Nippon Steel & Sumitomo Metal (NPSCY) AI Stock Analysis

• Market Cap: $21.11B
• Dividend Yield: 3.77%
• Average Volume (3M): 147.75K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 0.77
• Revenue Growth: 2.11%
• EPS Growth: -41.09%
• Country: US
• Employees: 113,639
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.10
• 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: 2.72
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.07
• 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 ▼(-0.50% Downside)

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

Cash Flow Management

Strong cash flow management supports operational needs and potential investments, indicating financial stability and resilience.

Leverage Management

Improved leverage management enhances financial flexibility and reduces risk, supporting long-term sustainability.

Stable Financial Position

A stable financial position with manageable debt levels ensures the company can withstand market fluctuations and invest in growth.

Negative Factors

Revenue Decline

Declining revenue growth can limit the company's ability to expand and invest in new opportunities, impacting long-term competitiveness.

Declining Margins

Decreasing margins indicate reduced operational efficiency, which can affect profitability and limit reinvestment capacity.

Earnings Challenges

Negative earnings indicators suggest underlying challenges in profitability, potentially affecting investor confidence and growth prospects.

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

Nippon Steel & Sumitomo Metal generates revenue primarily through the sale of steel products and related services. The company earns income from multiple key revenue streams, including the manufacturing and distribution of flat steel products, long steel products, and steel pipes for various industries. Additionally, NPSCY capitalizes on its technological advancements and innovations in steel production to offer high-value specialty steel products, which command higher prices. Strategic partnerships with major automotive and construction firms provide a stable demand for its products, while global market dynamics, such as demand fluctuations and raw material prices, significantly influence its earnings. Furthermore, the company engages in joint ventures and collaborations that enhance its market reach and operational efficiency, contributing to its overall profitability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: 4.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 4.02 is above the 20-day moving average (MA) of 4.01, below the 50-day MA of 4.11, and below the 200-day MA of 4.12, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 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
STLD	77 Outperform	$24.48B	22.24	12.47%	1.14%	-1.49%	-31.82%
NUE	74 Outperform	$37.20B	23.14	7.98%	1.35%	1.66%	-31.25%
RS	73 Outperform	$14.56B	20.36	9.94%	1.67%	-0.88%	-25.15%
MT	71 Outperform	$30.80B	11.38	4.72%	1.10%	-4.51%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PKX	60 Neutral	$15.89B	50.39	0.78%	2.57%	-8.97%	-67.03%
NPSCY	55 Neutral	$21.11B	48.66	-0.26%	3.77%	2.11%	-41.09%

Nippon Steel & Sumitomo Metal Corporate Events

Nippon Steel Reports Q2 2025 Earnings Amid Strategic Expansion

Nippon Steel Corporation, a leading player in the steel manufacturing industry, is known for its extensive production of steel products, catering to various sectors including automotive, construction, and energy. The company has a significant global presence and is recognized for its technological advancements and commitment to sustainability.