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Daido Steel Co Ltd (JP:5471)
:5471
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Daido Steel Co (5471) AI Stock Analysis

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JP:5471

Daido Steel Co

(Frankfurt:5471)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
¥1,331.00
▼(-1.08% Downside)
Daido Steel Co's strong financial performance and attractive valuation are the primary drivers of its solid stock score. The company displays robust profitability and improved leverage ratios, with an appealing dividend yield. While technical indicators suggest the stock is overbought, the overall outlook remains positive due to its undervaluation and financial strength.

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 generates revenue primarily through the sale of its steel products, which are utilized in several industries including automotive, construction, and machinery. Key revenue streams include the production and distribution of specialty steels, high-strength steel bars, and precision components. The company also earns income from long-term contracts with major manufacturers in the automotive and aerospace sectors, where it supplies customized steel solutions. Additionally, Daido Steel may benefit from strategic partnerships with other firms in the materials industry, technological collaborations, and participation in joint ventures, which enhance its market presence and drive sales growth.

Daido Steel Co Financial Statement Overview

Summary
Daido Steel Co exhibits strong profitability with an improving Net Profit Margin and stable EBIT/EBITDA margins. The Debt-to-Equity ratio has improved significantly, showcasing better leverage management. Cash flow shows positive signs with a recent positive turn in Free Cash Flow, though some volatility remains.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue575.20B574.95B578.56B579.01B529.67B412.72B
Gross Profit102.73B104.19B97.95B102.95B92.11B61.20B
EBITDA70.66B74.00B75.96B83.11B68.56B37.99B
Net Income27.95B28.31B30.55B36.30B26.89B4.52B
Balance Sheet
Total Assets791.38B782.97B788.73B773.85B728.19B665.51B
Cash, Cash Equivalents and Short-Term Investments62.29B61.22B46.01B58.22B58.14B67.31B
Total Debt180.43B176.85B176.23B239.65B226.47B197.36B
Total Liabilities319.38B313.83B331.42B377.59B363.18B326.15B
Stockholders Equity432.49B429.28B418.56B358.12B329.71B303.14B
Cash Flow
Free Cash Flow-16.00M11.87B17.88B1.18B-35.75B5.95B
Operating Cash Flow10.09B53.52B50.24B22.63B-16.68B33.77B
Investing Cash Flow-10.46B-15.59B13.62B-20.08B-14.57B-29.39B
Financing Cash Flow7.24B-22.71B-76.48B-2.67B19.40B3.00B

Daido Steel Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1345.50
Price Trends
50DMA
1254.83
Positive
100DMA
1119.19
Positive
200DMA
1120.27
Positive
Market Momentum
MACD
19.36
Negative
RSI
68.23
Neutral
STOCH
90.46
Negative
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 1345.5 is above the 20-day moving average (MA) of 1294.30, above the 50-day MA of 1254.83, and above the 200-day MA of 1120.27, indicating a bullish trend. The MACD of 19.36 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 90.46 is Negative, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$203.27B13.747.32%5.22%1.53%142.11%
75
Outperform
€273.44B9.946.87%3.17%-1.07%-43.26%
73
Outperform
$163.26B8.608.92%3.35%-14.44%-25.56%
73
Outperform
¥311.06B12.533.68%-6.58%-4.38%
72
Outperform
€174.52B20.034.65%1.94%2.65%97.66%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
¥77.28B34.491.26%-6.19%-129.84%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5471
Daido Steel Co
1,345.50
8.72
0.65%
JP:5423
Tokyo Steel Manufacturing Co
1,502.00
-441.43
-22.71%
JP:5451
Yodogawa Steel Works
1,312.00
271.65
26.11%
JP:5482
Aichi Steel Corporation
2,683.00
1,691.03
170.47%
JP:5449
OSAKA STEEL CO., LTD.
2,583.00
-810.58
-23.89%
JP:5463
Maruichi Steel Tube Ltd.
1,301.00
224.22
20.82%

Daido Steel Co Corporate Events

Daido Steel Completes Share Repurchase to Boost Capital Efficiency
Jul 29, 2025

Daido Steel Co., Ltd. has completed the repurchase of its own shares, acquiring 6,041,100 common shares at a cost of ¥6,602,922,300 through the Tokyo Stock Exchange’s off-auction trading system. This move aligns with the company’s 2026 Medium-Term Management Plan, aiming to improve capital efficiency and expand shareholder returns, reflecting a strategic response to the evolving business environment.

The most recent analyst rating on (JP:5471) stock is a Hold with a Yen1650.00 price target. To see the full list of analyst forecasts on Daido Steel Co stock, see the JP:5471 Stock Forecast page.

Daido Steel Announces Share Repurchase Plan to Boost Capital Efficiency
Jul 28, 2025

Daido Steel Co., Ltd. has announced a decision by its Board of Directors to repurchase up to 6.5 million of its own shares, representing 3.15% of its total issued shares, at a maximum cost of ¥7.1 billion. This move is part of the company’s 2026 Medium-Term Management Plan aimed at improving capital efficiency and enhancing shareholder returns. The acquisition will be conducted through the Tokyo Stock Exchange’s off-auction trading system, with the results to be announced shortly after the transaction.

The most recent analyst rating on (JP:5471) stock is a Hold with a Yen1650.00 price target. To see the full list of analyst forecasts on Daido Steel Co stock, see the JP:5471 Stock Forecast page.

Daido Steel Reports Q1 2025 Financial Results with Mixed Performance
Jul 28, 2025

Daido Steel Co., Ltd. reported its consolidated financial results for the three months ending June 30, 2025, showing a slight increase in revenue by 0.2% compared to the previous year. However, the company experienced a decline in operating profit by 14% and profit before tax by 14.9%. The company’s financial position remains stable with a slight increase in total assets and equity. Despite the challenges, Daido Steel maintains its dividend forecast and continues to focus on its strategic objectives.

The most recent analyst rating on (JP:5471) stock is a Hold with a Yen1650.00 price target. To see the full list of analyst forecasts on Daido Steel Co stock, see the JP:5471 Stock Forecast page.

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 30, 2025