Kyoei Steel Ltd. (5440) AI Stock Analysis

• Market Cap: ¥106.17B
• Dividend Yield: 3.68%
• Average Volume (3M): 101.53K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.77
• Revenue Growth: -3.06%
• EPS Growth: 1.15%
• Country: JP
• Employees: 3,938
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 62.32
• Shares Outstanding: 44,898,727
• 10 Day Avg. Volume: 56,720
• 30 Day Avg. Volume: 101,530
• PEG Ratio: -0.35
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 3.16
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 264.65
• Revenue Forecast (FY): ¥320.70B

• Rating: 70 Outperform
• Price Target: ¥2,439.00 ▼(-0.16% Downside)

Kyoei Steel Ltd. demonstrates strong financial performance with stable revenue growth and solid cash flow management. The valuation is attractive with a low P/E ratio and a high dividend yield, making it appealing for value and income investors. However, technical indicators suggest some short-term bearish momentum, which could pose a risk to near-term price performance.

Positive Factors

Cash Flow Management

Effective cash flow management ensures the company can fund operations, invest in growth opportunities, and maintain financial stability.

Financial Leverage

Prudent leverage management reduces financial risk and enhances the company's ability to navigate economic fluctuations.

Market Position

A strong market position in essential industries like construction and infrastructure supports long-term demand for the company's products.

Negative Factors

Revenue Growth

Negative revenue growth indicates challenges in expanding market reach or product adoption, potentially impacting future profitability.

Operational Efficiency

Decreasing margins suggest rising costs or inefficiencies, which could pressure profitability if not addressed.

Equity Ratio

A declining equity ratio may indicate rising financial obligations, potentially impacting financial flexibility and stability.

Kyoei Steel Ltd. Business Overview & Revenue Model

Company Description

Kyoei Steel Ltd. (5440) is a prominent Japanese company primarily engaged in the production and sale of steel products. Operating within the steel manufacturing sector, Kyoei Steel specializes in producing a wide range of steel products, including rebar, wire rods, and other construction materials, catering largely to the construction and infrastructure industries. The company is known for its commitment to quality and innovation, aiming to meet the evolving demands of the steel market both domestically and internationally.

How the Company Makes Money

Kyoei Steel generates revenue primarily through the sale of its steel products, which are essential components in construction projects and infrastructure development. The company benefits from multiple revenue streams, including the sale of rebar, wire rods, and other steel materials to contractors and construction firms. Additionally, Kyoei Steel has established partnerships with various construction companies and industrial clients, contributing to a stable demand for its products. The company also engages in exporting its steel goods, further expanding its market reach and enhancing its revenue potential. Fluctuations in global steel prices and demand, as well as operational efficiencies in production, play significant roles in influencing its profitability.

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	318.71B	322.85B	320.98B	355.71B	292.72B	226.37B
Gross Profit	39.75B	38.33B	41.97B	34.27B	25.90B	28.26B
EBITDA	25.43B	27.71B	28.87B	26.09B	20.36B	22.65B
Net Income	10.88B	10.79B	13.83B	13.11B	6.32B	8.79B
Balance Sheet
Total Assets	341.79B	352.83B	354.22B	337.71B	314.20B	282.28B
Cash, Cash Equivalents and Short-Term Investments	61.77B	64.50B	57.64B	57.75B	52.34B	67.96B
Total Debt	77.92B	83.55B	92.74B	99.54B	94.49B	78.33B
Total Liabilities	135.61B	143.67B	152.79B	147.54B	138.51B	117.70B
Stockholders Equity	200.37B	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: Positive
• Last Price: 2443.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2443 is above the 20-day moving average (MA) of 2331.65, above the 50-day MA of 2265.92, and above the 200-day MA of 2087.50, indicating a bullish trend. The MACD of 34.84 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 72.54 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	78 Outperform	¥106.63B	13.82	―	3.85%	1.06%	45.19%
5445	72 Outperform	¥53.25B	4.95	―	6.36%	-8.44%	9.50%
5480	71 Outperform	¥66.76B	6.60	―	5.20%	-9.28%	-7.18%
5440	70 Outperform	¥106.17B	9.52	―	3.68%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥55.51B	4.98	―	6.32%	-7.45%	-9.12%
5449	61 Neutral	¥82.25B	2,029.08	―	1.24%	-12.05%	-97.36%

Kyoei Steel Ltd. Corporate Events

Kyoei Steel Reports Strong Profit Growth Amid Sales Decline

Kyoei Steel Ltd. reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a decrease in net sales by 3.9% compared to the previous year. Despite the decline in sales, the company experienced a significant increase in operating profit by 55.7% and ordinary profit by 38.3%, indicating improved operational efficiency. The equity-to-asset ratio improved to 60.0%, reflecting a stronger financial position. The company maintained its dividend forecast, signaling stability and confidence in its financial health.

Kyoei Steel Reports Q2 Fiscal 2026 Financial Results

Kyoei Steel Ltd. reported its consolidated financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company experienced a decrease in net sales by 3.9% compared to the previous year, but saw significant increases in operating profit by 55.7% and ordinary profit by 38.3%. Despite a challenging market environment, the company’s profit attributable to owners of the parent increased by 7.3%. The equity-to-asset ratio improved to 60.0%, indicating a stronger financial position. The company maintained its dividend forecast and expects stable earnings for the full fiscal year 2026, with no revisions to its previously announced forecasts.