JFE Holdings (5411) AI Stock Analysis

• Market Cap: $1.06T
• Dividend Yield: 5.68%
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.90
• Revenue Growth: -6.09%
• EPS Growth: -55.53%
• Country: JP
• Employees: 62,218
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Steel
• EPS (TTM): -12.95
• Shares Outstanding: 639,438,400
• 10 Day Avg. Volume: 3,866,090
• 30 Day Avg. Volume: 3,471,363
• PEG Ratio: -0.39
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.50
• 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: $1,893.88
• Price Target Upside: 7.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: ¥1,921.00 ▲(9.15%Upside)

JFE Holdings' stock is supported by a solid financial foundation and attractive valuation metrics. The technical indicators show positive momentum, reinforcing the stock's potential for future gains. Despite challenges in cash flow management, the company's stable balance sheet and consistent profitability improvement position it well in the cyclical steel industry.

JFE Holdings Business Overview & Revenue Model

Company Description

JFE Holdings, Inc. is a leading Japanese corporation primarily engaged in the steel manufacturing industry. The company operates through several segments, including steel production, engineering, and trading, with a focus on producing high-quality steel products for various industrial applications. JFE Holdings is recognized for its integrated steel production processes and is committed to delivering innovative solutions in energy, infrastructure, and environment-related sectors.

How the Company Makes Money

JFE Holdings generates revenue primarily through its steel production segment, which involves manufacturing and selling a wide range of steel products, including flat and long steel products, used in construction, automotive, and shipbuilding industries. The company operates large-scale steel plants that contribute significantly to its revenue. In addition to steel production, JFE Holdings earns income from its engineering division, which provides engineering and construction services for energy and environmental projects. The trading segment also contributes to the company's revenue by facilitating the sale of steel products and raw materials. Strategic partnerships and joint ventures with domestic and international companies further bolster JFE Holdings' earnings by expanding its market reach and product offerings.

JFE Holdings Financial Statement Overview

Summary

JFE Holdings exhibits a mixed financial performance with strong cash flow generation and a stable balance sheet. The company is improving profitability despite revenue fluctuations typical of the steel industry. However, cash flow management presents challenges.

Income Statement

JFE Holdings has shown notable improvements in profitability with a gross profit margin of 10.97% and a net profit margin of 1.89% in the most recent period. Despite some fluctuations in EBIT and EBITDA margins over the years, the company has managed to stabilize its revenue and profit growth. The revenue growth trajectory has been inconsistent, indicated by a decline from 2023 to 2024. The steel industry is cyclical, and such fluctuations are common. Overall, the income statement reflects a company that is regaining financial health post significant challenges in previous years.

Balance Sheet

The balance sheet of JFE Holdings indicates a stable financial position with a debt-to-equity ratio of 0.70, reflecting a manageable level of leverage. The return on equity stands at 3.63%, suggesting moderate profitability from equity financing. The equity ratio is 44.78%, highlighting a solid portion of the company’s assets financed through equity. Despite a high total debt, the company's significant equity base provides a buffer against financial risk, suggesting relative stability.

Cash Flow

JFE Holdings has managed to generate positive free cash flow, with a free cash flow to net income ratio of 1.08, indicating efficient cash generation relative to net income. However, the free cash flow growth rate shows volatility, reflecting challenges in capital expenditure management. The operating cash flow to net income ratio of 4.13 demonstrates strong cash flow generation capabilities, which is a positive sign for sustaining operations and future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86T	5.17T	5.27T	4.37T	3.23T
Gross Profit	533.08B	656.18B	609.42B	670.46B	314.52B
EBITDA	399.29B	566.15B	492.24B	569.06B	231.37B
Net Income	91.87B	197.42B	162.62B	288.06B	-21.87B
Balance Sheet
Total Assets	5.65T	5.75T	5.52T	5.29T	4.65T
Cash, Cash Equivalents and Short-Term Investments	172.84B	243.08B	138.33B	124.60B	155.78B
Total Debt	1.77T	1.83T	1.86T	1.85T	1.81T
Total Liabilities	3.06T	3.22T	3.33T	3.22T	2.89T
Stockholders Equity	2.53T	2.46T	2.12T	1.99T	1.68T
Cash Flow
Free Cash Flow	99.55B	149.14B	106.60B	-14.59B	-60.85B
Operating Cash Flow	378.97B	478.97B	395.80B	298.74B	247.27B
Investing Cash Flow	-283.18B	-325.26B	-274.31B	-288.03B	-164.22B
Financing Cash Flow	-157.44B	-45.49B	-110.17B	-57.43B	-30.09B

