Aichi Steel Corporation (5482) AI Stock Analysis

• Market Cap: €158.11B
• Dividend Yield: 2.09%
• Average Volume (3M): 156.42K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.91
• Revenue Growth: 0.93%
• EPS Growth: 19.15%
• Country: JP
• Employees: 4,572
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Steel
• EPS (TTM): 398.01
• Shares Outstanding: 19,109,186
• 10 Day Avg. Volume: 159,400
• 30 Day Avg. Volume: 156,420
• PEG Ratio: 0.60
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.64
• 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: 66 Neutral
• Price Target: ¥8,392.00 ▲(1.97%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 Business Overview & Revenue Model

Company Description

Aichi 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 Money

Aichi 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

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
	EBIT
12.82B	12.55B	3.26B	3.33B	3.56B
	EBITDA
31.96B	29.69B	21.86B	20.42B	22.75B
	Net Income Common Stockholders
7.82B	6.59B	1.61B	1.09B	3.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.27B	46.55B	48.32B	33.58B	55.26B
	Total Assets
400.06B	443.11B	385.45B	364.40B	314.04B
	Total Debt
64.57B	73.38B	86.39B	66.67B	75.88B
	Net Debt
28.29B	26.84B	38.86B	33.80B	20.61B
	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: 8230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8230 is above the 20-day moving average (MA) of 7774.50, above the 50-day MA of 7753.40, and above the 200-day MA of 5714.69, indicating a bullish trend. The MACD of 105.85 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 89.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5440	77 Outperform	¥86.27B	7.99		6.04%	0.58%	-21.95%
5451	73 Outperform	$162.96B	12.08	6.92%	0.06%	2.21%	202.58%
5423	73 Outperform	$164.90B	7.63	10.08%	3.46%	-11.02%	-21.84%
5471	68 Neutral	¥219.67B	7.54	6.56%	5.12%	-1.09%	-42.36%
5482	66 Neutral	€158.11B	20.98	3.23%	2.09%	0.93%	19.15%
5449	57 Neutral	¥105.51B	32.70		1.40%	-0.60%	3.40%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%

Aichi Steel Corporation Corporate Events

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.