Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥57.27B
• Dividend Yield: 6.13%
• Average Volume (3M): 52.76K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.10
• Revenue Growth: -7.92%
• EPS Growth: -25.47%
• Country: JP
• Employees: 2,108
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 231.41
• Shares Outstanding: 17,145,212
• 10 Day Avg. Volume: 45,820
• 30 Day Avg. Volume: 52,763
• PEG Ratio: -2.17
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,030.00
• Price Target Upside: 3.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥4,271.00 ▲(9.65%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.

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. shows a mixed financial performance with a strong equity position and efficient cash flow management. However, declining revenue and profit margins indicate 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	205.20B	222.85B	235.39B	204.20B	152.78B
Gross Profit	36.24B	39.43B	34.60B	17.45B	24.28B
EBITDA	21.23B	22.80B	18.43B	4.27B	10.90B
Net Income	11.32B	15.19B	12.51B	-1.11B	4.99B
Balance Sheet
Total Assets	254.16B	270.81B	253.55B	223.38B	210.88B
Cash, Cash Equivalents and Short-Term Investments	28.40B	24.39B	21.95B	16.61B	14.45B
Total Debt	64.42B	70.27B	76.27B	71.86B	61.68B
Total Liabilities	119.41B	142.21B	141.19B	124.33B	110.25B
Stockholders Equity	134.30B	128.18B	111.96B	98.66B	100.28B
Cash Flow
Free Cash Flow	12.91B	12.46B	1.48B	-7.94B	1.49B
Operating Cash Flow	19.14B	17.84B	6.71B	-2.13B	6.81B
Investing Cash Flow	-5.68B	-4.94B	-4.86B	-5.25B	-5.52B
Financing Cash Flow	-9.45B	-10.46B	3.50B	9.54B	-1.42B

Godo Steel,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3895.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3895 is above the 20-day moving average (MA) of 3773.00, above the 50-day MA of 3760.60, and above the 200-day MA of 3799.19, indicating a neutral trend. The MACD of 12.54 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 19.83 is Positive, 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	78 Outperform	¥51.63B	4.62		5.90%	3.74%	39.89%
5408	72 Outperform	¥35.13B	6.12		6.16%	-8.20%	-36.06%
5440	71 Outperform	¥98.39B	9.12		3.99%	0.58%	-21.95%
5410	71 Outperform	¥57.27B	4.99		6.13%	-7.92%	-25.47%
5449	68 Neutral	¥114.82B	35.58		1.18%	-0.60%	3.40%
5480	64 Neutral	¥64.58B	5.13		2.80%	-4.57%	-12.17%
Sector *	44 Neutral	C$980.54M	-6.83	-13.68%	1.75%	17.37%	-32.98%

Godo Steel,Ltd. Corporate Events

Godo Steel Affirms Independence Amidst Nippon Steel Affiliation

Godo Steel, Ltd. announced its relationship with Nippon Steel Corporation, highlighting that while they maintain a cooperative relationship, Godo Steel retains its independence with no restrictions on its business activities. This announcement underscores the company’s strategic positioning within the industry, ensuring stakeholders of its autonomous operations despite the affiliation.

Godo Steel Announces Leadership Changes Ahead of Annual Meeting

Godo Steel, Ltd. announced changes to its Board of Directors and Officers, which will be finalized at the upcoming Annual Meeting of Shareholders in June. These changes are part of the company’s strategic efforts to strengthen its leadership team and enhance its operational efficiency, potentially impacting its market positioning and stakeholder relations.

Godo Steel Reports Decline in Sales and Profits for FY 2025

Godo Steel, Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decline in net sales by 7.9% to ¥205,199 million and a decrease in operating profit by 23% to ¥13,749 million. Despite these declines, the company maintained a strong capital adequacy ratio of 52.8% and increased its net assets per share. The company also announced a reduction in annual dividends, reflecting a cautious approach amid challenging market conditions.