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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)

Rating:73Outperform
Price Target:
¥213.00
▲(8.67%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. (5986) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionMolitec 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 MoneyMolitec 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 with a strong balance sheet. However, it faces challenges in profitability and cash flow management, which need improvement.
Income Statement
62
Positive
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
75
Positive
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
58
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue50.50B50.77B36.33B27.56B22.29B
Gross Profit4.78B4.49B3.14B3.15B2.17B
EBITDA1.40B1.29B274.59M1.32B611.38M
Net Income329.37M312.33M-704.78M254.30M-329.74M
Balance Sheet
Total Assets36.53B37.23B36.49B23.83B22.59B
Cash, Cash Equivalents and Short-Term Investments4.87B5.71B4.84B2.67B3.48B
Total Debt6.39B5.51B5.67B1.43B1.48B
Total Liabilities21.91B23.05B23.57B10.58B9.70B
Stockholders Equity14.54B14.11B12.86B13.18B12.83B
Cash Flow
Free Cash Flow-2.31B1.26B-972.85M-980.21M-81.64M
Operating Cash Flow-1.76B1.84B-316.85M-502.21M774.36M
Investing Cash Flow31.47M-602.67M-587.92M-118.10M-381.37M
Financing Cash Flow696.85M-357.39M2.96B-238.00M-85.44M

Molitec Steel Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price196.00
Price Trends
50DMA
190.88
Positive
100DMA
182.65
Positive
200DMA
177.39
Positive
Market Momentum
MACD
2.08
Negative
RSI
67.57
Neutral
STOCH
77.78
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 196 is above the 20-day moving average (MA) of 193.65, above the 50-day MA of 190.88, and above the 200-day MA of 177.39, indicating a bullish trend. The MACD of 2.08 indicates Negative momentum. The RSI at 67.57 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥5.62B8.94
2.46%-7.18%15.81%
73
Outperform
¥4.55B13.54
1.97%-0.54%5.46%
72
Outperform
¥4.92B7.00
-0.22%-54.50%
69
Neutral
¥4.24B17.98
3.41%-10.51%-63.75%
65
Neutral
¥4.75B8.36
3.64%-9.72%22.17%
45
Neutral
¥6.14B
12.44%0.44%-217.04%
44
Neutral
C$980.54M-6.82-13.68%1.81%17.37%-32.98%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5986
Molitec Steel Co., Ltd.
203.00
-14.28
-6.57%
JP:5446
Hokuetsu Metal Co., Ltd.
1,233.00
-182.76
-12.91%
JP:5476
Nippon Koshuha Steel Co., Ltd.
419.00
-24.00
-5.42%
JP:5491
Nippon Kinzoku Co., Ltd.
735.00
-43.00
-5.53%
JP:5542
Shinhokoku Material Corp.
812.00
182.13
28.92%
JP:5609
Nippon Chuzo K.K.
880.00
-60.76
-6.46%
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: May 27, 2025