Daido Steel Co (5471) AI Stock Analysis

• Market Cap: €217.18B
• Dividend Yield: 4.84%
• Average Volume (3M): 733.05K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.89
• Revenue Growth: -1.09%
• EPS Growth: -42.36%
• Country: JP
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Steel
• EPS (TTM): 25.25
• Shares Outstanding: 217,243,850
• 10 Day Avg. Volume: 801,970
• 30 Day Avg. Volume: 733,053
• PEG Ratio: 1.32
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.16K
• 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: €1,095.21
• Price Target Upside: 9.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,057.00 ▲(5.33%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. 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 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
576.88B	578.56B	578.56B	529.67B	412.72B	490.42B
	Gross Profit
107.32B	95.93B	102.34B	92.11B	61.20B	81.04B
	EBIT
47.04B	38.87B	46.99B	36.98B	10.07B	24.77B
	EBITDA
106.72B	75.96B	83.11B	68.56B	37.99B	47.52B
	Net Income Common Stockholders
52.19B	30.55B	36.30B	26.89B	4.52B	10.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.41B	46.01B	58.22B	58.14B	67.31B	59.56B
	Total Assets
820.67B	788.73B	773.85B	728.19B	665.51B	625.90B
	Total Debt
216.52B	176.23B	234.29B	226.47B	197.36B	192.44B
	Net Debt
165.11B	130.22B	176.06B	168.33B	130.05B	132.88B
	Total Liabilities
353.56B	331.42B	368.38B	363.18B	326.15B	316.76B
	Stockholders Equity
427.14B	418.56B	368.72B	329.71B	303.14B	273.56B
Cash Flow		Free Cash Flow
-16.00M	17.88B	1.18B	-35.75B	5.95B	-4.38B
	Operating Cash Flow
10.09B	50.24B	22.63B	-16.68B	33.77B	41.03B
	Investing Cash Flow
-10.46B	13.62B	-20.08B	-14.57B	-29.39B	-39.33B
	Financing Cash Flow
7.24B	-76.48B	-2.67B	19.40B	3.00B	10.53B

Daido Steel Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1003.50
• 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 Negative. The current price of 1003.5 is above the 20-day moving average (MA) of 978.66, below the 50-day MA of 1032.04, and below the 200-day MA of 1181.39, indicating a neutral trend. The MACD of -15.26 indicates Negative momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 81.64 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	68 Neutral	€217.18B	7.46	6.56%	4.84%	-1.09%	-42.36%
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%
TOKSF		$1.12B	7.37	10.08%	3.46%	―	―
YDWAF		$1.10B	12.67	6.92%	5.97%	―	―
8T2		€923.62M	19.57	3.23%	2.08%	―	―
5463	75 Outperform	¥256.05B	10.52		3.68%	-3.56%	3.19%
5449	57 Neutral	¥103.65B	32.12		1.28%	-0.60%	3.40%

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.