JFE Holdings (5411) AI Stock Analysis

• Market Cap: ¥1.24T
• Dividend Yield: 4.59%
• Average Volume (3M): 3.84M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.86
• Revenue Growth: -8.07%
• EPS Growth: -41.42%
• Country: JP
• Employees: 62,218
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 639,438,400
• 10 Day Avg. Volume: 3,695,720
• 30 Day Avg. Volume: 3,839,646
• PEG Ratio: -0.23
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 11.69
• 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: ¥1,949.79
• Price Target Upside: -5.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥1,859.00 ▼(-9.67% Downside)

JFE Holdings' overall stock score is driven primarily 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 stability. However, technical indicators suggest a bearish trend, which could impact short-term performance. The lack of recent earnings call data and corporate events limits additional insights into future prospects.

Positive Factors

Stable Balance Sheet

A stable balance sheet with manageable leverage and a solid equity base provides financial stability and reduces risk, supporting long-term operations.

Cash Flow Generation

Strong cash flow generation supports operational sustainability and future investments, enhancing the company's ability to weather industry cycles.

Profitability Improvements

Improved profitability margins indicate effective cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Revenue Growth Decline

Inconsistent revenue growth reflects challenges in market demand and competitive pressures, potentially impacting long-term growth prospects.

Volatile Cash Flow Growth

Volatility in cash flow growth can hinder strategic investments and operational flexibility, affecting long-term financial planning.

Cyclical Industry Challenges

Operating in a cyclical industry exposes the company to demand fluctuations, impacting revenue stability and strategic planning.

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 the sale of steel products, which includes flat products used in automotive and construction applications, long products utilized in infrastructure projects, and specialty steel for high-performance applications. The company's revenue model is heavily reliant on the demand from various sectors, particularly the automotive and construction industries. Additionally, JFE Holdings earns income from its engineering division, which provides design and construction services for infrastructure projects, as well as from its shipbuilding operations. Strategic partnerships with major automotive manufacturers and construction firms enhance its revenue streams. Furthermore, JFE Holdings benefits from fluctuating global steel prices and demand trends, which can significantly impact its earnings. The company also explores opportunities in environmental solutions, which are increasingly gaining importance in the global market.

JFE Holdings Financial Statement Overview

Summary

JFE Holdings shows a mixed financial performance with strengths in cash flow generation and a stable balance sheet. The company has improved 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.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.76T	4.86T	5.17T	5.27T	4.37T	3.23T
Gross Profit	508.26B	533.08B	656.18B	609.42B	670.46B	314.52B
EBITDA	377.48B	368.30B	566.15B	475.36B	554.29B	231.37B
Net Income	71.48B	91.87B	197.42B	162.62B	288.06B	-21.87B
Balance Sheet
Total Assets	5.63T	5.65T	5.75T	5.52T	5.29T	4.65T
Cash, Cash Equivalents and Short-Term Investments	175.10B	172.84B	243.08B	119.39B	101.77B	142.42B
Total Debt	1.96T	1.77T	1.83T	1.86T	1.85T	1.81T
Total Liabilities	3.10T	3.06T	3.22T	3.33T	3.22T	2.89T
Stockholders Equity	2.47T	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: 2058.00
• 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 2058 is above the 20-day moving average (MA) of 1988.65, above the 50-day MA of 1901.72, and above the 200-day MA of 1768.65, indicating a bullish trend. The MACD of 35.82 indicates Negative momentum. The RSI at 68.54 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 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
5471	82 Outperform	¥386.24B	13.31	6.84%	2.99%	-0.02%	-40.45%
5406	80 Outperform	¥850.50B	6.74	10.78%	4.68%	-1.97%	47.63%
5423	73 Outperform	¥169.81B	10.25	7.36%	3.42%	-18.72%	-25.26%
5401	63 Neutral	¥3.45T	-518.80	-0.26%	4.53%	1.31%	-101.19%
5411	62 Neutral	¥1.24T	17.21	2.92%	4.59%	-8.07%	-41.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	61 Neutral	¥86.62B	2,136.85	―	1.24%	-12.05%	-97.36%

JFE Holdings Corporate Events

JFE Holdings Adjusts Convertible Bond Conversion Price

JFE Holdings, Inc. announced an adjustment to the conversion price for its Zero Coupon Convertible Bonds due 2028, effective October 1, 2025. This adjustment is a result of an extraordinary dividend payment of ¥40 per share, resolved by the company’s board of directors, impacting the bond’s conversion terms.

The most recent analyst rating on (JP:5411) stock is a Hold with a Yen1859.00 price target. To see the full list of analyst forecasts on JFE Holdings stock, see the JP:5411 Stock Forecast page.

JFE Holdings Exceeds Financial Forecasts for First Half of Fiscal 2025

JFE Holdings reported a significant improvement in its financial results for the first half of fiscal year 2025, surpassing previous forecasts. The steel segment saw improved profitability due to favorable inventory valuations, while the engineering segment benefited from higher sales revenue. However, the trading segment experienced a decline in profit due to lower sales in the Americas.

The most recent analyst rating on (JP:5411) stock is a Hold with a Yen1859.00 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 First Half Fiscal 2025 Results

JFE Holdings reported a decline in its financial performance for the first half of fiscal year 2025, with revenue and profits showing significant decreases compared to the previous year. The company has adjusted its financial forecasts and dividend payouts, indicating a cautious approach amid challenging market conditions. This adjustment reflects the company’s strategic response to current economic pressures, impacting stakeholders and potentially influencing its market positioning.

The most recent analyst rating on (JP:5411) stock is a Hold with a Yen1859.00 price target. To see the full list of analyst forecasts on JFE Holdings stock, see the JP:5411 Stock Forecast page.