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Daido Steel Co Ltd (JP:5471)
:5471
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Daido Steel Co (5471) AI Stock Analysis

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JP:5471

Daido Steel Co

(5471)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥2,446.00
▲(51.50% Upside)
Action:Reiterated
Date:06/23/26
The score is driven primarily by solid profitability and improved leverage, offset by notably inconsistent cash flow conversion. Technicals are strong but appear overbought, and valuation is mid-range with a modest dividend yield.
Positive Factors
Improved leverage / stronger balance sheet
Debt-to-equity materially declined to ~0.38 by 2026, indicating meaningful balance-sheet repair. This stronger leverage profile increases financial flexibility to fund capex, withstand cyclical downturns, and lowers refinancing risks—structural benefits that persist across cycles.
Negative Factors
Volatile cash generation
Operating and free cash flows have been highly inconsistent, including deeply negative cash flow years. This volatility constrains the company's ability to fund capex, pay dividends, or rebuild buffers without relying on external financing, raising structural financing and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage / stronger balance sheet
Debt-to-equity materially declined to ~0.38 by 2026, indicating meaningful balance-sheet repair. This stronger leverage profile increases financial flexibility to fund capex, withstand cyclical downturns, and lowers refinancing risks—structural benefits that persist across cycles.
Read all positive factors

Daido Steel Co (5471) vs. iShares MSCI Japan ETF (EWJ)

Daido Steel Co Business Overview & Revenue Model

Company Description
Daido Steel Co., Ltd. engages in the manufacture and sale of steel products in Japan and internationally. The Specialty Steel segment is involved in automotive parts, industrial machinery parts, electrical machinery parts, construction, and tool s...
How the Company Makes Money
Daido Steel primarily makes money by manufacturing and selling specialty steel and related products to industrial customers. Its revenue model is largely business-to-business and is driven by (1) sales of specialty steel products—such as various g...

Daido Steel Co Financial Statement Overview

Summary
Profitability is solid for a cyclical steel producer (mid-single-digit net margin; low-to-mid teens EBITDA margin) and leverage has improved meaningfully (debt-to-equity down to ~0.38 in 2026). The main drag is unreliable cash generation, with volatile operating/free cash flow and weak cash conversion versus earnings.
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue599.31B578.13B574.95B578.56B578.56B529.67B
Gross Profit105.82B101.30B104.19B97.95B102.34B92.11B
EBITDA92.90B90.56B74.00B75.96B76.41B68.36B
Net Income35.25B32.61B28.31B30.55B36.44B26.89B
Balance Sheet
Total Assets905.88B856.38B782.97B788.73B772.36B728.19B
Cash, Cash Equivalents and Short-Term Investments66.47B63.07B61.22B46.01B58.22B58.14B
Total Debt207.64B181.76B176.85B176.23B239.65B229.09B
Total Liabilities380.56B342.92B313.83B331.42B377.59B363.18B
Stockholders Equity484.16B472.56B429.28B418.56B358.12B329.71B
Cash Flow
Free Cash Flow0.0013.54B11.87B17.88B877.00M-35.75B
Operating Cash Flow0.0066.10B53.52B50.24B27.91B-16.68B
Investing Cash Flow0.00-48.25B-15.59B13.62B-23.90B-14.57B
Financing Cash Flow0.00-18.46B-22.71B-76.48B-4.11B19.40B

Daido Steel Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1614.50
Price Trends
50DMA
2442.84
Negative
100DMA
2168.64
Positive
200DMA
1950.92
Positive
Market Momentum
MACD
-52.39
Negative
RSI
46.85
Neutral
STOCH
69.13
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 2336.30, below the 50-day MA of 2442.84, and below the 200-day MA of 1950.92, indicating a neutral trend. The MACD of -52.39 indicates Negative momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥224.17B11.668.84%6.54%-6.96%30.12%
69
Neutral
¥789.76B11.697.80%4.03%-3.45%-50.06%
63
Neutral
¥204.55B18.585.08%1.80%2.78%24.29%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
¥477.21B13.557.28%2.99%4.19%31.79%
60
Neutral
¥1.11T12.252.76%4.46%-3.75%31.87%
50
Neutral
¥3.68T12.470.33%11.30%27.76%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5471
Daido Steel Co
2,331.50
1,135.81
94.99%
JP:5411
JFE Holdings
1,822.50
110.83
6.47%
JP:5406
Kobe Steel
2,001.00
309.00
18.26%
JP:5401
NIPPON STEEL
690.90
113.94
19.75%
JP:5451
Yodogawa Steel Works
1,439.00
188.83
15.10%
JP:5482
Aichi Steel Corporation
3,170.00
778.91
32.58%

Daido Steel Co Corporate Events

Daido Steel Posts Strong Q1 on Specialty Steel and Semiconductor Demand
Jul 28, 2026
Daido Steel reported higher revenue and profit in the first quarter of fiscal 2026, with adjusted operating profit rising on the back of recovering orders for industrial equipment and stronger demand for semiconductor-related products. Earnings al...
Daido Steel Delivers Strong Q1 but Keeps Cautious Outlook for Full Year
Jul 28, 2026
Daido Steel reported a strong first quarter for the fiscal year ending March 2027, with revenue rising 14.9% year-on-year to ¥163.5 billion and operating profit jumping 51.4% to ¥13.1 billion. Profit attributable to owners of the parent ...
Daido Steel Makes Tohoku Steel a Consolidated Subsidiary After Tender Offer
Jun 30, 2026
Daido Steel has successfully completed a tender offer to acquire common shares of Tohoku Steel Co., Ltd., a Standard Market-listed steel producer on the Tokyo Stock Exchange. The offer, launched on May 18 and closed on June 29, 2026, was structure...
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...
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.Date of analysis: Jun 23, 2026