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Molitec Steel Co., Ltd. (JP:5986)
:5986
Japanese Market
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Molitec Steel Co., Ltd. (5986) AI Stock Analysis

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JP:5986

Molitec Steel Co., Ltd.

(5986)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
¥216.00
▲(4.35% Upside)
The overall stock score for Molitec Steel Co., Ltd. is primarily influenced by its stable financial health and reasonable valuation. However, challenges in profitability and cash flow management, along with weak technical indicators, weigh on the score. The absence of earnings call insights and corporate events limits additional context.

Molitec Steel Co., Ltd. (5986) vs. iShares MSCI Japan ETF (EWJ)

Molitec Steel Co., Ltd. Business Overview & Revenue Model

Company DescriptionMolitec Steel Co., Ltd. processes and sells steel strips primarily in Japan. It offers press worked products, including automotive parts, household electrical appliances, agricultural machine parts, dies fabrication products, integrated drive plates, power springs, combine augers, and oil level gauges. The company also provides heat-treated products, such as hardened and tempered carbon steel strips and sheets; and metal materials comprising cold and hot rolled steel strips and sheets, spring and cold-rolled stainless steel strips, cold-rolled carbon steel strips and sheets, hot rolled mild steel sheets and strips, electrolytic zinc-coated steel sheets, and color coated steel sheets. In addition, it manufactures and sells various machinery tools, steel parts, and plastic products and parts, as well as imports and exports various merchandise. The company was formerly known as Mori&Co. and changed its name to Molitec Steel Co., Ltd. in January 1990. Molitec Steel Co., Ltd. was founded in 1943 and is headquartered in Osaka, Japan.
How the Company Makes MoneyMolitec Steel Co., Ltd. generates revenue primarily through the sale of its steel products to various industries. The company's key revenue streams include the manufacturing and distribution of rolled steel, wire products, and structural components, which are sold to construction firms, automotive manufacturers, and other industrial clients. Additionally, Molitec may engage in value-added services such as custom fabrication and processing, which further enhance its revenue potential. Strategic partnerships with suppliers and clients, along with a focus on quality and customer satisfaction, also play a significant role in securing contracts and maintaining steady cash flow. The company's emphasis on innovation and efficiency contributes to cost management, thus improving profitability.

Molitec Steel Co., Ltd. Financial Statement Overview

Summary
Molitec Steel Co., Ltd. shows stable production efficiency and solid financial health with a strong balance sheet. However, it faces challenges in profitability and cash flow management, with negative free cash flow and low net profit margins.
Income Statement
Molitec Steel Co., Ltd. has seen fluctuating revenue growth rates over the years, with a most recent annual decline. Despite this, the company has consistently maintained a positive gross profit margin, reflecting efficiency in production. However, the net profit and EBIT margins are relatively low, indicating challenges in controlling other operational costs. The EBITDA margin suggests some stability in operating performance.
Balance Sheet
The balance sheet of Molitec Steel Co., Ltd. shows a moderate debt-to-equity ratio, indicating manageable leverage levels, which is crucial for financial stability. The equity ratio remains strong, signifying solid financial health and asset base. Return on Equity (ROE) is modest, suggesting room for improvement in generating returns for shareholders.
Cash Flow
Cash flow analysis reveals a concerning trend with negative free cash flow in recent years, indicating potential liquidity issues. The operating cash flow to net income ratio suggests inconsistencies in converting profits to cash, potentially impacting operational flexibility. Positive financing cash flow hints at reliance on external funding.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue50.12B50.50B50.77B36.33B27.56B22.29B
Gross Profit4.83B4.78B4.49B3.14B3.15B2.17B
EBITDA1.18B1.40B1.29B274.59M1.32B611.38M
Net Income323.90M329.37M312.33M-704.78M254.30M-329.74M
Balance Sheet
Total Assets35.56B36.53B37.23B36.49B23.83B22.59B
Cash, Cash Equivalents and Short-Term Investments5.42B4.87B5.71B4.84B2.67B3.48B
Total Debt6.28B6.39B5.51B5.67B1.43B1.48B
Total Liabilities21.18B21.91B23.05B23.57B10.58B9.70B
Stockholders Equity14.31B14.54B14.11B12.86B13.18B12.83B
Cash Flow
Free Cash Flow0.00-2.31B1.26B-972.85M-980.21M-81.64M
Operating Cash Flow0.00-1.76B1.84B-316.85M-502.21M774.36M
Investing Cash Flow0.0031.47M-602.67M-587.92M-118.10M-381.37M
Financing Cash Flow0.00696.85M-357.39M2.96B-238.00M-85.44M

Molitec Steel Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price207.00
Price Trends
50DMA
205.28
Positive
100DMA
200.53
Positive
200DMA
188.06
Positive
Market Momentum
MACD
-1.11
Positive
RSI
55.18
Neutral
STOCH
63.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5986, the sentiment is Positive. The current price of 207 is above the 20-day moving average (MA) of 204.95, above the 50-day MA of 205.28, and above the 200-day MA of 188.06, indicating a bullish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5986.

Molitec Steel Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥5.27B8.842.54%-6.55%6.55%
70
Outperform
¥5.38B6.36-2.76%-44.71%
64
Neutral
¥4.76B9.423.16%-15.00%9.27%
64
Neutral
¥4.48B13.831.93%-0.82%-9.80%
62
Neutral
¥4.28B16.223.36%-8.45%-42.89%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
44
Neutral
¥6.45B4.33%-234.35%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5986
Molitec Steel Co., Ltd.
207.00
31.81
18.16%
JP:5446
Hokuetsu Metal Co., Ltd.
1,240.00
-38.08
-2.98%
JP:5476
Nippon Koshuha Steel Co., Ltd.
449.00
65.00
16.93%
JP:5491
Nippon Kinzoku Co., Ltd.
816.00
164.00
25.15%
JP:5542
Shinhokoku Material Corp.
794.00
244.67
44.54%
JP:5609
Nippon Chuzo K.K.
900.00
84.81
10.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025