Daido Steel Co (5471) AI Stock Analysis

• Market Cap: €269.94B
• Dividend Yield: 2.92%
• Average Volume (3M): 474.94K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.85
• Revenue Growth: -1.07%
• EPS Growth: -43.26%
• Country: JP
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 31.18
• Shares Outstanding: 217,243,850
• 10 Day Avg. Volume: 515,060
• 30 Day Avg. Volume: 474,936
• PEG Ratio: -1.44
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 21.09
• 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: €1,352.31
• Price Target Upside: -3.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥1,489.00 ▲(6.17% Upside)

Daido Steel Co's overall score is driven by its strong financial performance and attractive valuation. The technical analysis supports a positive outlook, with the stock showing bullish trends. The absence of earnings call data and corporate events does not impact the score.

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 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 Money

Daido 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	575.20B	574.95B	578.56B	579.01B	529.67B	412.72B
Gross Profit	102.73B	104.19B	97.95B	102.95B	92.11B	61.20B
EBITDA	70.66B	74.00B	75.96B	83.11B	68.56B	37.99B
Net Income	27.95B	28.31B	30.55B	36.30B	26.89B	4.52B
Balance Sheet
Total Assets	791.38B	782.97B	788.73B	773.85B	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	226.47B	197.36B
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	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: Positive
• Last Price: 1402.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1402.5 is above the 20-day moving average (MA) of 1332.00, above the 50-day MA of 1295.79, and above the 200-day MA of 1135.82, indicating a bullish trend. The MACD of 35.81 indicates Negative momentum. The RSI at 63.80 is Neutral, neither overbought nor oversold. The STOCH value of 79.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	―	€269.94B	9.81	6.87%	2.92%	-1.07%	-43.26%
5451	―	¥207.80B	14.04	7.32%	5.28%	1.53%	142.11%
5463	―	¥311.90B	12.57	―	3.67%	-6.58%	-4.38%
5423	―	$148.41B	8.95	7.36%	3.63%	-18.72%	-25.23%
5482	―	€167.73B	19.03	4.65%	1.97%	2.65%	97.66%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	―	¥78.87B	34.49	―	1.22%	-6.19%	-129.84%

Daido Steel Co Corporate Events

Daido Steel Completes Share Repurchase to Boost Capital Efficiency

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

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

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.