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Kyoei Steel Ltd.
(5440)
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Rating:63Neutral
Price Target:
¥1,986.00
▼(-18.94% Downside)
Action:Reiterated
Date:08/06/26
The score is driven mainly by fair financial performance (stable operating margins and improving leverage, but cooling earnings and weaker 2026 free cash flow) and an attractive valuation (low P/E and strong dividend yield). Technicals are a modest headwind because the stock remains below longer-term moving averages despite neutral momentum indicators.
Positive Factors
Scrap-based EAF business model
Kyoei's EAF, scrap-centric production is a durable structural advantage: it provides flexible, lower-capex steelmaking and ties the company to recycling/commodity inputs. This supports resilient supply economics and alignment with construction demand for rebar over multi-year cycles.
Negative Factors
Volatile and falling free cash flow
A sharp drop in free cash flow signals volatility in cash conversion and raises questions about sustainable internal funding. Reduced FCF constrains reinvestment, dividend durability, and buffers against slower construction demand, increasing reliance on external financing in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Scrap-based EAF business model
Kyoei's EAF, scrap-centric production is a durable structural advantage: it provides flexible, lower-capex steelmaking and ties the company to recycling/commodity inputs. This supports resilient supply economics and alignment with construction demand for rebar over multi-year cycles.
Read all positive factors
Kyoei Steel Ltd. (5440) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥84.40B
Dividend Yield4.63%
Average Volume (3M)101.53K
Price to Earnings (P/E)9.3
Beta (1Y)0.81
Revenue Growth2.94%
EPS Growth-16.58%
CountryJP
Employees4,068
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)226.97
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)187.23
Revenue Forecast (FY)¥356.90B
Kyoei Steel Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Osaka, Japan, and established in 1947, Kyoei Steel Ltd. is a diversified enterprise specializing in the production, distribution, and logistical support of steel products for the civil engineering and construction sectors. Its ext...
How the Company Makes Money
Kyoei Steel makes money mainly by manufacturing and selling steel products produced via EAF steelmaking, where ferrous scrap is melted and refined into finished and semi-finished steel. The company’s largest revenue stream is the sale of construct...
Kyoei Steel Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
54
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 315.11B | 322.85B | 320.98B | 355.71B | 292.72B |
| Gross Profit | 39.98B | 38.33B | 41.97B | 34.27B | 25.90B |
| EBITDA | 25.52B | 27.71B | 28.87B | 26.09B | 20.36B |
| Net Income | 9.86B | 10.79B | 13.83B | 13.11B | 6.32B |
Balance Sheet | |||||
| Total Assets | 373.13B | 352.83B | 354.22B | 337.71B | 314.20B |
| Cash, Cash Equivalents and Short-Term Investments | 68.95B | 64.50B | 57.64B | 57.75B | 52.34B |
| Total Debt | 94.63B | 84.95B | 94.01B | 100.90B | 95.58B |
| Total Liabilities | 154.32B | 143.67B | 152.79B | 147.54B | 138.51B |
| Stockholders Equity | 211.66B | 202.99B | 194.64B | 179.69B | 162.96B |
Cash Flow | |||||
| Free Cash Flow | 6.79B | 25.85B | 13.46B | 12.13B | -25.57B |
| Operating Cash Flow | 24.73B | 39.41B | 24.29B | 19.26B | -13.70B |
| Investing Cash Flow | -15.43B | -9.88B | -17.05B | -6.14B | 6.93B |
| Financing Cash Flow | -1.30B | -18.22B | -14.17B | -9.02B | 7.34B |
Kyoei Steel Ltd. Technical Analysis
Neutral
2450.00
Price Trends
1804.34
Positive
1979.84
Negative
2166.78
Negative
Market Momentum
26.44
Positive
54.02
Neutral
24.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5440, the sentiment is Neutral. The current price of 2450 is above the 20-day moving average (MA) of 1881.30, above the 50-day MA of 1804.34, and above the 200-day MA of 2166.78, indicating a neutral trend. The MACD of 26.44 indicates Positive momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 24.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5440.
Kyoei Steel Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥41.54B | 7.18 | ― | 6.27% | -3.04% | -49.39% | |
72 Outperform | ¥48.67B | 6.70 | ― | 6.31% | -8.43% | -27.35% | |
63 Neutral | ¥84.40B | 9.30 | ― | 3.70% | 2.94% | -16.58% | |
60 Neutral | ¥193.51B | 18.70 | 4.46% | 2.87% | -12.89% | -45.51% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ¥35.57B | 14.46 | ― | 5.02% | -12.42% | -56.79% | |
50 Neutral | ¥74.98B | -5.63 | ― | 1.24% | -16.39% | -2377.63% |
* General Sector Average
JP:5440
Kyoei Steel Ltd.
1,888.00
-241.68
-11.35%
JP:5423
Tokyo Steel Manufacturing Co
1,776.00
200.11
12.70%
JP:5408
Nakayama Steel Works,Ltd.
668.00
18.13
2.79%
JP:5410
Godo Steel,Ltd.
2,899.00
-936.23
-24.41%
JP:5445
Tokyo Tekko Co., Ltd.
1,955.00
112.36
6.10%
JP:5449
OSAKA STEEL CO., LTD.
2,755.00
140.00
5.35%
Kyoei Steel Ltd. Corporate Events
Kyoei Steel Lifts U.S. Investment for Vinton Plant Amid Cost Surge
Jul 31, 2026
Kyoei Steel has approved a significant revision to its capital investment plan for U.S. subsidiary Vinton Steel, increasing the total project cost from US$327 million to US$437 million. The investment covers construction of a new melt shop and maj...
Kyoei Steel Q1 Sales Rise but Profits Weaken, Full-Year Outlook Cut
Jul 31, 2026
Kyoei Steel reported first-quarter fiscal 2027 consolidated net sales of ¥87.1 billion, up 17.5% year-on-year, but operating profit fell 20.9% to ¥3.4 billion and profit attributable to owners of parent dropped 28.8% to ¥1.9 billion...
Kyoei Steel Clarifies Independence Despite Nippon Steel’s 28% Stake
Jun 24, 2026
Kyoei Steel Ltd. disclosed details of its relationship with Nippon Steel Corporation, which holds 28.1% of its voting rights and classifies Kyoei as an equity-method affiliate. Despite this sizeable stake, Nippon Steel does not have a majority sha...
Kyoei Steel Lifts Sales Outlook but Signals Profit Pressure for Fiscal 2027
May 18, 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 ¥17.0 billion and ordinary profit grew 3.0% to ¥16.2 billion. Profit attributable to owners of t...
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.