Aichi Steel Corporation (5482) AI Stock Analysis

• Market Cap: ¥197.18B
• Dividend Yield: 1.8%
• Average Volume (3M): 317.16K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.87
• Revenue Growth: 4.10%
• EPS Growth: 152.90%
• Country: JP
• Employees: 4,572
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 32.15
• Shares Outstanding: 64,520,820
• 10 Day Avg. Volume: 254,250
• 30 Day Avg. Volume: 317,160
• PEG Ratio: 0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 9.35
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,645.00 ▲(25.91% Upside)

Aichi Steel Corporation's stock score is primarily driven by its strong financial performance and positive technical indicators. The company shows solid revenue growth and improving profitability, supported by a stable balance sheet. Technical analysis indicates a bullish trend, enhancing the stock's attractiveness. However, the valuation is moderate, suggesting the stock is fairly priced relative to its earnings and dividend yield.

Positive Factors

Strong recent revenue growth

A sustained 55.9% TTM revenue increase indicates expanding end-market demand and successful product or mix shifts. Durable top-line growth supports scale economics, strengthens customer relationships in automotive supply chains, and provides a basis for longer-term margin improvement.

Improving cash generation

20.12% growth in free cash flow demonstrates improving ability to convert operations into discretionary cash. That durable improvement supports capex funding, debt servicing and shareholder returns, and reduces reliance on external financing during industry cycles.

Manageable leverage and stable balance sheet

A 0.40 debt-to-equity and >50% equity ratio signal conservative leverage and financial resilience. This structural strength lowers refinancing risk through downturns, preserves strategic optionality for capex or M&A, and supports long-term operations in a cyclical steel industry.

Negative Factors

Low net profit margin

A 3.86% net margin, while improved, remains low for durable profitability. Structural margin compression limits retained earnings, reduces capacity to fund growth internally, and leaves less buffer against raw material or energy cost inflation in the capital-intensive steel sector.

Sub‑optimal cash conversion

Operating cash flow at 46% of net income and FCF at 60% indicate not all accounting profits convert to cash. Persistently weak conversion constrains reinvestment, slows deleveraging, and raises exposure to working capital swings in cyclical demand environments.

Modest return on equity

A 5.14% ROE reflects modest capital efficiency for a manufacturing company. Over time this can limit shareholder returns and signal that additional operational improvements or higher-margin product mix are required to translate revenue gains into meaningful equity value creation.

Aichi Steel Corporation Business Overview & Revenue Model

Company Description

Aichi Steel Corporation (5482) is a leading manufacturer in the steel and alloy industry, primarily based in Japan. The company specializes in producing high-quality steel products, including stainless steel, electrical steel sheets, and special alloys, catering to various sectors such as automotive, construction, and machinery. With a strong focus on innovation and technology, Aichi Steel aims to enhance the performance and sustainability of its products to meet the demands of its global clientele.

How the Company Makes Money

Aichi Steel Corporation generates revenue primarily through the sale of its steel products, which are essential components in various industries, including automotive, electronics, and construction. The company operates on a B2B model, supplying its products to manufacturers and other industrial clients. Key revenue streams include the sales of stainless steel, electrical steel sheets, and specialty alloys. Additionally, Aichi Steel benefits from long-term contracts with major automotive manufacturers and other industrial partners, which provide a stable revenue base. The company also invests in research and development to innovate and create advanced materials, which can open new markets and enhance profitability. Economic factors such as global steel demand, pricing fluctuations, and raw material costs significantly influence its financial performance.

Aichi Steel Corporation Financial Statement Overview

Summary

Aichi Steel Corporation demonstrates solid growth and improving profitability, with significant revenue and profit margin improvements in the TTM period. The balance sheet reflects a stable financial position with manageable debt levels. Cash flow generation is strong, though there is room for enhancing free cash flow conversion. Overall, the company is on a positive trajectory but should focus on further enhancing profitability and cash flow efficiency.

Income Statement

Aichi Steel Corporation shows a strong revenue growth trajectory, particularly in the TTM period with a 55.9% increase. Gross profit margins have improved over time, reaching 15.32% in TTM. Net profit margins have also increased to 3.86% in TTM, indicating better profitability. However, the margins are still relatively low compared to industry leaders, suggesting room for improvement in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40 in TTM, reflecting a stable leverage position. Return on equity has increased to 5.14%, indicating better utilization of equity to generate profits. However, the equity ratio stands at 53.53%, suggesting a moderate reliance on debt financing. Overall, the balance sheet shows stability but highlights the need for further strengthening of equity.

