Aichi Steel Corporation (5482) AI Stock Analysis

• Market Cap: €171.06B
• Dividend Yield: 7.22%
• Average Volume (3M): 437.66K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.89
• Revenue Growth: 0.93%
• EPS Growth: 19.15%
• Country: JP
• Employees: 4,572
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 27.86
• Shares Outstanding: 76,436,745
• 10 Day Avg. Volume: 294,670
• 30 Day Avg. Volume: 437,656
• PEG Ratio: 0.19
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.10
• 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

• Rating: 75 Outperform
• Price Target: ¥2,404.00 ▲(7.18%Upside)

The overall stock score of 75 is driven primarily by strong technical indicators and solid financial performance. While the company shows robust revenue growth and operational efficiency, the free cash flow volatility and moderate valuation highlight areas for improvement. The lack of data on earnings call and corporate events did not influence this score.

Aichi Steel Corporation Business Overview & Revenue Model

Company Description

Aichi Steel Corporation manufactures and sells steel, forged products, and electro-magnetic products in Japan. The company offers specialty steel, including carbon, alloy, H-shaped, micro alloyed, boron, spring, and high carbon chrome bearing steel, as well as alloy steel bolting materials; and stainless steel products, such as angle and unequal angle bars, channel bars, compression bars, round bars, flat and square bars, H-beams and T-bars, and custom welded shaped steel products, as well as stainless steel products for high-pressure hydrogen, blades, building structures, and water sluices. It also provides titanium round, angle, and flat bars; engine components, steering/chassis components, transmission components, drive components, hot extruded products, and hot/cold composite forgings; cold and hot work tool steel products; electromagnetic components comprising MI sensors, Nd-Fe-B resin bonded magnets, dental magnetic attachments, and electronic materials and components; amorphous wire; and TetsuRiki agri/aqua, which are iron ions used for plants. In addition, the company is involved in the production and sale of flame retardant materials; design and installation of industrial furnaces; mining, processing, and sale of limestone and other minerals; cargo transportation, handling, and storage activities; development of software; and sale and maintenance of computers and accessories devices. Further, it engages in the sale of daily commodities, as well as provision of restaurant services, lunch catering services, travel agency services, gardening services, etc.; design, development, manufacture, and sales of forging dies; and manufacture and sales of crude specialty steel. Aichi Steel Corporation was founded in 1934 and is headquartered in Tokai, Japan.

How the Company Makes Money

Aichi Steel Corporation generates revenue primarily through the manufacturing and sale of its diverse range of steel products. The company's key revenue streams include sales of specialty steel, which is widely used in automotive parts and industrial machinery, and forged products, which are essential for heavy machinery and construction. Aichi Steel's strategic partnerships with major automotive manufacturers, such as Toyota, play a significant role in driving its earnings. Additionally, the company invests in research and development to innovate and improve its product offerings, thereby enhancing its competitive edge and market share. The global demand for high-performance steel in automotive and industrial applications serves as a crucial factor in the company’s revenue generation.

Aichi Steel Corporation Financial Statement Overview

Summary

Aichi Steel Corporation demonstrates strong revenue growth with stable profit margins, reflecting solid operational efficiency. The balance sheet shows moderate leverage but declining equity ratios, suggesting potential risk. Cash flow is stable overall, though free cash flow volatility is a concern for future investments.

Income Statement

Aichi Steel Corporation's revenue has shown consistent growth over the years, with a notable increase from 2024 to 2025. The gross profit margin and EBIT margin have remained stable, indicating strong operational efficiency. However, net profit margin improvements have been modest, suggesting room for better cost management. The EBITDA margin is healthy, reflecting strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet indicates a moderate debt-to-equity ratio, which implies a balanced approach to leveraging for growth. The return on equity is satisfactory, indicating effective use of shareholder funds to generate profit. However, the equity ratio has shown slight decline, highlighting a potential risk if liabilities continue to increase.

Cash Flow

Aichi Steel's cash flow analysis reveals fluctuating free cash flow growth, with a significant drop in 2025. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests challenges in sustaining free cash flow growth, potentially impacting future investments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	299.29B	296.52B	285.14B	260.12B	204.91B
Gross Profit	39.94B	39.05B	29.07B	27.38B	26.76B
EBITDA	31.96B	29.69B	21.86B	20.42B	22.75B
Net Income	7.82B	6.59B	1.61B	1.09B	3.14B
Balance Sheet
Total Assets	400.06B	443.11B	385.45B	364.40B	314.04B
Cash, Cash Equivalents and Short-Term Investments	36.27B	46.55B	48.32B	33.58B	55.26B
Total Debt	64.57B	73.38B	86.39B	66.67B	75.88B
Total Liabilities	156.66B	181.10B	171.13B	151.93B	134.33B
Stockholders Equity	231.94B	250.97B	203.76B	201.55B	169.81B
Cash Flow
Free Cash Flow	3.68B	14.51B	-2.95B	-10.81B	67.00M
Operating Cash Flow	25.35B	33.82B	13.03B	5.21B	14.79B
Investing Cash Flow	-17.92B	-18.89B	-15.96B	-15.54B	-13.83B
Financing Cash Flow	-17.67B	-16.28B	17.00B	-11.99B	14.17B

