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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)

Rating:78Outperform
Price Target:
¥2,631.00
▲(2.37% Upside)
Aichi Steel Corporation's stock is rated highly due to its strong technical analysis and attractive valuation. The financial performance is solid, though monitoring cash flow stability and leverage is advised. The absence of earnings call data and corporate events had no impact on the score.

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 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
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue299.29B296.52B285.14B260.12B204.91B
Gross Profit39.94B39.05B29.07B27.38B26.76B
EBITDA31.96B29.69B21.86B20.42B22.75B
Net Income7.82B6.59B1.61B1.09B3.14B
Balance Sheet
Total Assets400.06B443.11B385.45B364.40B314.04B
Cash, Cash Equivalents and Short-Term Investments36.27B46.55B48.32B33.58B55.26B
Total Debt64.57B73.38B86.39B66.67B75.88B
Total Liabilities156.66B181.10B171.13B151.93B134.33B
Stockholders Equity231.94B250.97B203.76B201.55B169.81B
Cash Flow
Free Cash Flow3.68B14.51B-2.95B-10.81B67.00M
Operating Cash Flow25.35B33.82B13.03B5.21B14.79B
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 Price2570.00
Price Trends
50DMA
2173.39
Positive
100DMA
2041.44
Positive
200DMA
1718.42
Positive
Market Momentum
MACD
110.27
Negative
RSI
75.87
Negative
STOCH
84.74
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 2570 is above the 20-day moving average (MA) of 2332.75, above the 50-day MA of 2173.39, and above the 200-day MA of 1718.42, indicating a bullish trend. The MACD of 110.27 indicates Negative momentum. The RSI at 75.87 is Negative, neither overbought nor oversold. The STOCH value of 84.74 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 (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€160.69B18.444.65%1.56%2.65%97.66%
76
Outperform
$206.40B13.957.32%5.31%1.53%142.11%
75
Outperform
€266.31B9.206.87%3.78%-1.07%-43.26%
73
Outperform
$174.51B9.198.92%3.13%-14.44%-25.56%
71
Outperform
¥94.83B8.71
4.12%-1.22%-13.03%
70
Outperform
¥181.68B11.365.69%3.06%2.67%-11.84%
52
Neutral
¥77.94B34.49
1.31%-6.19%-129.84%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5482
Aichi Steel Corporation
2,570.00
1,803.68
235.37%
JP:5440
Kyoei Steel Ltd.
2,198.00
541.66
32.70%
JP:5449
OSAKA STEEL CO., LTD.
2,622.00
-261.24
-9.06%
JP:5471
Daido Steel Co
1,244.50
-130.89
-9.52%
JP:5451
Yodogawa Steel Works
1,328.00
251.25
23.33%
JP:5423
Tokyo Steel Manufacturing Co
1,618.00
-282.64
-14.87%

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 01, 2025