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

• Market Cap: ¥43.41B
• Dividend Yield: 4.64%
• Average Volume (3M): 85.12K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.70
• 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: ¥1,506.00 ▲(18.12% 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

Healthy balance sheet

Neturen’s very low leverage and high equity ratio provide durable financial resilience. A conservative capital structure reduces refinancing risk, supports steady investment in plant and equipment, and allows the firm to endure steel-cycle downturns while funding operational needs and dividends.

Stable profitability margins

Consistent gross and EBITDA margins indicate efficient core processing and heat-treatment operations. These margins support reinvestment in manufacturing capability and service contracts; the improving net margin suggests gradual translation of operational efficiency into lasting profitability.

Strong operating cash generation

Operating cash conversion well above parity shows core business generates real cash beyond accounting profits. That cash underpins working capital, capex and dividend capacity, providing durable funding even though free cash flow dipped, and it increases financial flexibility across cycles.

Negative Factors

Low return on equity

A ROE near 3% implies limited efficiency in translating shareholder equity into earnings. With a very equity-heavy balance sheet, sustained low ROE could restrain long-term shareholder value creation absent stronger margin expansion, higher asset turnover, or strategic growth initiatives.

Weak free cash flow conversion

A notable decline in free cash flow and a sub-1.0 FCF-to-net-income ratio limit the company’s ability to self-fund capex, acquisitions, or larger dividends. Over multiple quarters this constrains strategic optionality and increases sensitivity to operational disruptions or capex spikes.

Thin operating profit and industry cyclicality

A low and slipping EBIT margin leaves earnings vulnerable to raw-material cost swings and price pressure. Combined with the inherent cyclicality of the steel industry, this structural margin sensitivity can produce volatile earnings and stress cash flows during demand downturns despite balance sheet strength.

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 1439.70, below the 50-day MA of 1362.60, and above the 200-day MA of 1208.00, indicating a neutral trend. The MACD of 27.98 indicates Positive momentum. The RSI at 44.24 is Neutral, neither overbought nor oversold. The STOCH value of 35.24 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	¥73.63B	8.43	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥108.00B	10.61	―	3.70%	-3.06%	1.15%
5976	67 Neutral	¥43.41B	18.59	―	4.64%	-5.13%	18.49%
5408	64 Neutral	¥34.32B	-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	¥56.02B	7.67	―	6.27%	-7.45%	-9.12%
5449	60 Neutral	¥79.61B	53.99	―	1.24%	-12.05%	-97.36%

Neturen Co., Ltd. Corporate Events

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.