KOBELCO WIRE COMPANY LTD. (5660) AI Stock Analysis

• Market Cap: ¥8.33B
• Dividend Yield: 3.97%
• Average Volume (3M): 5.51K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.51
• Revenue Growth: 0.34%
• EPS Growth: -1.55%
• Country: JP
• Employees: 894
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 44.68
• Shares Outstanding: 5,912,999
• 10 Day Avg. Volume: 4,840
• 30 Day Avg. Volume: 5,506
• PEG Ratio: 0.55
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 35.49
• 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: 74 Outperform
• Price Target: ¥1,512.00 ▲(9.88% Upside)

Kobelco Wire Company Ltd. has a robust financial performance with strong revenue growth and profitability. The valuation is attractive with a low P/E ratio and a good dividend yield. However, technical indicators suggest potential bearish trends, which could pose short-term risks. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term sustainability.

Operational Efficiency

Operational efficiency through cost management enhances profitability and competitiveness, crucial for long-term success in the steel industry.

Balance Sheet Health

A strong equity base and moderate leverage provide financial stability and flexibility for future growth and investment opportunities.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may hinder the company's ability to fund new projects or pay down debt, impacting future financial health.

Moderate Profitability

While profitability is positive, a relatively low net profit margin suggests limited pricing power and potential vulnerability to cost increases.

Return on Equity

A lower return on equity indicates potential inefficiencies in using shareholder funds, which could affect investor confidence and growth potential.

KOBELCO WIRE COMPANY LTD. Business Overview & Revenue Model

Company Description

Kobelco Wire Company, Ltd. manufactures and sells a range of wire rod products. The company offers PC steel products that are used in bridges, buildings, and other constructions; steel wires that support a range of products, such as automotive products and office automation equipment; and wire ropes that support various industries, including cranes, national land development projects, construction, fishery, and forestry. It also provides stainless steel, titanium, titanium alloy, and special alloy steel wires for the industries, including housing, automotive, machine tools, telecommunications, medical, and household products; and engineering services for bridges and buildings. The company was formerly known as Shinko Wire Company, Ltd. Kobelco Wire Company, Ltd. was incorporated in 1954 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

KOBELCO WIRE COMPANY LTD. generates revenue primarily through the sale of its steel wire products to various industries, including construction, automotive, and manufacturing sectors. The company has established key revenue streams through long-term contracts with major clients and partnerships with construction firms and industrial manufacturers. Additionally, KOBELCO WIRE invests in research and development to create specialty products that meet specific customer needs, allowing for premium pricing on niche offerings. The company also benefits from operational efficiencies and economies of scale, which contribute to its profitability.

KOBELCO WIRE COMPANY LTD. Financial Statement Overview

Summary

Kobelco Wire Company Ltd. exhibits strong revenue growth and profitability, with a sound balance sheet and moderate leverage. The company shows effective cost management and operational efficiency. However, the decline in free cash flow growth suggests a need for attention to capital expenditure and cash management strategies.

Income Statement

Kobelco Wire Company Ltd. shows a strong financial performance with consistent revenue growth, as evidenced by a revenue growth rate of 4.8% from 2024 to 2025. The gross profit margin stands at 17.1%, and the net profit margin is 3.0%, indicating healthy profitability in a competitive industry. The company has improved its EBIT and EBITDA margins, which are 3.4% and 6.8%, respectively, showing effective cost management and operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 54.5%, reflecting a solid financial structure. The debt-to-equity ratio is 0.43, indicating moderate leverage. Return on equity is at 4.3%, suggesting that the company effectively utilizes its equity to generate profits, although there is room for improvement in boosting returns.

Cash Flow

Kobelco Wire Company Ltd. has demonstrated positive cash flow dynamics, with an operating cash flow to net income ratio of 1.1, indicating efficient cash conversion from earnings. However, free cash flow growth has been negative, dropping significantly from the previous year, which may signal potential challenges in sustaining free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.78B	34.29B	32.73B	31.28B	29.45B	26.83B
Gross Profit	5.68B	5.87B	5.56B	5.42B	5.10B	4.18B
EBITDA	2.08B	2.34B	2.21B	1.93B	1.94B	1.36B
Net Income	1.03B	1.03B	906.00M	832.00M	599.00M	208.00M
Balance Sheet
Total Assets	44.66B	44.08B	43.20B	42.01B	41.58B	40.38B
Cash, Cash Equivalents and Short-Term Investments	2.08B	3.33B	3.02B	2.39B	2.85B	3.18B
Total Debt	11.77B	10.37B	10.18B	10.17B	10.24B	10.44B
Total Liabilities	20.68B	20.06B	20.37B	20.29B	20.49B	20.33B
Stockholders Equity	23.98B	24.02B	22.83B	21.71B	21.08B	20.04B
Cash Flow
Free Cash Flow	0.00	226.00M	525.00M	-209.00M	-109.00M	-116.00M
Operating Cash Flow	0.00	1.13B	1.37B	583.00M	887.00M	764.00M
Investing Cash Flow	0.00	-697.00M	-462.00M	-617.00M	-1.00B	-968.00M
Financing Cash Flow	0.00	-132.00M	-283.00M	-390.00M	-221.00M	363.00M

KOBELCO WIRE COMPANY LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1376.00
• 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:5660, the sentiment is Positive. The current price of 1376 is above the 20-day moving average (MA) of 1365.45, above the 50-day MA of 1336.64, and above the 200-day MA of 1326.99, indicating a bullish trend. The MACD of 19.70 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5660.

KOBELCO WIRE COMPANY LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5660	74 Outperform	¥8.33B	8.77	―	3.97%	0.34%	-1.55%
5491	70 Outperform	¥6.35B	4.98	―	―	-5.93%	-36.01%
5542	69 Neutral	¥5.03B	8.10	―	2.77%	-3.45%	34.97%
5446	64 Neutral	¥4.80B	12.45	―	3.17%	-20.10%	-14.13%
5609	63 Neutral	¥4.09B	7.97	―	3.62%	-4.20%	-11.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5476	56 Neutral	¥8.19B	-1.16	―	―	3.22%	-451.22%