JFE Holdings (5411) AI Stock Analysis

• Market Cap: $1.15T
• Dividend Yield: 5.23%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.88
• Revenue Growth: -7.02%
• EPS Growth: -57.67%
• Country: JP
• Employees: 62,218
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 11.21
• Shares Outstanding: 639,438,400
• 10 Day Avg. Volume: 3,276,270
• 30 Day Avg. Volume: 3,382,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.52
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: 10.61
• 1Y Price Target: $1,986.47
• Price Target Upside: 3.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: ¥1,863.00 ▼(-2.59% Downside)

JFE Holdings' overall stock score is primarily influenced by its stable financial performance and attractive valuation. The company's ability to generate cash flow and maintain a solid balance sheet provides a foundation for recovery in the cyclical steel industry. The technical analysis suggests some caution due to short-term bearish signals, but the stock's valuation and dividend yield offer a compelling case for long-term investors.

JFE Holdings Business Overview & Revenue Model

Company Description

JFE Holdings, Inc., through its subsidiaries, engages in steel, engineering, and trading businesses in Japan and internationally. Its Steel segment produces and sells various steel products, processed steel products, and raw materials, as well as operates in the transportation, facility maintenance, and construction businesses. The company's Engineering segment engages in the engineering of energy, urban environment, steel structures and industrial machinery, recycling, and electricity retailing projects. Its Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, food, etc. JFE Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

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 strengths in cash flow generation and a stable balance sheet. The company has shown resilience in improving profitability despite revenue fluctuations typical of the steel industry. The balance sheet reveals a sound capital structure with manageable debt levels, although cash flow management presents areas for improvement. The company is on a path of recovery, leveraging its financial foundation to navigate industry 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	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86T	4.86T	5.17T	5.27T	4.37T	3.23T
Gross Profit	532.99B	533.08B	656.18B	609.42B	670.46B	314.52B
EBITDA	273.95B	399.29B	566.15B	492.24B	569.06B	231.37B
Net Income	91.87B	91.87B	197.42B	162.62B	288.06B	-21.87B
Balance Sheet
Total Assets	5.65T	5.65T	5.75T	5.52T	5.29T	4.65T
Cash, Cash Equivalents and Short-Term Investments	172.84B	172.84B	243.08B	138.33B	124.60B	155.78B
Total Debt	1.77T	1.77T	1.83T	1.86T	1.85T	1.81T
Total Liabilities	3.06T	3.06T	3.22T	3.33T	3.22T	2.89T
Stockholders Equity	2.53T	2.53T	2.46T	2.12T	1.99T	1.68T
Cash Flow
Free Cash Flow	0.00	99.55B	149.14B	106.60B	-14.59B	-60.85B
Operating Cash Flow	0.00	378.97B	478.97B	395.80B	298.74B	247.27B
Investing Cash Flow	0.00	-283.18B	-325.26B	-274.31B	-288.03B	-164.22B
Financing Cash Flow	0.00	-157.44B	-45.49B	-110.17B	-57.43B	-30.09B

JFE Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1912.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1912.5 is above the 20-day moving average (MA) of 1891.52, above the 50-day MA of 1818.48, and above the 200-day MA of 1742.95, indicating a bullish trend. The MACD of 36.47 indicates Positive momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 35.43 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	717.82B	5.34	10.34%	5.49%	-0.07%	24.81%
5471	75 Outperform	269.74B	9.80	6.60%	3.58%	-1.07%	-43.26%
5423	73 Outperform	171.23B	9.02	0.00%	3.22%	-14.44%	-25.56%
5411	64 Neutral	$1.15T	17.08	2.90%	5.23%	-7.02%	-57.67%
5401	63 Neutral	3.40T	-10,633.25	6.51%	4.96%	-3.92%	-100.05%
5449	60 Neutral	81.98B	-110.05	2.07%	1.18%	-6.19%	-129.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

JFE Holdings Corporate Events

JFE Holdings to Dispose Treasury Shares for Executive Compensation Plan

JFE Holdings has announced the disposal of treasury shares through a third-party allotment to Custody Bank of Japan, Ltd., as part of its performance-linked remuneration plan for directors and executive officers. This move is aimed at facilitating the continuity of the plan by providing shares as compensation, which corresponds to 0.05% of the company’s total shares and voting rights, ensuring alignment with the company’s strategic objectives and shareholder interests.

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 Announces Q1 2025 Financial Results and Forecasts

JFE Holdings has released its financial results for the first quarter of fiscal year 2025, ending March 31, 2026. The report outlines the company’s financial performance and forecasts for the fiscal year, highlighting the challenges and opportunities within the steel industry. This announcement is crucial for stakeholders as it provides insights into the company’s strategic direction and market positioning amidst evolving industry dynamics.

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 Revises Fiscal 2025 Financial and Dividend Forecasts

JFE Holdings has revised its financial and dividend forecasts for the first half of fiscal 2025 due to recent business performance trends. The company now expects lower revenue and profit compared to the previous year, with a forecasted interim dividend of 40 yen per share, maintaining a full-year dividend of 80 yen per share. This adjustment reflects the company’s strategic response to current market conditions and its commitment to shareholder returns.

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 Reports Decline in Q1 2025 Financial Results

JFE Holdings reported a significant decline in its financial performance for the first quarter of fiscal year 2025, with a notable decrease in revenue and profits compared to the previous year. The company has also revised its dividend forecast and consolidated financial results, indicating a challenging market environment and potential impacts on its 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 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.