Nakayama Steel Works,Ltd. AI Stock Analysis
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Nakayama Steel Works,Ltd. (5408) AI Stock Analysis
Nakayama Steel Works,Ltd.
(TSE/TYO:5408)
The score is held back primarily by very weak technicals (price below all key moving averages with strongly bearish momentum signals). Financial performance is mixed: the balance sheet is conservative and cash flow improved in 2026, but multi-year revenue declines and a sharp drop in net income reduce confidence in near-term fundamentals. Valuation helps offset these risks with a low P/E and a healthy dividend yield.
Nakayama Steel Works,Ltd. (5408) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 30.91B
- Dividend Yield
- 3.70%
- Average Volume (3M)
- 235.55K
- Price to Earnings (P/E)
- 9.5
- Beta (1Y)
- 0.70
- Revenue Growth
- -6.05%
- EPS Growth
- -30.30%
- Country
- Japan
- Employees
- 1,285
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Steel
Nakayama Steel Works,Ltd. Business Overview & Revenue Model
Company Description
Operating in Japan, Nakayama Steel Works, Ltd. is a diversified company with core operations in steel production, engineering, building materials, and real estate. Its extensive steel product portfolio includes various coil types such as hot-rolled,...
Nakayama Steel Works,Ltd. Financial Statement Overview
Summary
Balance sheet strength (low leverage with debt-to-equity ~0.09–0.11 and rising equity through 2026) supports resilience in a cyclical steel market, and cash flow improved materially in 2026 (operating cash flow 15.2B; free cash flow 10.2B). However, financial performance is capped by weakening fundamentals: revenue declined for three consecutive years and net income fell sharply from 10.2B (2023) to 2.5B (2026), alongside margin compression.
Income Statement
56NeutralBalance Sheet
72PositiveCash Flow
63Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 147.71B | 148.31B | 169.33B | 184.44B | 188.51B | 166.70B |
| Gross Profit | 17.54B | 18.54B | 22.08B | 25.16B | 26.06B | 19.80B |
| EBITDA | 6.37B | 6.64B | 11.52B | 15.05B | 16.61B | 9.46B |
| Net Income | 3.29B | 2.46B | 5.70B | 8.90B | 10.23B | 4.82B |
Balance Sheet | ||||||
| Total Assets | 157.16B | 152.37B | 149.15B | 152.09B | 148.79B | 143.62B |
| Cash, Cash Equivalents and Short-Term Investments | 26.28B | 23.25B | 15.35B | 16.49B | 16.77B | 15.77B |
| Total Debt | 8.38B | 8.52B | 9.45B | 9.87B | 10.74B | 16.21B |
| Total Liabilities | 46.32B | 43.22B | 42.33B | 47.53B | 51.92B | 54.68B |
| Stockholders Equity | 110.83B | 109.15B | 106.81B | 104.55B | 96.86B | 88.93B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 10.16B | 2.99B | 1.35B | 9.28B | -11.29B |
| Operating Cash Flow | 0 | 15.24B | 7.38B | 5.15B | 13.01B | -8.76B |
| Investing Cash Flow | 0 | -5.00B | -4.88B | -2.30B | -3.46B | -2.31B |
| Financing Cash Flow | 0 | -2.33B | -3.63B | -3.14B | -8.54B | 8.39B |
Nakayama Steel Works,Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5408, the sentiment is Negative. The current price of 514.00 is below the 20-day moving average (MA) of 562.75, below the 50-day MA of 599.95, and below the 200-day MA of 610.99, indicating a bearish trend. The MACD of -25.99 indicates Positive momentum. The RSI at 24.58 is Positive, neither overbought nor oversold. The STOCH value of 14.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5408.
Nakayama Steel Works,Ltd. Peers Comparison
Overall Rating
JP:545184Outperform
JP:546370.75Outperform
JP:547169Neutral
JP:544067Neutral
JP:542360Neutral- JP:540858Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5451 | 84Outperform | JPY 212.05B | 9.26 | 10.70% | 6.64% | -2.46% | 56.68% |
| JP:5463 | 71Outperform | JPY 387.96B | 12.61 | ― | 3.14% | 4.20% | 2.18% |
| JP:5471 | 69Neutral | JPY 392.82B | 10.48 | 7.98% | 2.80% | 8.38% | 34.65% |
| JP:5440 | 67Neutral | JPY 73.58B | 9.65 | ― | 5.27% | 6.83% | -31.05% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| JP:5423 | 60Neutral | JPY 188.49B | 19.23 | 4.29% | 2.57% | -0.62% | -39.61% |
| JP:5408 | 58Neutral | JPY 34.46B | 9.49 | ― | 3.70% | -6.05% | -30.30% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5408 | Nakayama Steel Works,Ltd. | 514.00 | -44.90 | -8.03% | |
| JP:5471 | Daido Steel Co | 1964.50 | 478.55 | 32.20% | |
| JP:5423 | Tokyo Steel Manufacturing Co | 1749.00 | 378.64 | 27.63% | |
| JP:5451 | Yodogawa Steel Works, Ltd. | 1370.00 | 190.03 | 16.11% | |
| JP:5440 | Kyoei Steel Ltd. | 1708.00 | -487.64 | -22.21% | |
| JP:5463 | Maruichi Steel Tube Ltd. | 1638.50 | 347.17 | 26.88% |
Nakayama Steel Works,Ltd. Corporate Events
Nakayama Steel Profit Rises Despite Sharp Operating Decline
Nakayama Steel Works reported six-month net sales of ¥75.225 billion, down 1.8% year on year, while operating profit fell 69.8% to ¥910 million. Ordinary profit shifted to a ¥182 million loss from a ¥2.932 billion profit, although profit attributable...
Nakayama Steel Restarts Fire-Hit Funamachi Mill, Evaluates Financial Impact
Nakayama Steel Works, Ltd. has resumed operations at the Funamachi Plant’s hot strip and plate mill following a fire that occurred on September 12, 2026, after completing inspections, restoration work, and safety confirmations with relevant organizat...
Nakayama Steel Works Raises ¥8.7 Billion Via Third-Party Share Allotment to Hanwa and YODOKO
Nakayama Steel Works has completed payment for a third-party allotment of new and treasury shares to Hanwa Co., Ltd. and YODOKO, Ltd., raising approximately ¥8.69 billion at an issue price of ¥666 per share. As a result of the transaction, Hanwa has...
Nakayama Steel Targets Mid-October Restart at Fire-Hit Funamachi Mill
Nakayama Steel Works said operations at the hot strip and plate mill of its Funamachi Plant remain suspended following a fire on September 12, 2026, but an on-site inspection found only minor damage to the furnace equipment itself, with some power ca...
Nakayama Steel Works Halts Mill After Fire at Osaka Funamachi Plant
Nakayama Steel Works, Ltd. reported that a fire broke out at around 2:50 a.m. on September 12, 2026, at the hot strip and plate mill of its Funamachi Plant in Osaka. The blaze was extinguished within about 30 minutes and, while some power cables for...
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.
Date of analysis: Nov 10, 2026