Molitec Steel Co., Ltd. (JP:5986)
:5986
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Molitec Steel Co., Ltd.
(5986)
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Rating:69Neutral
Price Target:
¥257.00
▲(34.55% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by improving but still cyclical financial performance (thin margins, softer revenue, and historically volatile cash flow). Technicals add support with a clear uptrend and neutral-to-positive momentum, while valuation is a strong positive due to the low P/E and a modest dividend yield.
Positive Factors
Improved Profitability
A return to positive net margins (~2.2%) and ROE (~6.5%) signals a rebuilt earnings base versus prior loss years. This improvement increases retained earnings, supports incremental capital allocation, and reduces the probability of equity erosion during typical industry cycles, strengthening long-term resilience.
Negative Factors
Structurally Thin Margins
An EBIT margin below 1% leaves very little buffer against input cost swings or pricing pressure in the steel sector. Persistent low operating profitability reduces the firm's ability to absorb downturns, constrains reinvestment, and magnifies the impact of any revenue declines on net income and cash flow sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
A return to positive net margins (~2.2%) and ROE (~6.5%) signals a rebuilt earnings base versus prior loss years. This improvement increases retained earnings, supports incremental capital allocation, and reduces the probability of equity erosion during typical industry cycles, strengthening long-term resilience.
Read all positive factors
Molitec Steel Co., Ltd. (5986) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.13B
Dividend Yield2.11%
Average Volume (3M)21.91K
Price to Earnings (P/E)4.8
Beta (1Y)0.66
Revenue Growth-4.57%
EPS Growth216.52%
CountryJP
Employees734
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)14.46
Shares Outstanding22,558,064
10 Day Avg. Volume21,070
30 Day Avg. Volume21,906
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.31
Price to Sales (P/S)0.10
P/FCF Ratio9.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Molitec Steel Co., Ltd. Business Overview & Revenue Model
Company Description
Molitec 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 plat...
How the Company Makes Money
Detailed, reliably sourced information on Molitec Steel Co., Ltd. (5986)’s specific revenue model (e.g., primary product categories, customer industries, contract structure, pricing mechanisms, and material partnerships) is not available in the pr...
Molitec Steel Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.12B | 48.19B | 50.50B | 50.77B | 36.33B | 27.56B |
| Gross Profit | 4.83B | 4.90B | 4.70B | 4.42B | 3.09B | 3.10B |
| EBITDA | 1.17B | 1.21B | 1.14B | 1.00B | 841.34M | 1.08B |
| Net Income | 323.94M | 1.04B | 329.37M | 312.33M | -704.78M | 254.30M |
Balance Sheet | ||||||
| Total Assets | 35.56B | 35.16B | 36.53B | 37.23B | 36.49B | 23.83B |
| Cash, Cash Equivalents and Short-Term Investments | 5.42B | 4.99B | 4.87B | 5.71B | 4.84B | 2.67B |
| Total Debt | 6.28B | 5.30B | 6.39B | 5.51B | 5.67B | 1.43B |
| Total Liabilities | 21.18B | 18.94B | 21.91B | 23.05B | 23.57B | 10.58B |
| Stockholders Equity | 14.31B | 16.14B | 14.54B | 14.11B | 12.86B | 13.18B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 532.21M | -2.31B | 1.26B | -974.87M | -982.06M |
| Operating Cash Flow | 0.00 | 937.91M | -1.76B | 1.84B | -316.85M | -502.21M |
| Investing Cash Flow | 0.00 | 442.40M | 31.47M | -602.67M | -587.92M | -118.10M |
| Financing Cash Flow | 0.00 | -1.34B | 696.85M | -357.39M | 2.96B | -238.00M |
Molitec Steel Co., Ltd. Technical Analysis
Neutral
191.00
Price Trends
229.55
Negative
218.17
Positive
208.65
Positive
Market Momentum
0.16
Positive
48.06
Neutral
43.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5986, the sentiment is Neutral. The current price of 191 is below the 20-day moving average (MA) of 230.85, below the 50-day MA of 229.55, and below the 200-day MA of 208.65, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 43.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5986.
Molitec Steel Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥3.67B | 8.43 | ― | 4.03% | 0.11% | 8.71% | |
70 Outperform | ¥4.29B | 6.84 | ― | 2.84% | 4.61% | 35.69% | |
69 Neutral | ¥5.13B | 4.84 | ― | 2.11% | -4.57% | 216.52% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ¥4.28B | -35.43 | ― | 3.62% | -14.12% | -34.75% | |
55 Neutral | ¥6.02B | 27.37 | ― | ― | -3.27% | -68.97% | |
50 Neutral | ¥4.71B | -14.09 | ― | 3.17% | -17.86% | -159.21% |
* Basic Materials Sector Average
JP:5986
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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.