Molitec Steel Co., Ltd. (5986) AI Stock Analysis

• Market Cap: ¥4.68B
• Dividend Yield: 1.94%
• Average Volume (3M): 38.05K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.72
• Revenue Growth: -0.82%
• EPS Growth: -9.80%
• Country: JP
• Employees: 734
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 2.48
• Shares Outstanding: 22,558,064
• 10 Day Avg. Volume: 15,710
• 30 Day Avg. Volume: 38,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥230.00
• Price Target Upside: 11.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥230.00 ▲(11.65% Upside)

Molitec Steel Co., Ltd. demonstrates solid financial health, with a particularly strong balance sheet, but faces challenges with profitability and cash flow management. The stock shows strong technical momentum, though it may be overbought in the short-term. Valuation metrics suggest the stock is fairly priced, with a moderate P/E ratio and dividend yield.

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

Company Description

Molitec Steel Co., Ltd. (5986) is a specialized manufacturing company based in Japan, primarily engaged in the production and distribution of steel products. The company operates in the metal fabrication industry, focusing on the creation of precision steel components and systems used across various sectors, including automotive, construction, and industrial machinery. Molitec Steel Co., Ltd. is committed to delivering high-quality products through advanced manufacturing techniques and strict quality control measures.

How the Company Makes Money

Molitec Steel Co., Ltd. generates revenue through the sale of its steel products and components. The company manufactures a range of precision steel items, which are supplied to industries such as automotive, where they are used in vehicle manufacturing and assembly. Additionally, the company may engage in partnerships or contracts with other businesses in the construction and industrial machinery sectors, providing custom steel solutions to meet specific client needs. Key revenue streams include the direct sale of manufactured steel parts, OEM contracts with major industrial players, and potentially value-added services such as product customization and logistics support. The company's financial performance is influenced by factors such as steel market prices, demand from key industries, and its ability to maintain competitive production costs.

Molitec Steel Co., Ltd. Financial Statement Overview

Summary

Molitec Steel Co., Ltd. shows stable production efficiency and solid financial health as evidenced by a strong balance sheet. However, challenges exist with profitability and cash flow management, indicated by low net profit margins and negative free cash flow.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.50B	50.50B	50.77B	36.33B	27.56B	22.29B
Gross Profit	4.78B	4.78B	4.49B	3.14B	3.15B	2.17B
EBITDA	1.25B	1.40B	1.29B	274.59M	1.32B	611.38M
Net Income	328.39M	329.37M	312.33M	-704.78M	254.30M	-329.74M
Balance Sheet
Total Assets	36.53B	36.53B	37.23B	36.49B	23.83B	22.59B
Cash, Cash Equivalents and Short-Term Investments	4.87B	4.87B	5.71B	4.84B	2.67B	3.48B
Total Debt	6.39B	6.39B	5.51B	5.67B	1.43B	1.48B
Total Liabilities	21.91B	21.91B	23.05B	23.57B	10.58B	9.70B
Stockholders Equity	14.54B	14.54B	14.11B	12.86B	13.18B	12.83B
Cash Flow
Free Cash Flow	0.00	-2.31B	1.26B	-972.85M	-980.21M	-81.64M
Operating Cash Flow	0.00	-1.76B	1.84B	-316.85M	-502.21M	774.36M
Investing Cash Flow	0.00	31.47M	-602.67M	-587.92M	-118.10M	-381.37M
Financing Cash Flow	0.00	696.85M	-357.39M	2.96B	-238.00M	-85.44M

Molitec Steel Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 206.00
• 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:5986, the sentiment is Positive. The current price of 206 is above the 20-day moving average (MA) of 205.75, above the 50-day MA of 202.70, and above the 200-day MA of 182.17, indicating a bullish trend. The MACD of 1.36 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5542	77 Outperform	¥5.43B	9.12		2.49%	-6.55%	6.55%
5491	72 Outperform	¥5.34B	6.25		―	-2.76%	-44.71%
5609	69 Neutral	¥4.23B	16.22		3.41%	-8.45%	-42.89%
5446	66 Neutral	¥4.88B	9.66		3.57%	-15.00%	9.27%
5986	65 Neutral	¥4.68B	14.46		1.94%	-0.82%	-9.80%
Sector *	61 Neutral	$10.41B	7.18	-0.06%	2.87%	2.87%	-36.73%
5476	45 Neutral	¥6.92B	―		12.44%	4.33%	-234.35%