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Yodogawa Steel Works (JP:5451)
:5451

Yodogawa Steel Works (5451) AI Stock Analysis

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JP:5451

Yodogawa Steel Works

(5451)

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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥1,700.00
▲(28.59% Upside)
Action:ReiteratedDate: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
Strong balance sheet
A low debt-to-equity ratio and a strong equity ratio provide durable financial flexibility. This conservative leverage profile supports capital spending, dividends and cyclical resilience, allowing the company to fund investment or weather industry downturns without strain.
Healthy profit margins
Consistently healthy gross and net margins plus strong EBIT/EBITDA indicators point to structural cost discipline and pricing power in processed steel products. Margin stability underpins sustainable cash generation and operational returns over the medium term.
Value-added, niche business model
Focusing on coated and prepainted steel sheet products moves the company up the value chain versus commodity steel producers. This specialization supports higher unit margins, customer stickiness in construction/industrial channels, and more stable demand over time.
Negative Factors
Recent revenue decline
A negative revenue growth rate signals softening top-line momentum which can limit scale benefits and margin leverage. If sustained, shrinking revenues challenge long-term earnings growth and require either higher-margin mix shifts or renewed volume to restore trajectory.
Declining free cash flow growth
A drop in free cash flow growth reduces financial headroom for capex, dividends or debt reduction. Even with overall positive cash generation, a declining trend weakens the balance between reinvestment and shareholder returns and raises sensitivity to future operating or market shocks.
Input-cost spread exposure
Profitability depends on the spread between product prices and raw coil/coating costs. Commodity and input-cost volatility can compress margins quickly. Limited control over raw material markets creates persistent margin risk and can undermine long-term margin predictability.

Yodogawa Steel Works (5451) vs. iShares MSCI Japan ETF (EWJ)

Yodogawa Steel Works Business Overview & Revenue Model

Company DescriptionYodogawa 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 MoneyYodogawa Steel Works makes money primarily by manufacturing and selling value-added steel sheet products rather than producing crude steel. Its core revenue stream comes from sales of coated steel sheets—such as hot-dip galvanized and prepainted/color-coated steel—used in construction materials (e.g., roofing and exterior/interior building components) and in industrial applications (e.g., products requiring corrosion resistance and surface/appearance quality). Revenue is generated through shipment volume and product mix (standard vs. higher-value coated/finished grades), with profitability influenced by the spread between sales prices of processed products and the costs of raw steel coil and coating/processing inputs. If information on specific major customer contracts, named partnerships, or segment-level revenue breakdowns is not available here, it is null.

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
82
Very Positive
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
88
Very Positive
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
78
Positive
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.
BreakdownTTMMar 2025Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue208.63B208.46B203.96B220.31B201.66B145.96B
Gross Profit34.95B34.15B31.77B32.66B33.18B24.86B
EBITDA18.71B18.54B16.82B17.71B18.50B11.56B
Net Income13.69B13.50B4.46B10.59B9.79B6.26B
Balance Sheet
Total Assets255.25B264.26B265.86B251.06B244.67B226.00B
Cash, Cash Equivalents and Short-Term Investments52.89B61.09B60.82B44.40B33.99B48.86B
Total Debt9.43B1.01B678.00M1.40B1.41B58.00M
Total Liabilities46.01B49.14B52.03B49.15B52.73B45.70B
Stockholders Equity189.82B194.82B189.71B179.81B170.48B162.70B
Cash Flow
Free Cash Flow0.005.93B17.81B11.16B-18.58B10.43B
Operating Cash Flow0.0011.31B21.52B17.34B-10.64B17.15B
Investing Cash Flow0.00-6.74B-809.00M-3.16B-1.99B-4.67B
Financing Cash Flow0.00-12.51B-5.36B-5.09B-1.23B-4.00B

Yodogawa Steel Works Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1322.00
Price Trends
50DMA
1461.02
Positive
100DMA
1386.09
Positive
200DMA
1308.49
Positive
Market Momentum
MACD
25.92
Positive
RSI
52.34
Neutral
STOCH
16.77
Positive
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 1520.10, below the 50-day MA of 1461.02, and above the 200-day MA of 1308.49, indicating a neutral trend. The MACD of 25.92 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥788.59B9.4810.78%4.68%-1.97%47.63%
74
Outperform
¥237.18B14.506.87%5.25%-1.43%171.44%
74
Outperform
¥403.22B9.056.16%2.99%-0.02%-40.45%
67
Neutral
¥3.17T12.26-0.26%4.53%1.31%-101.19%
67
Neutral
¥191.74B11.585.06%1.80%4.10%152.90%
64
Neutral
¥1.13T9.282.09%4.59%-8.07%-41.42%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5451
Yodogawa Steel Works
1,518.00
387.02
34.22%
JP:5471
Daido Steel Co
1,959.00
702.56
55.92%
JP:5411
JFE Holdings
1,886.50
-11.33
-0.60%
JP:5406
Kobe Steel
2,006.00
232.38
13.10%
JP:5401
NIPPON STEEL
592.70
-72.85
-10.95%
JP:5482
Aichi Steel Corporation
2,995.00
1,095.44
57.67%

Yodogawa Steel Works Corporate Events

Yodoko Completes ¥10 Billion Sale of Stake in Sadoshima Corporation
Mar 19, 2026

Yodoko has completed the sale of all 4,000,000 shares it held in equity-method affiliate Sadoshima Corporation, ending its 50% voting rights stake in the company. The shares were sold for ¥10 billion on March 18, 2026, with the price disclosed following the lifting of a confidentiality obligation.

