Nippon Steel & Sumitomo Metal (NPSCY) AI Stock Analysis

• Market Cap: $21.47B
• Dividend Yield: 3.45%
• Average Volume (3M): 109.10K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.79
• Revenue Growth: -5.86%
• EPS Growth: -33.57%
• Country: US
• Employees: 113,639
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.06
• Shares Outstanding: 3,224,212,400
• 10 Day Avg. Volume: 229,000
• 30 Day Avg. Volume: 109,099
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.39
• Price to Cash Flow (P/CF): N/A
• 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

Nippon Steel & Sumitomo Metal demonstrates solid financial performance with growth in revenue and profitability, supported by a stable balance sheet. However, technical signals are weak, suggesting possible bearish trends. Valuation metrics are favorable, with a low P/E ratio and strong dividend yield, providing a compelling case for value-oriented investors.

Nippon Steel & Sumitomo Metal Business Overview & Revenue Model

Company Description

Nippon Steel & Sumitomo Metal Corporation (NPSCY), now known as Nippon Steel Corporation, is a leading Japanese steel producer, formed through the merger of Nippon Steel and Sumitomo Metal in 2012. The company operates across various sectors, including steelmaking, engineering, construction, chemicals, and new materials. Its core products include steel sheets, plates, bars, pipes, and tubes, which are essential for industries such as automotive, construction, and energy.

How the Company Makes Money

Nippon Steel & Sumitomo Metal Corporation generates revenue primarily through the production and sale of steel products. The company operates a vertically integrated business model, from raw material extraction and processing to manufacturing and distribution. Key revenue streams include the sale of flat steel products like sheets and plates, which are heavily used in automotive and construction industries, and long steel products such as bars and rods for infrastructure projects. Additionally, the company engages in engineering and construction projects, both domestically and internationally, contributing to its revenue. Strategic partnerships and joint ventures, particularly in emerging markets, also play a significant role in expanding their market reach and boosting earnings.

Nippon Steel & Sumitomo Metal Financial Statement Overview

Summary

Nippon Steel & Sumitomo Metal exhibits strong revenue growth and operational efficiency, as indicated by stable EBIT and EBITDA margins. The balance sheet shows prudent leverage and a solid return on equity, while cash flow generation is robust, supported by significant free cash flow growth. However, attention is needed on net profit margin declines and optimizing cost structures.

Income Statement

Nippon Steel & Sumitomo Metal shows strong revenue growth, with a 11.2% increase over the last year. The gross profit margin stands at 15.6%, indicating efficient production processes. However, net profit margin has decreased to 6.2%, signaling higher expenses or cost pressures that need attention. EBIT and EBITDA margins are healthy at 8.8% and 13.1%, respectively, suggesting operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.57, reflecting balanced leverage. Return on equity is solid at 11.5%, indicating effective use of equity capital. The equity ratio of 44.6% suggests a stable financial structure, though there is room to increase asset financing through equity.

Cash Flow

Operating cash flow has grown significantly, outpacing net income, which indicates robust cash generation from operations. Free cash flow growth is impressive at 184.4%, suggesting improved cash management and capital efficiency. Operating cash flow to net income ratio stands at 1.84, highlighting strong operational cash flow relative to reported earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
8.86T	8.87T	7.98T	6.81T	4.83T	5.92T
	Gross Profit
1.41T	1.39T	1.28T	1.21T	560.91B	613.82B
	EBIT
741.87B	778.66B	714.15B	676.83B	96.20B	37.38B
	EBITDA
1.01T	1.16T	1.23T	1.01T	382.29B	454.72B
	Net Income Common Stockholders
529.87B	549.37B	694.02B	637.32B	-32.43B	-431.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.92B	482.82B	687.96B	572.38B	359.46B	304.38B
	Total Assets
5.00T	10.71T	9.57T	8.75T	7.57T	7.44T
	Total Debt
1.38T	2.71T	2.70T	2.65T	2.56T	2.49T
	Net Debt
1.31T	2.26T	2.03T	2.10T	2.20T	2.20T
	Total Liabilities
2.67T	5.36T	4.92T	4.86T	4.44T	4.45T
	Stockholders Equity
1.84T	4.78T	4.18T	3.47T	2.76T	2.64T
Cash Flow		Free Cash Flow
436.85B	543.81B	191.26B	148.73B	-56.63B	33.77B
	Operating Cash Flow
806.38B	1.01T	661.27B	615.63B	403.19B	494.33B
	Investing Cash Flow
-543.00B	-710.65B	-364.66B	-375.98B	-389.04B	-345.63B
	Financing Cash Flow
-428.23B	-543.95B	-197.66B	-61.30B	52.69B	-14.58B

Nippon Steel & Sumitomo Metal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSCY, the sentiment is Negative. The current price of 6.95 is below the 20-day moving average (MA) of 7.28, below the 50-day MA of 7.39, and below the 200-day MA of 7.07, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 32.62 is Neutral, neither overbought nor oversold. The STOCH value of 20.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPSCY.

Nippon Steel & Sumitomo Metal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MT	73 Outperform	$21.51B	15.81	2.60%	1.58%	-8.56%	68.36%
STLD	73 Outperform	$18.05B	12.23	17.27%	1.56%	-6.68%	-32.96%
NUE	71 Outperform	$25.67B	13.15	9.79%	1.96%	-11.46%	-53.33%
NPSCY	65 Neutral	$21.47B	6.53	9.28%	3.45%	-5.86%	-33.57%
PKX	65 Neutral	$12.96B	17.22	2.06%	3.56%	-9.67%	-37.38%
X	57 Neutral	$9.07B	25.63	3.43%	0.50%	-13.48%	-56.94%
Sector *	47 Neutral	$2.49B	-2.97	-22.82%	3.51%	4.13%	-28.53%