Kyoei Steel Ltd. (5440) AI Stock Analysis

• Market Cap: ¥98.39B
• Dividend Yield: 3.99%
• Average Volume (3M): 86.18K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.89
• Revenue Growth: 0.58%
• EPS Growth: -21.95%
• Country: JP
• Employees: 3,938
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Steel
• EPS (TTM): 38.10
• Shares Outstanding: 44,898,727
• 10 Day Avg. Volume: 93,170
• 30 Day Avg. Volume: 86,183
• PEG Ratio: -1.72
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,940.00
• Price Target Upside: -13.97% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,371.00 ▲(5.14%Upside)

Kyoei Steel Ltd. scores well due to its strong financial performance and attractive valuation, underscored by a low P/E ratio and high dividend yield. While technical analysis shows potential overbought conditions, the stock's performance and valuation provide a compelling investment case.

Kyoei Steel Ltd. Business Overview & Revenue Model

Company Description

Kyoei Steel Ltd. (5440) is a Japanese company engaged in the manufacture and sale of steel products. The company operates in sectors including construction, civil engineering, and industrial machinery. Its core products include reinforcing bars, billets, and specialty steel products, which are essential materials for infrastructure development and various industrial applications.

How the Company Makes Money

Kyoei Steel Ltd. generates revenue primarily through the manufacturing and sale of steel products. The company's key revenue streams include the sale of reinforcing bars and billets, which are widely used in construction and civil engineering projects. Additionally, the company benefits from partnerships with construction firms and industrial clients who require high-quality steel products for their projects. Factors contributing to its earnings include demand in the construction sector, raw material costs, and operational efficiency in production processes.

Kyoei Steel Ltd. Financial Statement Overview

Summary

Kyoei Steel Ltd. presents a generally strong financial outlook with stable revenue growth and solid profitability. The balance sheet reflects prudent financial management with effective leverage control. Cash flow metrics are robust, highlighting efficient cash management strategies. However, improvements in operational efficiencies could bolster margins and further enhance financial performance.

Income Statement

Kyoei Steel Ltd. shows stable revenue growth, with a modest improvement from 2024 to 2025. The gross profit margin decreased slightly, indicating potential cost pressures. The net profit margin remains healthy, supported by efficient cost management. However, EBIT and EBITDA margins have decreased compared to the previous year, highlighting a need for operational efficiency improvements.

Balance Sheet

The balance sheet is strong, with a favorable debt-to-equity ratio, indicating solid financial leverage management. Return on equity remains robust, showcasing the company's ability to generate profits from shareholders' equity. However, a slight decrease in equity ratio points to increased liabilities relative to assets.

Cash Flow

Kyoei Steel Ltd. demonstrates strong cash flow generation with a significant increase in free cash flow, reflecting effective capital expenditure management. The operating cash flow to net income ratio is solid, indicating good cash conversion. The free cash flow to net income ratio also shows efficient cash utilization relative to earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	322.85B	320.98B	355.71B	292.72B	226.37B
Gross Profit	38.33B	41.97B	34.27B	25.90B	28.26B
EBITDA	27.71B	28.87B	26.09B	20.36B	22.65B
Net Income	10.79B	13.83B	13.11B	6.32B	8.79B
Balance Sheet
Total Assets	352.83B	354.22B	337.71B	314.20B	282.28B
Cash, Cash Equivalents and Short-Term Investments	64.50B	57.64B	57.75B	52.34B	67.96B
Total Debt	83.55B	92.74B	99.54B	94.49B	78.33B
Total Liabilities	143.67B	152.79B	147.54B	138.51B	117.70B
Stockholders Equity	202.99B	194.64B	179.69B	162.96B	154.43B
Cash Flow
Free Cash Flow	25.85B	13.46B	12.13B	-25.57B	5.11B
Operating Cash Flow	39.41B	24.29B	19.26B	-13.70B	15.19B
Investing Cash Flow	-9.88B	-17.05B	-6.14B	6.93B	-36.78B
Financing Cash Flow	-18.22B	-14.17B	-9.02B	7.34B	5.14B

Kyoei Steel Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2255.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5440, the sentiment is Positive. The current price of 2255 is above the 20-day moving average (MA) of 2145.00, above the 50-day MA of 2029.68, and above the 200-day MA of 1862.41, indicating a bullish trend. The MACD of 66.52 indicates Negative momentum. The RSI at 72.50 is Negative, neither overbought nor oversold. The STOCH value of 70.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5440.

Kyoei Steel Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5602	80 Outperform	¥84.36B	12.45		3.23%	0.59%	25.65%
5445	78 Outperform	¥51.63B	4.62		5.90%	3.74%	39.89%
5440	71 Outperform	¥98.39B	9.12		3.99%	0.58%	-21.95%
5410	71 Outperform	¥56.97B	5.03		6.16%	-7.92%	-25.47%
5449	68 Neutral	¥114.82B	35.58		1.18%	-0.60%	3.40%
5480	64 Neutral	¥64.12B	5.19		2.82%	-4.57%	-12.17%
Sector *	44 Neutral	C$979.23M	-6.82	-13.73%	1.76%	17.37%	-32.84%

Kyoei Steel Ltd. Corporate Events

Kyoei Steel Affirms Independent Operations Amidst Nippon Steel’s Significant Stake

Kyoei Steel Ltd. announced that Nippon Steel Corporation holds a 28.1% voting stake in the company, categorizing it as an ‘other affiliated company.’ Despite this significant shareholding, Nippon Steel does not influence Kyoei Steel’s management decisions, allowing the latter to operate independently. This structure ensures that Kyoei Steel maintains its autonomy in business operations while benefiting from the association with a major industry player.

The most recent analyst rating on (JP:5440) stock is a Hold with a Yen1940.00 price target. To see the full list of analyst forecasts on Kyoei Steel Ltd. stock, see the JP:5440 Stock Forecast page.

Kyoei Steel Reports Fiscal Year 2025 Financial Results with Modest Sales Growth

Kyoei Steel Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.6% to 322,849 million yen. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent by 27.2%, 25.1%, and 22.0%, respectively. Despite these declines, the company maintained a stable dividend payout and improved its equity-to-asset ratio to 57.5%. The financial outlook for the next fiscal year anticipates a 5.3% increase in net sales, with significant improvements expected in operating and ordinary profits.

The most recent analyst rating on (JP:5440) stock is a Hold with a Yen1830.00 price target. To see the full list of analyst forecasts on Kyoei Steel Ltd. stock, see the JP:5440 Stock Forecast page.

Kyoei Steel Reports Fiscal Year 2025 Financial Results

Kyoei Steel Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.6% to 322,849 million yen. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent by 27.2%, 25.1%, and 22.0% respectively. Despite these declines, the company’s equity-to-asset ratio improved to 57.5%, indicating a stronger financial position. The cash flow from operating activities increased significantly, providing a robust cash reserve at the end of the period. The company maintained its annual dividend per share at 90 yen, reflecting its commitment to returning value to shareholders.