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

• Market Cap: ¥23.68B
• Dividend Yield: 4.41%
• Average Volume (3M): 214.27K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.05
• Revenue Growth: -6.10%
• EPS Growth: N/A
• Country: JP
• Employees: 4,076
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 89.46
• Shares Outstanding: 15,709,968
• 10 Day Avg. Volume: 339,680
• 30 Day Avg. Volume: 214,273
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,909.00 ▲(23.16%Upside)

Mitsubishi Steel Mfg. Co., Ltd. receives a score of 73, driven by its solid financial recovery and attractive valuation. The technical analysis supports a positive trend, although overbought indicators suggest caution. The absence of earnings call insights and corporate events limits a full assessment.

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

Company Description

Mitsubishi Steel Mfg. Co., Ltd. is a Japanese company specializing in the manufacturing and distribution of steel products and components. The company operates in several sectors, including automotive, construction, and industrial machinery, offering a diverse range of products such as springs, forged and cast steel products, and steel bars. With its headquarters in Tokyo, Mitsubishi Steel Mfg. Co., Ltd. serves a global clientele, leveraging its advanced manufacturing capabilities and technological expertise to deliver high-quality steel solutions.

How the Company Makes Money

Mitsubishi Steel Mfg. Co., Ltd. generates revenue through the production and sale of steel products and components. The company's key revenue streams include the sale of automotive suspension springs, which are essential for vehicle performance and safety, and forged and cast steel products used in construction and industrial machinery. The company benefits from strong relationships with major automotive manufacturers, ensuring a steady demand for its products. Additionally, Mitsubishi Steel Mfg. Co., Ltd. invests in research and development to innovate and improve its product offerings, further solidifying its market position and contributing to its earnings.

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
	EBIT
7.02B	6.57B	4.81B	5.55B	6.27B	-4.94B
	EBITDA
9.57B	9.82B	6.57B	9.62B	9.97B	-1.93B
	Net Income Common Stockholders
605.00M	2.36B	-969.00M	2.19B	4.07B	-5.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.03B	16.16B	22.24B	30.62B	19.97B	23.00B
	Total Assets
143.32B	138.67B	147.07B	156.41B	142.96B	132.32B
	Total Debt
55.74B	52.28B	57.06B	66.65B	49.56B	51.83B
	Net Debt
40.70B	36.12B	34.82B	41.03B	29.59B	32.83B
	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: Neutral
• Last Price: 1550.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5632, the sentiment is Neutral. The current price of 1550 is above the 20-day moving average (MA) of 1549.45, above the 50-day MA of 1511.70, and above the 200-day MA of 1462.56, indicating a neutral trend. The MACD of 12.97 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 8.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
5440	77 Outperform	¥85.70B	7.94		6.08%	0.58%	-21.95%
5632	73 Outperform	¥23.68B	9.89		4.41%	-6.10%	―
5471	72 Outperform	€210.84B	7.24	6.56%	5.34%	-1.09%	-42.36%
5449	72 Outperform	¥109.33B	33.88		1.35%	-0.60%	3.40%
5482	66 Neutral	€155.64B	20.65	3.23%	2.19%	0.93%	19.15%
5410	66 Neutral	¥54.78B	4.84		7.48%	-7.92%	-25.47%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%

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.