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Nippon Steel & Sumitomo Metal
(OTC:NPSCY)
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Rating:46Neutral
Price Target:
$4.50
▲(17.49% Upside)
Action:Reiterated
Date:05/15/26
The score is weighed down primarily by weakening financial performance (near-breakeven profitability, higher leverage, and negative free cash flow) and a weak technical setup (below key moving averages with negative MACD). Valuation is also unfavorable due to an extremely high P/E, with the dividend yield providing only limited support.
Positive Factors
Revenue growth trend
Sustained top-line expansion across the cycle indicates enduring demand for core products and scale advantages in steel markets. Strong 2026 revenue provides a larger base to absorb cyclical volatility, supporting long-run capacity utilization and pricing leverage if margins recover.
Negative Factors
Profitability deterioration
A sharp drop to nearly zero net margin materially reduces earnings resilience and self-funded investment capacity. If margins remain suppressed, the firm's ability to generate returns, sustain dividends and rebuild reserves is impaired, raising structural execution risk in a cyclical industry.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth trend
Sustained top-line expansion across the cycle indicates enduring demand for core products and scale advantages in steel markets. Strong 2026 revenue provides a larger base to absorb cyclical volatility, supporting long-run capacity utilization and pricing leverage if margins recover.
Read all positive factors
Nippon Steel & Sumitomo Metal (NPSCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.16B
Dividend Yield4.19%
Average Volume (3M)147.75K
Price to Earnings (P/E)12.3
Beta (1Y)0.85
Revenue Growth23.81%
EPS GrowthN/A
CountryUS
Employees138,453
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-12.99
Shares Outstanding5,373,632,000
10 Day Avg. Volume123,231
30 Day Avg. Volume147,748
Financial Highlights & Ratios
PEG Ratio-5.24
Price to Book (P/B)1.63
Price to Sales (P/S)0.85
P/FCF Ratio-49.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.3
Revenue Forecast (FY)$72.01B
Nippon Steel & Sumitomo Metal Business Overview & Revenue Model
Company Description
Nippon Steel Corporation, alongside its numerous subsidiaries, conducts a wide array of business operations globally and within Japan. Its core activities span four main divisions: steel manufacturing and fabrication, engineering and construction,...
How the Company Makes Money
null...
Nippon Steel & Sumitomo Metal Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
50
Neutral
Cash Flow
42
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.67T | 8.70T | 8.87T | 7.98T | 6.81T |
| Gross Profit | 1.53T | 1.37T | 1.39T | 1.28T | 1.21T |
| EBITDA | 1.09T | 954.04B | 1.16T | 1.23T | 1.03T |
| Net Income | 18.19B | 350.23B | 549.37B | 694.02B | 637.32B |
Balance Sheet | |||||
| Total Assets | 14.72T | 10.94T | 10.71T | 9.57T | 8.75T |
| Cash, Cash Equivalents and Short-Term Investments | 463.26B | 713.95B | 482.82B | 687.96B | 572.38B |
| Total Debt | 5.20T | 2.51T | 2.71T | 2.70T | 2.65T |
| Total Liabilities | 8.67T | 5.04T | 5.36T | 4.92T | 4.86T |
| Stockholders Equity | 5.55T | 5.38T | 4.78T | 4.18T | 3.47T |
Cash Flow | |||||
| Free Cash Flow | -183.13B | 360.40B | 543.81B | 191.26B | 148.73B |
| Operating Cash Flow | 760.18B | 978.59B | 1.01T | 661.27B | 615.63B |
| Investing Cash Flow | -3.01T | -462.43B | -710.65B | -366.58B | -378.87B |
| Financing Cash Flow | 2.00T | -313.33B | -543.95B | -197.66B | -61.30B |
Nippon Steel & Sumitomo Metal Technical Analysis
Positive
3.83
Price Trends
3.72
Positive
3.68
Positive
3.86
Positive
Market Momentum
0.20
Negative
63.84
Neutral
65.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSCY, the sentiment is Positive. The current price of 3.83 is below the 20-day moving average (MA) of 4.08, above the 50-day MA of 3.72, and below the 200-day MA of 3.86, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 65.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPSCY.
Nippon Steel & Sumitomo Metal Risk Analysis
Nippon Steel & Sumitomo Metal disclosed 42 risk factors in its most recent earnings report. Nippon Steel & Sumitomo Metal reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nippon Steel & Sumitomo Metal Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $21.81B | 24.58 | 12.35% | 1.20% | 15.44% | 25.45% | |
73 Outperform | $61.90B | 21.70 | 13.53% | 0.90% | 17.19% | 126.38% | |
69 Neutral | $37.72B | 23.53 | 17.60% | 0.83% | 19.77% | 60.80% | |
64 Neutral | $55.07B | 30.73 | 3.31% | 0.86% | 3.25% | -27.63% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $16.99B | 18.77 | 2.55% | 3.10% | -3.30% | 157.76% | |
46 Neutral | $23.16B | 12.26 | 5.33% | 4.66% | 23.81% | ― |
* Basic Materials Sector Average
NPSCY
Nippon Steel & Sumitomo Metal
4.26
0.28
7.09%
MT
ArcelorMittal
73.21
39.69
118.41%
NUE
Nucor
272.29
129.85
91.16%
PKX
POSCO
56.58
1.63
2.97%
RS
Reliance Steel
425.15
139.52
48.85%
STLD
Steel Dynamics
260.53
134.56
106.81%
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.