Japan Steel Works Ltd (JP:5631)
:5631
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Japan Steel Works
(5631)
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Rating:49Neutral
Price Target:
¥8,036.00
▼(-11.31% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weak recent cash flow (negative operating cash flow in 2025–2026 and deeply negative 2026 free cash flow) and a clear bearish technical setup (below major moving averages, negative MACD, RSI below 40). Improved margins and profitability provide support, but a higher P/E (~32) and modest yield (~1.14%) limit the valuation case.
Positive Factors
High‑specification manufacturing moat
JSW's specialization in large forged/cast steel and engineered machinery creates durable technical and certification barriers. Long product lead times and quality requirements favor incumbents, supporting sustained pricing power and repeat project work with industrial and energy OEMs over months to years.
Negative Factors
Weak cash generation
The recent swing to negative operating cash flow and a deeply negative free cash flow in 2026 signals persistent working‑capital pressure or heavy project capex. Even with reported profits, poor cash conversion elevates liquidity and execution risk and can force higher external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High‑specification manufacturing moat
JSW's specialization in large forged/cast steel and engineered machinery creates durable technical and certification barriers. Long product lead times and quality requirements favor incumbents, supporting sustained pricing power and repeat project work with industrial and energy OEMs over months to years.
Read all positive factors
Japan Steel Works (5631) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥564.53B
Dividend Yield1.03%
Average Volume (3M)946.71K
Price to Earnings (P/E)28.2
Beta (1Y)1.45
Revenue Growth10.58%
EPS Growth7.11%
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 Ratio4.51
Price to Book (P/B)2.90
Price to Sales (P/S)2.24
P/FCF Ratio-14.89
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)304.3
Revenue Forecast (FY)¥313.05B
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
Japan Steel Works makes money primarily by manufacturing and selling (1) large forged/cast steel products and (2) industrial machinery/equipment, typically on a project/contract basis for industrial customers. A core revenue stream is supplying hi...
Japan Steel Works Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 268.50B | 274.85B | 248.56B | 252.50B | 238.72B | 213.79B |
| Gross Profit | 63.50B | 64.26B | 60.99B | 56.81B | 49.38B | 47.82B |
| EBITDA | 25.25B | 34.36B | 31.55B | 27.32B | 25.46B | 26.36B |
| Net Income | 18.72B | 19.24B | 17.96B | 14.28B | 11.97B | 13.95B |
Balance Sheet | ||||||
| Total Assets | 395.64B | 429.98B | 398.12B | 366.77B | 348.36B | 339.73B |
| Cash, Cash Equivalents and Short-Term Investments | 90.35B | 77.76B | 75.92B | 97.65B | 87.33B | 106.27B |
| Total Debt | 56.87B | 88.35B | 43.53B | 43.63B | 43.42B | 58.44B |
| Total Liabilities | 200.44B | 216.15B | 203.02B | 188.16B | 187.72B | 188.64B |
| Stockholders Equity | 193.94B | 212.43B | 193.22B | 176.98B | 159.10B | 149.44B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -41.37B | -20.40B | 11.46B | -7.09B | 13.52B |
| Operating Cash Flow | 0.00 | -16.89B | -4.57B | 21.71B | -986.00M | 22.32B |
| Investing Cash Flow | 0.00 | -17.10B | -12.27B | -6.84B | 947.00M | -2.98B |
| Financing Cash Flow | 0.00 | 36.09B | -5.72B | -4.90B | -20.11B | -2.86B |
Japan Steel Works Technical Analysis
Negative
9061.00
Price Trends
9015.64
Negative
9094.31
Negative
9089.69
Negative
Market Momentum
-417.82
Positive
32.40
Neutral
15.56
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 above the 20-day moving average (MA) of 8332.70, above the 50-day MA of 9015.64, and below the 200-day MA of 9089.69, indicating a bearish trend. The MACD of -417.82 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 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 | ¥320.27B | 15.43 | 7.67% | 0.91% | 11.51% | 46.17% | |
76 Outperform | ¥456.87B | 18.45 | 14.28% | 2.40% | 8.33% | 27.80% | |
74 Outperform | ¥922.28B | 29.30 | 5.14% | 3.31% | 10.26% | -2.44% | |
73 Outperform | ¥56.30B | 13.59 | ― | 2.54% | 3.47% | -12.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥639.71B | 19.12 | 4.83% | 2.95% | 2.18% | 5504.89% | |
49 Neutral | ¥564.53B | 28.19 | 11.66% | 1.03% | 10.58% | 7.11% |
* Industrials Sector Average
JP:5631
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Japan Steel Works Corporate Events
Japan Steel Works to Tighten Director Stock Restrictions to Bolster Long-Term Value Alignment
May 13, 2026
Japan Steel Works will seek shareholder approval at its June 22, 2026 general meeting to revise its restricted stock compensation plan for internal directors, shifting the transfer restriction period from a fixed three-to-five-year term to a perio...
Japan Steel Works Lifts Year-End Dividend, Signals Ongoing Shareholder Focus
May 13, 2026
The Japan Steel Works has approved a year-end dividend of 48 yen per share for the fiscal year ended March 2026, up from the previously forecast 44 yen, bringing the total annual dividend to 92 yen per share. The payout, sourced from retained earn...
Japan Steel Works Lifts Earnings, Boosts Dividend and Projects Further Sales Growth
May 13, 2026
Japan Steel Works reported consolidated net sales of ¥274.9 billion for the year ended March 31, 2026, up 10.6% year on year, with operating profit rising 10.9% to ¥25.3 billion and profit attributable to owners of parent increasing 7.1%...
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.