tiprankstipranks
Trending News
More News >
Daido Steel Co (JP:5471)
:5471
Advertisement

Daido Steel Co (5471) AI Stock Analysis

Compare
0 Followers

Top Page

JP:5471

Daido Steel Co

(Frankfurt:5471)

Rating:77Outperform
Price Target:
¥1,153.00
▲(10.76%Upside)
Daido Steel Co's stock score is driven primarily by its strong financial performance and attractive valuation. The company shows stable profitability and efficient leverage management, alongside a low P/E ratio and high dividend yield. Technical analysis presents a mixed picture, with short-term indicators showing some bullishness, but longer-term trends are less favorable.

Daido Steel Co (5471) vs. iShares MSCI Japan ETF (EWJ)

Daido Steel Co Business Overview & Revenue Model

Company DescriptionDaido Steel Co., Ltd. manufactures and sells steel products in Japan, rest of Asia, North America, and internationally. The company's Specialty Steel segment manufactures specialty steel for automotive parts, industrial machinery parts, electrical machinery parts, construction, tool steel, etc. Its High Performance Materials and Magnetic Materials segment offers stainless steel products, nickel-based alloys, electrical and electronics parts, magnetic material products, alloy powders, titanium products, and welding wires. The company's Parts For Automobile and Industrial Equipment segment provides die forgings, precise hot forgings, and welded parts, including automotive parts and bearing races; open die forgings, such as parts for boats and ships, industrial machines, heavy electric machines, steel making equipment, chemical equipment, oil drilling rigs, and spacecraft and aircraft; and castings that comprise manganese railway rails, components for automobiles, industrial machines, electric machines and furnaces, cast steel products, etc. This segment also offers precision castings, which include automotive, industrial machines, electric machines, telecommunications equipment, etc.; and lumber industry band saws, engine valves, compressors, hydraulic equipment, and machine tool parts. Its Engineering segment provides steel making equipment; industrial furnaces and facilities; environmental equipment for drainage, exhaust, waste disposal, and treatment facilities; machine tools; and machine maintenance services. The company's Trading and Service segment engages in the provision of welfare services; real estate and insurance business; and golf course management and analysis businesses. Daido Steel Co., Ltd. was founded in 1916 and is headquartered in Nagoya, Japan.
How the Company Makes MoneyDaido Steel Co., Ltd. generates revenue primarily through the manufacturing and sale of specialty steel products. The company operates several business segments, with the specialty steel segment being the most significant contributor to its earnings. This segment involves the production and sale of a wide range of steel products tailored for specific industrial applications, such as automotive components and machinery parts. In addition to its core steel business, Daido Steel also earns revenue from its engineering and industrial machinery segments, which provide solutions and equipment to enhance production efficiency and reduce environmental impact. Strategic partnerships and collaborations with key industry players further bolster its market position and revenue streams. The company's focus on innovation and quality enables it to maintain a competitive edge in the global market, thereby driving its financial performance.

