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

• Market Cap: ¥29.17B
• Dividend Yield: 4.13%
• Average Volume (3M): 143.72K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.12
• Revenue Growth: -2.96%
• EPS Growth: N/A
• Country: JP
• Employees: 4,076
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 52.20
• Shares Outstanding: 15,709,968
• 10 Day Avg. Volume: 266,880
• 30 Day Avg. Volume: 143,720
• PEG Ratio: -0.03
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 18.35
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,836.00 ▼(-2.18% Downside)

Mitsubishi Steel Mfg. Co., Ltd. shows a mixed outlook. The financial performance indicates a recovery in profitability, but challenges with revenue decline and modest equity returns persist. Technical analysis suggests bearish momentum, though the stock is nearing oversold levels. Valuation is a strong point, with a low P/E ratio and high dividend yield suggesting potential undervaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Profitability Recovery

The recovery in profitability and improved margins indicate effective cost management and operational efficiency, enhancing long-term financial health.

Stable Balance Sheet

A stable balance sheet with moderate debt levels suggests sound financial management, providing a solid foundation for future growth and resilience.

Cash Flow Management

Positive free cash flow demonstrates effective cash generation, supporting reinvestment in the business and potential for shareholder returns.

Negative Factors

Revenue Decline

Declining revenue poses a challenge to growth prospects, potentially impacting the company's ability to expand market share and invest in new opportunities.

Modest Equity Returns

Modest returns on equity indicate potential inefficiencies in capital utilization, which may hinder the company's ability to enhance shareholder value over time.

Negative Free Cash Flow Growth

Negative growth in free cash flow highlights volatility in cash management, which could affect the company's capacity to fund operations and growth initiatives.

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

Company Description

Mitsubishi Steel Mfg. Co., Ltd. manufactures and sells steel products, construction machinery parts, automotive parts, and machinery and equipment. Its steel products include hot-rolled special steel bars for construction machinery parts and automotive parts; special steel bars for industrial machinery; non-heat treated steel products; coil, heavy-duty coil, leaf, coiled wave, flat, super alloy, and wire springs; stabilizer bars; insert molded parts; high-precision assemblies; press and multi-forming machines; precision and wear-resistant castings; special steel forgings; special materials and machined products. The company also offers forging presses, forging manipulators, ring rolling mills, cold forging presses, magnetic separators, link conveyors, buckets, vibration isolators, scaling systems, other industrial machineries, outer casings for gas turbines, pressure vessels, and steel working products. In addition, it offers research and development services; and sells automotive parts, construction machinery parts, wear resistant teeth for shellfish harvesting, and wood processor tire chains. Mitsubishi Steel Mfg. Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Steel Mfg. Co., Ltd. generates revenue primarily through the sale of its steel products, which are essential for a wide array of applications. The company's revenue model is built on producing high-quality steel that meets the specific needs of its customers in various industries. Key revenue streams include the direct sale of steel bars, wire rods, and other specialized steel products, as well as long-term contracts with major industrial clients. Additionally, the company may engage in partnerships with other manufacturers and suppliers, enhancing its market reach and creating opportunities for collaborative projects that further drive profits. Factors contributing to its earnings include the demand for steel in construction and manufacturing, fluctuations in raw material prices, and the company’s ability to innovate and improve its production processes to remain competitive.

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

Summary

Mitsubishi Steel Mfg. Co., Ltd. has shown a recovery in profitability with improved margins and positive net income. However, declining revenue and modest returns on equity are concerns. The balance sheet is stable, but growth in assets and equity returns could be enhanced. Cash flow management shows progress, although sustainability and growth of free cash flow remain areas for further improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.13B	159.58B	169.94B	170.54B	146.29B	97.80B
Gross Profit	22.98B	23.71B	21.79B	23.26B	20.90B	7.48B
EBITDA	8.91B	9.82B	6.57B	9.98B	13.42B	-1.93B
Net Income	2.10B	2.36B	-969.00M	2.19B	4.07B	-5.53B
Balance Sheet
Total Assets	135.89B	138.67B	147.07B	156.41B	142.96B	132.32B
Cash, Cash Equivalents and Short-Term Investments	12.65B	16.16B	22.24B	30.62B	19.97B	23.00B
Total Debt	49.77B	52.28B	57.06B	66.65B	49.56B	51.83B
Total Liabilities	87.50B	88.81B	99.24B	107.00B	94.32B	87.55B
Stockholders Equity	41.38B	42.64B	41.15B	43.48B	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: 1877.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1877 is above the 20-day moving average (MA) of 1820.35, above the 50-day MA of 1795.14, and above the 200-day MA of 1655.34, indicating a bullish trend. The MACD of 37.10 indicates Negative momentum. The RSI at 70.49 is Negative, neither overbought nor oversold. The STOCH value of 92.14 is Negative, 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	82 Outperform	¥386.24B	13.31	6.84%	2.99%	-0.02%	-40.45%
5482	72 Outperform	¥198.14B	19.24	5.06%	1.80%	4.10%	152.90%
5440	70 Outperform	¥111.65B	10.01	―	3.70%	-3.06%	1.15%
5632	66 Neutral	¥29.17B	9.71	―	4.13%	-2.96%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥59.68B	5.36	―	6.27%	-7.45%	-9.12%
5449	61 Neutral	¥86.62B	2,136.85	―	1.24%	-12.05%	-97.36%

Mitsubishi Steel Mfg.Co., Ltd. Corporate Events

Fire Incident at Mitsubishi Steel Affiliate May Impact Production

A fire incident at Hokkai Iron & Coke Corp., an affiliate of Mitsubishi Steel, has led to the suspension of hot metal supply, potentially impacting the company’s production volume. The full extent of the impact on Mitsubishi Steel’s financial performance is under investigation, with further updates to be provided if significant effects are anticipated.

The most recent analyst rating on (JP:5632) stock is a Hold with a Yen1836.00 price target. To see the full list of analyst forecasts on Mitsubishi Steel Mfg.Co., Ltd. stock, see the JP:5632 Stock Forecast page.

Mitsubishi Steel Revises Earnings Forecast Amid Operational Challenges

Mitsubishi Steel Mfg. Co., Ltd. announced a revision to its full-year consolidated earnings forecast due to lower-than-expected operating income, primarily caused by reduced productivity and operational issues at the Muroran industrial complex. Despite net sales aligning with previous forecasts, the company anticipates a shortfall in ordinary and net income, though extraordinary gains are expected from asset sales and overseas restructuring adjustments.

The most recent analyst rating on (JP:5632) stock is a Buy with a Yen2154.00 price target. To see the full list of analyst forecasts on Mitsubishi Steel Mfg.Co., Ltd. stock, see the JP:5632 Stock Forecast page.

Mitsubishi Steel Reports Mixed Financial Results for First Half of FY 2026

Mitsubishi Steel Mfg. Co., Ltd. reported its financial results for the first half of the fiscal year ending March 31, 2026, showing a slight decline in net sales and a significant drop in operating and ordinary income compared to the previous year. Despite these declines, the company managed to achieve a substantial increase in net income attributable to owners of the parent, reflecting a strategic focus on profitability. The company also announced an increase in dividends per share, indicating a commitment to returning value to shareholders.

The most recent analyst rating on (JP:5632) stock is a Buy with a Yen2154.00 price target. To see the full list of analyst forecasts on Mitsubishi Steel Mfg.Co., Ltd. stock, see the JP:5632 Stock Forecast page.