Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥54.71B
• Dividend Yield: 7.49%
• Average Volume (3M): 51.43K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 1.10
• Revenue Growth: -7.92%
• EPS Growth: -25.47%
• Country: JP
• Employees: 2,108
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Steel
• EPS (TTM): 231.41
• Shares Outstanding: 17,145,212
• 10 Day Avg. Volume: 54,230
• 30 Day Avg. Volume: 51,426
• PEG Ratio: 0.14
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.44
• 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

• Rating: 71 Outperform
• Price Target: ¥4,221.00 ▲(10.50%Upside)

The overall stock score for Godo Steel, Ltd. is driven by strong valuation metrics, with a low P/E ratio and high dividend yield being the most significant positives. Technical analysis supports a bullish trend with positive momentum indicators. However, mixed financial performance due to declining revenue and profit margins slightly offsets these strengths.

Godo Steel,Ltd. Business Overview & Revenue Model

Company Description

Godo Steel, Ltd. (5410) is a Japanese company primarily engaged in the manufacture and sale of steel products. The company operates in the steel industry and offers a range of steel solutions, including bars, wires, and other steel materials. Godo Steel serves various sectors, including construction, automotive, and industrial manufacturing, providing high-quality steel products tailored to meet the specific needs of its clients.

How the Company Makes Money

Godo Steel, Ltd. generates revenue through the production and sale of steel products. The company's key revenue streams include the sale of steel bars, wires, and other materials to sectors such as construction, where steel is a fundamental component for infrastructure projects, and the automotive industry, which requires steel for vehicle manufacturing. Godo Steel also benefits from partnerships with other industrial firms and suppliers, enabling it to maintain a steady supply chain and meet market demands efficiently. The company may also engage in strategic collaborations and innovations to enhance its production capabilities and expand its market reach, contributing to its overall earnings.

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	207.98B	205.20B	222.85B	235.39B	204.20B	152.78B
Gross Profit	35.71B	36.24B	39.43B	34.60B	17.45B	24.28B
EBITDA	19.72B	21.23B	22.80B	18.43B	4.27B	10.90B
Net Income	11.59B	11.32B	15.19B	12.51B	-1.11B	4.99B
Balance Sheet
Total Assets	267.16B	254.16B	270.81B	253.55B	223.38B	210.88B
Cash, Cash Equivalents and Short-Term Investments	26.16B	28.40B	24.39B	21.95B	16.61B	14.45B
Total Debt	72.49B	64.42B	70.27B	76.27B	71.86B	61.68B
Total Liabilities	135.14B	119.41B	142.21B	141.19B	124.33B	110.25B
Stockholders Equity	131.58B	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: Neutral
• Last Price: 3820.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 3820 is above the 20-day moving average (MA) of 3736.00, above the 50-day MA of 3737.80, and above the 200-day MA of 3811.16, indicating a neutral trend. The MACD of -6.33 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥49.10B	4.39		8.64%	3.74%	39.89%
5449	72 Outperform	¥108.00B	33.47		1.36%	-0.60%	3.40%
5440	71 Outperform	¥92.74B	8.59		5.62%	0.58%	-21.95%
5410	71 Outperform	¥54.71B	4.83		7.49%	-7.92%	-25.47%
5480	64 Neutral	¥59.90B	4.84		1.01%	-4.57%	-12.17%
5408	63 Neutral	¥33.89B	5.95		7.03%	-8.20%	-36.06%
Sector *	43 Neutral	AU$1.42B	-6.13	-40.62%	4.05%	-4.78%	-42.91%

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.