Godo Steel,Ltd. (5410) AI Stock Analysis

• Market Cap: ¥57.71B
• Dividend Yield: 6.24%
• Average Volume (3M): 61.98K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.00
• Revenue Growth: -7.29%
• EPS Growth: -17.17%
• Country: JP
• Employees: 2,108
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 200.75
• Shares Outstanding: 17,145,212
• 10 Day Avg. Volume: 49,550
• 30 Day Avg. Volume: 61,976
• PEG Ratio: -0.20
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 4.38
• 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: ¥4,256.00
• Price Target Upside: 7.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥4,256.00 ▲(7.88% Upside)

Godo Steel, Ltd. receives a score of 68, driven primarily by its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive to value investors. However, the company's financial performance is mixed, with declining revenue and profit margins posing challenges. Technical indicators suggest weak momentum, further impacting the overall score.

Godo Steel,Ltd. Business Overview & Revenue Model

Company Description

Godo Steel, Ltd. manufactures and sells steel products in Japan. The company offers wire rods for tire chains, stapler needles, and fencing applications; H-beams and channels that are used in construction, civil engineering, and other sectors; structural bars, which are used as materials for making parts of construction and industrial machinery, ships, and other equipment; and rails. It also provides deformed bars that are used as construction and civil engineering materials; EG joints and anchor plates; and billets. In addition, the company offers reinforcing bars, wire products, firebricks, and ballasts; trucking services; and industrial waste disposal services, as well as sells steel products, machinery, and raw materials for steel making. Further, it is involved in electric furnace dust disposal business; and manufacture and sale of crude zinc oxide, and organic and compound fertilizers. The company was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

Godo Steel generates revenue primarily through the sale of its steel products to various industries, including construction, infrastructure, and automotive manufacturing. The company has established long-term contracts with key customers, ensuring a steady flow of orders and predictable revenue streams. Additionally, Godo Steel engages in value-added services such as steel processing and custom fabrication, which further enhance its earnings. Strategic partnerships with suppliers and distributors also play a vital role in its revenue model, allowing for efficient supply chain management and market penetration. The company's focus on innovation and sustainability, including the adoption of advanced manufacturing technologies, helps in reducing operational costs and improving profit margins.

Godo Steel,Ltd. Financial Statement Overview

Summary

Godo Steel, Ltd. exhibits a mixed financial performance with a strong equity position and efficient cash flow management. However, declining revenue and profit margins suggest operational challenges.

Income Statement

Godo Steel, Ltd. has shown fluctuating revenue and profit margins over the years. The gross profit margin in the most recent year is 17.66%, reflecting a decrease from the previous year. The net profit margin is 5.52%, which is modest but consistent with the industry. However, the recent decline in revenue growth and a shrinking EBIT margin indicate potential challenges in maintaining profitability.

Balance Sheet

The company's balance sheet displays a solid equity position with a debt-to-equity ratio of 0.48, indicating a relatively low level of leverage. The equity ratio stands at 52.83%, suggesting a strong asset base supported by equity. However, the total assets have slightly decreased, which could impact the company's future growth and expansion.

Cash Flow

Cash flow generation is stable, with a positive free cash flow in the latest year. The operating cash flow to net income ratio is 1.69, indicating efficient cash conversion. However, free cash flow growth has been inconsistent, which may pose challenges in funding future investments without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.72B	205.20B	222.85B	235.39B	204.20B	152.78B
Gross Profit	35.97B	36.24B	39.43B	34.60B	17.45B	24.28B
EBITDA	20.70B	21.23B	22.80B	20.20B	4.27B	13.97B
Net Income	11.43B	11.32B	15.19B	12.51B	-1.11B	4.99B
Balance Sheet
Total Assets	252.95B	254.16B	270.81B	253.55B	223.38B	210.88B
Cash, Cash Equivalents and Short-Term Investments	25.76B	28.40B	24.39B	21.95B	16.61B	14.45B
Total Debt	62.16B	64.42B	70.27B	76.27B	71.86B	61.68B
Total Liabilities	117.12B	119.41B	142.21B	141.19B	124.33B	110.25B
Stockholders Equity	135.38B	134.30B	128.18B	111.96B	98.66B	100.28B
Cash Flow
Free Cash Flow	0.00	12.91B	12.46B	1.48B	-7.94B	1.49B
Operating Cash Flow	0.00	19.14B	17.84B	6.71B	-2.13B	6.81B
Investing Cash Flow	0.00	-5.68B	-4.94B	-4.86B	-5.25B	-5.52B
Financing Cash Flow	0.00	-9.45B	-10.46B	3.50B	9.54B	-1.42B

Godo Steel,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3945.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5410, the sentiment is Positive. The current price of 3945 is below the 20-day moving average (MA) of 3971.27, below the 50-day MA of 3994.97, and above the 200-day MA of 3779.18, indicating a neutral trend. The MACD of -35.20 indicates Positive momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5410.

Godo Steel,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5445	78 Outperform	¥52.53B	4.91	―	6.39%	-1.95%	17.09%
5440	71 Outperform	¥94.57B	8.69	―	4.14%	-1.22%	-13.03%
5408	71 Outperform	¥33.67B	6.64	―	6.50%	-13.08%	-34.23%
5480	70 Outperform	¥65.33B	6.10	―	5.10%	-7.69%	-18.05%
5410	68 Neutral	¥57.71B	5.05	―	6.24%	-7.29%	-17.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	52 Neutral	¥77.85B	34.49	―	1.31%	-6.19%	-129.84%

Godo Steel,Ltd. Corporate Events

Godo Steel Reports Decline in Quarterly Financial Performance

Godo Steel, Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales and profits showing a year-on-year decrease. Despite this, the company experienced a slight increase in profit attributable to owners of the parent. The forecast for the fiscal year ending March 31, 2026, indicates a further decline in net sales and profits, suggesting potential challenges ahead for the company and its stakeholders.