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Japan Steel Works (JP:5631)
:5631
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Japan Steel Works (5631) AI Stock Analysis

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Japan Steel Works

(Frankfurt:5631)

Rating:72Outperform
Price Target:
¥9,888.00
▲(16.30%Upside)
The stock is supported by strong financial performance and bullish technical indicators, indicating potential for growth. However, challenges in cash flow management and a high P/E ratio suggest caution. The lack of earnings call and corporate events data was not factored into the score.

Japan Steel Works (5631) vs. iShares MSCI Japan ETF (EWJ)

Japan Steel Works Business Overview & Revenue Model

Company DescriptionJapan Steel Works Ltd. (JSW) is a leading Japanese company specializing in the manufacturing of industrial machinery and steel products. The company operates in several sectors including machinery, materials, and engineering. JSW is renowned for its high-quality steel castings and forgings, plastics processing machinery, and power generation equipment. It serves a diverse range of industries such as energy, automotive, construction, and defense.
How the Company Makes MoneyJapan Steel Works generates revenue through the production and sale of its industrial machinery and steel products. Its key revenue streams include the manufacturing of large steel castings and forgings for power generation and industrial machinery sectors, particularly serving the needs of nuclear and thermal power plants. Additionally, JSW is involved in the production of plastic processing machinery, which caters to the automotive and packaging industries. The company also earns income from its engineering services, providing solutions and maintenance for its machinery and equipment. Strategic partnerships and joint ventures in the steel and machinery sectors further enhance its revenue-generating capabilities by expanding its market reach and technological expertise.

Japan Steel Works Financial Statement Overview

Summary
Japan Steel Works shows strong revenue growth and operational efficiency with solid balance sheet metrics. However, challenges in cash flow management, such as negative free cash flow, need improvement to sustain future growth.
Income Statement
72
Positive
Japan Steel Works shows a consistent revenue stream with noticeable growth. The Gross Profit Margin is strong at approximately 24.5% for 2025. However, the Net Profit Margin has slightly decreased to 7.2% in 2025 from 5.9% in 2024, reflecting some pressure on net earnings. The EBIT and EBITDA margins have improved to 9.2% and 12.7% respectively, indicating better operational efficiency.
Balance Sheet
80
Positive
The company maintains a solid financial structure with a Debt-to-Equity Ratio of approximately 0.23, showing prudent leverage. The Return on Equity (ROE) is fairly robust, around 9.3%, indicating good profitability from shareholders' equity. The Equity Ratio stands strong at about 48.5%, reflecting a balanced capital structure.
Cash Flow
65
Positive
The Cash Flow statement reveals some challenges, particularly with a negative Free Cash Flow of -20.4 billion yen in 2025, down from 11.4 billion yen in 2024. The Operating Cash Flow to Net Income Ratio has turned negative, indicating difficulties in converting earnings into cash flow. The Free Cash Flow to Net Income Ratio reflects constraints in cash generation relative to net income.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue248.56B252.50B238.72B213.79B198.04B
Gross Profit60.99B57.83B49.38B47.82B42.28B
EBITDA31.56B27.32B25.47B26.37B19.48B
Net Income17.96B14.28B11.97B13.95B6.89B
Balance Sheet
Total Assets398.12B366.77B348.36B339.73B316.25B
Cash, Cash Equivalents and Short-Term Investments75.90B97.61B87.29B106.24B89.44B
Total Debt43.53B43.63B43.42B58.44B58.04B
Total Liabilities203.02B188.16B187.72B188.65B174.26B
Stockholders Equity193.22B176.98B159.10B149.44B140.40B
Cash Flow
Free Cash Flow-20.40B11.46B-7.09B13.52B6.44B
Operating Cash Flow-4.57B21.71B-986.00M22.32B14.71B
Investing Cash Flow-12.27B-6.84B947.00M-2.98B-3.24B
Financing Cash Flow-5.72B-4.90B-20.11B-2.86B2.77B

Japan Steel Works Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8502.00
Price Trends
50DMA
7394.76
Positive
100DMA
6481.18
Positive
200DMA
6122.24
Positive
Market Momentum
MACD
203.81
Positive
RSI
64.63
Neutral
STOCH
79.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5631, the sentiment is Positive. The current price of 8502 is above the 20-day moving average (MA) of 8172.05, above the 50-day MA of 7394.76, and above the 200-day MA of 6122.24, indicating a bullish trend. The MACD of 203.81 indicates Positive momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5631.

