Nippon Koshuha Steel Co., Ltd. (5476) AI Stock Analysis

• Market Cap: ¥7.39B
• Dividend Yield: N/A
• Average Volume (3M): 8.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 3.22%
• EPS Growth: -451.22%
• Country: JP
• Employees: 1,090
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 2.81
• Shares Outstanding: 14,687,617
• 10 Day Avg. Volume: 6,340
• 30 Day Avg. Volume: 8,923
• PEG Ratio: <0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -1.06
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥510.00 ▲(1.19% Upside)

The overall stock score of 56 reflects significant financial challenges faced by Nippon Koshuha Steel, with negative profitability and cash flow issues being the most impactful factors. Despite strong technical indicators suggesting bullish momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The absence of notable earnings call insights or corporate events leaves the financial performance and technical analysis as the primary drivers of the score.

Positive Factors

Diverse Customer Base

A diverse customer base across sectors like automotive and construction mitigates risks from market fluctuations, supporting revenue stability.

Strategic Partnerships

Partnerships and joint ventures can bolster market position and financial performance, providing growth opportunities and competitive advantages.

Equity Strength

Maintaining positive stockholders' equity indicates financial stability, which is crucial for long-term sustainability and investment capacity.

Negative Factors

Negative Profitability

Negative profitability and declining earnings metrics highlight operational inefficiencies, posing risks to long-term growth and financial health.

Rising Leverage

Increased leverage can strain financial resources, limiting flexibility and increasing risk, especially if profitability issues persist.

Poor Cash Flow

Negative cash flow from operations affects the ability to fund growth and operations internally, increasing reliance on external financing.

Nippon Koshuha Steel Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Koshuha Steel Co.,Ltd. manufactures and sells special steels and super alloys in Japan. The company offers tool steel products, such as cold and hot work, high speed, and plastic mold steel products; and super alloy steel for various general applications, including heat resistant, corrosion resisting, electric heating, low thermal expansion, sealing, high tension, constant elasticity, welding, and electromagnetic materials. It also provides stainless steel comprising martensitic, ferritic, austenitic, two phase, and precipitation hardening products; and precise cold forging steel products; and information processing and communication systems, as well as develops, sells, and leases related software products. In addition, Nippon Koshuha Steel Co.,Ltd. is involved in the sale, leasing, and brokerage of real estate. The company was founded in 1936 and is headquartered in Tokyo, Japan. Nippon Koshuha Steel Co.,Ltd. is a subsidiary of Kobe Steel, Ltd.

How the Company Makes Money

Nippon Koshuha Steel generates revenue primarily through the sale of its steel products, including specialty steels and other steel materials. The company benefits from a diverse customer base, spanning multiple sectors, which helps mitigate risks associated with market fluctuations. Key revenue streams include direct sales to manufacturers in industries like automotive and construction, as well as long-term contracts with large industrial clients. Additionally, Nippon Koshuha Steel may gain revenue from value-added services such as processing and customization of steel products. Strategic partnerships with other industry players and participation in joint ventures can also enhance its market position and financial performance, contributing significantly to overall earnings.

Nippon Koshuha Steel Co., Ltd. Financial Statement Overview

Summary

Nippon Koshuha Steel is facing significant financial challenges, with negative profitability and cash flow issues. The balance sheet, while showing some equity strength, is increasingly leveraged, raising concerns about financial sustainability. The company must improve operational efficiency and manage debt levels to enhance financial health and future growth prospects.

Income Statement

Nippon Koshuha Steel's income statement reveals significant challenges, with a negative net income and declining EBIT and EBITDA, indicating profitability issues. The gross profit margin is low, suggesting high production costs relative to revenue. Revenue growth is stagnant, with only a slight increase from the previous year, which is concerning for future prospects.

Balance Sheet

The balance sheet shows a reasonable level of equity relative to its total assets, but the debt-to-equity ratio has increased, indicating rising leverage and potential financial risk. Despite this, the company maintains a positive stockholders' equity position, which is a positive sign of financial stability.

Cash Flow

The cash flow statement indicates a negative free cash flow and operating cash flow, reflecting poor cash generation from operations. This trend is troubling as it affects the company's ability to fund operations and invest in growth without relying heavily on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.30B	36.77B	36.61B	44.55B	41.71B	31.52B
Gross Profit	3.05B	2.57B	1.92B	4.45B	4.15B	1.56B
EBITDA	-6.76B	-7.05B	9.29B	1.24B	1.90B	-4.45B
Net Income	-7.38B	-7.74B	6.61B	-150.00M	417.00M	-6.45B
Balance Sheet
Total Assets	32.79B	32.12B	38.96B	42.00B	39.34B	37.34B
Cash, Cash Equivalents and Short-Term Investments	297.00M	204.00M	829.00M	727.00M	169.00M	931.00M
Total Debt	7.70B	7.24B	2.33B	10.24B	8.13B	8.76B
Total Liabilities	19.09B	18.46B	17.19B	26.86B	24.08B	22.50B
Stockholders Equity	13.71B	13.66B	21.77B	15.13B	15.26B	14.84B
Cash Flow
Free Cash Flow	0.00	-5.02B	-3.05B	-1.47B	-161.00M	-222.00M
Operating Cash Flow	0.00	-4.11B	-2.33B	-985.00M	481.00M	1.01B
Investing Cash Flow	0.00	-846.00M	10.58B	-354.00M	-567.00M	2.41B
Financing Cash Flow	0.00	4.33B	-8.15B	1.90B	-676.00M	-2.76B

Nippon Koshuha Steel Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 504.00
• 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:5476, the sentiment is Positive. The current price of 504 is above the 20-day moving average (MA) of 496.45, above the 50-day MA of 470.48, and above the 200-day MA of 415.67, indicating a bullish trend. The MACD of 11.49 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5476.

Nippon Koshuha Steel Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5491	70 Outperform	¥5.44B	4.35	―	―	-5.93%	-36.01%
5542	69 Neutral	¥4.96B	7.99	―	2.76%	-3.45%	34.97%
5446	64 Neutral	¥4.78B	12.41	―	3.13%	-20.10%	-14.13%
5609	63 Neutral	¥4.01B	7.81	―	3.61%	-4.20%	-11.70%
5986	63 Neutral	¥4.30B	11.87	―	2.12%	-1.86%	7.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5476	56 Neutral	¥7.39B	-1.04	―	―	3.22%	-451.22%