Mitsubishi Steel Mfg.Co., Ltd. (5632) AI Stock Analysis

• Market Cap: ¥24.94B
• Dividend Yield: 4.19%
• Average Volume (3M): 221.71K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.06
• Revenue Growth: -6.10%
• EPS Growth: N/A
• Country: JP
• Employees: 4,076
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Steel
• EPS (TTM): 89.46
• Shares Outstanding: 15,709,968
• 10 Day Avg. Volume: 121,030
• 30 Day Avg. Volume: 221,713
• PEG Ratio: -0.18
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.28
• 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: ¥1,909.00
• Price Target Upside: 18.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,658.00 ▲(3.17%Upside)

Mitsubishi Steel Mfg. Co., Ltd.'s stock is rated moderately high, driven primarily by its strong valuation metrics with a low P/E ratio and high dividend yield. Financial performance shows recovery and stability, though growth challenges persist. Technical analysis suggests a neutral outlook due to the lack of strong momentum signals.

Mitsubishi Steel Mfg.Co., Ltd. Business Overview & Revenue Model

Company Description

Mitsubishi Steel Mfg. Co., Ltd. is a diversified industrial company headquartered in Japan, specializing in the production and supply of high-quality steel products and components. The company operates across multiple sectors, including automotive, industrial machinery, and construction. Its core products include special steel bars, springs, and precision castings, which are essential components for a wide range of industrial applications.

How the Company Makes Money

Mitsubishi Steel Mfg. Co., Ltd. generates revenue through the sale of its steel products and components to various industries, primarily focusing on the automotive sector. The company capitalizes on its advanced manufacturing capabilities and extensive experience in metallurgy to produce high-performance steel materials that meet the stringent quality requirements of its clients. Additionally, Mitsubishi Steel Mfg. Co., Ltd. engages in strategic partnerships and collaborations to enhance its production efficiency and expand its market reach. Key revenue streams include direct sales to manufacturers, supply contracts with major automotive companies, and exports to international markets.

Mitsubishi Steel Mfg.Co., Ltd. Financial Statement Overview

Summary

The financial performance of Mitsubishi Steel Mfg. Co., Ltd. shows a recovery in profitability with improved margins and positive net income. However, revenue decline and modest returns on equity are notable concerns. The balance sheet is stable, and cash flow management is improving, though sustainability remains a challenge.

Income Statement

Mitsubishi Steel Mfg. Co., Ltd. has shown a turnaround in profitability with a positive net income in the most recent year after a loss in the prior period. The gross profit margin improved slightly, indicating better cost control. However, revenue has experienced a decline from 2024 to 2025, which is a concern for growth prospects. The company also achieved a higher EBITDA margin, further underscoring improved operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio. While the total debt has decreased, the equity ratio has remained relatively stable, indicating sound financial management. However, the return on equity is modest, suggesting the company could improve on delivering shareholder value. The company's asset base has slightly contracted, which may impact future growth.

Cash Flow

The cash flow statement indicates a positive free cash flow in the latest period, a significant improvement from previous years. The operating cash flow to net income ratio is healthy, suggesting effective cash generation from operations. However, the free cash flow growth rate is negative compared to the previous year, highlighting volatility in cash management. Despite this, the company has managed its capital expenditures efficiently.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	163.57B	159.58B	169.94B	170.54B	146.29B	97.80B
Gross Profit	24.12B	23.71B	21.79B	23.26B	20.90B	7.48B
EBITDA	9.57B	9.82B	6.57B	9.62B	9.97B	-1.93B
Net Income	605.00M	2.36B	-969.00M	2.19B	4.07B	-5.53B
Balance Sheet
Total Assets	143.32B	138.67B	147.07B	156.41B	142.96B	132.32B
Cash, Cash Equivalents and Short-Term Investments	15.03B	16.16B	22.24B	30.62B	19.97B	23.00B
Total Debt	55.74B	52.28B	57.06B	66.65B	49.56B	51.83B
Total Liabilities	95.44B	88.81B	99.24B	107.00B	94.32B	87.55B
Stockholders Equity	40.90B	42.64B	41.15B	43.20B	42.60B	38.90B
Cash Flow
Free Cash Flow	0.00	1.35B	2.39B	-5.48B	-4.46B	-330.00M
Operating Cash Flow	0.00	6.01B	6.48B	-2.78B	-1.92B	3.78B
Investing Cash Flow	0.00	-5.17B	-3.97B	-1.44B	1.97B	-2.83B
Financing Cash Flow	0.00	-6.54B	-11.61B	14.79B	-3.52B	-7.05B

