Neturen Co., Ltd. (5976) AI Stock Analysis

• Market Cap: ¥39.98B
• Dividend Yield: 4.64%
• Average Volume (3M): 85.12K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.65
• Revenue Growth: -5.13%
• EPS Growth: 18.49%
• Country: JP
• Employees: 1,627
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 8.92
• Shares Outstanding: 34,495,400
• 10 Day Avg. Volume: 61,920
• 30 Day Avg. Volume: 85,123
• PEG Ratio: 0.81
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 23.43
• 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: 67 Neutral
• Price Target: ¥1,430.00 ▲(12.16% Upside)

Neturen Co., Ltd. has a strong financial foundation with robust revenue growth and a healthy balance sheet, which are the most significant factors contributing to its score. Technical analysis presents mixed signals, with some bullish momentum but potential overbought conditions. The valuation is less favorable due to a high P/E ratio, though the attractive dividend yield provides a positive offset. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates minimal leverage, providing financial stability and flexibility for future investments and growth.

Innovative Technology

The company's focus on innovative induction heating technology positions it well in the industrial machinery sector, supporting long-term competitive advantage and market demand.

Shareholder Value Enhancement

The strategic buyback of shares reflects a commitment to enhancing shareholder value and optimizing capital structure, which can improve investor confidence and stock performance.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow can limit the company's ability to invest in new projects or return capital to shareholders, potentially impacting long-term growth prospects.

Profitability Challenges

Declining operating and ordinary profits suggest challenges in maintaining profitability, which could affect the company's ability to sustain growth and shareholder returns.

Impairment Loss

The significant impairment loss due to deteriorating profitability at factory locations can impact financial performance and indicate operational inefficiencies.

Neturen Co., Ltd. Business Overview & Revenue Model

Company Description

Neturen Co., Ltd., together with its subsidiaries, manufactures and sells specialty steel and wire products in Japan and internationally. The company offers prestressing steel bars, PC bar spring steel wires and machining equipment, and pre-hardened wires; and induction heating equipment and high-frequency power supplies, as well as induction heat treatment services for mechanical parts. It also leases movables and immovable properties; and provides solar cell interconnector and heating process monitors. In addition, the company engages in the development of technical products business. Further, it offers engine parts, transmission parts, suspension parts, and body parts for automobile; excavator construction machineries; partial diameter enlargement; rolling and slewing bearings; front fork inner tubes and hollow rack bars; and perforated laminate tapes, netulene coating and micro forming wires, and pre-hardened shafts. Neturen Co., Ltd. was incorporated in 1940 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Neturen Co., Ltd. generates revenue through the sale of its magnetic products and components to various industries, including automotive, electronics, and industrial sectors. Key revenue streams include direct sales of permanent magnets and magnetic assemblies, which are critical components in electric motors, sensors, and other electronic devices. The company also benefits from long-term partnerships and contracts with major clients in the automotive and electronics sectors, providing a stable income source. Additionally, Neturen invests in research and development to innovate new products, which helps maintain its competitive edge and drive future revenue growth.

Neturen Co., Ltd. Financial Statement Overview

Summary

Neturen Co., Ltd. exhibits a solid financial position with strong revenue growth and profitability indicators. The company's balance sheet is robust with low leverage and high equity, providing financial security. Cash flow analysis reveals strong operational cash generation, though free cash flow has slightly diminished. Overall, the company is well-positioned in the steel industry with a balanced approach to growth and financial management.

Income Statement

Neturen Co., Ltd. demonstrates a strong income statement performance with consistent revenue growth, up 0.52% from the previous year, and a solid gross profit margin of 17.96% for 2025. The net profit margin improved to 3.16% indicating enhanced profitability. Although the EBIT margin slightly decreased to 2.77%, the EBITDA margin remained robust at 9.07%, reflecting stable operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.12, indicating minimal leverage. The return on equity is modest at 3.05%, but the equity ratio is strong at 71.08%, underscoring financial stability and a conservative capital structure.

Cash Flow

Cash flow performance is mixed with a slight decline in free cash flow, down 12.62% from the previous year. The operating cash flow to net income ratio is high at 2.26, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.80, indicating limited free cash flow in relation to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.62B	57.50B	57.20B	57.52B	53.00B	42.57B
Gross Profit	10.18B	10.32B	9.85B	10.24B	11.29B	8.09B
EBITDA	4.75B	5.22B	5.08B	4.04B	7.47B	4.39B
Net Income	1.60B	1.82B	1.54B	381.00M	2.69B	268.00M
Balance Sheet
Total Assets	82.72B	83.76B	80.61B	79.89B	82.00B	75.57B
Cash, Cash Equivalents and Short-Term Investments	17.44B	19.41B	16.18B	18.48B	19.55B	15.06B
Total Debt	6.53B	7.23B	1.17B	1.87B	2.65B	2.95B
Total Liabilities	18.66B	17.43B	14.14B	13.34B	15.15B	12.86B
Stockholders Equity	57.31B	59.54B	60.01B	59.39B	59.65B	56.23B
Cash Flow
Free Cash Flow	0.00	1.45B	1.66B	2.60B	5.33B	2.54B
Operating Cash Flow	0.00	4.11B	4.19B	3.89B	6.33B	3.97B
Investing Cash Flow	0.00	-3.40B	-1.65B	-1.20B	-40.00M	-758.00M
Financing Cash Flow	0.00	1.71B	-5.08B	-4.29B	-1.97B	-1.59B

Neturen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1275.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5976, the sentiment is Positive. The current price of 1275 is above the 20-day moving average (MA) of 1268.65, above the 50-day MA of 1228.80, and above the 200-day MA of 1122.63, indicating a bullish trend. The MACD of 24.29 indicates Negative momentum. The RSI at 78.34 is Negative, neither overbought nor oversold. The STOCH value of 77.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5976.