Daido Steel Co Financial Statement Overview

Summary
Daido Steel Co exhibits strong financial performance with robust profitability metrics and improved leverage ratios. The consistent Gross Profit Margin and improving Net Profit Margin highlight efficient operations. The stable EBIT and EBITDA margins further indicate strong financial health, despite some volatility in cash flows.
Income Statement
82
Very Positive
Daido Steel Co exhibits strong profitability with a consistent Gross Profit Margin around 18-19% over the years, and a Net Profit Margin improving from 1.1% in 2021 to 4.9% in 2025. The company showed notable revenue growth of 28.3% in 2021, although this growth has plateaued in recent years. EBIT and EBITDA margins remain stable, indicating efficient operations within a competitive steel industry.
Balance Sheet
76
Positive
The company's Debt-to-Equity ratio has improved, declining from 0.72 in 2021 to 0.41 in 2025, reflecting better leverage management. The Return on Equity (ROE) has shown improvement, with a peak at 8.2% in 2025 up from 1.5% in 2021, indicating efficient use of equity. However, the Equity Ratio remains stable around 54-56%, suggesting reasonable equity financing relative to total assets.
Cash Flow
75
Positive
Daido Steel's Free Cash Flow has experienced volatility, turning positive in 2025 after a negative in 2022. The Operating Cash Flow to Net Income ratio is strong at 1.89 in 2025, suggesting good cash conversion. However, the Free Cash Flow to Net Income ratio, while positive in 2025, indicates room for improvement in capital expenditure efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue574.95B578.56B579.01B529.67B412.72B
Gross Profit104.19B97.95B102.34B92.11B61.20B
EBITDA74.00B75.96B83.11B68.56B37.99B
Net Income28.31B30.55B36.30B26.89B4.52B
Balance Sheet
Total Assets782.97B788.73B773.85B728.19B665.51B
Cash, Cash Equivalents and Short-Term Investments61.22B46.01B58.22B58.14B67.31B
Total Debt176.85B176.23B234.29B226.47B197.36B
Total Liabilities313.83B331.42B368.38B363.18B326.15B
Stockholders Equity429.28B418.56B368.72B329.71B303.14B
Cash Flow
Free Cash Flow11.87B17.88B1.18B-35.75B5.95B
Operating Cash Flow53.52B50.24B22.63B-16.68B33.77B
Investing Cash Flow-15.59B13.62B-20.08B-14.57B-29.39B
Financing Cash Flow-22.71B-76.48B-2.67B19.40B3.00B

Daido Steel Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1041.00
Price Trends
50DMA
989.82
Positive
100DMA
1059.34
Negative
200DMA
1128.82
Negative
Market Momentum
MACD
4.29
Negative
RSI
54.44
Neutral
STOCH
48.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5471, the sentiment is Positive. The current price of 1041 is above the 20-day moving average (MA) of 997.64, above the 50-day MA of 989.82, and below the 200-day MA of 1128.82, indicating a neutral trend. The MACD of 4.29 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 48.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5471.

Daido Steel Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥229.95B7.906.56%4.51%-1.09%-42.47%
44
Neutral
C$980.54M-6.83-13.68%1.75%17.37%-32.98%
$1.16B8.628.92%2.92%
$1.25B13.076.92%10.55%
€986.14M21.223.23%7.72%
73
Outperform
¥268.35B11.03
3.53%-3.56%3.19%
68
Neutral
¥114.82B35.58
1.18%-0.60%3.40%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5471
Daido Steel Co
1,041.00
-318.93
-23.45%
TOKSF
Tokyo Steel Manufacturing Co
9.98
-1.19
-10.65%
YDWAF
Yodogawa Steel Works
7.86
1.05
15.42%
DE:8T2
Aichi Steel Corporation
12.70
7.85
161.86%
JP:5449
OSAKA STEEL CO., LTD.
2,874.00
516.15
21.89%
JP:5463
Maruichi Steel Tube Ltd.
3,712.00
208.37
5.95%

Daido Steel Co Corporate Events

Daido Steel to Acquire Nippon Koshuha Steel, Expanding Specialty Steel Operations
May 12, 2025

Daido Steel Co., Ltd. has announced its decision to acquire all outstanding shares of Nippon Koshuha Steel Co., Ltd. from Kobe Steel, Ltd., making Nippon Koshuha Steel a wholly-owned subsidiary. This acquisition aligns with Daido Steel’s 2026 Medium-Term Management Plan, aiming to enhance its corporate value in the specialty steel business and contribute to its long-term vision for 2030. The transaction is subject to regulatory approvals and is expected to be completed by February 2026, with the goal of integrating Nippon Koshuha Steel’s specialty steel operations to strengthen Daido Steel’s market position.

Daido Steel Reports Fiscal Year 2025 Financial Results Amid Market Challenges
May 8, 2025

Daido Steel Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight decline in revenue and profits compared to the previous year. Despite the decrease, the company maintained a strong equity position, with a ratio of equity attributable to owners of the parent at 54.8%. The financial results reflect a challenging market environment, but the company remains committed to delivering value to its shareholders through dividends and strategic financial management.

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: Jul 23, 2025