Kyoei Steel Ltd. (JP:5440)
:5440
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Kyoei Steel Ltd.
(5440)
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Rating:58Neutral
Price Target:
¥1,900.00
▼(-22.45% Downside)
Action:DowngradedDate:05/02/26
The score is held back primarily by very weak technical momentum (price far below key moving averages and strongly negative MACD). Financial performance is decent but tempered by post-2024 earnings cooling and a sharp 2026 free-cash-flow drop. Valuation is a positive offset, with a low P/E and strong dividend yield.
Positive Factors
Stable operating margins (~5–6% EBIT)
Consistent mid-single-digit EBIT margins across recent years indicate the company can sustain operating profitability through steel market cycles. This durability supports internal funding for maintenance capex and dividends, and reduces sensitivity to short-term price swings relative to lower-margin peers.
Negative Factors
Sharp free-cash-flow decline (¥25.9B → ¥6.8B)
A material drop in free cash flow reduces the company's ability to self-fund capex, repay debt, or maintain dividends without drawing on liquidity. Persistent cash-generation volatility increases refinancing and operational risk during industry downturns and constrains strategic investment options.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable operating margins (~5–6% EBIT)
Consistent mid-single-digit EBIT margins across recent years indicate the company can sustain operating profitability through steel market cycles. This durability supports internal funding for maintenance capex and dividends, and reduces sensitivity to short-term price swings relative to lower-margin peers.
Read all positive factors
Kyoei Steel Ltd. (5440) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥79.40B
Dividend Yield3.7%
Average Volume (3M)101.53K
Price to Earnings (P/E)13.1
Beta (1Y)0.82
Revenue Growth-2.40%
EPS Growth-8.59%
CountryJP
Employees3,938
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)250.42
Shares Outstanding44,898,727
10 Day Avg. Volume56,720
30 Day Avg. Volume101,530
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)0.48
Price to Sales (P/S)0.32
P/FCF Ratio14.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)260
Revenue Forecast (FY)¥324.60B
Kyoei Steel Ltd. Business Overview & Revenue Model
Company Description
Kyoei Steel Ltd. engages in the production, sale, and transport of steel products for civil engineering and construction industry in Japan, Vietnam, North America, and internationally. It operates through Domestic Steel Business, Overseas Steel Bu...
How the Company Makes Money
Kyoei Steel makes money mainly by manufacturing and selling steel products produced in electric arc furnaces. Its primary revenue stream is domestic sales of reinforcing steel bars and other long steel products used in building and infrastructure ...
Kyoei Steel Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 318.71B | 315.11B | 322.85B | 320.98B | 355.71B | 292.72B |
| Gross Profit | 39.75B | 39.98B | 38.33B | 41.97B | 34.27B | 25.90B |
| EBITDA | 25.43B | 24.95B | 27.71B | 28.87B | 26.09B | 20.36B |
| Net Income | 10.88B | 9.86B | 10.79B | 13.83B | 13.11B | 6.32B |
Balance Sheet | ||||||
| Total Assets | 341.79B | 373.13B | 352.83B | 354.22B | 337.71B | 314.20B |
| Cash, Cash Equivalents and Short-Term Investments | 61.77B | 68.95B | 64.50B | 57.64B | 57.75B | 52.34B |
| Total Debt | 77.92B | 94.63B | 84.95B | 94.01B | 100.90B | 95.58B |
| Total Liabilities | 135.61B | 154.32B | 143.67B | 152.79B | 147.54B | 138.51B |
| Stockholders Equity | 200.37B | 211.66B | 202.99B | 194.64B | 179.69B | 162.96B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.79B | 25.85B | 13.46B | 12.13B | -25.57B |
| Operating Cash Flow | 0.00 | 24.73B | 39.41B | 24.29B | 19.26B | -13.70B |
| Investing Cash Flow | 0.00 | -15.43B | -9.88B | -17.05B | -6.14B | 6.93B |
| Financing Cash Flow | 0.00 | -1.30B | -18.22B | -14.17B | -9.02B | 7.34B |
Kyoei Steel Ltd. Technical Analysis
Negative
2450.00
Price Trends
2404.08
Negative
2399.87
Negative
2276.80
Positive
Market Momentum
-16.74
Positive
40.28
Neutral
7.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5440, the sentiment is Negative. The current price of 2450 is above the 20-day moving average (MA) of 2347.46, above the 50-day MA of 2404.08, and above the 200-day MA of 2276.80, indicating a neutral trend. The MACD of -16.74 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 7.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5440.
Kyoei Steel Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥46.06B | 7.14 | ― | 6.31% | -12.88% | -8.89% | |
66 Neutral | ¥42.17B | 8.84 | ― | 6.27% | -6.54% | -28.89% | |
64 Neutral | ¥183.14B | 19.21 | 7.36% | 3.42% | -17.96% | -43.14% | |
64 Neutral | ¥33.13B | -185.54 | ― | 5.02% | -15.06% | -58.99% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥75.34B | 53.99 | ― | 1.24% | -15.54% | -117.10% | |
58 Neutral | ¥79.40B | 13.13 | ― | 3.70% | -2.40% | -8.59% |
* Basic Materials Sector Average
JP:5440
Kyoei Steel Ltd.
1,827.00
-49.47
-2.64%
JP:5423
Tokyo Steel Manufacturing Co
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JP:5408
Nakayama Steel Works,Ltd.
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-13.04%
JP:5410
Godo Steel,Ltd.
2,883.00
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Tokyo Tekko Co., Ltd.
1,819.00
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4.86%
JP:5449
OSAKA STEEL CO., LTD.
2,518.00
170.00
7.24%
Kyoei Steel Ltd. Corporate Events
Kyoei Steel Lifts Sales Outlook but Guides Lower Profit and Trims Dividend
Apr 30, 2026
Kyoei Steel reported fiscal 2026 consolidated net sales of ¥315.1 billion, down 2.4% year on year, while operating profit rose 10.7% to ¥16.97 billion and ordinary profit edged up 3.0% to ¥16.21 billion. Profit attributable to owner...
Kyoei Steel Lifts Operating Profit Despite Lower Sales, Confirms Full-Year Dividend
Feb 16, 2026
Kyoei Steel reported consolidated net sales of ¥232.7 billion for the nine months to December 31, 2025, down 3.2% year-on-year, while operating profit surged 38.6% to ¥13.4 billion and ordinary profit rose 28.0%. Profit attributable to o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.