Kyoei Steel Ltd. (5440) AI Stock Analysis

• Market Cap: ¥96.13B
• Dividend Yield: 3.87%
• Average Volume (3M): 74.58K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.83
• Revenue Growth: -1.22%
• EPS Growth: -13.03%
• Country: JP
• Employees: 3,938
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 62.69
• Shares Outstanding: 44,898,727
• 10 Day Avg. Volume: 79,179
• 30 Day Avg. Volume: 74,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,371.00
• Price Target Upside: 7.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,371.00 ▲(7.19% 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. 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 Business, and Material Recycling Business segments. The company offers concrete reinforcing bars; merchant bars, such as flat bars, I beams, equal angle bars, and structural round bars; billets; and threaded rebars and joints for threaded rebars. It is also involved in the collection, transportation, and treatment of general, industrial, and medical waste; and development, manufacturing, sales, maintenance, and technical support for equipment and devices for to enhancing the quality of steel products, as well as planning, import, and sale of castings. In addition, the company engages in the manufacturing and sale of recycled crushed ballast, construction materials, steel products and raw/secondary materials; contracting business for in-plant loading and unloading; automobile transportation and insurance agency business; collection, processing, and sales of iron, aluminum, and nonferrous metal scraps; and construction and operation of multi-purposed seaport. The company was incorporated in 1947 and is headquartered in Osaka, Japan.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	322.85B	322.85B	320.98B	355.71B	292.72B	226.37B
Gross Profit	38.33B	38.33B	41.97B	34.27B	25.90B	28.26B
EBITDA	27.71B	27.71B	28.87B	26.09B	20.36B	22.65B
Net Income	10.79B	10.79B	13.83B	13.11B	6.32B	8.79B
Balance Sheet
Total Assets	352.83B	352.83B	354.22B	337.71B	314.20B	282.28B
Cash, Cash Equivalents and Short-Term Investments	64.50B	64.50B	57.64B	57.75B	52.34B	67.96B
Total Debt	83.55B	83.55B	92.74B	99.54B	94.49B	78.33B
Total Liabilities	143.67B	143.67B	152.79B	147.54B	138.51B	117.70B
Stockholders Equity	202.99B	202.99B	194.64B	179.69B	162.96B	154.43B
Cash Flow
Free Cash Flow	0.00	25.85B	13.46B	12.13B	-25.57B	5.11B
Operating Cash Flow	0.00	39.41B	24.29B	19.26B	-13.70B	15.19B
Investing Cash Flow	0.00	-9.88B	-17.05B	-6.14B	6.93B	-36.78B
Financing Cash Flow	0.00	-18.22B	-14.17B	-9.02B	7.34B	5.14B

Kyoei Steel Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2212.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2212 is below the 20-day moving average (MA) of 2308.99, below the 50-day MA of 2238.81, and above the 200-day MA of 1973.84, indicating a neutral trend. The MACD of 13.38 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5445	76 Outperform	¥52.98B	4.95	18.18%	6.39%	-1.95%	17.09%
5602	75 Outperform	¥119.06B	15.25	7.88%	17.60%	0.35%	35.43%
5440	71 Outperform	¥96.13B	9.15	―	3.87%	-1.22%	-13.03%
5410	71 Outperform	¥59.46B	5.20	8.43%	5.90%	-7.29%	-17.17%
5480	64 Neutral	¥65.41B	6.11	12.01%	5.07%	-7.69%	-18.05%
5449	58 Neutral	¥79.17B	-96.33	2.07%	1.34%	-6.19%	-129.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kyoei Steel Ltd. Corporate Events

Kyoei Steel Ltd. Reports Mixed First Quarter Financial Results for FY 2026

Kyoei Steel Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, showing a decline in net sales by 5.3% compared to the previous year. Despite this, the company experienced a significant increase in operating profit by 39.2%, indicating improved operational efficiency. The company’s strategic adjustments and market positioning are likely contributing to these mixed results, with implications for future profitability and stakeholder confidence.

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 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.