Nippon Kinzoku Co., Ltd. (5491) AI Stock Analysis

Nippon Kinzoku Co., Ltd.

(TSE/TYO:5491)

Select Model

Rating:55Neutral

Price Target:JPY 876.00▼(-0.79% Downside)

Action:reiterated

Date:08/17/26

The overall score of 55 reflects a mixed outlook. The company's solid balance sheet and improving cash flows are positives, but weak profitability and declining revenue weigh on the score. Technical indicators are moderately bullish, and valuation is fair. The stock may be suitable for investors with a tolerance for operational turnaround potential.

Positive Factors

Improving Balance SheetLower debt and improving equity provide greater resilience for a cyclical steel producer. This can reduce balance-sheet pressure, preserve borrowing capacity, and give management more flexibility to maintain operations or fund investments when industry conditions fluctuate.

Negative Factors

Declining RevenueRecent revenue contraction suggests limited top-line momentum in the company’s metal materials business. Flat-to-down sales can restrict operating leverage, reduce the ability to absorb fixed costs, and make sustained earnings improvement more dependent on pricing or mix.

Nippon Kinzoku Co., Ltd. (5491) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.70B
Dividend Yield: 0.57%
Average Volume (3M): 31.50K
Price to Earnings (P/E): 12.7
Beta (1Y): 0.97
Revenue Growth: 1.74%
EPS Growth: -63.78%
Country: Japan
Employees: 787
Sector: General
Sector Strength: 55
Industry: Steel

Nippon Kinzoku Co., Ltd. Business Overview & Revenue Model

Company Description

Operating globally from its Tokyo, Japan headquarters, Nippon Kinzoku Co., Ltd. specializes in the production and distribution of high-precision rolled and processed stainless steel items. Their extensive range encompasses various steel foils, includ...

How the Company Makes Money

Nippon Kinzoku’s earnings are primarily generated by selling metal materials and related processed products to business customers. Revenue is typically realized when the company manufactures and ships specialty metal products (and, where applicable,...

Nippon Kinzoku Co., Ltd. Financial Statement Overview

Summary

Mixed financial performance: Strong balance sheet (score 70) with low debt, but weak profitability (income statement score 35) and moderate cash flow (55). The company has improved cash generation and reduced leverage, but margins remain thin and revenue has declined recently.

Income Statement

35Negative

Balance Sheet

70Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	49.81B	49.62B	51.30B	51.41B	52.57B	49.12B
Gross Profit	6.33B	6.07B	4.95B	4.08B	6.27B	6.21B
EBITDA	3.29B	3.01B	1.53B	729.00M	3.07B	3.07B
Net Income	467.00M	213.00M	703.00M	1.54B	916.00M	2.52B
Balance Sheet
Total Assets	66.44B	65.70B	69.90B	75.08B	73.87B	72.18B
Cash, Cash Equivalents and Short-Term Investments	9.37B	9.09B	12.01B	12.04B	8.04B	10.13B
Total Debt	16.88B	17.33B	21.51B	24.46B	24.75B	22.69B
Total Liabilities	36.95B	36.45B	42.03B	48.22B	49.42B	48.86B
Stockholders Equity	29.49B	29.19B	27.86B	26.86B	24.45B	23.31B
Cash Flow
Free Cash Flow	0	885.00M	96.00M	-2.91B	-6.13B	1.82B
Operating Cash Flow	0	2.60B	1.21B	-203.00M	-1.51B	4.50B
Investing Cash Flow	0	-1.37B	1.71B	4.20B	-2.72B	-2.75B
Financing Cash Flow	0	-4.39B	-3.19B	-502.00M	2.02B	-399.00M

Nippon Kinzoku Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price883.00

Price Trends

50DMA902.10Negative

100DMA891.65Negative

200DMA924.97Negative

Market Momentum

MACD-9.05Negative

RSI50.37Neutral

STOCH72.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5491, the sentiment is Neutral. The current price of 883.00 is above the 20-day moving average (MA) of 876.65, below the 50-day MA of 902.10, and below the 200-day MA of 924.97, indicating a neutral trend. The MACD of -9.05 indicates Negative momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 72.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5491.

Nippon Kinzoku Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5491 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5445	75Outperform	JPY 47.63B	7.17	―	5.67%	-2.19%	-34.09%
JP:5440	63Neutral	JPY 77.66B	10.09	―	5.04%	6.83%	-31.05%
JP:5449	62Neutral	JPY 69.74B	-5.24	―	―	-16.39%	-2377.63%
JP:5632	62Neutral	JPY 32.81B	8.41	―	4.29%	-0.07%	85.62%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5491	55Neutral	JPY 5.91B	12.67	―	0.57%	1.74%	-63.78%
JP:5408	54Neutral	JPY 38.30B	9.37	―	3.34%	-8.00%	-35.22%

* General Sector Average

Performance Comparison

JP:5491 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5491	Nippon Kinzoku Co., Ltd.	883.00	85.00	10.65%
JP:5408	Nakayama Steel Works,Ltd.	569.00	-29.68	-4.96%
JP:5440	Kyoei Steel Ltd.	1787.00	-420.17	-19.04%
JP:5445	Tokyo Tekko Co., Ltd.	1881.00	94.30	5.28%
JP:5449	OSAKA STEEL CO., LTD.	2331.00	-234.00	-9.12%
JP:5632	Mitsubishi Steel Mfg.Co., Ltd.	2170.00	369.76	20.54%

Nippon Kinzoku Co., Ltd. Corporate Events

Nippon Kinzoku Posts Profit Surge and Confirms Stable Dividend Outlook

Aug 7, 2026

Nippon Kinzoku reported a modest 1.5% rise in net sales to ¥12.8 billion for the quarter ended June 30, 2026, but delivered a sharp recovery in profitability, with operating profit up 183.9% to ¥434 million and profit attributable to owners...

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.

Date of analysis: Aug 17, 2026

Nippon Kinzoku Co., Ltd. AI Stock Analysis