Japan Steel Works Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$509.76B16.306.10%3.85%-1.69%-16.80%
79
Outperform
$525.71B9.967.66%3.26%7.01%39.32%
73
Outperform
¥448.95B31.80
2.79%5.17%-18.61%
72
Outperform
¥654.94B36.469.67%0.84%-1.56%25.78%
69
Neutral
¥174.63B11.014.42%2.97%5.63%-31.54%
68
Neutral
$475.92B53.992.48%6.48%2.63%-34.53%
54
Neutral
¥376.57B639.710.06%4.07%-2.78%-98.34%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5631
Japan Steel Works
8,898.00
4,516.40
103.08%
JP:6406
Fujitec Co., Ltd.
5,845.00
1,615.05
38.18%
JP:6113
AMADA HOLDINGS CO
1,609.50
-146.72
-8.35%
JP:5333
NGK Insulators
1,838.50
-205.10
-10.04%
JP:6302
Sumitomo Heavy Industries
3,085.00
-956.27
-23.66%
JP:6481
THK Co
3,876.00
1,117.88
40.53%

Japan Steel Works Corporate Events

Japan Steel Works Completes Payment for New Stock Issuance
Jul 22, 2025

Japan Steel Works has completed the payment procedure for issuing new stocks as restricted stock compensation, a move resolved by the Board of Directors on June 23, 2025. This issuance involves 6,924 shares of common stock at 7,861 yen per share, totaling 54,429,564 yen, and is aimed at compensating directors and executive officers, potentially impacting the company’s governance and stakeholder alignment.

The most recent analyst rating on (JP:5631) stock is a Buy with a Yen6200.00 price target. To see the full list of analyst forecasts on Japan Steel Works stock, see the JP:5631 Stock Forecast page.

Japan Steel Works Issues New Stocks for Compensation Plan
Jun 23, 2025

Japan Steel Works has announced the issuance of new stocks as part of a Restricted Stock Compensation Plan aimed at incentivizing directors and executive officers for sustainable corporate growth. This initiative is designed to align the interests of management with shareholders and enhance corporate value over the medium to long term, with a transfer restriction period set for five years.

The most recent analyst rating on (JP:5631) stock is a Buy with a Yen6200.00 price target. To see the full list of analyst forecasts on Japan Steel Works stock, see the JP:5631 Stock Forecast page.

Japan Steel Works Considers Investment Unit Reduction
May 27, 2025

Japan Steel Works, Ltd. is considering reducing its investment unit to less than 500,000 yen to stimulate an active equity market and increase share liquidity. The company plans to carefully evaluate stock market trends and its stock price level to decide on the timing and appropriateness of this reduction, potentially impacting its market positioning and investor engagement.

The most recent analyst rating on (JP:5631) stock is a Buy with a Yen6200.00 price target. To see the full list of analyst forecasts on Japan Steel Works stock, see the JP:5631 Stock Forecast page.

Japan Steel Works Reports Profit Growth Despite Sales Decline
May 22, 2025

Japan Steel Works reported a decrease in net sales by 1.6% for the fiscal year ending March 31, 2025, but saw significant increases in operating profit and profit attributable to owners of parent by 26.7% and 25.8% respectively. The company anticipates a positive outlook for the next fiscal year, forecasting a 16.7% increase in net sales and continued growth in operating and ordinary profits, indicating a strong recovery and strategic positioning in the market.

The most recent analyst rating on (JP:5631) stock is a Buy with a Yen6200.00 price target. To see the full list of analyst forecasts on Japan Steel Works stock, see the JP:5631 Stock Forecast page.

Japan Steel Works Announces Increased Year-End Dividend
May 13, 2025

Japan Steel Works has announced a decision to increase its year-end dividend to 48 yen per share, resulting in a total annual dividend of 86 yen per share for the fiscal year ending March 2025. This decision reflects the company’s strategy to provide stable and improved dividends, aligning with its Medium-Term Management Plan JGP2028, which targets a dividend payout ratio of 35% or higher.

The most recent analyst rating on (JP:5631) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Japan Steel Works stock, see the JP:5631 Stock Forecast page.

Japan Steel Works Reports Profit Growth Despite Sales Dip
May 13, 2025

Japan Steel Works reported a slight decline in net sales for the fiscal year ending March 31, 2025, but saw significant increases in operating and ordinary profits. The company experienced a notable rise in profit attributable to owners, reflecting improved operational efficiency. Despite a decrease in cash flows from operating activities, the company increased its annual dividends per share, indicating confidence in future performance. The forecast for the fiscal year ending March 31, 2026, suggests a positive outlook with expected growth in net sales and profits.

The most recent analyst rating on (JP:5631) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Japan Steel Works stock, see the JP:5631 Stock Forecast page.

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: Jul 23, 2025