JFE Holdings (5411) AI Stock Analysis

• Market Cap: $1.08T
• Dividend Yield: 5.58%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.91
• Revenue Growth: -6.09%
• EPS Growth: -55.53%
• Country: JP
• Employees: 62,218
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Steel
• EPS (TTM): -12.95
• Shares Outstanding: 639,438,400
• 10 Day Avg. Volume: 3,545,810
• 30 Day Avg. Volume: 2,717,270
• PEG Ratio: <0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.41
• 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: $1,902.42
• Price Target Upside: 6.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ¥1,838.00 ▲(2.68%Upside)

JFE Holdings shows a solid valuation with an attractive P/E ratio and high dividend yield, providing potential returns for investors. Financial performance highlights strengths in profitability and stability, despite challenges in revenue consistency typical of the cyclical steel industry. Technical indicators present a mixed picture, with slight short-term upward trends countered by some bearish signals.

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 manufacturing operations, which account for the majority of its income. The company produces and sells steel products to a diverse customer base, including automotive manufacturers, construction firms, and shipbuilders. JFE Holdings also earns money through its engineering division, which provides services in energy and environmental projects, contributing to sustainable infrastructure development. Additionally, its trading segment, JFE Shoji, generates revenue by dealing with metals, raw materials, and various other products, leveraging global supply chains and strategic partnerships to expand its market reach.

JFE Holdings Financial Statement Overview

Summary

JFE Holdings shows mixed financial performance with strong cash flow generation and a stable balance sheet, but faces challenges in revenue growth typical of the cyclical steel industry. The company has improved profitability and maintains a sound capital structure with manageable debt levels.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.68T	4.86T	5.17T	5.27T	4.37T	3.23T
Gross Profit	582.59B	533.08B	656.18B	609.42B	670.46B	314.52B
EBITDA	239.93B	399.29B	566.15B	492.24B	569.06B	231.37B
Net Income	144.64B	91.87B	197.42B	162.62B	288.06B	-21.87B
Balance Sheet
Total Assets	5.69T	5.65T	5.75T	5.52T	5.29T	4.65T
Cash, Cash Equivalents and Short-Term Investments	149.64B	172.84B	243.08B	138.33B	124.60B	155.78B
Total Debt	1.95T	1.77T	1.83T	1.86T	1.85T	1.81T
Total Liabilities	3.13T	3.06T	3.22T	3.33T	3.22T	2.89T
Stockholders Equity	2.51T	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: 1790.00
• 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:5411, the sentiment is Positive. The current price of 1790 is above the 20-day moving average (MA) of 1673.18, above the 50-day MA of 1670.24, and above the 200-day MA of 1739.15, indicating a neutral trend. The MACD of -3.46 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 72.77 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
5411	66 Neutral	$1.08T	12.42	3.62%	5.58%	-6.09%	-55.53%
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
DDL		€1.27B	7.05	6.56%	5.18%	―	―
KBSTF		$4.32B	5.50	10.71%	6.67%	―	―
NISTF		$20.61B	8.51	6.77%	5.43%	―	―
TOKSF		$1.16B	7.37	10.08%	3.26%	―	―
5449	72 Outperform	¥108.00B	33.47		1.36%	-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.

JFE Holdings to Introduce Advanced Electric Arc Furnace for Carbon-Neutral Steelmaking

JFE Holdings, through its subsidiary JFE Steel Corporation, announced the introduction of an advanced electric arc furnace at its Kurashiki facility, supported by a government grant. This initiative is part of a national project to achieve carbon-neutral steelmaking, with the furnace expected to start production in 2028. The project aligns with JFE’s commitment to sustainability and innovation, aiming to become a leading supplier of high-quality steel materials.