The transaction marks a full exit from Sadoshima Corporation and is expected to crystallize a gain on the sale of shares in subsidiaries and associates, as previously indicated by Yodoko. This move may streamline the company’s portfolio of affiliates and reallocate capital, with potential implications for its earnings profile and financial strategy.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1665.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.

YODOKO Completes Share Buyback and Moves to Cancel 1.83% of Shares
Mar 13, 2026

YODOKO, Ltd. has completed a share repurchase of 2,913,900 common shares for approximately 4.49 billion yen via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system. The move forms part of the company’s strategy to pursue timely and flexible financial policies in response to shifts in its operating environment.

The company will cancel all 2,913,900 repurchased shares, equivalent to 1.83% of its outstanding shares, with the cancellation scheduled for March 31, 2026. This reduction in share count is expected to enhance capital efficiency and may improve shareholder value by increasing the relative ownership stake of remaining investors.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1718.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.

YODOKO Launches Share Buyback and Cancellation to Tighten Capital Base
Mar 12, 2026

YODOKO, Ltd. has approved a share repurchase and subsequent cancellation of treasury shares as part of a strategy to enable more timely and flexible financial management amid shifts in its operating environment. The board authorized buying back up to 3.5 million common shares, representing about 2.4% of shares outstanding (excluding treasury stock), for a maximum of ¥5.39 billion via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system on March 13, 2026.

All shares repurchased under this program will be cancelled by March 31, 2026, effectively reducing the company’s total share count and potentially enhancing capital efficiency and shareholder value. The move, supported by at least one existing shareholder’s stated intent to sell, signals a proactive capital allocation stance that may strengthen YODOKO’s equity structure and influence its valuation in the Japanese steel sector.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1726.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.

Yodogawa Steel Reshapes Executive Lineup While Keeping Board Intact
Feb 27, 2026

YODOKO, Ltd. has proposed the reappointment of its seven current directors, including President and Representative Director Eiichi Tanaka, to be put before shareholders at the Ordinary General Meeting scheduled for June 23, 2026. This continuity in board composition indicates a preference for stable governance as the company pursues its existing strategic direction.

Effective April 1, 2026, the company will promote several senior councilors to executive officer roles while also adjusting responsibilities among top management, particularly in sales, corporate planning, and plant oversight. By elevating plant general managers and reinforcing leadership in growth strategy and sales, YODOKO appears to be tightening operational control and aligning management structure with its growth and development initiatives across its steel plants and key business divisions.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1578.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.

YODOKO Lifts Profit Outlook on Deferred Tax Assets and Share Sale Gains
Feb 27, 2026

YODOKO plans to sell its stake in consolidated subsidiary Yodogawa-Shengyu (Hefei) High-Tech Steel, prompting the recognition of deferred tax assets of ¥3.77 billion in both consolidated and non-consolidated accounts for the year ending March 2026. The company will also book about ¥1.0 billion in non-consolidated valuation losses on the shares, while now expecting only a negligible gain or loss at the time of the actual sale due to a prior write-down.

Following the planned transactions, YODOKO forecasts a consolidated gain of roughly ¥2.0 billion from the sale of the subsidiary shares in the fiscal year ending March 2027, subject to final pricing and exchange rates. For FY3/26, it has sharply raised profit forecasts, with consolidated profit attributable to owners of parent revised up by ¥5.5 billion to ¥17.0 billion and non-consolidated profit to ¥24.0 billion, driven mainly by deferred tax asset recognition and an expected ¥9.77 billion extraordinary gain on the sale of shares in an equity-method affiliate, signaling a significant uplift in near-term earnings for shareholders.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1578.00 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 Entire Stake in Sadoshima, Booking Large Extraordinary Gain
Feb 27, 2026

YODOKO, Ltd. has resolved to sell its entire 50% stake in equity‑method affiliate Sadoshima Corporation back to Sadoshima, a move the two companies say is aimed at maximizing their respective performance and supporting long‑term growth. Despite the divestment, Sadoshima will continue to act as a key trading company for YODOKO, and the sale is not expected to alter their commercial relationship.

Following the transaction, Sadoshima will cease to be an equity‑method affiliate, and YODOKO will hold no shares in the firm, although existing supply and sales arrangements remain in place. The sale will generate an extraordinary gain of 9,765 million yen on a non‑consolidated basis and roughly 1,500 million yen on a consolidated basis in the fiscal year ending March 2026, strengthening YODOKO’s earnings profile and potentially its financial flexibility.

The most recent analyst rating on (JP:5451) stock is a Hold with a Yen1578.00 price target. To see the full list of analyst forecasts on Yodogawa Steel Works stock, see the JP:5451 Stock Forecast page.

YODOKO Posts Lower Nine-Month Earnings but Keeps FY3/26 Forecasts Intact
Feb 6, 2026

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
Jan 28, 2026

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.

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: Oct 30, 2025