Daido Steel Co Ltd (JP:5471)
:5471
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Daido Steel Co
(5471)
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Rating:74Outperform
Price Target:
¥2,056.00
▲(27.35% Upside)
Action:ReiteratedDate:01/15/26
The score is driven primarily by improving fundamentals—better profitability, strengthening leverage, and improved cash generation—tempered by very overbought technical conditions that raise near-term pullback risk. Valuation is reasonable with a moderate dividend yield, providing additional support.
Positive Factors
Improving profitability and margins
Sustained gross margins near 18–19% and a rising net margin to 4.9% in 2025 indicate durable pricing power and operational efficiency in specialty steel. These margin levels support long‑term earnings resilience versus commodity peers and provide steady internal resources for reinvestment over months.
Negative Factors
Stalled top-line growth
Revenue expansion has slowed after a one‑off jump in 2021, leaving the company reliant on margin improvement and mix shifts for profit growth. A plateaued top line constrains long‑term operating leverage and makes medium‑term earnings gains more dependent on pricing or premium product penetration.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Sustained gross margins near 18–19% and a rising net margin to 4.9% in 2025 indicate durable pricing power and operational efficiency in specialty steel. These margin levels support long‑term earnings resilience versus commodity peers and provide steady internal resources for reinvestment over months.
Read all positive factors
Daido Steel Co (5471) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥377.80B
Dividend Yield2.99%
Average Volume (3M)474.94K
Price to Earnings (P/E)9.1
Beta (1Y)1.10
Revenue Growth-0.98%
EPS Growth-45.90%
CountryJP
Employees11,941
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)133.96
Shares Outstanding217,243,850
10 Day Avg. Volume515,060
30 Day Avg. Volume474,936
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)0.58
Price to Sales (P/S)0.44
P/FCF Ratio21.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)148.74
Revenue Forecast (FY)¥618.79B
Daido Steel Co Business Overview & Revenue Model
Company Description
Daido 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...
How the Company Makes Money
Daido Steel primarily makes money by manufacturing and selling specialty steel products and related processed goods. Revenue is generated mainly from (1) sales of specialty steel materials (e.g., specialty steels used for industrial parts and mach...
Daido Steel Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
76
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 575.20B | 574.95B | 578.56B | 578.56B | 529.67B | 412.72B |
| Gross Profit | 102.73B | 104.19B | 97.95B | 102.34B | 92.11B | 61.20B |
| EBITDA | 48.75B | 74.00B | 75.96B | 76.41B | 68.36B | 36.80B |
| Net Income | 27.95B | 28.31B | 30.55B | 36.44B | 26.89B | 4.52B |
Balance Sheet | ||||||
| Total Assets | 791.38B | 782.97B | 788.73B | 772.36B | 728.19B | 665.51B |
| Cash, Cash Equivalents and Short-Term Investments | 62.29B | 61.22B | 46.01B | 58.22B | 58.14B | 67.31B |
| Total Debt | 180.43B | 176.85B | 176.23B | 239.65B | 229.09B | 198.81B |
| Total Liabilities | 319.38B | 313.83B | 331.42B | 377.59B | 363.18B | 326.15B |
| Stockholders Equity | 432.49B | 429.28B | 418.56B | 358.12B | 329.71B | 303.14B |
Cash Flow | ||||||
| Free Cash Flow | -16.00M | 11.87B | 17.88B | 877.00M | -35.75B | 5.95B |
| Operating Cash Flow | 10.09B | 53.52B | 50.24B | 27.91B | -16.68B | 33.77B |
| Investing Cash Flow | -10.46B | -15.59B | 13.62B | -23.90B | -14.57B | -29.39B |
| Financing Cash Flow | 7.24B | -22.71B | -76.48B | -4.11B | 19.40B | 3.00B |
Daido Steel Co Technical Analysis
Negative
1614.50
Price Trends
2005.66
Negative
1852.72
Positive
1533.92
Positive
Market Momentum
-23.57
Negative
46.19
Neutral
31.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5471, the sentiment is Negative. The current price of 1614.5 is below the 20-day moving average (MA) of 1893.79, below the 50-day MA of 2005.66, and above the 200-day MA of 1533.92, indicating a neutral trend. The MACD of -23.57 indicates Negative momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 31.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5471.
Daido Steel Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥763.03B | 9.48 | 10.78% | 4.68% | -4.09% | -0.76% | |
74 Outperform | ¥377.80B | 9.05 | 6.16% | 2.99% | -0.98% | -45.90% | |
74 Outperform | ¥204.69B | 14.50 | 6.87% | 5.25% | -3.16% | 45.15% | |
71 Outperform | ¥184.70B | 16.46 | 5.06% | 1.80% | 1.69% | 71.95% | |
67 Neutral | ¥3.06T | 12.26 | -0.26% | 4.53% | 7.07% | -111.21% | |
64 Neutral | ¥1.03T | 9.28 | 2.09% | 4.59% | -8.42% | -60.88% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:5471
Daido Steel Co
1,835.50
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Daido Steel Co Corporate Events
Daido Steel Reshapes Executive Lineup and Deploys Leader to Daido Castings
Apr 27, 2026
Daido Steel Co., Ltd. has announced changes to its executive officer lineup following a Board of Directors meeting held on April 27, 2026, with the new structure to take effect in late June 2026. Managing Executive Officer Takaaki Taketsuru will r...
Daido Steel to Absorb IT Subsidiary to Accelerate Digital Transformation
Mar 30, 2026
Daido Steel will absorb its wholly owned subsidiary Daido IT Solutions in an absorption-type merger effective January 1, 2027, with Daido Steel as the surviving entity and no new shares or consideration issued. The move is designed to centralize I...
Daido Steel Revamps Board and Executive Lineup Ahead of June 2026 Shareholders Meeting
Feb 25, 2026
Daido Steel Co., Ltd. has announced a series of leadership changes approved by its board, including the nomination of TMEIC Corporation executive Noriko Kawakami as an outside director, subject to shareholder approval at the 102nd Annual General M...
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.