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

• Market Cap: ¥6.84B
• Dividend Yield: 12.44%
• Average Volume (3M): 34.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 4.33%
• EPS Growth: -234.35%
• Country: JP
• Employees: 1,090
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 1.72
• Shares Outstanding: 14,687,617
• 10 Day Avg. Volume: 21,030
• 30 Day Avg. Volume: 34,453
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥382.00
• Price Target Upside: -18.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥382.00 ▼(-18.20% Downside)

Nippon Koshuha Steel's financial performance is the primary concern, with negative profitability and cash flow issues. Technical indicators suggest a mixed outlook, lacking definitive trends. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, further highlighting the company's challenges. These factors collectively result in a below-average stock score, emphasizing the need for improved financial performance and strategic adjustments.

Positive Factors

Product Quality and Innovation

Nippon Koshuha Steel's focus on high-quality specialty steel products and innovation helps maintain a competitive edge in niche markets, supporting long-term demand and customer loyalty.

Market Reach

The company's ability to serve both domestic and international markets enhances its revenue potential and reduces dependency on any single market, contributing to business resilience.

Strategic Partnerships

Strategic partnerships can drive innovation and expand market reach, providing opportunities for growth and strengthening the company's competitive position over time.

Negative Factors

Negative Profitability

Persistent profitability issues, as indicated by negative net income and declining EBIT and EBITDA, pose a risk to long-term financial health and ability to invest in growth.

Rising Leverage

Increased leverage can strain financial flexibility and heighten risk, potentially impacting the company's ability to navigate economic downturns or invest in strategic initiatives.

Cash Flow Issues

Negative cash flow from operations limits the company's ability to fund its activities internally, increasing reliance on external financing and potentially hindering growth opportunities.

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

Company Description

Nippon Koshuha Steel Co., Ltd. is a Japanese company specializing in the production and distribution of specialty steel products. The company operates primarily in the manufacturing sector, focusing on high-quality steel products used in various industrial applications. Its core offerings include tool steels, alloy steels, and stainless steels, which are essential components in industries such as automotive, construction, machinery, and electronics. With a commitment to innovation and quality, Nippon Koshuha Steel Co., Ltd. serves both domestic and international markets, contributing to advancements in manufacturing and engineering sectors.

How the Company Makes Money

Nippon Koshuha Steel Co., Ltd. generates revenue primarily through the sale of its specialty steel products. The company's key revenue streams include the production and distribution of tool steels, alloy steels, and stainless steels, which are sold to a wide range of industries including automotive, construction, and electronics. The company leverages its advanced manufacturing capabilities and a reputation for high-quality products to maintain strong relationships with industrial clients. Additionally, Nippon Koshuha Steel Co., Ltd. may engage in strategic partnerships and collaborations to enhance its market reach and innovate its product offerings, which can also contribute to its revenue. By focusing on niche markets and maintaining a strong emphasis on research and development, the company sustains its competitive advantage and profitability.

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	36.77B	36.77B	36.61B	44.55B	41.71B	31.52B
Gross Profit	2.57B	2.57B	1.92B	4.45B	4.15B	1.56B
EBITDA	-7.05B	-7.05B	9.29B	1.24B	1.90B	-4.45B
Net Income	-7.74B	-7.74B	6.61B	-150.00M	417.00M	-6.45B
Balance Sheet
Total Assets	32.12B	32.12B	38.96B	42.00B	39.34B	37.34B
Cash, Cash Equivalents and Short-Term Investments	204.00M	204.00M	829.00M	727.00M	169.00M	931.00M
Total Debt	7.24B	7.24B	2.33B	10.24B	8.13B	8.76B
Total Liabilities	18.46B	18.46B	17.19B	26.86B	24.08B	22.50B
Stockholders Equity	13.66B	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	-4.08B	-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: 467.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 467 is above the 20-day moving average (MA) of 451.55, above the 50-day MA of 425.40, and above the 200-day MA of 383.95, indicating a bullish trend. The MACD of 12.14 indicates Negative momentum. The RSI at 70.11 is Negative, neither overbought nor oversold. The STOCH value of 75.65 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
5542	77 Outperform	¥5.41B	9.08		2.49%	-6.55%	6.55%
5491	72 Outperform	¥5.27B	6.23		―	-2.76%	-44.71%
5446	70 Neutral	¥4.89B	9.67		3.57%	-15.00%	9.27%
5609	69 Neutral	¥4.25B	16.29		3.40%	-8.45%	-42.89%
5986	65 Neutral	¥4.68B	14.46		1.94%	-0.82%	-9.80%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5476	45 Neutral	¥6.84B	―		12.44%	4.33%	-234.35%