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

• Market Cap: ¥43.04B
• Dividend Yield: 4.64%
• Average Volume (3M): 85.12K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.73
• Revenue Growth: -5.13%
• EPS Growth: 18.49%
• Country: JP
• Employees: 1,627
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 17.16
• 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: ¥1,526.00 ▲(19.69% Upside)
• Action: Downgraded Date: 10/29/25
• Date: Action: Downgraded 10/29/25

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

Low leverage and strong equity base

A very low debt-to-equity ratio and high equity ratio provide durable financial resilience. This conservative capital structure reduces default risk, preserves borrowing capacity for strategic investments, and supports steady operations through industry downturns, enabling long-term stability and optionality.

Robust operating cash generation

Strong operating cash conversion signals earnings quality and internal funding capacity. High OCF relative to reported profit supports reinvestment, working capital needs and dividends without overreliance on external finance, enhancing durable self-funding ability across business cycles.

Specialized, recurring industrial service model

A focused business model in induction heat treatment and contracted processing creates recurring, service-based revenue and specialized know-how. This technical specialization raises barriers to entry, fosters customer stickiness in industrial supply chains, and supports steady demand from manufacturing customers.

Negative Factors

Declining free cash flow

A notable year-over-year fall in free cash flow reduces internal flexibility to fund capex, acquisitions or dividend increases. Sustained FCF erosion can force higher leverage or scaled-back investment, constraining strategic options and long-term growth execution.

Modest profitability and thin operating margins

Low net and EBIT margins indicate limited ability to absorb raw-material cost swings or fund expansion from earnings. Thin operating profitability constrains returns on capital, limits retained earnings for reinvestment, and heightens sensitivity to pricing or input-cost pressure.

Cyclicality from steel industry exposure

Operating in the steel sector exposes revenue and margins to macro and cyclical demand swings across manufacturing and construction. This structural cyclicality can produce intermittent order volatility and margin pressure, complicating multi-quarter planning and steady earnings growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 1275.00
• 50DMA: Positive
• 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:5976, the sentiment is Neutral. The current price of 1275 is below the 20-day moving average (MA) of 1444.00, below the 50-day MA of 1369.10, and above the 200-day MA of 1211.87, indicating a neutral trend. The MACD of 18.88 indicates Positive momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5976.

Neturen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5480	71 Outperform	¥74.01B	8.43	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥106.87B	10.61	―	3.70%	-3.06%	1.15%
5976	67 Neutral	¥43.04B	18.59	―	4.64%	-5.13%	18.49%
5408	64 Neutral	¥33.94B	-185.54	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥55.80B	7.67	―	6.27%	-7.45%	-9.12%
5449	60 Neutral	¥75.70B	53.99	―	1.24%	-12.05%	-97.36%

Neturen Co., Ltd. Corporate Events

Neturen Overhauls Senior Management Structure Ahead of FY2026

Neturen Co., Ltd. has announced a broad reshuffle of senior management and officer responsibilities effective April 1, 2026, following a board decision on March 6. Key functional domains such as engineering development, business development, digital transformation, logistics, quality assurance, human resources, and facilities management have been reassigned or expanded among existing directors, senior executive officers, and executive officers.

Notable changes include expanded roles for Nobumoto Ishiki in engineering, DX promotion, and information strategy, and for Takashi Suzuki in logistics and global procurement, suggesting a push to strengthen operational efficiency and technology-driven growth. The reassignment of quality assurance, TQM promotion, and corporate planning responsibilities among executives such as Nobuhiro Murai, Naoki Hisada, Harunobu Nakamura, and Kyo Hosoda indicates an internal reorganization aimed at integrating product engineering, quality control, and strategic planning to support the company’s long-term competitiveness.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1471.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen to Cancel 1.69 Million Treasury Shares to Boost Capital Efficiency

Neturen Co., Ltd. has resolved to cancel 1,690,000 of its common treasury shares, representing 4.90% of its issued and outstanding shares prior to the move. The cancellation, approved by the Board of Directors on February 6, 2026, is scheduled to take effect on March 19, 2026.

Following the cancellation, the company will have 32,805,400 shares issued and outstanding, with an estimated 200,665 shares remaining in treasury, or about 0.61% of total shares. The reduction in share count is expected to enhance capital efficiency and may improve shareholder value by increasing the relative ownership stake of existing shareholders.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1471.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

Neturen Lifts Profit and Dividend Outlook Despite Slight Dip in Sales

For the nine months ended December 31, 2025, Neturen reported consolidated net sales of ¥41.18 billion, down 1.8% year on year, but achieved slight growth in operating profit to ¥1.09 billion and stronger gains in ordinary profit and profit attributable to owners of parent, which rose 9.5% and 16.7% respectively, reflecting improved profitability despite softer top-line performance. The company’s equity-to-asset ratio declined to 67.7% from 71.1%, but it plans to enhance shareholder returns, forecasting a higher full-year dividend of ¥67 per share for the year ending March 31, 2026 and projecting essentially flat full-year sales with modestly lower profits, while also expanding its consolidation scope through the inclusion of Dohken Co., Ltd., a move that could support longer-term growth and group synergies.

The most recent analyst rating on (JP:5976) stock is a Hold with a Yen1469.00 price target. To see the full list of analyst forecasts on Neturen Co., Ltd. stock, see the JP:5976 Stock Forecast page.

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.