Daido Steel Co Ltd (JP:5471)
:5471
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Daido Steel Co
(5471)
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Rating:62Neutral
Price Target:
¥2,004.00
▲(24.13% Upside)
Action:Downgraded
Date:05/16/26
The score is driven primarily by solid profitability and an improved balance sheet, offset by inconsistent and weaker cash-flow conversion. Technicals are neutral-to-slightly soft, while valuation (P/E ~11 and ~2.6% yield) provides a supportive baseline.
Positive Factors
Improved leverage
Material reduction in debt-to-equity improves financial resilience in a cyclical industry. Lower leverage increases capacity to absorb downturns, supports investment in production or processing assets, and gives management more optionality on dividends, buybacks, or targeted M&A over the medium term.
Negative Factors
Volatile cash generation
Erratic operating and free cash flow reduces confidence in reported earnings and limits internal funding capacity. Inconsistent FCF complicates capital expenditure planning, dividend reliability, and debt reduction, forcing potential reliance on external funding during adverse cycles and constraining strategic moves.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
Material reduction in debt-to-equity improves financial resilience in a cyclical industry. Lower leverage increases capacity to absorb downturns, supports investment in production or processing assets, and gives management more optionality on dividends, buybacks, or targeted M&A over the medium term.
Read all positive factors
Daido Steel Co (5471) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥384.49B
Dividend Yield2.99%
Average Volume (3M)474.94K
Price to Earnings (P/E)8.4
Beta (1Y)1.10
Revenue Growth0.55%
EPS Growth20.51%
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 Ratio0.55
Price to Book (P/B)0.77
Price to Sales (P/S)0.63
P/FCF Ratio26.98
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)150.68
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
72
Positive
Balance Sheet
67
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 575.20B | 578.13B | 574.95B | 578.56B | 578.56B | 529.67B |
| Gross Profit | 102.73B | 101.30B | 104.19B | 97.95B | 102.34B | 92.11B |
| EBITDA | 48.75B | 81.27B | 74.00B | 75.96B | 76.41B | 68.36B |
| Net Income | 27.95B | 32.61B | 28.31B | 30.55B | 36.44B | 26.89B |
Balance Sheet | ||||||
| Total Assets | 791.38B | 856.38B | 782.97B | 788.73B | 772.36B | 728.19B |
| Cash, Cash Equivalents and Short-Term Investments | 62.29B | 63.07B | 61.22B | 46.01B | 58.22B | 58.14B |
| Total Debt | 180.43B | 181.76B | 176.85B | 176.23B | 239.65B | 229.09B |
| Total Liabilities | 319.38B | 342.92B | 313.83B | 331.42B | 377.59B | 363.18B |
| Stockholders Equity | 432.49B | 472.56B | 429.28B | 418.56B | 358.12B | 329.71B |
Cash Flow | ||||||
| Free Cash Flow | -16.00M | 13.54B | 11.87B | 17.88B | 877.00M | -35.75B |
| Operating Cash Flow | 10.09B | 66.10B | 53.52B | 50.24B | 27.91B | -16.68B |
| Investing Cash Flow | -10.46B | -48.25B | -15.59B | 13.62B | -23.90B | -14.57B |
| Financing Cash Flow | 7.24B | -18.46B | -22.71B | -76.48B | -4.11B | 19.40B |
Daido Steel Co Technical Analysis
Positive
1614.50
Price Trends
1895.63
Negative
1922.83
Negative
1627.62
Positive
Market Momentum
-12.94
Negative
49.26
Neutral
25.31
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 1614.5 is below the 20-day moving average (MA) of 1860.75, below the 50-day MA of 1895.63, and below the 200-day MA of 1627.62, indicating a neutral trend. The MACD of -12.94 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.31 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥183.69B | 6.30 | 6.87% | 5.25% | -6.28% | 29.00% | |
71 Outperform | ¥184.25B | 27.66 | 5.06% | 1.80% | 1.69% | 71.95% | |
69 Neutral | ¥765.20B | 7.95 | 10.78% | 4.68% | -4.64% | -21.94% | |
62 Neutral | ¥384.49B | 8.38 | 6.16% | 2.99% | 0.55% | 20.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | ¥2.96T | 175.42 | -0.26% | 4.53% | 15.73% | -95.40% | |
49 Neutral | ¥982.30B | 16.46 | 2.09% | 4.59% | -6.59% | -23.63% |
* Basic Materials Sector Average
JP:5471
Daido Steel Co
1,868.00
927.83
98.69%
JP:5411
JFE Holdings
1,635.00
30.16
1.88%
JP:5406
Kobe Steel
1,946.50
352.23
22.09%
JP:5401
NIPPON STEEL
553.50
-9.81
-1.74%
JP:5451
Yodogawa Steel Works
1,198.00
167.78
16.29%
JP:5482
Aichi Steel Corporation
2,878.00
1,090.41
61.00%
Daido Steel Co Corporate Events
Daido Steel Moves to Make Tohoku Steel a Wholly Owned Subsidiary via Tender Offer
May 15, 2026
Daido Steel has launched a tender offer to acquire all common shares of Tohoku Steel Co., Ltd., excluding its existing stake, treasury shares, and shares held by several major investors under non-tender agreements, at 4,491 yen per share between M...
Daido Steel Updates Board Changes as Outside Director Retires and New Candidate Joins
May 15, 2026
Daido Steel has announced revisions to its previously disclosed plans for changes in board members, confirming at a May 15 board meeting that outside director Ryoichi Yamamoto will retire at the close of the shareholders’ meeting in late Jun...
Daido Steel Lifts Profit and Dividend as Specialty Steel Portfolio Expands
May 15, 2026
Daido Steel reported flat revenue of ¥578.1 billion for the year to March 31, 2026, but improved profitability, with operating profit rising 6.8% to ¥42.1 billion and profit attributable to owners of the parent climbing 15.2% to ¥32...
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.