Daido Steel Co (5471) AI Stock Analysis

• Market Cap: €214.91B
• Dividend Yield: 5.24%
• Average Volume (3M): 760.04K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.89
• Revenue Growth: -1.09%
• EPS Growth: -42.36%
• Country: JP
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Steel
• EPS (TTM): 25.25
• Shares Outstanding: 217,243,850
• 10 Day Avg. Volume: 811,030
• 30 Day Avg. Volume: 760,040
• PEG Ratio: 0.17
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 187.21
• 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: €1,099.50
• Price Target Upside: 8.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,057.00 ▲(4.14%Upside)

Daido Steel Co's strong financial performance and attractive valuation are offset by weak technical indicators. While the company's financials show resilience and potential for growth, the current market sentiment and momentum are negative, impacting the overall score.

Daido Steel Co Business Overview & Revenue Model

Company Description

Daido Steel Co., Ltd. is a leading Japanese steel manufacturer specializing in the production of specialty steel products. The company operates in several sectors, including automotive, industrial machinery, and construction, offering a diverse range of products such as high-grade steel bars, stainless steel, and precision parts. With a strong focus on innovation, Daido Steel Co. serves both domestic and international markets, providing high-quality materials and solutions tailored to meet the specific needs of its customers.

How the Company Makes Money

Daido Steel Co. makes money primarily through the manufacturing and sale of specialty steel products. Its revenue model is centered around producing high-grade steel for various industries, including automotive, construction, and machinery. The company generates income by supplying these industries with essential materials such as steel bars, rods, and sheets, which are used in the production of automobiles, machinery components, and building structures. Additionally, Daido Steel Co. enhances its earnings through strategic partnerships and collaborations with other manufacturing firms, enabling it to expand its product offerings and market reach. The company's focus on research and development also plays a crucial role in maintaining its competitive edge and ensuring a steady revenue stream from innovative products.

Daido Steel Co Financial Statement Overview

Summary

Daido Steel Co demonstrates a robust financial position with strong profitability metrics and improving leverage ratios. The profitability margins are stable, and the recent positive turn in Free Cash Flow is a positive sign, though there is room for improved capital efficiency.

Income Statement

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

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

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.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
576.88B	574.95B	578.56B	579.01B	529.67B	412.72B
	Gross Profit
107.32B	104.19B	97.95B	102.34B	92.11B	61.20B
	EBIT
47.04B	42.85B	42.25B	50.02B	36.98B	10.07B
	EBITDA
71.49B	74.00B	75.96B	83.11B	68.56B	37.99B
	Net Income Common Stockholders
32.99B	28.31B	30.55B	36.30B	26.89B	4.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.41B	61.22B	46.01B	58.22B	58.14B	67.31B
	Total Assets
820.67B	782.97B	788.73B	773.85B	728.19B	665.51B
	Total Debt
216.52B	176.85B	176.23B	234.29B	226.47B	197.36B
	Net Debt
165.11B	115.63B	130.22B	176.06B	168.33B	130.05B
	Total Liabilities
353.56B	313.83B	331.42B	368.38B	363.18B	326.15B
	Stockholders Equity
427.14B	429.28B	418.56B	368.72B	329.71B	303.14B
Cash Flow		Free Cash Flow
-16.00M	11.87B	17.88B	1.18B	-35.75B	5.95B
	Operating Cash Flow
10.09B	53.52B	50.24B	22.63B	-16.68B	33.77B
	Investing Cash Flow
-10.46B	-15.59B	13.62B	-20.08B	-14.57B	-29.39B
	Financing Cash Flow
7.24B	-22.71B	-76.48B	-2.67B	19.40B	3.00B

Daido Steel Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1015.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5471, the sentiment is Neutral. The current price of 1015 is above the 20-day moving average (MA) of 978.18, below the 50-day MA of 1016.59, and below the 200-day MA of 1177.53, indicating a neutral trend. The MACD of -7.51 indicates Negative momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5471.

Daido Steel Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5463	75 Outperform	¥252.17B	10.36		4.33%	-3.56%	3.19%
5451	73 Outperform	$161.52B	11.97	6.92%	5.97%	2.21%	202.58%
5423	73 Outperform	$162.72B	7.53	10.08%	3.35%	-11.02%	-21.84%
5471	68 Neutral	€214.91B	7.38	6.56%	5.24%	-1.09%	-42.36%
5482	66 Neutral	€156.21B	20.73	3.23%	2.03%	0.93%	19.15%
5449	57 Neutral	¥105.51B	32.70		1.40%	-0.60%	3.40%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%

Daido Steel Co Corporate Events

Daido Steel to Acquire Nippon Koshuha Steel, Expanding Specialty Steel Operations

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

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.