Aichi Steel Corporation (5482) AI Stock Analysis

• Market Cap: €175.80B
• Dividend Yield: 1.91%
• Average Volume (3M): 317.16K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.80
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,250.00 ▲(15.29% Upside)

Aichi Steel Corporation's stock score is driven by strong technical momentum and solid financial performance. The stock is trading above key moving averages, indicating bullish sentiment. Financially, the company shows stable growth and a strong balance sheet, though there is room for improvement in cash flow conversion. Valuation metrics suggest the stock is fairly valued.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Aichi Steel's products and reflects the company's ability to capture market opportunities.

Balance Sheet Health

A low debt-to-equity ratio enhances financial stability and reduces risk, providing the company with flexibility to invest in growth opportunities.

Cash Flow Improvement

Significant improvement in cash flow generation strengthens the company's ability to fund operations, pay down debt, and invest in future growth.

Negative Factors

Low Net Profit Margins

Low net profit margins may limit the company's ability to reinvest in the business and withstand economic downturns, impacting long-term competitiveness.

Cash Flow Conversion

Weak cash flow conversion can constrain liquidity, affecting the company's capacity to fund operations and invest in growth initiatives.

Moderate Return on Equity

A modest return on equity indicates that the company may not be fully optimizing its equity base to generate shareholder value, potentially affecting investor confidence.

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 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 strong revenue growth and a stable gross profit margin. The balance sheet shows a conservative leverage strategy and a robust equity position, enhancing financial stability. Cash flow performance has improved significantly, although there is room for better conversion of net income into cash flow.

Income Statement

Aichi Steel Corporation shows a solid revenue growth trajectory with a TTM revenue growth rate of 5.4%. The gross profit margin remains stable at around 13.3%, indicating consistent cost management. However, net profit margins are relatively low at 2.6%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting potential for enhanced profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.28 indicates a conservative leverage approach, which is favorable for financial stability. Return on equity is modest at 3.1%, suggesting moderate efficiency in generating returns from equity. The equity ratio stands at approximately 53%, reflecting a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Aichi Steel's free cash flow growth rate has surged by over 500% in the TTM, indicating significant improvement in cash generation. However, the operating cash flow to net income ratio of 0.36 suggests that cash flow generation relative to net income could be stronger. The free cash flow to net income ratio is 0.14, indicating that a portion of net income is effectively converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	302.44B	299.29B	296.52B	285.14B	260.12B	204.91B
Gross Profit	43.69B	39.94B	39.05B	29.07B	27.38B	26.76B
EBITDA	34.20B	31.96B	29.69B	22.25B	20.42B	22.75B
Net Income	10.27B	7.82B	6.59B	1.61B	1.09B	3.14B
Balance Sheet
Total Assets	392.31B	400.06B	443.11B	385.45B	364.40B	314.04B
Cash, Cash Equivalents and Short-Term Investments	37.18B	36.27B	46.55B	48.32B	33.58B	55.26B
Total Debt	84.31B	64.57B	73.38B	86.39B	66.67B	75.88B
Total Liabilities	173.32B	156.66B	181.10B	171.13B	151.93B	134.33B
Stockholders Equity	208.08B	231.94B	250.97B	203.76B	201.55B	192.95B
Cash Flow
Free Cash Flow	22.32B	3.68B	14.51B	-2.95B	-10.81B	2.11B
Operating Cash Flow	43.21B	25.35B	33.82B	13.03B	5.21B	15.90B
Investing Cash Flow	-19.84B	-17.92B	-18.89B	-15.96B	-15.54B	-14.25B
Financing Cash Flow	-24.66B	-17.67B	-16.28B	17.00B	-11.99B	13.48B

Aichi Steel Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2819.00
• 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 2819 is below the 20-day moving average (MA) of 2823.35, above the 50-day MA of 2729.90, and above the 200-day MA of 2261.28, indicating a neutral trend. The MACD of 21.07 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 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
5471	82 Outperform	€296.91B	10.23	6.84%	3.03%	-0.02%	-40.45%
5451	74 Outperform	¥201.87B	13.59	6.87%	5.43%	-1.43%	171.44%
5423	73 Outperform	$147.86B	8.92	7.36%	3.51%	-18.72%	-25.26%
5482	72 Outperform	€175.80B	17.04	5.06%	1.91%	4.10%	152.90%
5440	70 Outperform	¥101.69B	9.11	―	3.80%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	61 Neutral	¥76.74B	1,893.27	―	1.24%	-12.05%	-97.36%

Aichi Steel Corporation Corporate Events

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.

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.

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.