Daido Steel Co (5471) AI Stock Analysis

• Market Cap: ¥229.95B
• Dividend Yield: 4.51%
• Average Volume (3M): 657.64K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.89
• Revenue Growth: -1.09%
• EPS Growth: -42.47%
• Country: JP
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 25.25
• Shares Outstanding: 217,243,850
• 10 Day Avg. Volume: 547,900
• 30 Day Avg. Volume: 657,640
• PEG Ratio: -0.16
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.19K
• 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: ¥1,150.04
• Price Target Upside: 10.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,153.00 ▲(10.76%Upside)

Daido Steel Co's stock score is driven primarily by its strong financial performance and attractive valuation. The company shows stable profitability and efficient leverage management, alongside a low P/E ratio and high dividend yield. Technical analysis presents a mixed picture, with short-term indicators showing some bullishness, but longer-term trends are less favorable.

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., Ltd. generates revenue primarily through the manufacturing and sale of specialty steel products. The company operates several business segments, with the specialty steel segment being the most significant contributor to its earnings. This segment involves the production and sale of a wide range of steel products tailored for specific industrial applications, such as automotive components and machinery parts. In addition to its core steel business, Daido Steel also earns revenue from its engineering and industrial machinery segments, which provide solutions and equipment to enhance production efficiency and reduce environmental impact. Strategic partnerships and collaborations with key industry players further bolster its market position and revenue streams. The company's focus on innovation and quality enables it to maintain a competitive edge in the global market, thereby driving its financial performance.

Daido Steel Co Financial Statement Overview

Summary

Daido Steel Co exhibits strong financial performance with robust profitability metrics and improved leverage ratios. The consistent Gross Profit Margin and improving Net Profit Margin highlight efficient operations. The stable EBIT and EBITDA margins further indicate strong financial health, despite some volatility in cash flows.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	574.95B	578.56B	579.01B	529.67B	412.72B
Gross Profit	104.19B	97.95B	102.34B	92.11B	61.20B
EBITDA	74.00B	75.96B	83.11B	68.56B	37.99B
Net Income	28.31B	30.55B	36.30B	26.89B	4.52B
Balance Sheet
Total Assets	782.97B	788.73B	773.85B	728.19B	665.51B
Cash, Cash Equivalents and Short-Term Investments	61.22B	46.01B	58.22B	58.14B	67.31B
Total Debt	176.85B	176.23B	234.29B	226.47B	197.36B
Total Liabilities	313.83B	331.42B	368.38B	363.18B	326.15B
Stockholders Equity	429.28B	418.56B	368.72B	329.71B	303.14B
Cash Flow
Free Cash Flow	11.87B	17.88B	1.18B	-35.75B	5.95B
Operating Cash Flow	53.52B	50.24B	22.63B	-16.68B	33.77B
Investing Cash Flow	-15.59B	13.62B	-20.08B	-14.57B	-29.39B
Financing Cash Flow	-22.71B	-76.48B	-2.67B	19.40B	3.00B

Daido Steel Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1041.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1041 is above the 20-day moving average (MA) of 997.64, above the 50-day MA of 989.82, and below the 200-day MA of 1128.82, indicating a neutral trend. The MACD of 4.29 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 48.47 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	77 Outperform	¥229.95B	7.90	6.56%	4.51%	-1.09%	-42.47%
Sector *	44 Neutral	C$980.54M	-6.83	-13.68%	1.75%	17.37%	-32.98%
TOKSF	―	$1.16B	8.62	8.92%	2.92%	―	―
YDWAF	―	$1.25B	13.07	6.92%	10.55%	―	―
8T2	―	€986.14M	21.22	3.23%	7.72%	―	―
5463	73 Outperform	¥268.35B	11.03		3.53%	-3.56%	3.19%
5449	68 Neutral	¥114.82B	35.58		1.18%	-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.