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Kobe Steel
(5406)
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Rating:69Neutral
Price Target:
¥2,175.00
▲(7.01% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily supported by improved financial health (notably reduced leverage) and decent profitability versus earlier years, plus a reasonable valuation with a solid dividend yield. This is tempered by signs of late-cycle pressure (FY2026 revenue decline and margin compression from FY2024 highs) and mixed, mostly neutral technical signals.
Positive Factors
Deleveraging
Sustained deleveraging and rising equity strengthen financial resilience, reduce interest and refinancing risk, and give Kobe Steel greater flexibility to fund operations and investment through industrial cycles.
Negative Factors
Revenue Contraction
The recent revenue decline suggests demand has cooled across the cyclical industrial portfolio. Prolonged weakness in automotive, construction, infrastructure, or manufacturing customers could constrain volumes and limit operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging
Sustained deleveraging and rising equity strengthen financial resilience, reduce interest and refinancing risk, and give Kobe Steel greater flexibility to fund operations and investment through industrial cycles.
Read all positive factors
Kobe Steel (5406) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥799.00B
Dividend Yield3.96%
Average Volume (3M)1.84M
Price to Earnings (P/E)11.8
Beta (1Y)0.80
Revenue Growth-3.45%
EPS Growth-50.06%
CountryJP
Employees38,614
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)170.65
Shares Outstanding396,345,980
10 Day Avg. Volume1,901,770
30 Day Avg. Volume1,835,069
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.59
Price to Sales (P/S)0.31
P/FCF Ratio9.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,982.50Price Target Upside-2.46% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)248.45
Revenue Forecast (FY)¥2.57T
Kobe Steel Business Overview & Revenue Model
Company Description
Kobe Steel, Ltd. is a diversified Japanese industrial group with extensive operations in materials manufacturing, machinery production, and electric power generation. The company serves global markets spanning Japan, the Americas, Europe, the Midd...
How the Company Makes Money
Kobe Steel makes money primarily by manufacturing and selling industrial products and related services across its major business lines. A key revenue stream is the sale of materials—particularly steel products—where the company earns revenue from ...
Kobe Steel Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
76
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.45T | 2.44T | 2.56T | 2.54T | 2.47T | 2.08T |
| Gross Profit | 397.90B | 403.22B | 434.19B | 446.60B | 331.44B | 316.08B |
| EBITDA | 230.02B | 258.23B | 278.02B | 296.53B | 224.49B | 202.92B |
| Net Income | 67.28B | 93.72B | 120.18B | 109.55B | 72.57B | 60.08B |
Balance Sheet | ||||||
| Total Assets | 2.83T | 2.87T | 2.89T | 2.92T | 2.87T | 2.73T |
| Cash, Cash Equivalents and Short-Term Investments | 176.23B | 189.23B | 220.12B | 278.84B | 203.52B | 260.70B |
| Total Debt | 734.00B | 769.92B | 889.81B | 874.73B | 908.14B | 961.14B |
| Total Liabilities | 1.51T | 1.53T | 1.65T | 1.79T | 1.90T | 1.86T |
| Stockholders Equity | 1.26T | 1.26T | 1.16T | 1.06T | 913.96B | 815.33B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 77.25B | 34.99B | 110.42B | 20.73B | 12.36B |
| Operating Cash Flow | 0.00 | 201.68B | 148.26B | 205.28B | 119.69B | 168.81B |
| Investing Cash Flow | 0.00 | -73.66B | -113.87B | -53.72B | -97.27B | -147.81B |
| Financing Cash Flow | 0.00 | -162.41B | -96.23B | -81.21B | -85.56B | -82.84B |
Kobe Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥472.27B | 12.82 | 7.28% | 2.99% | 4.19% | 31.79% | |
69 Neutral | ¥799.00B | 11.85 | 7.80% | 4.03% | -3.45% | -50.06% | |
63 Neutral | ¥206.47B | 18.96 | 5.08% | 1.80% | 2.78% | 24.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥1.11T | 12.41 | 2.76% | 4.46% | -3.75% | 31.87% | |
60 Neutral | ¥3.62T | 12.16 | 0.33% | 11.30% | 27.76% | ― | |
60 Neutral | ¥189.14B | 18.27 | 4.46% | 2.87% | -12.89% | -45.51% |
* Basic Materials Sector Average
JP:5406
Kobe Steel
2,022.00
283.06
16.28%
JP:5471
Daido Steel Co
2,257.00
1,025.43
83.26%
JP:5411
JFE Holdings
1,839.00
77.03
4.37%
JP:5401
NIPPON STEEL
671.00
72.13
12.04%
JP:5423
Tokyo Steel Manufacturing Co
1,731.00
123.15
7.66%
JP:5482
Aichi Steel Corporation
3,210.00
458.44
16.66%
Kobe Steel Corporate Events
Kobe Steel Profit Slumps Despite Higher Sales, Keeps Dividend Outlook
Aug 5, 2026
Kobe Steel reported consolidated net sales of ¥578.3 billion for the three months ended June 30, 2026, up 1.6% year on year, but operating profit fell 34.8% to ¥20.4 billion and profit attributable to owners of parent plunged 68.4% to &#...
Kobe Steel Lowers Conversion Prices on 2028 and 2030 Convertible Bonds After Extraordinary Dividend
May 20, 2026
Kobe Steel has adjusted the conversion prices on its zero coupon convertible bonds maturing in 2028 and 2030, reflecting changes triggered by recent corporate actions. The conversion price for the 2028 bonds was reduced from ¥2,212.8 to ¥...
Kobe Steel Cuts Annual Dividend Payout While Meeting Forecast
May 20, 2026
Kobe Steel, Ltd. has approved a year-end cash dividend of 40 yen per share for the fiscal year ended March 31, 2026, with the payment sourced from retained earnings and effective June 5, 2026. The total payout will be 15,839 million yen, aligning ...
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.