Yodogawa Steel Works (5451) AI Stock Analysis

• Market Cap: ¥221.55B
• Dividend Yield: 5.25%
• Average Volume (3M): 256.64K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.86
• Revenue Growth: -1.43%
• EPS Growth: 171.44%
• Country: JP
• Employees: 2,405
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 23.47
• Shares Outstanding: 159,186,160
• 10 Day Avg. Volume: 218,540
• 30 Day Avg. Volume: 256,643
• PEG Ratio: 0.01
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 5.43
• 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: 74 Outperform
• Price Target: ¥1,614.00 ▲(22.09% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Yodogawa Steel Works scores well due to its strong financial performance and reasonable valuation. The company's robust balance sheet and attractive dividend yield are significant strengths. However, technical indicators suggest weak market momentum, which slightly offsets the overall score.

Positive Factors

Balance sheet strength

A low debt-to-equity ratio and strong equity base provide durable financial flexibility, lowering refinancing risk and interest burden. Improved ROE indicates better capital efficiency, enabling the firm to fund capex, weather industry downturns, and maintain strategic investments without overreliance on external debt.

Operational profitability and margins

Sustained gross and improved net margins reflect effective cost control and pricing on value-added coated steel products. Strong EBIT/EBITDA margins show persistent operational efficiency, supporting long-term profit generation and resilience to moderate demand swings in construction and industrial end markets.

Cash generation capability

Consistent positive free cash flow and an efficient operating-cash-flow-to-net-income ratio indicate high-quality earnings and internal funding capacity. This durable cash generation supports dividends, routine capex and working capital needs, reducing dependence on external financing over the medium term.

Negative Factors

Revenue trend

A negative year-over-year revenue trend signals softer demand or weakening shipments, which can persist over several quarters in cyclical industries. Prolonged top-line contraction pressures fixed-cost absorption, limits reinvestment capacity, and can erode economies of scale important for margin sustainability.

Declining free cash flow growth

A drop in free cash flow growth reduces the cushion for dividends, capex and unexpected costs. Over a multi-quarter horizon this lowers financial flexibility, may force higher borrowing or restrained investment, and weakens the company’s ability to pursue strategic initiatives or smooth payouts.

Input-cost and end-market cyclicality exposure

Margins depend on the spread between product prices and raw material/coating costs, exposing the business to commodity price swings. Combined with reliance on construction and industrial demand, this structural cyclicality can compress margins and revenues for multiple quarters during commodity spikes or construction slowdowns.

Yodogawa Steel Works Business Overview & Revenue Model

Company Description

Yodogawa Steel Works Co., Ltd. (5451) is a prominent Japanese manufacturer specializing in steel products, primarily focusing on the production of steel pipes, tubes, and various related materials. The company operates in several sectors, including construction, automotive, and energy, providing high-quality steel solutions that meet the demands of diverse industries. Yodogawa is known for its innovative technology and commitment to sustainability, aiming to deliver value-added products while minimizing environmental impact.

How the Company Makes Money

Yodogawa Steel Works generates revenue primarily through the sale of its steel products, which include seamless pipes, welded pipes, and other specialized steel materials used in construction and industrial applications. The company benefits from a robust revenue model that includes long-term contracts with major clients in the construction and automotive sectors, ensuring a steady stream of income. Additionally, Yodogawa engages in partnerships with other manufacturers and suppliers, enhancing its market reach and distribution capabilities. The company also invests in research and development to innovate new products and improve existing ones, which helps maintain competitive pricing and attract new customers. Fluctuations in global steel prices can impact profitability, but Yodogawa's diversified product offerings and strategic partnerships contribute significantly to its overall earnings.

Yodogawa Steel Works Financial Statement Overview

Summary

Yodogawa Steel Works demonstrates strong financial performance with consistent revenue growth and profitability. The balance sheet is robust with low leverage and strong equity backing. However, there is a decline in free cash flow growth, which could pose challenges in maintaining cash reserves.

Income Statement

Yodogawa Steel Works shows a solid financial performance with a consistent increase in revenue from 2024 to 2025, indicating a strong growth trajectory. The gross profit margin is healthy, reflecting efficient cost management. The company also demonstrates a strong net profit margin, which has significantly improved from the previous year. The EBIT and EBITDA margins further affirm the company's operational efficiency and profitability.

