Nippon Steel & Sumitomo Metal (NPSCY) AI Stock Analysis

• Market Cap: $19.79B
• Dividend Yield: 3.79%
• Average Volume (3M): 187.66K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.74
• Revenue Growth: -5.86%
• EPS Growth: -33.57%
• Country: US
• Employees: 113,639
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): -0.12
• Shares Outstanding: 3,224,212,400
• 10 Day Avg. Volume: 199,003
• 30 Day Avg. Volume: 187,661
• PEG Ratio: 0.16
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.03
• 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

• Rating: 68 Neutral
• Price Target: ―

Nippon Steel & Sumitomo Metal's overall stock performance is supported by strong financials with good revenue growth and profitability. Technical indicators show some short-term bearish signs, but valuation metrics suggest the stock is attractively priced with a low P/E ratio and a strong dividend yield. The company's high debt levels are a risk factor, but its solid equity ratio and cash flow management provide stability. Overall, it's a sound investment with some caution on technical trends.

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 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 shows strong growth and profitability momentum with increasing revenue and improved margins. The balance sheet reflects stability with moderate leverage and good equity ratios, but high liabilities remain a concern. Cash flow management appears sound with positive free cash flow, though sustaining cash flow growth needs focus. Overall, the company is on a solid financial footing but should continue to manage liabilities and optimize cash flow.

Income Statement

The income statement shows a strong performance with a consistent increase in revenue from 2021 to TTM, indicative of growth. Gross Profit Margin and Net Profit Margin are healthy at 15.63% and 5.36% respectively for TTM, with Net Profit Margin showing a positive trend after a loss in 2021. EBITDA Margin stands at 10.41% for TTM, reflecting efficiency in operations. However, a decline in EBIT and Net Income in TTM compared to the annual report suggests potential challenges in maintaining profitability.

Balance Sheet

The balance sheet is stable with a good Equity Ratio of 47.67% for TTM, indicating a solid base of equity financing. The Debt-to-Equity Ratio has improved to 0.53, showing effective management of leverage. Return on Equity is at 8.95% for TTM, demonstrating decent profitability from shareholders' investments. However, the high total liabilities pose a risk, and further reduction in debt could enhance financial health.

Cash Flow

The cash flow statement indicates a positive Free Cash Flow despite a decrease in Operating Cash Flow in TTM compared to the annual report. The Free Cash Flow to Net Income Ratio stands favorable, suggesting adequate cash generation. However, the decline in Free Cash Flow Growth Rate from the previous period highlights a need for attention to capital expenditures and cash management strategies.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
8.78T	8.87T	7.98T	6.81T	4.83T	5.92T
	Gross Profit
1.37T	1.39T	1.28T	1.21T	560.91B	613.82B
	EBIT
633.20B	778.66B	714.15B	676.83B	96.20B	37.38B
	EBITDA
913.49B	1.16T	1.23T	1.01T	382.29B	454.72B
	Net Income Common Stockholders
470.54B	549.37B	694.02B	637.32B	-32.43B	-431.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
736.11B	482.82B	687.96B	572.38B	359.46B	304.38B
	Total Assets
11.02T	10.71T	9.57T	8.75T	7.57T	7.44T
	Total Debt
2.79T	2.71T	2.70T	2.65T	2.56T	2.49T
	Net Debt
2.05T	2.26T	2.03T	2.10T	2.20T	2.20T
	Total Liabilities
5.18T	5.36T	4.92T	4.86T	4.44T	4.45T
	Stockholders Equity
5.26T	4.78T	4.18T	3.47T	2.76T	2.64T
Cash Flow		Free Cash Flow
254.00B	543.81B	191.26B	148.73B	-56.63B	33.77B
	Operating Cash Flow
374.57B	1.01T	661.27B	615.63B	403.19B	494.33B
	Investing Cash Flow
-295.81B	-710.65B	-364.66B	-375.98B	-389.04B	-345.63B
	Financing Cash Flow
-210.85B	-543.95B	-197.66B	-61.30B	52.69B	-14.58B

Nippon Steel & Sumitomo Metal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.34
• 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 6.34 is below the 20-day moving average (MA) of 6.61, below the 50-day MA of 6.71, and below the 200-day MA of 6.95, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 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
NUE	73 Outperform	$29.12B	22.47	6.54%	1.77%	-10.88%	-66.97%
PKX	71 Outperform	$13.80B	22.35	1.64%	2.90%	-8.83%	-43.85%
STLD	71 Outperform	$19.32B	17.20	13.08%	1.54%	-7.42%	-48.08%
NPSCY	68 Neutral	$19.79B	8.43	6.77%	3.79%	-5.86%	-33.57%
MT	67 Neutral	$24.79B	17.64	2.60%	0.78%	-8.56%	68.36%
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%