JFE Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1760.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5411, the sentiment is Positive. The current price of 1760 is above the 20-day moving average (MA) of 1759.45, above the 50-day MA of 1709.42, and above the 200-day MA of 1735.91, indicating a bullish trend. The MACD of 24.59 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5411.

JFE Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	81 Outperform	$657.01B	5.47	10.71%	6.00%	0.47%	9.83%
5471	77 Outperform	€225.30B	7.74	6.56%	4.51%	-1.09%	-42.47%
5401	73 Outperform	$3.06T	8.35	6.77%	5.46%	-1.95%	-40.26%
5423	73 Outperform	$171.56B	9.03	8.92%	3.18%	-11.02%	-21.84%
Sector *	71 Outperform	¥180.40B	11.21	6.29%	3.20%	3.88%	3.23%
5411	69 Neutral	$1.06T	12.19	3.62%	5.68%	-6.09%	-55.53%
5449	68 Neutral	¥111.86B	34.66		1.18%	-0.60%	3.40%

JFE Holdings Corporate Events

JFE Holdings Adjusts Convertible Bond Conversion Price Following Dividend

JFE Holdings announced an adjustment in the conversion price for its Zero Coupon Convertible Bonds due 2028, lowering it from ¥2,837.7 to ¥2,759.0. This adjustment follows an extraordinary dividend payment of ¥50 per share, as resolved at the company’s 23rd Ordinary General Meeting of Shareholders, impacting the bond’s terms and conditions.

The most recent analyst rating on (JP:5411) stock is a Hold with a Yen2250.00 price target. To see the full list of analyst forecasts on JFE Holdings stock, see the JP:5411 Stock Forecast page.

JFE Holdings Proposes Amendments to Strengthen Governance

JFE Holdings, Inc. announced plans to amend its Articles of Incorporation to transition to a company with an Audit & Supervisory Committee, aiming to strengthen its board’s supervisory function and improve decision-making processes. These changes, set for shareholder approval in June 2025, are expected to enhance corporate governance and operational efficiency, impacting the company’s strategic direction and potentially benefiting stakeholders.

The most recent analyst rating on (JP:5411) stock is a Hold with a Yen2250.00 price target. To see the full list of analyst forecasts on JFE Holdings stock, see the JP:5411 Stock Forecast page.

JFE Holdings Unveils Ambitious Long-term Vision and Medium-term Business Plan

JFE Holdings has announced its eighth Medium-term Business Plan and a long-term vision, JFE Vision 2035, aiming to address stakeholders’ concerns about economic prospects and carbon neutrality. The plan targets a consolidated business profit of 700 billion yen by FY2035 and involves rebuilding operations in Japan and expanding in growth fields overseas, despite challenging market conditions.

JFE Holdings Revises Performance-Linked Remuneration Plan

JFE Holdings, Inc. has announced a continuation and partial revision of its medium- to long-term performance-linked remuneration plan for its Directors and Corporate Officers. This revision aims to enhance the linkage between remuneration, company performance, and stock value, aligning with the company’s eighth Medium-Term Business Plan for fiscal years 2025–2027. The changes are designed to increase corporate value and align the interests of directors with shareholders, subject to approval at the upcoming General Meeting of Shareholders.