Mitsubishi Steel Mfg.Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1607.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5632, the sentiment is Positive. The current price of 1607 is above the 20-day moving average (MA) of 1582.55, above the 50-day MA of 1545.66, and above the 200-day MA of 1472.96, indicating a bullish trend. The MACD of 15.96 indicates Negative momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 77.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5632.

Mitsubishi Steel Mfg.Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	77 Outperform	€215.36B	7.40	6.56%	5.22%	-1.09%	-42.47%
5482	75 Outperform	€164.27B	21.65	3.23%	8.36%	0.93%	19.15%
5410	72 Outperform	¥56.54B	4.99		7.24%	-7.92%	-25.47%
5449	72 Outperform	¥112.91B	34.99		1.31%	-0.60%	3.40%
5440	71 Outperform	¥93.48B	8.66		5.58%	0.58%	-21.95%
Sector *	70 Outperform	¥177.14B	11.15	6.29%	3.43%	3.91%	3.49%
5632	68 Neutral	¥24.94B	10.42		4.19%	-6.10%	―

Mitsubishi Steel Mfg.Co., Ltd. Corporate Events

Mitsubishi Steel Records Extraordinary Income, Resolves Legal Dispute

Mitsubishi Steel Mfg. Co., Ltd. announced the recording of an extraordinary income of ¥668 million in the fourth quarter of the fiscal year, following successful negotiations by its subsidiary, MSSC INC, to compensate customers for losses incurred due to a court-ordered price revision. This development effectively nullifies the extraordinary losses recorded in the third quarter, ensuring no impact on the fiscal year results ending March 2025. The company also plans to withdraw its appeal against the judgment, marking a resolution to the legal proceedings.

Mitsubishi Steel Mfg. Co., Ltd. Announces Enhanced Dividend Policy

Mitsubishi Steel Mfg. Co., Ltd. announced a change in its dividend policy to strengthen shareholder returns. The new policy, effective during the 2023 Mid-Term Business Plan, sets a consolidated dividend payout ratio of 30% with a minimum dividend per share of 64 yen, increasing to a 40% payout ratio and 80 yen per share by 2026. The company aims for a total return ratio of 50% or more, including treasury stock acquisition, reflecting its commitment to stable and enhanced shareholder dividends.

Mitsubishi Steel Reports Non-Operating Expenses in Financial Statements

Mitsubishi Steel Mfg. Co., Ltd. has reported non-operating expenses in its non-consolidated financial statements for the fiscal year ending March 31, 2025. The company recorded ¥597 million in interest expenses related to borrowings and ¥1,373 million as a provision for doubtful accounts of subsidiaries and affiliates. These expenses are eliminated in the consolidated financial statements, thus having no impact on consolidated profit or loss. The financial deterioration of subsidiaries MSM NINGBO SPRING CO., LTD. and MSM SPRING INDIA PVT. LTD. contributed to the increase in allowance for doubtful accounts.

Mitsubishi Steel Reports Improved Income Despite Sales Decline

Mitsubishi Steel Mfg. Co., Ltd. reported a decrease in net sales for the fiscal year ending March 31, 2025, but saw significant improvements in operating and ordinary income. The company’s financial position showed a slight increase in net assets and shareholders’ equity ratio, indicating a stable financial footing despite the decline in sales.