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Aichi Steel Corporation (JP:5482)
:5482
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Aichi Steel Corporation (5482) AI Stock Analysis

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JP:5482

Aichi Steel Corporation

(Frankfurt:5482)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥3,270.00
▲(15.26% Upside)
Aichi Steel Corporation's stock score is driven by strong technical momentum and solid financial performance. The stock is currently experiencing bullish momentum, but caution is advised due to overbought technical indicators. Financially, the company shows stability and growth potential, though valuation metrics suggest the stock may be overvalued.

Aichi Steel Corporation (5482) vs. iShares MSCI Japan ETF (EWJ)

Aichi Steel Corporation Business Overview & Revenue Model

Company DescriptionAichi Steel Corporation, listed under the ticker 5482, is a prominent Japanese manufacturer specializing in the production of high-quality steel products. The company operates across several sectors, including automotive, industrial machinery, and construction materials. Its core products comprise specialty steel, forged products, and precision castings, which are critical components for various industries, particularly the automotive sector.
How the Company Makes MoneyAichi 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 and a stable gross profit margin. The balance sheet shows conservative leverage 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue302.44B299.29B296.52B285.14B260.12B204.91B
Gross Profit43.69B39.94B39.05B29.07B27.38B26.76B
EBITDA34.20B31.96B29.69B22.25B20.42B22.75B
Net Income10.27B7.82B6.59B1.61B1.09B3.14B
Balance Sheet
Total Assets392.31B400.06B443.11B385.45B364.40B314.04B
Cash, Cash Equivalents and Short-Term Investments37.18B36.27B46.55B48.32B33.58B55.26B
Total Debt84.31B64.57B73.38B86.39B66.67B75.88B
Total Liabilities173.32B156.66B181.10B171.13B151.93B134.33B
Stockholders Equity208.08B231.94B250.97B203.76B201.55B192.95B
Cash Flow
Free Cash Flow22.32B3.68B14.51B-2.95B-10.81B67.00M
Operating Cash Flow43.21B25.35B33.82B13.03B5.21B14.79B
Investing Cash Flow-19.84B-17.92B-18.89B-15.96B-15.54B-13.83B
Financing Cash Flow-24.66B-17.67B-16.28B17.00B-11.99B13.48B

Aichi Steel Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2837.00
Price Trends
50DMA
2525.76
Positive
100DMA
2271.30
Positive
200DMA
1913.75
Positive
Market Momentum
MACD
86.39
Positive
RSI
60.02
Neutral
STOCH
19.67
Positive
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 2837 is below the 20-day moving average (MA) of 2844.95, above the 50-day MA of 2525.76, and above the 200-day MA of 1913.75, indicating a neutral trend. The MACD of 86.39 indicates Positive momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.67 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
210.77B14.276.93%5.20%1.53%142.11%
75
Outperform
267.37B9.826.60%3.62%-1.07%-43.26%
73
Outperform
167.52B8.940.00%3.26%-14.44%-25.56%
72
Outperform
€179.39B20.584.65%1.42%2.65%97.66%
71
Outperform
100.09B9.225.32%3.91%-1.22%-13.03%
60
Neutral
83.92B-106.852.07%1.21%-6.19%-129.84%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5482
Aichi Steel Corporation
2,815.00
1,925.01
216.29%
DE:DDL
Daido Steel Co
7.40
-1.00
-11.90%
TOKSF
Tokyo Steel Manufacturing Co
9.98
-3.49
-25.91%
YDWAF
Yodogawa Steel Works
9.11
1.82
24.97%
JP:5440
Kyoei Steel Ltd.
2,303.00
648.56
39.20%
JP:5449
OSAKA STEEL CO., LTD.
2,889.00
-544.38
-15.86%

Aichi Steel Corporation Corporate Events

Aichi Steel Announces Treasury Share Disposal for Employee Incentive
Jul 31, 2025

Aichi Steel Corporation announced the disposal of treasury shares as a restricted stock incentive for its Employee Shareholding Association, commemorating its 85th anniversary. This initiative aims to enhance employee welfare by allowing them to acquire company shares, thereby fostering a sense of unity and motivation to achieve the company’s growth strategy. The plan involves issuing or disposing of up to 264,864 common shares, with a total value of approximately 597 million yen, to eligible employees who agree to the plan, promoting shared value between employees and shareholders.

Aichi Steel Corporation Revises Financial and Dividend Forecasts Upward
Jul 31, 2025

Aichi Steel Corporation has revised its financial results forecasts for the first half of the fiscal year ending September 30, 2025, with increased revenue and profit expectations due to higher sales volume and lower purchase prices. The company also announced an increase in its dividend forecasts, including a special dividend, aiming to meet shareholder expectations while maintaining a strong financial position.

Aichi Steel Reports Strong Q2 Growth and Dividend Strategy Shift
Jul 31, 2025

Aichi Steel Corporation reported a significant increase in its financial performance for the three months ended June 30, 2025, with revenue rising by 4.4% and operating profit surging by 204.8% compared to the previous year. The company also announced a revision in its dividend forecast, reflecting a strategic adjustment following a 4-for-1 stock split, which aims to enhance shareholder value.

Aichi Steel Completes Treasury Share Disposal for Stock Remuneration
Jul 17, 2025

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
Jun 18, 2025

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
Jun 9, 2025

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
May 16, 2025

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
May 15, 2025

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
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025