Japan Steel Works Ltd (JP:5631)
:5631
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Japan Steel Works
(5631)
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Rating:59Neutral
Price Target:
¥9,921.00
▲(9.49% Upside)
Action:ReiteratedDate:12/03/25
Japan Steel Works' stock score is primarily influenced by its strong financial performance, particularly in revenue growth and operational efficiency. However, technical indicators suggest a bearish trend, and the valuation indicates the stock may be overvalued. Cash flow challenges also pose a risk to future financial stability.
Positive Factors
Low leverage and solid capital structure
Prudent leverage (D/E ~0.23) and a near-50% equity ratio give JSW durable financial flexibility to fund long-lead capital projects, absorb cyclical downturns, and bid on large engineered contracts without immediate refinancing pressure, supporting long-term competitiveness.
Negative Factors
Negative free cash flow and weak cash conversion
A sharp swing to -¥20.4bn FCF and negative operating cash conversion signals structural cash generation weakness. For a capital-intensive, long-lead business, poor cash flow constrains capex, working capital for projects, and shareholder returns, raising reliance on financing during multi-month project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and solid capital structure
Prudent leverage (D/E ~0.23) and a near-50% equity ratio give JSW durable financial flexibility to fund long-lead capital projects, absorb cyclical downturns, and bid on large engineered contracts without immediate refinancing pressure, supporting long-term competitiveness.
Read all positive factors
Japan Steel Works (5631) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥677.89B
Dividend Yield1.03%
Average Volume (3M)946.71K
Price to Earnings (P/E)29.2
Beta (1Y)1.48
Revenue Growth10.19%
EPS Growth16.01%
CountryJP
Employees5,115
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)254.32
Shares Outstanding74,415,910
10 Day Avg. Volume1,238,970
30 Day Avg. Volume946,713
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)1.99
Price to Sales (P/S)1.55
P/FCF Ratio-18.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥12,725.00Price Target Upside40.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)295.95
Revenue Forecast (FY)¥304.00B
Japan Steel Works Business Overview & Revenue Model
Company Description
The Japan Steel Works, Ltd. produces and sells steel and machinery products in Japan, China, and internationally. The company operates through Industrial Machinery Products, Steel and Energy Products, and Other Businesses segments. It offers monob...
How the Company Makes Money
JSW makes money primarily by selling engineered industrial products and services across multiple business lines. A core earnings driver is its materials and engineering/manufacturing operations, where it generates revenue from (1) producing and se...
Japan Steel Works Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 268.50B | 248.56B | 252.50B | 238.72B | 213.79B | 198.04B |
| Gross Profit | 63.50B | 60.99B | 56.81B | 49.38B | 47.82B | 42.28B |
| EBITDA | 25.25B | 31.55B | 27.32B | 25.46B | 26.36B | 19.48B |
| Net Income | 18.72B | 17.96B | 14.28B | 11.97B | 13.95B | 6.89B |
Balance Sheet | ||||||
| Total Assets | 395.64B | 398.12B | 366.77B | 348.36B | 339.73B | 316.25B |
| Cash, Cash Equivalents and Short-Term Investments | 90.35B | 75.92B | 97.65B | 87.33B | 106.27B | 89.58B |
| Total Debt | 56.87B | 43.53B | 43.63B | 43.42B | 58.44B | 58.04B |
| Total Liabilities | 200.44B | 203.02B | 188.16B | 187.72B | 188.64B | 174.26B |
| Stockholders Equity | 193.94B | 193.22B | 176.98B | 159.10B | 149.44B | 140.40B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -20.40B | 11.46B | -7.09B | 13.52B | 6.44B |
| Operating Cash Flow | 0.00 | -4.57B | 21.71B | -986.00M | 22.32B | 14.71B |
| Investing Cash Flow | 0.00 | -12.27B | -6.84B | 947.00M | -2.98B | -3.24B |
| Financing Cash Flow | 0.00 | -5.72B | -4.90B | -20.11B | -2.86B | 2.77B |
Japan Steel Works Technical Analysis
Negative
9061.00
Price Trends
9473.60
Negative
9067.02
Negative
9053.09
Positive
Market Momentum
-24.36
Positive
44.95
Neutral
10.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5631, the sentiment is Negative. The current price of 9061 is below the 20-day moving average (MA) of 9361.84, below the 50-day MA of 9473.60, and above the 200-day MA of 9053.09, indicating a neutral trend. The MACD of -24.36 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5631.
Japan Steel Works Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥319.31B | 9.63 | 7.67% | 0.91% | 11.51% | 46.17% | |
74 Outperform | ¥65.63B | 24.26 | ― | 2.54% | 3.57% | 16.21% | |
72 Outperform | ¥886.32B | 18.72 | 5.14% | 3.31% | 6.03% | -4.68% | |
71 Outperform | ¥424.20B | 8.30 | 14.28% | 2.40% | 6.38% | 43.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥652.70B | 21.78 | 4.83% | 2.95% | 2.18% | 5504.89% | |
59 Neutral | ¥677.89B | 29.16 | 11.66% | 1.03% | 10.19% | 16.01% |
* Industrials Sector Average
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Japan Steel Works Corporate Events
Japan Steel Works Unveils Major Reorganization to Drive Global Growth and Advanced Materials Strategy
Feb 9, 2026
Japan Steel Works will overhaul its organization on April 1, 2026 to advance its JGP2028 plan, which targets both sustainability goals and substantial sales growth by strengthening existing businesses and nurturing new ones. The restructuring is d...
Japan Steel Works Overhauls Board and Executive Lineup to Sharpen Segment Focus
Feb 9, 2026
The Japan Steel Works, Ltd. announced a broad reshuffle of its board and executive ranks, effective April 1, 2026, aimed at clarifying responsibilities across finance, export control, quality, digital transformation and key business segments. Repr...
Japan Steel Works Lifts Nine-Month Profit and Keeps Full-Year Forecast on Track
Feb 9, 2026
Japan Steel Works reported consolidated net sales of ¥201.1 billion for the nine months ended December 31, 2025, up 16.4% year on year, with operating profit edging up 2.9% to ¥17.5 billion and profit attributable to owners of the parent...
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.