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Godo Steel,Ltd. (JP:5410)
:5410
Japanese Market
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Godo Steel,Ltd. (5410) AI Stock Analysis

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JP:5410

Godo Steel,Ltd.

(5410)

Rating:71Outperform
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. (5410) vs. iShares MSCI Japan ETF (EWJ)

Godo Steel,Ltd. Business Overview & Revenue Model

Company DescriptionGodo 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 MoneyGodo 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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue205.20B222.85B235.39B204.20B152.78B
Gross Profit36.24B39.43B34.60B17.45B24.28B
EBITDA21.23B22.80B18.43B4.27B10.90B
Net Income11.32B15.19B12.51B-1.11B4.99B
Balance Sheet
Total Assets254.16B270.81B253.55B223.38B210.88B
Cash, Cash Equivalents and Short-Term Investments28.40B24.39B21.95B16.61B14.45B
Total Debt64.42B70.27B76.27B71.86B61.68B
Total Liabilities119.41B142.21B141.19B124.33B110.25B
Stockholders Equity134.30B128.18B111.96B98.66B100.28B
Cash Flow
Free Cash Flow12.91B12.46B1.48B-7.94B1.49B
Operating Cash Flow19.14B17.84B6.71B-2.13B6.81B
Investing Cash Flow-5.68B-4.94B-4.86B-5.25B-5.52B
Financing Cash Flow-9.45B-10.46B3.50B9.54B-1.42B

Godo Steel,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3895.00
Price Trends
50DMA
3760.60
Positive
100DMA
3789.43
Negative
200DMA
3799.19
Negative
Market Momentum
MACD
12.54
Positive
RSI
49.35
Neutral
STOCH
19.83
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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥51.63B4.62
5.90%3.74%39.89%
72
Outperform
¥35.13B6.12
6.16%-8.20%-36.06%
71
Outperform
¥98.39B9.12
3.99%0.58%-21.95%
71
Outperform
¥57.27B4.99
6.13%-7.92%-25.47%
68
Neutral
¥114.82B35.58
1.18%-0.60%3.40%
64
Neutral
¥64.58B5.13
2.80%-4.57%-12.17%
44
Neutral
C$980.54M-6.83-13.68%1.75%17.37%-32.98%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5410
Godo Steel,Ltd.
3,895.00
-631.30
-13.95%
JP:5408
Nakayama Steel Works,Ltd.
639.00
-252.72
-28.34%
JP:5440
Kyoei Steel Ltd.
2,255.00
317.19
16.37%
JP:5445
Tokyo Tekko Co., Ltd.
5,720.00
1,304.34
29.54%
JP:5449
OSAKA STEEL CO., LTD.
2,874.00
516.15
21.89%
JP:5480
Nippon Yakin Kogyo Co., Ltd.
4,250.00
-469.16
-9.94%

Godo Steel,Ltd. Corporate Events

Godo Steel Affirms Independence Amidst Nippon Steel Affiliation
Apr 25, 2025

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
Apr 25, 2025

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
Apr 25, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025