
Stockholders Equity	134.30B	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: Positive
• Last Price: 4255.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 4255 is above the 20-day moving average (MA) of 4146.75, above the 50-day MA of 3980.00, and above the 200-day MA of 3827.56, indicating a bullish trend. The MACD of 89.74 indicates Negative momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 60.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	¥54.70B	5.11		5.52%	-1.95%	17.09%
5408	75 Outperform	¥37.57B	7.40		5.76%	-13.08%	-34.23%
5440	71 Outperform	¥103.08B	9.47		3.77%	-1.22%	-13.03%
5410	71 Outperform	¥61.95B	5.44		5.64%	-7.29%	-17.17%
5480	64 Neutral	¥67.52B	6.30		4.49%	-7.69%	-18.05%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
5449	57 Neutral	¥81.86B	34.49		1.24%	-6.19%	-129.84%

Godo Steel,Ltd. Corporate Events

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.