Nippon Steel & Sumitomo Metal (NPSCY) AI Stock Analysis

• Market Cap: $19.89B
• Dividend Yield: 3.8%
• Average Volume (3M): 147.75K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.79
• Revenue Growth: 2.11%
• EPS Growth: -41.09%
• Country: US
• Employees: 113,639
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 5,373,632,000
• 10 Day Avg. Volume: 123,231
• 30 Day Avg. Volume: 147,748
• PEG Ratio: -1.37
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 44.60
• Enterprise Value/Market Cap: 394.71
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 9.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $4.00 ▼(-1.23% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Nippon Steel & Sumitomo Metal's overall stock score reflects a stable financial position with strong cash flow management, but is weighed down by technical indicators showing lack of momentum and a concerning valuation with a negative P/E ratio. The dividend yield offers some compensation, but the stock faces challenges in earnings and market sentiment.

Positive Factors

Balance sheet strength

Lower debt-to-equity and a ~49% equity ratio indicate improved leverage management and a more resilient capital structure. This reduces refinancing risk, preserves financial flexibility for capex or cyclical downturns, and supports sustained operations over months to years.

Strong free cash flow growth

Robust free cash flow growth enhances the company's ability to fund investments, service obligations, and return capital. Consistent FCF expansion strengthens liquidity buffers and enables strategic actions without relying on external financing over the medium term.

Stable gross profit margin

A stable gross margin near mid-teens suggests durable cost competitiveness or pricing power in core steel operations. Maintaining underlying gross profitability cushions the business against cyclical sales swings and supports long-term margin recovery initiatives.

Negative Factors

Declining net margins

Wider erosion in net and operating margins weakens earnings power and reduces retained cash for reinvestment. If margin compression persists from cost or pricing pressures, it can materially limit capital allocation flexibility and long-term return on invested capital.

Revenue contraction

A recent drop in revenue undermines scale economics and can exacerbate margin pressure in a capital-intensive industry. Continued top-line weakness risks market-share erosion and could necessitate prolonged cost restructuring to restore profitability.

Earnings volatility

A dramatic negative EPS growth rate points to volatile or deteriorating profitability, which impairs forecasting and strategic planning. Persistent earnings swings undermine investor confidence and make sustaining investment, dividend, or deleveraging plans more difficult.

Nippon Steel & Sumitomo Metal Business Overview & Revenue Model

Company Description

Nippon Steel Corporation, together with its subsidiaries, engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company's steelmaking and steel fabrication business offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. Its engineering and construction business cover the manufacture and sale of industrial machinery; equipment and steel structures; construction projects under contract; waste processing and recycling; and supply of electricity, gas, and heat. The company's chemicals and materials comprise the manufacture and sale of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber and composite products, and products that utilize technologies for metal processing. Its system solutions business includes computer systems engineering and consulting services; and IT-enabled outsourcing and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. Nippon Steel Corporation was founded in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Nippon Steel & Sumitomo Metal Financial Statement Overview

Summary

Nippon Steel & Sumitomo Metal shows a stable financial position with strong cash flow generation and leverage management. Despite revenue contraction and declining profit margins, the company maintains a solid balance sheet and robust cash flow performance.

Income Statement

Nippon Steel & Sumitomo Metal's income statement reveals a mixed performance. The company experienced a revenue decline in the most recent year, with a negative growth rate of -0.95%. Gross profit margin remained stable around 15.77%, but net profit margin decreased to 4.03% from 6.19% the previous year. EBIT and EBITDA margins also declined, indicating reduced operational efficiency. Despite these challenges, the company has shown resilience in maintaining profitability in a competitive industry.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.47, showing a decrease from the previous year's 0.57, which suggests improved leverage management. Return on equity (ROE) is at 6.51%, reflecting moderate profitability. The equity ratio stands at 49.19%, indicating a healthy proportion of equity financing. Overall, the balance sheet reflects a solid foundation with manageable debt levels.

Cash Flow

Cash flow analysis shows a positive trajectory with a free cash flow growth rate of 41.89%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.42, suggesting strong cash flow relative to net income. However, the free cash flow to net income ratio of 0.37 indicates room for improvement in converting income to free cash flow. Overall, cash flow management appears robust, supporting operational needs and potential investments.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.51T	8.70T	8.87T	7.98T	6.81T	4.83T
Gross Profit	1.31T	1.37T	1.39T	1.28T	1.21T	560.91B
EBITDA	813.89B	954.04B	1.16T	1.23T	1.03T	382.29B
Net Income	-3.17B	350.23B	549.37B	694.02B	637.32B	-32.43B
Balance Sheet
Total Assets	13.82T	10.94T	10.71T	9.57T	8.75T	7.57T
Cash, Cash Equivalents and Short-Term Investments	524.00B	713.95B	482.82B	687.96B	572.38B	359.46B
Total Debt	5.08T	2.51T	2.71T	2.70T	2.65T	2.56T
Total Liabilities	8.33T	5.04T	5.36T	4.92T	4.86T	4.44T
Stockholders Equity	4.99T	5.38T	4.78T	4.18T	3.47T	2.76T
Cash Flow
Free Cash Flow	0.00	360.40B	543.81B	191.26B	148.73B	-56.63B
Operating Cash Flow	0.00	978.59B	1.01T	661.27B	615.63B	403.19B
Investing Cash Flow	0.00	-462.43B	-710.65B	-366.58B	-378.87B	-389.04B
Financing Cash Flow	0.00	-313.33B	-543.95B	-197.66B	-61.30B	52.69B

Nippon Steel & Sumitomo Metal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.05
• 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 4.05 is above the 20-day moving average (MA) of 3.93, below the 50-day MA of 4.15, and below the 200-day MA of 4.08, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.42 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
RS	70 Outperform	$15.03B	20.53	10.27%	1.63%	-0.88%	-25.15%
MT	65 Neutral	$36.78B	11.03	5.87%	1.03%	-4.51%	―
NUE	65 Neutral	$36.12B	21.58	8.49%	1.34%	1.66%	-31.25%
STLD	63 Neutral	$23.75B	21.13	13.31%	1.11%	-1.49%	-31.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NPSCY	55 Neutral	$19.89B	35.95	-0.26%	3.80%	2.11%	-41.09%
PKX	52 Neutral	$17.25B	37.71	1.03%	3.22%	-8.97%	-67.03%