Balance Sheet

The balance sheet of Yodogawa Steel Works is robust, with a low debt-to-equity ratio, indicating financial stability and a conservative leverage approach. The company has a strong equity ratio, suggesting a solid asset base supported by equity rather than debt. The return on equity has improved, showcasing the company's ability to generate profits from shareholders' investments.

Cash Flow

The cash flow statement exhibits a positive trend with a strong free cash flow, although there is a decline compared to the previous year. The operating cash flow to net income ratio indicates efficient cash management. However, there is a noticeable reduction in free cash flow growth, which may suggest potential challenges in maintaining cash reserves.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	208.63B	208.46B	203.96B	220.31B	201.66B	150.36B
Gross Profit	34.95B	34.15B	31.77B	32.66B	33.18B	25.35B
EBITDA	25.53B	25.43B	12.99B	22.03B	21.31B	11.56B
Net Income	13.69B	13.50B	4.46B	10.59B	9.79B	6.26B
Balance Sheet
Total Assets	255.25B	264.26B	265.86B	251.06B	244.67B	226.00B
Cash, Cash Equivalents and Short-Term Investments	52.89B	61.09B	60.82B	44.40B	33.99B	48.86B
Total Debt	712.00M	1.08B	678.00M	1.40B	1.41B	66.00M
Total Liabilities	46.01B	49.13B	52.03B	49.15B	52.74B	45.69B
Stockholders Equity	189.82B	194.82B	189.71B	179.81B	170.48B	162.71B
Cash Flow
Free Cash Flow	0.00	5.93B	17.42B	10.93B	-18.89B	10.17B
Operating Cash Flow	0.00	11.31B	21.52B	17.34B	-10.64B	17.15B
Investing Cash Flow	0.00	-6.74B	-809.00M	-3.16B	-1.99B	-4.67B
Financing Cash Flow	0.00	-12.51B	-5.36B	-5.09B	-1.23B	-4.00B

Yodogawa Steel Works Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1322.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5451, the sentiment is Positive. The current price of 1322 is below the 20-day moving average (MA) of 1416.45, below the 50-day MA of 1399.12, and above the 200-day MA of 1270.91, indicating a neutral trend. The MACD of 2.23 indicates Positive momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 39.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5451.

Yodogawa Steel Works Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	80 Outperform	¥874.87B	8.62	10.78%	4.68%	-1.97%	47.63%
5451	74 Outperform	¥221.55B	17.63	6.87%	5.25%	-1.43%	171.44%
5471	74 Outperform	¥456.94B	16.72	6.84%	2.99%	-0.02%	-40.45%
5482	71 Outperform	¥213.83B	19.24	5.06%	1.80%	4.10%	152.90%
5401	67 Neutral	¥3.55T	-57.66	-0.26%	4.53%	1.31%	-101.19%
5411	64 Neutral	¥1.34T	26.92	2.92%	4.59%	-8.07%	-41.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Yodogawa Steel Works Corporate Events

YODOKO Posts Lower Nine-Month Earnings but Keeps FY3/26 Forecasts Intact

YODOKO reported that for the nine months ended December 31, 2025, consolidated net sales fell 5.0% year on year to ¥148.97 billion, with operating profit down 14.5% and profit attributable to owners of parent down 16.5%, reflecting softer performance versus the strong prior-year period, although comprehensive income surged on improved other comprehensive items. Despite the earnings decline, the company’s financial position remains solid, with total assets of ¥262.47 billion, an equity ratio of 75.3%, and no major changes in consolidation scope or accounting policies, while it maintained its full-year FY3/26 earnings and dividend forecasts (adjusted for a 1-to-5 share split), signaling management’s confidence in meeting guidance and sustaining shareholder returns.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1575.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.

YODOKO to Divest 95% Stake in Loss-Making Chinese Steel Subsidiary

YODOKO has signed a basic agreement to sell 95% of its equity interest in Chinese subsidiary Yodogawa-Shengyu (Hefei) High-Tech Steel (YSS) to Shanghai Tsinghen International Trading, reducing its combined holding from 100% to 5% and transferring all shares owned by consolidated subsidiary Sheng Yu Steel. The move reflects management’s decision to concentrate resources on carefully selected overseas operations, following a broader portfolio and capital-efficiency review, and comes after several years of declining sales and persistent losses at YSS, signaling a strategic pullback from underperforming Chinese assets to support long-term growth and corporate value for stakeholders.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1577.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.