Neturen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5464	78 Outperform	¥39.88B	10.80	―	4.09%	-3.99%	-12.45%
5445	72 Outperform	¥56.77B	5.27	―	6.31%	-8.44%	9.50%
5976	67 Neutral	¥39.98B	26.95	―	4.64%	-5.13%	18.49%
5632	66 Neutral	¥29.17B	9.71	―	4.13%	-2.96%	―
5408	64 Neutral	¥34.70B	8.28	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5563	59 Neutral	¥50.42B	24.68	2.94%	3.23%	5.34%	-60.38%

Neturen Co., Ltd. Corporate Events

Neturen Takes 34% Stake in ANDO Imagineering to Drive Precast and High-Strength Steel Innovation

Neturen has resolved to acquire shares in ANDO Imagineering Group Inc. (AIG), an architectural engineering firm specializing in structural and architectural design for large-scale PC, RC, steel, and wooden buildings, resulting in a 34% ownership stake. By combining Neturen’s manufacturing and processing technologies in high-strength steel and precast concrete with AIG’s advanced structural design capabilities, the company aims to develop new construction methods and products that enhance cost competitiveness and component durability, expand its business domain, and diversify revenue sources, while also maximizing the labor-saving advantages and shorter construction periods of precast solutions to address labor shortages and rising costs in the construction industry. Through this capital participation, Neturen seeks to strengthen its technological edge and supply chain in the construction sector and enhance its long-term corporate value, with the immediate impact on consolidated financial results expected to be minor.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Completes ¥2 Billion Share Buyback Program on Tokyo Stock Exchange

Neturen Co., Ltd. has completed a share buyback program authorized under Japan’s Companies Act, purchasing 89,700 of its own common shares on the Tokyo Stock Exchange between December 1 and December 19, 2025, at a total cost of ¥109.3 million. This transaction brings the cumulative total under the board-approved May 12, 2025 resolution to 1,719,100 shares repurchased for approximately ¥2.0 billion, effectively exhausting the authorized budget and signaling the company’s active capital policy aimed at enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Advances Share Repurchase Plan

Neturen Co., Ltd. announced the purchase of 815,500 of its own shares, totaling 954,849,900 yen, between November 1 and November 30, 2025. This move is part of a larger share repurchase plan approved by the Board of Directors, which allows for the acquisition of up to 2.7 million shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Completes Acquisition of MDI Corporation

Neturen Co., Ltd. has successfully completed the acquisition of MDI Corporation, making it a subsidiary. This strategic move is expected to bolster Neturen’s market position by expanding its product offerings and enhancing its operational capabilities, although the financial impact is still being assessed.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Completes Significant Treasury Share Repurchase

Neturen Co., Ltd. has completed a purchase of 780,500 treasury shares at a cost of 912,404,500 yen through the Tokyo Stock Exchange’s off-auction own share repurchase trading system. This transaction is part of a larger plan authorized by the Board of Directors to repurchase up to 2.7 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Initiates Share Buyback Program

Neturen Co., Ltd. has announced a decision to purchase 800,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, at a cost of 935.2 million yen. This move is part of a broader strategy authorized by the board to buy back up to 2.7 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Acquires MDI Corporation to Enhance Sustainable Growth

Neturen Co., Ltd. has announced its decision to acquire MDI Corporation, making it a subsidiary, as part of its long-term management plan ‘NETUREN VISION 2030: Evolution and Breakthrough.’ MDI, known for its thermal management technology and services aimed at reducing CO2 emissions, complements Neturen’s core competencies. This acquisition is expected to enhance Neturen’s corporate value and support its goals of global market expansion and sustainable development.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Reports Q2 Financial Discrepancies

Neturen Co., Ltd. announced a discrepancy between its forecasted and actual financial results for the second quarter of the fiscal year ending March 2026. While sales were lower than expected due to declines in certain product areas, profits surpassed forecasts due to increased automotive parts processing and postponed R&D costs. Despite these differences, the company maintains its full-year financial forecast.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Reports Decline in Semi-Annual Financial Results

Neturen Co., Ltd. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 9.1% and operating profit dropping by 40.1% compared to the previous year. The company’s comprehensive income also saw a significant downturn, indicating challenges in maintaining profitability. Despite these setbacks, Neturen has maintained its dividend forecast, suggesting a commitment to shareholder returns amidst financial pressures.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Co., Ltd. Updates on Treasury Share Purchase Status

Neturen Co., Ltd. announced the status of its treasury share purchase, revealing that no shares were bought during October 2025. Despite an earlier resolution allowing for the purchase of up to 2.7 million shares, only 813,900 shares have been acquired so far, at a cost of approximately 935.78 million yen. This indicates a cautious approach in executing its share repurchase strategy, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1292.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.