OSAKA STEEL CO., LTD. (5449) AI Stock Analysis

• Market Cap: ¥86.62B
• Dividend Yield: 1.24%
• Average Volume (3M): 35.77K
• Price to Earnings (P/E): 2136.8
• Beta (1Y): 0.33
• Revenue Growth: -12.05%
• EPS Growth: -97.36%
• Country: JP
• Employees: 1,058
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -2.15
• Shares Outstanding: 42,279,984
• 10 Day Avg. Volume: 31,980
• 30 Day Avg. Volume: 35,770
• PEG Ratio: 10.06
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 717.98
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥3,026.00 ▲(8.89% Upside)

OSAKA STEEL CO., LTD. has a stable financial foundation and positive technical momentum, but the extremely high P/E ratio raises significant valuation concerns. The stock's overbought technical indicators also suggest caution. Continued operational efficiency and asset utilization improvements are crucial for future performance.

Positive Factors

Financial Stability

The company's strong balance sheet and manageable leverage indicate a solid financial foundation, providing resilience in a challenging industry.

Operational Efficiency

Improved net profit margins reflect enhanced operational efficiency, which can lead to better profitability and competitiveness in the long term.

Strong Balance Sheet

A strong equity ratio provides a buffer against industry volatility, ensuring long-term financial health and stability.

Negative Factors

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact future earnings.

Cash Flow Variability

Inconsistent cash flow generation can strain financial resources, affecting the company's ability to fund operations and investments sustainably.

Margin Pressure

Decreasing margins suggest rising operational costs or pricing pressures, which may erode profitability if not addressed.

OSAKA STEEL CO., LTD. Business Overview & Revenue Model

Company Description

Osaka Steel Co., Ltd. produces and sells steel products for the construction, industrial, and civil engineering applications in Japan. It offers equal and unequal angles, channels, I-beams, round and deformed bars, mechanical joints for reinforcing bars, rails, elevator guide rails, colored angles and channels, deformed and round joints, flat and square bars, billets, and other semi-finished steel products. The company was founded in 1978 and is headquartered in Osaka, Japan. Osaka Steel Co., Ltd. is a subsidiary of Nippon Steel Corporation.

How the Company Makes Money

OSAKA STEEL generates revenue primarily through the sale of its steel products to various industries, including construction and manufacturing. The company's revenue model is built on a combination of direct sales, long-term contracts with industrial clients, and partnerships with construction firms. Key revenue streams include the sale of reinforcing bars, steel sheets, and specialized steel products. Additionally, OSAKA STEEL benefits from fluctuations in the global steel market, which can impact pricing and demand. Strategic partnerships with construction companies and participation in large infrastructure projects also contribute to its earnings, providing a stable customer base and recurring revenue.

OSAKA STEEL CO., LTD. Financial Statement Overview

Summary

OSAKA STEEL CO., LTD. demonstrates financial stability with consistent profitability in a challenging industry. The company maintains a strong balance sheet and manageable leverage, though cash flow variability highlights the need for careful capital management.

Income Statement

OSAKA STEEL CO., LTD. displayed stable revenue with minor fluctuations over the years, peaking in 2024 with slight declines in 2025. The Gross Profit Margin remains consistent, albeit not significantly high, reflecting the competitive nature of the steel industry. The Net Profit Margin improved slightly over time, showcasing operational efficiency. However, the decline in EBIT and EBITDA margins in recent years suggests increasing operational costs or pricing pressures.

Balance Sheet

The company's balance sheet is robust with a strong Equity Ratio, indicating a solid foundation. The Debt-to-Equity Ratio is manageable, showing prudent financial leverage. Return on Equity (ROE) is modest, reflecting steady returns on shareholder investments. The stable equity base provides a buffer against industry volatility, but further improvement in asset utilization could enhance profitability.

Cash Flow

Cash flow analysis reveals variability, with operating cash flow turning positive after a negative year in 2024. Free Cash Flow has been inconsistent, reflecting capital expenditure demands. The Operating Cash Flow to Net Income Ratio indicates adequate cash flow generation relative to earnings, but the fluctuations in Free Cash Flow to Net Income Ratio suggest potential pressures in funding operations or investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	110.57B	116.42B	117.13B	117.14B	104.45B	76.60B
Gross Profit	10.51B	12.98B	14.09B	12.50B	10.29B	8.11B
EBITDA	3.88B	10.46B	11.25B	10.20B	8.26B	5.56B
Net Income	-574.00M	3.23B	3.12B	2.90B	2.57B	897.00M
Balance Sheet
Total Assets	171.35B	203.49B	204.74B	213.24B	208.29B	195.24B
Cash, Cash Equivalents and Short-Term Investments	15.59B	9.95B	43.11B	63.48B	62.40B	62.62B
Total Debt	14.58B	18.27B	16.66B	29.67B	26.18B	22.14B
Total Liabilities	37.60B	45.27B	50.35B	60.14B	57.27B	46.73B
Stockholders Equity	131.53B	156.00B	152.19B	150.98B	148.65B	146.31B
Cash Flow
Free Cash Flow	0.00	154.00M	-4.28B	1.32B	-1.63B	-7.15B
Operating Cash Flow	0.00	7.61B	-1.07B	5.09B	2.93B	4.19B
Investing Cash Flow	0.00	-5.88B	-2.92B	-3.76B	-4.33B	-10.98B
Financing Cash Flow	0.00	-1.47B	-16.63B	-749.00M	821.00M	-4.88B

OSAKA STEEL CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2779.00
• 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:5449, the sentiment is Positive. The current price of 2779 is below the 20-day moving average (MA) of 2792.35, above the 50-day MA of 2741.90, and above the 200-day MA of 2696.54, indicating a bullish trend. The MACD of 34.87 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 68.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5449.

OSAKA STEEL CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	82 Outperform	¥386.24B	13.31	6.84%	2.99%	-0.02%	-40.45%
5423	73 Outperform	¥169.81B	10.25	7.36%	3.42%	-18.72%	-25.26%
5445	72 Outperform	¥56.77B	5.27	―	6.31%	-8.44%	9.50%
5440	70 Outperform	¥111.65B	10.01	―	3.70%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	61 Neutral	¥86.62B	2,136.85	―	1.24%	-12.05%	-97.36%
5410	61 Neutral	¥59.68B	5.36	―	6.27%	-7.45%	-9.12%

OSAKA STEEL CO., LTD. Corporate Events

Osaka Steel Reports Decline in Fiscal 2025 First Half Results

Osaka Steel Co., Ltd. reported a significant decline in its financial performance for the first half of fiscal 2025, with net sales dropping by 18.9% compared to the previous year. The company also experienced a substantial decrease in operating and ordinary profits, leading to a negative profit attributable to owners of the parent. This downturn has resulted in a suspension of dividends for the period, reflecting challenging market conditions and potentially impacting stakeholder confidence.

The most recent analyst rating on (JP:5449) stock is a Hold with a Yen2786.00 price target. To see the full list of analyst forecasts on OSAKA STEEL CO., LTD. stock, see the JP:5449 Stock Forecast page.