Aichi Steel Corporation (5482) AI Stock Analysis

• Market Cap: ¥200.71B
• Dividend Yield: 1.8%
• Average Volume (3M): 317.16K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.92
• Revenue Growth: 4.10%
• EPS Growth: 152.90%
• Country: JP
• Employees: 4,572
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 62.25
• Shares Outstanding: 64,520,820
• 10 Day Avg. Volume: 254,250
• 30 Day Avg. Volume: 317,160
• PEG Ratio: 0.23
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥3,288.00 ▲(13.58% Upside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven primarily by improving fundamentals—better margins and notably stronger cash flow with manageable leverage—offset by weak top-line momentum and only moderate ROE. Technically, the stock is below key short-term moving averages, keeping the near-term setup neutral-to-cautious, while valuation looks reasonably priced (P/E ~11.6) with a modest yield.

Positive Factors

Strong cash generation

Materially stronger operating cash flow and free cash flow in the trailing twelve months provide durable financial flexibility. Solid FCF supports reinvestment in processing capacity, steady shareholder returns or debt reduction, and cushions the business through cyclical downturns.

Improving margins and profitability

Rising gross, EBIT and net margins reflect better product mix and operational control, increasing sustainable earnings power. Higher margins on specialty and processed steels help the firm earn more per shipment and better withstand input-cost shocks over the medium term.

Conservative leverage

A relatively low debt/equity ratio for a steel manufacturer provides balance-sheet resilience against commodity cycles. Conservative leverage preserves access to capital for capex or strategic investment and reduces bankruptcy risk in industry downturns.

Negative Factors

Weak top-line momentum

A small but negative trailing revenue trend signals constrained demand or limited share gains in core markets. Over a 2–6 month horizon, lack of revenue growth can limit scale benefits, pressure margin expansion and make profit gains more dependent on price or cost improvements.

Only moderate ROE

ROE remains modest despite improvement, reflecting capital intensity and still-limited profitability. Persistently moderate returns constrain long-term shareholder value creation unless the company sustainably raises margins, asset turnover, or reduces invested capital.

Cash conversion below net income

Free cash flow converts to roughly three quarters of reported earnings, implying some earnings are non-cash or tied up in working capital. If cash conversion weakens, the firm may face limits funding capex, dividends or reducing leverage without earnings quality improvements.

Aichi Steel Corporation Business Overview & Revenue Model

Company Description

Aichi Steel Corporation (5482) is a leading manufacturer in the steel and alloy industry, primarily based in Japan. The company specializes in producing high-quality steel products, including stainless steel, electrical steel sheets, and special alloys, catering to various sectors such as automotive, construction, and machinery. With a strong focus on innovation and technology, Aichi Steel aims to enhance the performance and sustainability of its products to meet the demands of its global clientele.

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

Financials are improving with higher profitability (TTM gross margin ~15.8%, net margin ~3.9%) and stronger cash generation (TTM operating cash flow ~¥71.0B; free cash flow ~¥53.7B). Leverage is manageable (~0.37x debt/equity). The key constraint is limited growth (TTM revenue ~-0.8%) and only moderate ROE (~5.1%), leaving results sensitive to the steel cycle.

Income Statement

TTM (Trailing-Twelve-Months) results show clear profitability improvement versus prior annual periods: gross margin rose to ~15.8% and net margin to ~3.9% (vs. ~2.6% net margin in FY2025 and ~0.6% in FY2023). Operating profitability also strengthened (EBIT margin ~6.6%, EBITDA margin ~12.7%). The main weakness is top-line momentum: TTM revenue is slightly down (~-0.8%), reflecting a more mature/cyclical demand backdrop despite better margins.

Balance Sheet

Leverage looks manageable with debt at ~0.37x equity in TTM (and generally in the ~0.28–0.42x range across recent years), indicating a fairly conservative capital structure for a steel manufacturer. Returns are improving with TTM return on equity ~5.1% (up from ~3.4% in FY2025 and sub-1% in FY2023), but absolute returns remain moderate, suggesting profitability is still not consistently strong through the cycle.

Cash Flow

Cash generation strengthened materially in TTM (Trailing-Twelve-Months): operating cash flow (~¥71.0B) and free cash flow (~¥53.7B) are both solid, with free cash flow showing a sharp rebound versus the prior annual period. Cash flow quality is better than earlier years that included negative free cash flow (FY2022–FY2023). The key watch-out is that free cash flow is still below reported earnings on a ratio basis (free cash flow to net income ~0.76), implying not all accounting profit is translating into fully retained cash yet.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	304.11B	299.29B	296.52B	285.14B	260.12B	204.91B
Gross Profit	47.94B	39.94B	39.05B	29.07B	27.38B	26.76B
EBITDA	38.71B	31.96B	29.81B	22.25B	20.42B	21.97B
Net Income	11.82B	7.82B	6.59B	1.61B	1.09B	3.05B
Balance Sheet
Total Assets	419.37B	400.06B	443.11B	385.45B	364.40B	353.04B
Cash, Cash Equivalents and Short-Term Investments	55.67B	36.27B	46.55B	47.53B	32.87B	55.26B
Total Debt	84.48B	67.42B	76.54B	89.49B	69.35B	78.90B
Total Liabilities	180.49B	156.66B	181.10B	171.12B	151.92B	150.16B
Stockholders Equity	226.47B	231.94B	250.97B	203.76B	201.55B	192.95B
Cash Flow
Free Cash Flow	53.68B	3.68B	14.51B	-2.95B	-10.81B	2.11B
Operating Cash Flow	70.97B	25.35B	33.82B	13.03B	5.21B	15.90B
Investing Cash Flow	-28.16B	-17.92B	-18.89B	-15.96B	-15.54B	-14.25B
Financing Cash Flow	-24.12B	-17.67B	-16.28B	17.00B	-11.99B	13.48B

