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

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Nippon Kinzoku Co., Ltd.

(TSE/TYO:5491)

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Rating:76Outperform

Price Target:JPY 945.00▲(13.04% Upside)

Action:reiterated

Date:08/17/26

Nippon Kinzoku earns a solid 76, driven foremost by strong technical momentum and aggressive debt reduction that significantly fortifies its balance sheet. While healthy free cash flow generation and a reasonable P/E ratio provide an attractive financial foundation, the overall upside is partially limited by ongoing top-line revenue contraction and a very low dividend yield.

Positive Factors

Improving Balance SheetFalling debt alongside improving equity strengthens the company’s financial resilience and reduces balance-sheet pressure. For a cyclical steel producer, this provides greater capacity to absorb weaker conditions and maintain operations than a business with rising leverage.

Negative Factors

Declining RevenueFlat-to-declining revenue indicates that the company is not currently expanding its sales base, limiting operating leverage and growth potential. Persistent top-line weakness could make it harder to offset costs and sustain improved profitability across future reporting periods.

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

Market Cap: JPY 5.11B
Dividend Yield: 0.60%
Average Volume (3M): 31.99K
Price to Earnings (P/E): 11.2
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

Anchored by an exceptional balance sheet with aggressive debt reduction and robust free cash flow generation. The score is tempered by continuous top-line revenue contraction and a recent dip in net income, despite a notable core operational rebound.

Income Statement

55Neutral

Balance Sheet

85Very Positive

Cash Flow

78Positive

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 SentimentNegative

Last Price836.00

Price Trends

50DMA898.72Negative

100DMA890.66Negative

200DMA924.16Negative

Market Momentum

MACD-12.06Positive

RSI35.25Neutral

STOCH40.34Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5491, the sentiment is Negative. The current price of 836.00 is below the 20-day moving average (MA) of 871.05, below the 50-day MA of 898.72, and below the 200-day MA of 924.16, indicating a bearish trend. The MACD of -12.06 indicates Positive momentum. The RSI at 35.25 is Neutral, neither overbought nor oversold. The STOCH value of 40.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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:5491	76Outperform	JPY 5.60B	11.23	―	0.60%	1.74%	-63.78%
JP:5445	75Outperform	JPY 47.55B	7.01	―	5.62%	-2.19%	-34.09%
JP:5632	72Outperform	JPY 30.14B	7.84	―	4.76%	-1.50%	18.33%
JP:5408	66Neutral	JPY 37.02B	8.30	―	3.60%	-6.05%	-30.30%
JP:5440	63Neutral	JPY 73.71B	9.44	―	5.19%	6.83%	-31.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5449	48Neutral	JPY 70.70B	-4.24	―	―	-16.85%	-55241.82%

* 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.	836.00	48.00	6.09%
JP:5408	Nakayama Steel Works,Ltd.	528.00	-17.32	-3.18%
JP:5440	Kyoei Steel Ltd.	1734.00	-420.34	-19.51%
JP:5445	Tokyo Tekko Co., Ltd.	1899.00	175.66	10.19%
JP:5449	OSAKA STEEL CO., LTD.	2361.00	-312.00	-11.67%
JP:5632	Mitsubishi Steel Mfg.Co., Ltd.	1955.00	325.39	19.97%

Nippon Kinzoku Co., Ltd. Corporate Events

Nippon Kinzoku Delivers Strong First-Half Profits and Doubles Dividend Forecast

Oct 30, 2026

Nippon Kinzoku Co., Ltd., a metals manufacturer listed on the Tokyo Stock Exchange, reported stronger earnings for the six months ended September 30, 2026, underlining its role as a steady player in the industrial materials market. The company’...

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