Aichi Steel Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2243.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5482, the sentiment is Positive. The current price of 2243 is above the 20-day moving average (MA) of 2080.15, above the 50-day MA of 2023.46, and above the 200-day MA of 1596.23, indicating a bullish trend. The MACD of 21.13 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 41.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5482.

Aichi Steel Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5482	75 Outperform	€171.06B	21.95	3.23%	7.22%	0.93%	19.15%
Sector *	44 Neutral	C$980.54M	-6.83	-13.68%	1.75%	17.37%	-32.98%
DDL	―	€1.33B	7.24	6.56%	4.77%	―	―
TOKSF	―	$1.16B	8.62	8.92%	2.92%	―	―
YDWAF	―	$1.25B	12.91	6.92%	10.36%	―	―
5440	71 Outperform	¥98.39B	9.11		3.98%	0.58%	-21.95%
5449	68 Neutral	¥114.82B	35.25		1.15%	-0.60%	3.40%

Aichi Steel Corporation Corporate Events

Aichi Steel Completes Treasury Share Disposal for Stock Remuneration

Aichi Steel Corporation has completed the payment process for the disposal of 16,604 treasury shares as restricted stock remuneration, a decision made by the Board of Directors on June 18, 2025. This move involves a total disposal value of 34,171,032 yen and is aimed at remunerating certain directors and executive officers, potentially impacting the company’s financial structure and stakeholder interests.

Aichi Steel Announces Disposal of Treasury Shares for Executive Incentives

Aichi Steel Corporation has announced a decision to dispose of 16,604 treasury shares as part of a restricted stock remuneration plan for its directors and executive officers. This move aims to align the interests of the company’s leadership with those of its shareholders by providing long-term incentives, thereby enhancing corporate value and promoting shared value.

Aichi Steel’s Strategic Position within Toyota Group

Aichi Steel Corporation’s recent disclosure highlights its operational dynamics within the Toyota Group, emphasizing the company’s independence despite its reliance on Toyota for sales. The company’s business results are influenced by Toyota’s vehicle sales trends, but Aichi Steel maintains autonomy in its negotiations and business activities.

Aichi Steel Completes Treasury Share Acquisition to Boost Shareholder Returns

Aichi Steel Corporation has completed the acquisition of 3,100,000 treasury shares through the Tokyo Stock Exchange’s off-auction trading system, at a cost of ¥26,257,000,000. This move is part of the company’s medium-term management plan aimed at enhancing shareholder returns and improving capital efficiency.

Aichi Steel to Enhance Shareholder Value with Treasury Share Acquisition

Aichi Steel Corporation announced its decision to acquire up to 3.1 million of its own shares, representing 16.2% of its issued shares, as part of its medium-term management plan to improve shareholder returns and capital efficiency. The acquisition will be conducted through the Tokyo Stock Exchange’s off-auction trading system, with the transaction results to be announced on May 16, 2025.

Aichi Steel Announces Share Split and Dividend Forecast Revisions

Aichi Steel Corporation has announced a share split, effective July 1, 2025, to make investing more accessible and expand its investor base. The share split will increase the total number of issued shares from 19,109,187 to 76,436,748, with no change in share capital. Additionally, the company will amend its Articles of Incorporation to reflect the new total number of authorized shares. The dividend forecasts for the fiscal year ending March 31, 2026, have been revised in accordance with the share split, although there is no substantial change to the annual dividends per share.

Aichi Steel Increases Year-End Dividend to 90 Yen Per Share

Aichi Steel Corporation has announced an increase in its year-end dividend to 90 yen per share, up from the previously forecasted 70 yen, reflecting its commitment to shareholder interests and corporate value enhancement. This decision aligns with the company’s medium-term management plan, aiming for a consolidated dividend payout ratio of 40% or more, and indicates a positive financial performance and strategic focus on rewarding shareholders.

Aichi Steel Reports Modest Revenue Growth and Increased Profits for FY2025

Aichi Steel Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a modest revenue increase of 0.9% to 299,287 million yen. Despite a slight revenue gain, the company achieved significant growth in operating profit and profit attributable to owners, with increases of 15.9% and 18.6% respectively. The company also announced a substantial rise in annual dividends per share, reflecting a strong commitment to returning value to shareholders.