Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥52.66B
• Dividend Yield: 6.27%
• Average Volume (3M): 59.42K
• Price to Earnings (P/E): 7.7
• 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: 64 Neutral
• Price Target: ¥3,852.00 ▼(-2.36% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by steady but cyclical financial performance and an attractive valuation (low P/E and high dividend yield). These positives are partly offset by weak technical momentum, with the stock trading below major moving averages and bearish MACD/RSI signals.

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 makes money primarily by selling steel products. Its main revenue stream is the manufacture and sale of electric-furnace steel and related steel materials, with revenue recognized from shipments to customers such as construction-related and industrial users. Additional revenue is generated from downstream processing and sales of processed steel products and related services tied to its steel manufacturing operations. Specific details on major customer concentration, long-term supply/offtake contracts, pricing mechanisms, or significant partnerships are null.

Godo Steel,Ltd. Financial Statement Overview

Summary

Financials are solid but cyclical: profitability remains positive (gross margin ~17.7% and net margin ~5.5% in 2025), leverage is manageable and improving (debt-to-equity down to ~0.48 in 2025), and free cash flow is strong in 2024–2025 (~¥12–13B). Offsetting this, results have been volatile across the cycle (loss in 2022; weak 2023 cash flow), and revenue declined in both 2024 and 2025 with some margin slippage.

Income Statement

Profitability is solid for a cyclical steel producer, with gross margin holding around ~17.7% in 2024–2025 and net margin at ~5.5% in 2025. However, the earnings profile is uneven: the company swung to a loss in 2022 and, more recently, saw revenue decline in 2024 and 2025 alongside margin compression (net margin down from ~6.8% in 2024 to ~5.5% in 2025). Overall: healthy current profitability, but clear cyclicality and a softer near-term trend.

Balance Sheet

Leverage appears manageable and improving, with debt-to-equity trending down from ~0.73 (2022) to ~0.48 (2025), supported by rising equity. Returns on equity are positive and reasonable in the last two years (~11.9% in 2024 and ~8.4% in 2025), though they are below the 2024 peak and were negative during the 2022 downturn. Overall balance sheet strength is good for the industry, with cyclical return volatility as the main weakness.

Cash Flow

Cash generation has recovered meaningfully from 2022 (negative operating and free cash flow) to strong positive levels in 2024–2025, with free cash flow of ~¥12–13B in both years. Free cash flow also tracks earnings reasonably (about ~67% of net income in 2025). The key drawback is volatility—2023 free cash flow was very low and 2022 was deeply negative—indicating cash conversion can swing materially across the cycle.

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	18.52B	18.82B	22.80B	18.43B	2.95B	10.90B
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	142.20B	141.18B	124.32B	110.24B
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: 3945.00
• 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 3945 is above the 20-day moving average (MA) of 3856.00, below the 50-day MA of 3985.40, and above the 200-day MA of 3872.28, indicating a bearish trend. The MACD of -73.41 indicates Positive momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 27.13 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
5406	80 Outperform	¥763.23B	9.48	10.78%	4.68%	-1.97%	47.63%
5463	74 Outperform	¥338.77B	12.83	―	3.26%	-7.77%	58.84%
5471	74 Outperform	¥387.68B	9.05	6.16%	2.99%	-0.02%	-40.45%
5440	70 Outperform	¥100.13B	10.61	―	3.70%	-3.06%	1.15%
5482	67 Neutral	¥184.64B	11.58	5.06%	1.80%	4.10%	152.90%
5410	64 Neutral	¥52.66B	7.67	―	6.27%	-7.45%	-9.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.