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Mitsubishi Steel Mfg.Co., Ltd. (5632) AI Stock Analysis

JP:5632

Mitsubishi Steel Mfg.Co., Ltd.

(TSE/TYO:5632)

Select Model
Rating:62Neutral
Price Target:JPY 2,577.00â–²(18.76% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by average-to-improving financial performance (earnings/cash flow rebound and better leverage) but held back by declining revenues, thin margins, and cash-flow volatility typical of a cyclical steel business. Technically, the trend is strong with price above key moving averages, though overbought signals add near-term pullback risk. Valuation is a positive, supported by a low P/E and a ~3.33% dividend yield.

Positive Factors
Improving Cash GenerationThe 2026 rebound in operating and free cash flow strengthens internal funding capacity and supports financial resilience. Although historical volatility remains, improved cash conversion provides a firmer base for operations and investment.
Negative Factors
Declining Revenue TrendPersistent revenue contraction signals pressure on demand, volumes, pricing, or customer activity across the steel business. Without renewed top-line growth, scale benefits may weaken and the company’s ability to expand earnings will remain constrained.

Mitsubishi Steel Mfg.Co., Ltd. (5632) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:5632+21.90%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 32.81B
Dividend Yield
4.29%
Average Volume (3M)
115.73K
Price to Earnings (P/E)
8.4
Beta (1Y)
1.32
Revenue Growth
-0.07%
EPS Growth
85.62%
Country
Japan
Employees
3,864
Sector
General
Sector Strength
55
Industry
Steel

Mitsubishi Steel Mfg.Co., Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, Mitsubishi Steel Mfg. Co., Ltd. is a long-standing industrial firm, established in 1917, primarily involved in the manufacturing and distribution of steel products, components for construction and automotive industries,...

How the Company Makes Money

null

Mitsubishi Steel Mfg.Co., Ltd. Financial Statement Overview

Summary

Results show a rebound in earnings and cash flow into 2026 and improving leverage (debt-to-equity down to ~0.93). Offsetting that, revenue has been declining in 2024–2026, margins are thin for a cyclical steel business (2026 net margin ~2%, EBITDA margin ~5.5%), and cash flows have been historically volatile, limiting predictability.

Income Statement

58Neutral

Balance Sheet

55Neutral

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue157.01B154.56B159.58B169.94B170.54B146.29B
Gross Profit21.29B20.83B23.71B21.79B23.26B20.90B
EBITDA8.98B8.45B10.68B8.95B9.62B9.97B
Net Income3.90B3.06B2.36B-968.00M2.19B4.07B
Balance Sheet
Total Assets141.38B141.52B138.67B147.07B156.41B142.96B
Cash, Cash Equivalents and Short-Term Investments13.05B17.14B16.16B22.24B30.62B19.97B
Total Debt45.55B45.29B52.35B57.06B66.65B49.56B
Total Liabilities84.62B84.99B88.81B99.24B106.72B94.31B
Stockholders Equity48.76B48.68B42.64B41.15B43.48B42.60B
Cash Flow
Free Cash Flow06.60B1.35B2.81B-5.33B-4.39B
Operating Cash Flow010.08B6.01B6.48B-2.78B-1.92B
Investing Cash Flow0-726.00M-5.17B-3.97B-1.44B1.97B
Financing Cash Flow0-8.70B-6.54B-11.61B14.79B-3.52B

Mitsubishi Steel Mfg.Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2170.00

Price Trends

50DMA2360.84Negative
100DMA2256.20Negative
200DMA2060.60Positive

Market Momentum

MACD-48.78Positive
RSI36.61Neutral
STOCH16.74Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5632, the sentiment is Negative. The current price of 2170.00 is below the 20-day moving average (MA) of 2308.50, below the 50-day MA of 2360.84, and above the 200-day MA of 2060.60, indicating a neutral trend. The MACD of -48.78 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5632.

Mitsubishi Steel Mfg.Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5632 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5471JP:547174OutperformJPY 438.00B11.227.98%2.58%8.38%34.65%
JP:5463JP:546371OutperformJPY 407.63B13.64―2.85%-1.88%20.80%
JP:5482JP:548266NeutralJPY 149.68B13.664.67%3.17%4.27%6.07%
JP:5440JP:544063NeutralJPY 77.66B8.55―5.04%6.83%-31.05%
JP:5632JP:563262NeutralJPY 32.81B8.41―4.29%-0.07%85.62%
JP:5423JP:542360NeutralJPY 190.24B19.014.29%2.58%-0.62%-39.61%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:5632JP:5471JP:5423JP:5482JP:5440JP:5463Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5632 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5632Mitsubishi Steel Mfg.Co., Ltd.2170.00369.7620.54%
JP:5471Daido Steel Co 2128.00700.6449.09%
JP:5423Tokyo Steel Manufacturing Co 1742.00417.3831.51%
JP:5482Aichi Steel Corporation2338.00-192.26-7.60%
JP:5440Kyoei Steel Ltd.1787.00-420.17-19.04%
JP:5463Maruichi Steel Tube Ltd.1699.00433.8634.29%

Mitsubishi Steel Mfg.Co., Ltd. Corporate Events

Mitsubishi Steel to Book THAI Subsidiary Dividend as Non-Operating Income

Aug 17, 2026

Mitsubishi Steel Mfg. Co., Ltd., a Japanese steel and metal products manufacturer listed on the Prime Market of the Tokyo Stock Exchange, oversees a network of domestic and overseas subsidiaries within a consolidated group. Among these group entities...

Mitsubishi Steel Raises First-Half Profit Outlook but Holds Full-Year Guidance

Aug 6, 2026

Mitsubishi Steel Mfg. has revised its consolidated earnings forecast for the first half of the fiscal year ending March 2027, projecting operating income, ordinary income and net income attributable to owners of the parent to exceed earlier expectati...

Mitsubishi Steel Mfg. Lifts Earnings and Outlook, Plans Higher Dividend

Aug 6, 2026

Mitsubishi Steel Mfg. Co., Ltd., a Tokyo-listed steel and metal products maker, reported a stronger financial position in the first quarter of the fiscal year ending March 31, 2027, with stable total assets and a shareholders’ equity ratio of 3...

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