Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥58.58B
• Dividend Yield: 6.27%
• Average Volume (3M): 59.42K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.92
• Revenue Growth: -7.45%
• EPS Growth: -9.12%
• Country: JP
• Employees: 2,108
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 128.57
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥4,283.00 ▲(8.57% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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.

Positive Factors

Balance-sheet strength

Low leverage and a >50% equity ratio give Godo Steel durable financial flexibility to withstand steel-cycle volatility, fund maintenance capex, and pursue selective investments without immediate reliance on market financing, supporting long-term operational stability and strategic optionality.

Cash conversion ability

Strong operating cash conversion (OCF/net income ~1.69) and positive free cash flow show the company can turn earnings into cash, supporting dividends, working-capital needs and reinvestment. This recurring cash generation underpins sustainable operations and lowers refinancing risk over time.

Specialty & construction focus

Concentration on specialty and construction-related steels positions the firm in segments with structural demand (infrastructure and construction) and potential for higher value-added product mix, which can sustain revenue resilience and pricing power better than pure commodity steel exposure.

Negative Factors

Declining revenue

A multi-percent decline in revenue signals shrinking volumes or pricing power; over months this erodes scale economics, limits margin recovery, and constrains internal funding for growth initiatives. If the top-line trend continues, it undermines long-term profitability and strategic investment capacity.

Margin compression

Falling gross and EBIT margins reduce the firm's buffer against raw-material cost swings common in steel. Persistent margin compression curtails retained earnings, weakens returns on investment, and limits ability to fund higher-margin product development or absorb cyclical downturns without cutting costs.

Inconsistent free cash flow growth

While current FCF is positive, inconsistency in FCF growth raises risk that capital expenditures or strategic projects will require external financing. That can increase borrowing costs or constrain investment timing, reducing long-term competitiveness and strategic flexibility.

Godo Steel,Ltd. Business Overview & Revenue Model

Company Description

Godo Steel, Ltd. manufactures and sells steel products in Japan. The company offers wire rods for tire chains, stapler needles, and fencing applications; H-beams and channels that are used in construction, civil engineering, and other sectors; structural bars, which are used as materials for making parts of construction and industrial machinery, ships, and other equipment; and rails. It also provides deformed bars that are used as construction and civil engineering materials; EG joints and anchor plates; and billets. In addition, the company offers reinforcing bars, wire products, firebricks, and ballasts; trucking services; and industrial waste disposal services, as well as sells steel products, machinery, and raw materials for steel making. Further, it is involved in electric furnace dust disposal business; and manufacture and sale of crude zinc oxide, and organic and compound fertilizers. The company was founded in 1937 and is headquartered in Osaka, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 3945.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3945 is below the 20-day moving average (MA) of 4019.50, below the 50-day MA of 4025.90, and above the 200-day MA of 3864.71, indicating a neutral trend. The MACD of -6.67 indicates Positive momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 59.25 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
5406	80 Outperform	¥889.62B	8.81	10.78%	4.68%	-1.97%	47.63%
5463	74 Outperform	¥389.40B	11.54	―	3.26%	-7.77%	58.84%
5471	74 Outperform	¥482.46B	17.95	6.84%	2.99%	-0.02%	-40.45%
5482	71 Outperform	¥221.19B	20.19	5.06%	1.80%	4.10%	152.90%
5440	70 Outperform	¥114.73B	12.02	―	3.70%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥58.58B	5.98	―	6.27%	-7.45%	-9.12%

Godo Steel,Ltd. Corporate Events

Godo Steel Posts Lower Nine-Month Earnings but Keeps Full-Year Forecasts and Dividend Plan Intact

For the nine months ended 31 December 2025, Godo Steel reported declines in revenue and profit, with net sales down 7.8% year on year to ¥142.3 billion and profit attributable to owners of the parent falling 17.5% to ¥6.5 billion, as operating and ordinary profit also weakened and basic earnings per share slipped to ¥447.76. Despite the softer interim performance, total assets and net assets rose, the equity ratio held at 53.0%, the company kept its full-year earnings and dividend forecasts unchanged—targeting ¥195.0 billion in sales, ¥8.5 billion in net profit and total annual dividends of ¥180 per share—signalling confidence in earnings recovery in the final quarter and continued shareholder returns.

The most recent analyst rating on (JP:5410) stock is a Hold with a Yen4390.00 price target. To see the full list of analyst forecasts on Godo Steel,Ltd. stock, see the JP:5410 Stock Forecast page.