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Aichi Steel Corporation (JP:5482)
:5482

Aichi Steel Corporation (5482) AI Stock Analysis

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Aichi Steel Corporation

(Frankfurt:5482)

Rating:66Neutral
Price Target:
¥8,392.00
▲(4.12%Upside)
Aichi Steel Corporation's overall stock score reflects solid financial performance and positive technical trends, though cash flow volatility requires attention. The valuation is fair, with no significant earnings call or corporate events to influence the assessment. Continued monitoring of debt levels and cash flow management will be essential for long-term growth prospects.

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

Aichi Steel Corporation Business Overview & Revenue Model

Company DescriptionAichi Steel Corporation (5482) is a prominent Japanese manufacturer specialized in the production of specialty steel products. The company primarily operates in the steel manufacturing industry, providing a wide range of products including specialty steels, forgings, and tool steels. A key supplier to the automotive industry, Aichi Steel also serves sectors such as industrial machinery, construction, and electronics, offering high-quality materials that meet diverse industrial needs.
How the Company Makes MoneyAichi Steel Corporation generates revenue primarily through the manufacturing and sale of various steel products. The company's revenue streams are largely driven by its specialty steels, which are essential components in the automotive sector. By supplying steel to major automotive manufacturers, Aichi Steel secures a steady income from long-term contracts and partnerships. Additionally, the company earns revenue from other industrial sectors by providing tailored steel solutions for construction, machinery, and electronics industries. Aichi Steel's strategic focus on innovation and quality enables it to maintain competitive pricing and secure significant market share in its key sectors.

Aichi Steel Corporation Financial Statement Overview

Summary
Aichi Steel Corporation demonstrates strong revenue growth and operational efficiency, supported by stable profit margins. The balance sheet reflects moderate leverage, though declining equity ratios suggest monitoring is required. Cash flow stability is a concern, with free cash flow showing volatility. Overall, the financial position is solid, but attention to debt levels and cash flow management will be crucial for sustained growth.
Income Statement
78
Positive
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
72
Positive
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
68
Positive
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
299.29B296.52B285.14B260.12B204.91B
Gross Profit
39.94B39.05B29.07B27.38B26.76B
EBIT
12.82B12.55B3.26B3.33B3.56B
EBITDA
31.96B29.69B21.86B20.42B22.75B
Net Income Common Stockholders
7.82B6.59B1.61B1.09B3.14B
Balance SheetCash, Cash Equivalents and Short-Term Investments
36.27B46.55B48.32B33.58B55.26B
Total Assets
400.06B443.11B385.45B364.40B314.04B
Total Debt
64.57B73.38B86.39B66.67B75.88B
Net Debt
28.29B26.84B38.86B33.80B20.61B
Total Liabilities
156.66B181.10B171.13B151.93B134.33B
Stockholders Equity
231.94B250.97B203.76B201.55B169.81B
Cash FlowFree Cash Flow
3.68B14.51B-2.95B-10.81B67.00M
Operating Cash Flow
25.35B33.82B13.03B5.21B14.79B
Investing Cash Flow
-17.92B-18.89B-15.96B-15.54B-13.83B
Financing Cash Flow
-17.67B-16.28B17.00B-11.99B14.17B

Aichi Steel Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8060.00
Price Trends
50DMA
7655.41
Positive
100DMA
7106.12
Positive
200DMA
5610.67
Positive
Market Momentum
MACD
-0.81
Negative
RSI
56.60
Neutral
STOCH
89.20
Negative
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 8060 is above the 20-day moving average (MA) of 7824.00, above the 50-day MA of 7655.41, and above the 200-day MA of 5610.67, indicating a bullish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 89.20 is Negative, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥89.13B8.26
4.39%0.58%-21.95%
73
Outperform
$160.07B11.866.92%5.97%2.21%202.58%
73
Outperform
¥162.72B7.5310.08%3.46%-11.02%-21.84%
68
Neutral
€217.18B7.466.56%4.84%-1.09%-42.36%
66
Neutral
¥152.61B20.253.23%2.08%0.93%19.15%
57
Neutral
¥103.65B32.12
1.28%-0.60%3.40%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5482
Aichi Steel Corporation
8,060.00
4,490.01
125.77%
JP:5440
Kyoei Steel Ltd.
2,012.00
22.67
1.14%
JP:5449
OSAKA STEEL CO., LTD.
2,666.00
307.16
13.02%
JP:5471
Daido Steel Co
1,005.50
-457.78
-31.28%
JP:5451
Yodogawa Steel Works
5,570.00
490.43
9.65%
JP:5423
Tokyo Steel Manufacturing Co
1,490.00
-132.31
-8.16%

Aichi Steel Corporation Corporate Events

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.

Aichi Steel Increases Year-End Dividend to 90 Yen Per Share
Apr 25, 2025

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
Apr 25, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.