Daido Steel Co Ltd (JP:5471)
:5471
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Daido Steel Co
(5471)
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Rating:74Outperform
Price Target:
¥2,110.00
▲(30.69% 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
High gross and improving net margins
Sustained gross margins near 18–19% and a rising net margin to 4.9% indicate durable pricing power from specialty steels and value-added processing. Consistent margins support long-term profitability, funding reinvestment and smoothing earnings through cycles.
Negative Factors
Revenue growth plateau
Revenue momentum has stalled after prior spikes, limiting organic scale benefits and making margin improvements more dependent on cost control and product mix. A lack of sustained top-line growth can constrain long-term returns and strategic investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and improving net margins
Sustained gross margins near 18–19% and a rising net margin to 4.9% indicate durable pricing power from specialty steels and value-added processing. Consistent margins support long-term profitability, funding reinvestment and smoothing earnings through cycles.
Read all positive factors
Daido Steel Co (5471) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥401.47B
Dividend Yield2.99%
Average Volume (3M)474.94K
Price to Earnings (P/E)9.1
Beta (1Y)1.05
Revenue Growth-0.02%
EPS Growth-40.45%
CountryJP
Employees11,941
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)44.04
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)125.42
Revenue Forecast (FY)¥573.19B
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 to industrial customers, with revenue driven by shipment volumes, product mix (higher value-added steel grades vs. commodity-like products), and realized selli...
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
Neutral
1614.50
Price Trends
2069.06
Negative
1818.34
Positive
1492.73
Positive
Market Momentum
-36.71
Positive
38.96
Neutral
17.90
Positive
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 1614.5 is below the 20-day moving average (MA) of 2087.77, below the 50-day MA of 2069.06, and above the 200-day MA of 1492.73, indicating a neutral trend. The MACD of -36.71 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 17.90 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥763.23B | 9.48 | 10.78% | 4.68% | -1.97% | 47.63% | |
74 Outperform | ¥401.47B | 9.05 | 6.16% | 2.99% | -0.02% | -40.45% | |
74 Outperform | ¥234.99B | 14.50 | 6.87% | 5.25% | -1.43% | 171.44% | |
67 Neutral | ¥3.12T | 12.26 | -0.26% | 4.53% | 1.31% | -101.19% | |
67 Neutral | ¥184.64B | 11.58 | 5.06% | 1.80% | 4.10% | 152.90% | |
64 Neutral | ¥1.12T | 9.28 | 2.09% | 4.59% | -8.07% | -41.42% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:5471
Daido Steel Co
1,950.50
694.06
55.24%
JP:5411
JFE Holdings
1,895.50
24.86
1.33%
JP:5406
Kobe Steel
1,979.00
200.16
11.25%
JP:5401
NIPPON STEEL
590.00
-68.07
-10.34%
JP:5451
Yodogawa Steel Works
1,504.00
378.68
33.65%
JP:5482
Aichi Steel Corporation
2,983.00
1,218.43
69.05%
Daido Steel Co Corporate Events
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...
Daido Steel Raises Full-Year Earnings Forecast on Strong Orders and Weaker Yen
Jan 29, 2026
Daido Steel has revised upward its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, citing strong order levels and a weaker yen that are offsetting higher-than-expected scrap iron prices. The company now projects...
Daido Steel’s Q3 Profit Falls on Weaker Volumes but Beats Forecasts on Stronger Sales and Weaker Yen
Jan 29, 2026
Daido Steel reported lower revenue and profits in the third quarter of the fiscal year ending March 2026 compared with the same period a year earlier, as a decline in specialty steel sales volumes and reduced orders for open-die forgings for drill...
Daido Steel Posts Lower Nine-Month Profit but Maintains Revenue Outlook and Strengthens Equity Base
Jan 29, 2026
Daido Steel reported consolidated revenue of ¥430.2 billion for the nine months to December 31, 2025, down 0.9% year on year, with operating profit falling 8.5% to ¥31.2 billion and profit attributable to owners of the parent declining 6...
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.