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

• Market Cap: ¥4.37B
• Dividend Yield: 2.05%
• Average Volume (3M): 34.84K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.85
• Revenue Growth: -0.54%
• EPS Growth: 5.46%
• Country: JP
• Employees: 734
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Steel
• EPS (TTM): 10.42
• Shares Outstanding: 22,558,064
• 10 Day Avg. Volume: 24,120
• 30 Day Avg. Volume: 34,843
• PEG Ratio: -1.22
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 73 Outperform
• Price Target: ¥213.00 ▲(12.11%Upside)

The technical analysis is the strongest factor, indicating bullish momentum. Financial performance shows stability but requires improvements in profitability and cash flow. Valuation metrics suggest the stock is fairly valued.

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

Company Description

Molitec Steel Co., Ltd. (5986) is a specialized manufacturer in the steel industry, primarily focusing on the production and processing of rolled steel products. The company caters to various sectors, including automotive, construction, and industrial machinery, providing high-quality steel components and materials that are essential for these industries. Molitec Steel Co., Ltd. is known for its innovation and commitment to delivering durable and reliable steel solutions to its diverse clientele.

How the Company Makes Money

Molitec Steel Co., Ltd. generates revenue through the manufacture and sale of rolled steel products. Its key revenue streams include supplying steel components to the automotive industry, which demands precision-engineered and robust materials. Additionally, the company serves the construction and industrial machinery sectors, offering customized steel solutions that meet the specific needs of these industries. The company's earnings are further bolstered by strategic partnerships with major industrial players, allowing it to maintain a steady demand for its products. Molitec Steel Co., Ltd. benefits from its investment in advanced technology and efficient production processes, which enhance its competitiveness and profitability in the steel market.

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, which need improvement.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.72B	50.50B	50.77B	36.33B	27.56B	22.29B
Gross Profit	4.76B	4.78B	4.49B	3.14B	3.15B	2.17B
EBITDA	1.39B	1.40B	1.29B	274.59M	1.32B	611.38M
Net Income	368.10M	329.37M	312.33M	-704.78M	254.30M	-329.74M
Balance Sheet
Total Assets	24.59B	36.53B	37.23B	36.49B	23.83B	22.59B
Cash, Cash Equivalents and Short-Term Investments	3.83B	4.87B	5.71B	4.84B	2.67B	3.48B
Total Debt	1.23B	6.39B	5.51B	5.67B	1.43B	1.48B
Total Liabilities	11.52B	21.91B	23.05B	23.57B	10.58B	9.70B
Stockholders Equity	13.00B	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: 190.00
• 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 190 is above the 20-day moving average (MA) of 189.75, above the 50-day MA of 184.00, and above the 200-day MA of 176.68, indicating a bullish trend. The MACD of 1.48 indicates Positive momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 70.24 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	78 Outperform	¥4.93B	7.84		2.78%	-7.18%	15.81%
5986	73 Outperform	¥4.37B	13.26		2.05%	-0.54%	5.46%
5491	72 Outperform	¥4.93B	6.98		―	-0.22%	-54.50%
5609	69 Neutral	¥4.33B	18.37		3.37%	-10.51%	-63.75%
5446	65 Neutral	¥4.73B	8.30		5.69%	-9.72%	22.17%
5476	44 Neutral	¥5.66B	―		12.44%	0.44%	-217.04%
Sector *	43 Neutral	AU$1.37B	-6.17	-40.62%	4.19%	-4.78%	-42.91%