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NIPPON STEEL
(5401)
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Rating:60Neutral
Price Target:
¥710.00
▲(4.87% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weakening fundamentals—sharp margin/ROE deterioration, higher leverage, and negative free cash flow—despite strong revenue growth. Offsetting this, technicals show a clear uptrend with positive momentum, and valuation is supported by a moderate P/E and an exceptionally high dividend yield.
Positive Factors
Diversified integrated business
Nippon Steel's integrated model and non-steel businesses spread revenue across automotive, construction, energy and engineering services. This structural diversification and downstream processing capability supports more stable cash flows and the potential for higher-value margins over the medium term.
Negative Factors
Profitability collapse
Margins have compressed sharply, eroding the company's earnings buffer against commodity and volume swings. Persistently low operating profitability limits internal funding for capex and R&D, undermines ROE, and makes it harder to rebuild reserves during cyclic recoveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified integrated business
Nippon Steel's integrated model and non-steel businesses spread revenue across automotive, construction, energy and engineering services. This structural diversification and downstream processing capability supports more stable cash flows and the potential for higher-value margins over the medium term.
Read all positive factors
NIPPON STEEL (5401) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.59T
Dividend Yield10.64%
Average Volume (3M)20.68M
Price to Earnings (P/E)12.3
Beta (1Y)0.75
Revenue Growth27.76%
EPS GrowthN/A
CountryJP
Employees138,453
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)3.28
Shares Outstanding5,373,634,000
10 Day Avg. Volume19,655,670
30 Day Avg. Volume20,676,073
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)0.54
Price to Sales (P/S)0.30
P/FCF Ratio-17.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)52.89
Revenue Forecast (FY)¥11.55T
NIPPON STEEL Business Overview & Revenue Model
Company Description
Nippon Steel Corporation, a Tokyo-headquartered enterprise founded in 1950, conducts diverse industrial operations across Japan and globally. The company, which rebranded from Nippon Steel & Sumitomo Metal Corporation in April 2019, focuses its bu...
How the Company Makes Money
NIPPON STEEL primarily makes money by manufacturing and selling steel products, with revenues largely driven by shipment volumes and the realized selling prices (which are influenced by global steel supply-demand conditions, raw-material costs suc...
NIPPON STEEL Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.06T | 8.70T | 8.87T | 7.98T | 6.81T |
| Gross Profit | 1.44T | 1.37T | 1.39T | 1.29T | 1.22T |
| EBITDA | 847.95B | 970.15B | 1.04T | 1.10T | 1.03T |
| Net Income | 17.16B | 350.23B | 549.37B | 694.02B | 637.32B |
Balance Sheet | |||||
| Total Assets | 14.66T | 10.94T | 10.71T | 9.57T | 8.75T |
| Cash, Cash Equivalents and Short-Term Investments | 461.26B | 696.31B | 464.91B | 687.96B | 572.38B |
| Total Debt | 5.17T | 2.51T | 2.71T | 2.70T | 2.65T |
| Total Liabilities | 8.64T | 5.04T | 5.36T | 4.92T | 4.86T |
| Stockholders Equity | 5.53T | 5.38T | 4.78T | 4.18T | 3.47T |
Cash Flow | |||||
| Free Cash Flow | -172.72B | 360.40B | 543.81B | 191.26B | 148.73B |
| Operating Cash Flow | 716.94B | 978.59B | 1.01T | 661.27B | 615.63B |
| Investing Cash Flow | -2.84T | -462.43B | -710.65B | -364.66B | -375.98B |
| Financing Cash Flow | 1.89T | -313.33B | -543.95B | -199.58B | -64.19B |
NIPPON STEEL Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥468.47B | 13.03 | 7.28% | 2.99% | 4.19% | 31.79% | |
69 Neutral | ¥796.05B | 11.91 | 7.80% | 4.03% | -3.45% | -50.06% | |
63 Neutral | ¥205.19B | 19.05 | 5.08% | 1.80% | 2.78% | 24.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥3.59T | 12.27 | 0.33% | 11.30% | 27.76% | ― | |
60 Neutral | ¥1.10T | 12.43 | 2.76% | 4.46% | -3.75% | 31.87% | |
60 Neutral | ¥186.09B | 18.28 | 4.46% | 2.87% | -12.89% | -45.51% |
* Basic Materials Sector Average
JP:5401
NIPPON STEEL
671.00
71.17
11.86%
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NIPPON STEEL Corporate Events
Nippon Steel Lifts Full-Year Profit Outlook on Strong U.S. Steel Gains
Aug 4, 2026
Nippon Steel Corporation has raised its consolidated forecasts for the fiscal year ending March 31, 2027, signaling stronger expected performance despite a more challenging external environment. The company now projects revenue of 5.6 trillion yen...
Nippon Steel lifts profit outlook as overseas steel gains offset domestic softness
Aug 4, 2026
Nippon Steel reported a sharp year-on-year rise in consolidated revenue to ¥2.82 trillion for the three months ended June 30, 2026, driven largely by overseas operations, including contributions from U.S. Steel, and a sizable positive swing i...
Nippon Steel Swings Back to Profit and Lifts Full-Year Outlook
Aug 4, 2026
Nippon Steel posted a sharp turnaround for the quarter ended June 30, 2026, with revenue rising 40.4% year on year to ¥2.82 trillion and business profit surging 58.1% to ¥145.5 billion, reversing heavy losses recorded in the same period ...
Nippon Steel Lowers Convertible Bond Conversion Prices After Dividend Payout
Jun 23, 2026
Nippon Steel has adjusted the conversion prices on its zero coupon convertible bonds due 2029 and 2031, lowering them to ¥716.9 and ¥723.5 respectively, effective April 1, 2026. The move alters the terms under which bondholders can conve...
Nippon Steel Board Rejects Shareholder Proposal on Subsidiary Governance
May 21, 2026
Nippon Steel’s board has formally opposed a shareholder proposal submitted by two investors holding less than 0.01% of voting rights, which was slated for discussion at the company’s upcoming general meeting. The board argues that the ...
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.