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

• Market Cap: ¥81.86B
• Dividend Yield: 1.24%
• Average Volume (3M): 52.88K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.43
• Revenue Growth: -6.19%
• EPS Growth: -129.84%
• Country: JP
• Employees: 1,058
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): -49.66
• Shares Outstanding: 42,279,984
• 10 Day Avg. Volume: 27,700
• 30 Day Avg. Volume: 52,883
• 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: ¥2,776.00
• Price Target Upside: 1.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥2,776.00 ▲(1.46% Upside)

OSAKA STEEL CO., LTD. has a stable financial foundation with consistent profitability, but faces challenges in valuation due to a negative P/E ratio. Technical analysis shows mixed signals, with short-term weakness but neutral momentum indicators. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high Equity Ratio provides financial stability and a buffer against market volatility, supporting long-term sustainability.

Operational Efficiency

Improved Net Profit Margin indicates effective cost management and operational efficiency, enhancing profitability and competitive positioning in the industry.

Manageable Leverage

Prudent financial leverage with a manageable Debt-to-Equity Ratio ensures financial flexibility and reduces risk, supporting long-term growth and stability.

Negative Factors

Revenue Decline

A decline in revenue growth reflects challenges in market demand or competitive pressures, potentially impacting future earnings and market share.

Cash Flow Variability

Inconsistent cash flow due to capital expenditure demands may strain liquidity and limit the ability to invest in growth opportunities or manage debt effectively.

Declining Margins

Declining EBIT and EBITDA margins suggest rising operational costs or pricing pressures, which could erode profitability and competitiveness over time.

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 CO., LTD. generates revenue through the manufacturing and sale of steel products. The company's key revenue streams include sales of steel bars, sheets, and other steel materials to industries such as construction, manufacturing, and infrastructure development. The company benefits from its strategically located production facilities, which help in efficiently meeting the demand of domestic and international markets. Additionally, OSAKA STEEL may engage in partnerships and collaborations with other companies to enhance its product offerings and expand its market reach, further contributing to its revenue generation.

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, although 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.42B	117.13B	117.14B	104.45B	76.60B
Gross Profit	12.98B	14.09B	12.50B	10.29B	8.11B
EBITDA	10.46B	11.25B	10.20B	7.99B	5.02B
Net Income	3.23B	3.12B	2.90B	2.57B	897.00M
Balance Sheet
Total Assets	203.49B	204.74B	213.24B	208.29B	195.24B
Cash, Cash Equivalents and Short-Term Investments	9.95B	43.11B	4.87B	5.00B	4.00B
Total Debt	18.27B	16.66B	29.67B	26.18B	22.14B
Total Liabilities	45.27B	50.35B	60.14B	57.27B	46.73B
Stockholders Equity	156.00B	152.19B	150.98B	148.65B	146.31B
Cash Flow
Free Cash Flow	154.00M	-4.28B	1.32B	-1.63B	-7.15B
Operating Cash Flow	7.61B	-1.07B	5.09B	2.93B	4.19B
Investing Cash Flow	-5.88B	-2.92B	-3.76B	-4.33B	-10.98B
Financing Cash Flow	-1.47B	-16.63B	-749.00M	821.00M	-4.88B

OSAKA STEEL CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2736.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2736 is above the 20-day moving average (MA) of 2672.45, above the 50-day MA of 2726.22, and below the 200-day MA of 2770.24, indicating a bullish trend. The MACD of 17.82 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 83.69 is Negative, 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
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5449	57 Neutral	¥81.86B	34.49		1.24%	-6.19%	-129.84%
DDL	―	€1.56B	9.07	6.87%	―	―	―
TOKSF	―	$1.20B	8.62	8.92%	―	―	―
5445	76 Outperform	¥54.70B	5.11		5.53%	-1.95%	17.09%
5440	71 Outperform	¥104.13B	9.57		3.79%	-1.22%	-13.03%
5410	71 Outperform	¥62.24B	5.44		5.64%	-7.29%	-17.17%

OSAKA STEEL CO., LTD. Corporate Events

Osaka Steel Reports Decline in Q1 2025 Financial Performance

Osaka Steel Co., Ltd. reported a significant decline in its financial performance for the first quarter of fiscal 2025, with net sales dropping by 18.5% compared to the previous year. The company also faced losses in operating and ordinary profit, leading to a negative impact on earnings per share. The company has revised its dividend forecasts to zero, reflecting the challenging market conditions and its strategic response to financial pressures.