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Japan Steel Works
(5631)
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Rating:54Neutral
Price Target:
¥6,028.00
▼(-33.47% Downside)
Action:Reiterated
Date:08/17/26
The score is primarily constrained by weak recent cash flow (negative operating cash flow in 2025–2026 and deeply negative free cash flow in 2026) and higher leverage in 2026, despite improving margins and solid profitability. Technicals are mixed, with a short-term bounce but a weaker longer-term trend, and valuation is on the expensive side with only a modest dividend yield.
Positive Factors
Specialized manufacturing capabilities
The combination of steelmaking, forging, machining, and precision manufacturing supports technically demanding products that are not easily replicated by generic suppliers. This capability can strengthen customer relationships, preserve access to specialized industrial markets, and support durable competitive positioning.
Negative Factors
Weak cash conversion
Recent negative operating cash flow and deeply negative free cash flow show that reported profits are not currently converting reliably into cash. Persistent cash consumption can increase reliance on financing, constrain investment flexibility, and raise execution and liquidity risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized manufacturing capabilities
The combination of steelmaking, forging, machining, and precision manufacturing supports technically demanding products that are not easily replicated by generic suppliers. This capability can strengthen customer relationships, preserve access to specialized industrial markets, and support durable competitive positioning.
Read all positive factors
Japan Steel Works (5631) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥449.48B
Dividend Yield1.54%
Average Volume (3M)737.71K
Price to Earnings (P/E)21.6
Beta (1Y)1.52
Revenue Growth-1.12%
EPS Growth11.05%
CountryJP
Employees5,419
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)282.44
Shares Outstanding74,428,300
10 Day Avg. Volume738,770
30 Day Avg. Volume737,713
Financial Highlights & Ratios
PEG Ratio4.51
Price to Book (P/B)2.90
Price to Sales (P/S)2.24
P/FCF Ratio-14.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,050.00Price Target Upside-11.16% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)296.28
Revenue Forecast (FY)¥310.56B
Japan Steel Works Business Overview & Revenue Model
Company Description
Japan Steel Works, Ltd. (JSW) is a Japanese industrial manufacturer that produces large-scale forged and cast steel products and heavy industrial machinery. The company is known for high-integrity metal components and equipment used in energy and ...
How the Company Makes Money
Japan Steel Works makes money primarily by manufacturing and selling high-value industrial products and related services. Revenue is generated through (1) product sales of heavy machinery and large forged/cast components—typically made-to-order, e...
Japan Steel Works Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 265.48B | 274.85B | 248.56B | 252.50B | 238.72B | 213.79B |
| Gross Profit | 64.94B | 64.26B | 60.99B | 56.81B | 49.38B | 47.82B |
| EBITDA | 38.08B | 37.61B | 31.55B | 27.32B | 25.46B | 26.36B |
| Net Income | 20.79B | 19.24B | 17.96B | 14.28B | 11.97B | 13.95B |
Balance Sheet | ||||||
| Total Assets | 423.84B | 429.98B | 398.12B | 366.77B | 348.36B | 339.73B |
| Cash, Cash Equivalents and Short-Term Investments | 76.00B | 77.76B | 75.92B | 97.65B | 87.33B | 106.27B |
| Total Debt | 85.92B | 88.35B | 43.53B | 43.63B | 43.42B | 58.44B |
| Total Liabilities | 208.57B | 216.15B | 203.02B | 188.16B | 187.72B | 188.64B |
| Stockholders Equity | 213.79B | 212.43B | 193.22B | 176.98B | 159.10B | 149.44B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -41.37B | -20.40B | 11.46B | -7.09B | 13.52B |
| Operating Cash Flow | 0.00 | -16.89B | -4.57B | 21.71B | -986.00M | 22.32B |
| Investing Cash Flow | 0.00 | -17.10B | -12.27B | -6.84B | 947.00M | -2.98B |
| Financing Cash Flow | 0.00 | 36.09B | -5.72B | -4.90B | -20.11B | -2.86B |
Japan Steel Works Technical Analysis
Negative
9061.00
Price Trends
7154.10
Negative
7407.38
Negative
8221.01
Negative
Market Momentum
-310.08
Positive
34.65
Neutral
17.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5631, the sentiment is Negative. The current price of 9061 is above the 20-day moving average (MA) of 6758.80, above the 50-day MA of 7154.10, and above the 200-day MA of 8221.01, indicating a bearish trend. The MACD of -310.08 indicates Positive momentum. The RSI at 34.65 is Neutral, neither overbought nor oversold. The STOCH value of 17.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5631.
Japan Steel Works Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥375.63B | 13.97 | 10.02% | 14.17% | 15.90% | 104.65% | |
75 Outperform | ¥57.79B | 16.52 | ― | 3.37% | -1.63% | -23.69% | |
69 Neutral | ¥669.73B | 16.73 | 5.80% | 2.47% | 7.75% | ― | |
68 Neutral | ¥729.43B | 22.55 | 6.29% | 2.64% | 17.77% | 20.56% | |
68 Neutral | ¥466.40B | 16.53 | 17.42% | 1.88% | 12.05% | 57.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | ¥449.48B | 21.62 | 10.00% | 1.54% | -1.12% | 11.05% |
* Industrials Sector Average
JP:5631
Japan Steel Works
6,105.00
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Japan Steel Works Corporate Events
Japan Steel Works lifts earnings on lower sales, keeps full-year outlook and dividend plan
Aug 3, 2026
Japan Steel Works reported first-quarter fiscal 2026 consolidated results marked by a 13.9% year-on-year decline in net sales to ¥58.2 billion, even as operating profit rose 11.2% to ¥5.9 billion and profit attributable to owners of the ...
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.