KOBELCO WIRE COMPANY LTD. (5660) AI Stock Analysis

• Market Cap: ¥8.40B
• Dividend Yield: 3.97%
• Average Volume (3M): 5.51K
• Price to Earnings (P/E): 5.8
• 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): 59.20
• 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: ¥1,636.00 ▲(18.90% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Strong balance sheet

A 54.5% equity ratio and a debt-to-equity of 0.43 indicate durable financial stability and borrowing capacity. This structure supports capital investment, cushions cyclical downturns in steel-related end markets, and preserves strategic flexibility over the next several quarters.

Improving margins and revenue

Consistent revenue growth combined with expanding gross and operating margins points to effective cost management and potentially higher-value product mix. These margin improvements are structural drivers of sustainable profitability rather than transitory gains.

Efficient cash conversion

An OCF-to-net-income ratio above 1.0 shows earnings are being converted into cash, supporting working capital needs and dividends. Even with FCF variability, reliable operating cash generation underpins capital allocation and resilience over the medium term.

Negative Factors

Declining free cash flow

A sharp drop in free cash flow growth signals potential stress in free liquidity available for reinvestment, debt reduction, or shareholder returns. If sustained, it could force reprioritization of capex or dividend policies and constrain strategic initiatives.

Negative EPS growth

A decline in EPS growth reflects pressure on per-share profitability that may stem from margin compression, mix shifts, or higher costs. Persisting negative EPS trends can limit reinvestment ability and reduce long-term return potential for shareholders.

Modest return on equity

An ROE near 4.3% indicates modest profitability relative to capital employed. Over time, low ROE can hinder value creation versus peers and suggests the company must improve operational returns or shift capital allocation to higher-return initiatives to boost long-term shareholder value.

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

The company primarily makes money by manufacturing and selling welding consumables and wire-based products to industrial customers. Revenue is generated through (1) product sales of welding materials (e.g., welding wires/consumables) supplied to users that perform metal joining and fabrication, and (2) sales of related wire products used in industrial applications. Earnings are driven by shipment volumes, product mix (including higher value-added consumables), and pricing relative to input costs (notably metals and energy). Information on significant partnerships, customer concentration, contract structure, or segment-level revenue breakdown was not available; null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	44.77B	43.87B	42.60B	42.13B	40.99B
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	10.23B	10.39B
Total Liabilities	20.68B	20.74B	21.03B	20.88B	21.05B	20.95B
Stockholders Equity	23.98B	24.02B	22.83B	21.71B	21.09B	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: Neutral
• Last Price: 1376.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1376 is below the 20-day moving average (MA) of 1475.60, below the 50-day MA of 1467.80, and above the 200-day MA of 1368.96, indicating a neutral trend. The MACD of -2.56 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 50.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
5406	80 Outperform	¥763.23B	9.48	10.78%	4.68%	-1.97%	47.63%
5660	74 Outperform	¥8.40B	5.81	―	3.97%	0.34%	-1.55%
5471	74 Outperform	¥387.68B	9.05	6.16%	2.99%	-0.02%	-40.45%
5401	67 Neutral	¥3.12T	12.26	-0.26%	4.53%	1.31%	-101.19%
5482	67 Neutral	¥184.64B	11.58	5.06%	1.80%	4.10%	152.90%
5411	64 Neutral	¥1.12T	9.28	2.09%	4.59%	-8.07%	-41.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%