Cash Flow

Aichi Steel's free cash flow has grown by 20.12% in TTM, showing improved cash generation capabilities. The operating cash flow to net income ratio is 0.46, indicating a healthy conversion of income to cash. However, the free cash flow to net income ratio of 0.60 suggests that not all profits are translating into free cash flow, pointing to potential areas for cash flow optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	304.13B	299.29B	296.52B	285.14B	260.12B	204.91B
Gross Profit	46.61B	39.94B	39.05B	29.07B	27.38B	26.76B
EBITDA	36.96B	31.96B	29.69B	22.25B	20.42B	22.75B
Net Income	11.74B	7.82B	6.59B	1.61B	1.09B	3.14B
Balance Sheet
Total Assets	401.73B	400.06B	443.11B	385.45B	364.40B	314.04B
Cash, Cash Equivalents and Short-Term Investments	42.66B	36.27B	46.55B	48.32B	33.58B	55.26B
Total Debt	85.10B	64.57B	73.38B	86.39B	66.67B	75.88B
Total Liabilities	175.25B	156.66B	181.10B	171.13B	151.93B	134.33B
Stockholders Equity	215.04B	231.94B	250.97B	203.76B	201.55B	192.95B
Cash Flow
Free Cash Flow	26.80B	3.68B	14.51B	-2.95B	-10.81B	2.11B
Operating Cash Flow	44.66B	25.35B	33.82B	13.03B	5.21B	15.90B
Investing Cash Flow	-23.29B	-17.92B	-18.89B	-15.96B	-15.54B	-14.25B
Financing Cash Flow	-20.50B	-17.67B	-16.28B	17.00B	-11.99B	13.48B

Aichi Steel Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2895.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5482, the sentiment is Neutral. The current price of 2895 is below the 20-day moving average (MA) of 3206.15, below the 50-day MA of 3005.44, and above the 200-day MA of 2489.90, indicating a neutral trend. The MACD of 57.52 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 9.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5482.

Aichi Steel Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	74 Outperform	¥408.57B	14.95	6.84%	2.99%	-0.02%	-40.45%
5451	74 Outperform	¥218.90B	14.73	6.87%	5.25%	-1.43%	171.44%
5423	73 Outperform	¥164.90B	11.35	7.36%	3.42%	-18.72%	-25.26%
5482	72 Outperform	¥197.18B	19.15	5.06%	1.80%	4.10%	152.90%
5440	70 Outperform	¥108.17B	11.27	―	3.70%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	61 Neutral	¥94.39B	2,328.76	―	1.24%	-12.05%	-97.36%

Aichi Steel Corporation Corporate Events

Aichi Steel Books Extraordinary Income From Retirement Benefit Trust Asset Return

Aichi Steel Corporation announced that it has received a partial return of 22.3 billion yen from its retirement benefit trust after determining that plan assets, including the trust, exceeded its defined benefit obligations and are expected to remain sufficient in future. The company will recognize 10.959 billion yen from this return as extraordinary income in its non-consolidated financial statements for the fiscal year ending March 31, 2026, while noting that there will be no impact on profit in its consolidated results prepared under IFRS, limiting the effect primarily to parent-level earnings and balance sheet structure rather than group-wide performance.

The most recent analyst rating on (JP:5482) stock is a Buy with a Yen3212.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.

Aichi Steel Completes Treasury Share Disposal for Employee Incentive Plan

Aichi Steel Corporation has completed the payment procedures for the disposal of treasury shares under its Restricted Stock Incentive Plan for the Employee Shareholding Association. The number of shares and total disposal amount were adjusted due to partial forfeiture of rights, reflecting the finalized number of participating members.

The most recent analyst rating on (JP:5482) stock is a Hold with a Yen2867.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.

Aichi Steel Corporation Reports Strong Financial Performance and Revises Forecasts

Aichi Steel Corporation announced significant differences between its forecasted and actual financial results for the first half of the fiscal year ending September 30, 2025. The company reported higher than expected revenue and profits, leading to a revision of its full-year financial forecasts and dividend payouts. This positive financial performance reflects the company’s strong operational capabilities and market positioning, which could have favorable implications for stakeholders.

The most recent analyst rating on (JP:5482) stock is a Hold with a Yen2867.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.

Aichi Steel Reports Strong Financial Growth and Strategic Dividend Revision

Aichi Steel Corporation reported a significant improvement in its financial performance for the six months ended September 30, 2025, with a notable increase in revenue and profits compared to the previous year. The company also announced a revision in its dividend forecast and conducted a 4-for-1 stock split, indicating a strategic move to enhance shareholder value and market competitiveness.

The most recent analyst rating on (JP:5482) stock is a Hold with a Yen2867.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.