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Kyoei Steel Ltd. (JP:5440)
:5440
Japanese Market
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Kyoei Steel Ltd. (5440) AI Stock Analysis

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JP:5440

Kyoei Steel Ltd.

(5440)

Rating:71Outperform
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. (5440) vs. iShares MSCI Japan ETF (EWJ)

Kyoei Steel Ltd. Business Overview & Revenue Model

Company DescriptionKyoei 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 MoneyKyoei 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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue322.85B320.98B355.71B292.72B226.37B
Gross Profit38.33B41.97B34.27B25.90B28.26B
EBITDA27.71B28.87B26.09B20.36B22.65B
Net Income10.79B13.83B13.11B6.32B8.79B
Balance Sheet
Total Assets352.83B354.22B337.71B314.20B282.28B
Cash, Cash Equivalents and Short-Term Investments64.50B57.64B57.75B52.34B67.96B
Total Debt83.55B92.74B99.54B94.49B78.33B
Total Liabilities143.67B152.79B147.54B138.51B117.70B
Stockholders Equity202.99B194.64B179.69B162.96B154.43B
Cash Flow
Free Cash Flow25.85B13.46B12.13B-25.57B5.11B
Operating Cash Flow39.41B24.29B19.26B-13.70B15.19B
Investing Cash Flow-9.88B-17.05B-6.14B6.93B-36.78B
Financing Cash Flow-18.22B-14.17B-9.02B7.34B5.14B

Kyoei Steel Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2255.00
Price Trends
50DMA
2029.68
Positive
100DMA
1960.62
Positive
200DMA
1862.41
Positive
Market Momentum
MACD
66.52
Negative
RSI
72.50
Negative
STOCH
70.97
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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥84.36B12.45
3.23%0.59%25.65%
78
Outperform
¥51.63B4.62
5.90%3.74%39.89%
71
Outperform
¥98.39B9.12
3.99%0.58%-21.95%
71
Outperform
¥56.97B5.03
6.16%-7.92%-25.47%
68
Neutral
¥114.82B35.58
1.18%-0.60%3.40%
64
Neutral
¥64.12B5.19
2.82%-4.57%-12.17%
44
Neutral
C$979.23M-6.82-13.73%1.76%17.37%-32.84%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5440
Kyoei Steel Ltd.
2,255.00
317.19
16.37%
JP:5410
Godo Steel,Ltd.
3,895.00
-631.30
-13.95%
JP:5445
Tokyo Tekko Co., Ltd.
5,680.00
1,264.34
28.63%
JP:5449
OSAKA STEEL CO., LTD.
2,874.00
516.15
21.89%
JP:5480
Nippon Yakin Kogyo Co., Ltd.
4,250.00
-469.16
-9.94%
JP:5602
Kurimoto,Ltd.
7,090.00
2,593.02
57.66%

Kyoei Steel Ltd. Corporate Events

Kyoei Steel Affirms Independent Operations Amidst Nippon Steel’s Significant Stake
Jun 25, 2025

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
May 15, 2025

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
Apr 30, 2025

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.

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.Date of analysis: Jul 05, 2025