Aichi Steel Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2895.00
• 50DMA: Negative
• 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 2895 is below the 20-day moving average (MA) of 3229.00, below the 50-day MA of 3249.00, and above the 200-day MA of 2709.54, indicating a neutral trend. The MACD of -50.41 indicates Positive momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 45.12 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
5406	80 Outperform	¥804.90B	9.48	10.78%	4.68%	-1.97%	47.63%
5471	74 Outperform	¥428.33B	9.05	6.16%	2.99%	-0.02%	-40.45%
5451	74 Outperform	¥241.08B	14.50	6.87%	5.25%	-1.43%	171.44%
5482	67 Neutral	¥200.71B	11.58	5.06%	1.80%	4.10%	152.90%
5401	67 Neutral	¥3.24T	12.26	-0.26%	4.53%	1.31%	-101.19%
5411	64 Neutral	¥1.17T	9.28	2.09%	4.59%	-8.07%	-41.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Aichi Steel Corporation Corporate Events

Aichi Steel to Strengthen Governance With Shift to Audit and Supervisory Committee Structure

Aichi Steel Corporation has resolved to transition its governance structure from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory Committee, subject to shareholder approval at its 122nd Ordinary General Meeting in June 2026. The move is aimed at reinforcing board oversight, speeding up decision-making, and bolstering corporate governance to better navigate a volatile operating environment and enhance medium- to long-term corporate value.

Under the new structure, Aichi Steel will introduce directors who are members of the Audit and Supervisory Committee with voting rights on the board, and will increase the presence of independent external directors to four out of nine total board members. This reconfigured board, including several newly appointed outside and committee directors, is expected to foster more open, candid debate and improve the effectiveness and vitality of board management, with implications for stronger stakeholder oversight and more agile strategic execution.

The most recent analyst rating on (JP:5482) stock is a Buy with a Yen3597.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.

Aichi Steel to Tender All Toyota Industries Shares, Booking ¥8.9 Billion Extraordinary Gain

Aichi Steel Corporation has resolved to tender all 478,305 shares it holds in Toyota Industries Corporation into a tender offer launched by Toyota Asset Preparatory Co., Ltd., in line with its policy of reducing cross-shareholdings. The sale, at an offer price of 18,800 yen per share for expected proceeds of 8,992 million yen, is projected to generate approximately 8,923 million yen in extraordinary income on the company’s non-consolidated results for the fiscal year ending March 31, 2026, while having no impact on consolidated profit under IFRS; Aichi Steel emphasized that it will continue to maintain and strengthen its business relationship with Toyota Industries despite divesting the shares.

The most recent analyst rating on (JP:5482) stock is a Hold with a Yen3548.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.

Aichi Steel Delivers Profit Surge on Modest Sales Growth, Confirms Robust Dividend Payout

Aichi Steel reported consolidated results for the nine months ended December 31, 2025, with revenue edging up 2.2% year on year to ¥226.7 billion, while operating profit surged 87.2% to ¥14.4 billion and profit attributable to owners of the parent jumped 70.7% to ¥9.7 billion, driven by improved profitability despite only modest top-line growth. Earnings per share roughly doubled on a split-adjusted basis, but the balance sheet showed a slight decline in equity ratio to 54.0%, reflecting higher total assets. The company maintained its full-year forecast for FY2025/26, targeting flat revenue of ¥300 billion but a near 25% rise in operating profit and 27.9% growth in profit attributable to owners, underlining management’s confidence in continued margin improvement. Aichi Steel also confirmed an aggressive shareholder-return stance, planning total annual dividends of ¥138 per share post-split for the year ending March 31, 2026, including substantial special dividends, signaling strong cash generation and a willingness to return excess capital to investors even as it navigates a largely flat sales environment.

The most recent analyst rating on (JP:5482) stock is a Hold with a Yen3548.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.

Aichi Steel Books Extraordinary Income From Retirement Benefit Trust Asset Return

Aichi Steel Corporation announced that it has received a partial return of 22.3 billion yen from its retirement benefit trust after determining that plan assets, including the trust, exceeded its defined benefit obligations and are expected to remain sufficient in future. The company will recognize 10.959 billion yen from this return as extraordinary income in its non-consolidated financial statements for the fiscal year ending March 31, 2026, while noting that there will be no impact on profit in its consolidated results prepared under IFRS, limiting the effect primarily to parent-level earnings and balance sheet structure rather than group-wide performance.

The most recent analyst rating on (JP:5482) stock is a Buy with a Yen3212.00 price target. To see the full list of analyst forecasts on Aichi Steel Corporation stock, see the JP:5482 Stock Forecast page.