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Molitec Steel Co., Ltd.
(5986)
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Rating:74Outperform
Price Target:
¥284.00
▲(48.69% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by very attractive valuation (low P/E and high dividend yield) and supportive technical trend signals (price above major moving averages with positive MACD). Financial performance is improving but still capped by thin margins, a recent revenue decline, and historically volatile cash generation, which tempers the overall rating.
Positive Factors
Profitability and ROE recovery
The return to profitability and improved ROE indicate a healthier earnings base than in 2021–2023. If sustained, this can strengthen internal funding capacity and improve resilience across the steel cycle.
Negative Factors
Structurally thin operating margins
Very thin operating margins leave limited protection against increases in raw-material costs, wages, or weaker selling prices. Small changes in demand or pricing can therefore cause disproportionate swings in operating earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and ROE recovery
The return to profitability and improved ROE indicate a healthier earnings base than in 2021–2023. If sustained, this can strengthen internal funding capacity and improve resilience across the steel cycle.
Read all positive factors
Molitec Steel Co., Ltd. (5986) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.76B
Dividend Yield4.67%
Average Volume (3M)43.84K
Price to Earnings (P/E)4.5
Beta (1Y)0.64
Revenue Growth-4.49%
EPS Growth295.28%
CountryJP
Employees727
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)57.16
Shares Outstanding22,558,064
10 Day Avg. Volume27,260
30 Day Avg. Volume43,836
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.31
Price to Sales (P/S)0.10
P/FCF Ratio9.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Molitec Steel Co., Ltd. Business Overview & Revenue Model
Company Description
Molitec Steel Co., Ltd., headquartered in Osaka, Japan, is a prominent entity primarily engaged in the processing and distribution of steel strips within the Japanese market. The company offers an extensive range of press-worked products, includin...
How the Company Makes Money
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Molitec Steel Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.87B | 48.19B | 50.50B | 50.77B | 36.33B | 27.56B |
| Gross Profit | 5.10B | 4.90B | 4.70B | 4.42B | 3.09B | 3.10B |
| EBITDA | 1.38B | 1.21B | 1.14B | 1.00B | 841.34M | 1.08B |
| Net Income | 1.28B | 1.04B | 329.37M | 312.33M | -704.78M | 254.30M |
Balance Sheet | ||||||
| Total Assets | 35.40B | 35.16B | 36.53B | 37.23B | 36.49B | 23.83B |
| Cash, Cash Equivalents and Short-Term Investments | 6.13B | 4.99B | 4.87B | 5.71B | 4.84B | 2.67B |
| Total Debt | 5.20B | 5.30B | 6.39B | 5.51B | 5.67B | 1.43B |
| Total Liabilities | 18.94B | 18.94B | 21.91B | 23.05B | 23.57B | 10.58B |
| Stockholders Equity | 16.36B | 16.14B | 14.54B | 14.11B | 12.86B | 13.18B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 532.21M | -2.31B | 1.26B | -974.87M | -982.06M |
| Operating Cash Flow | 0.00 | 937.91M | -1.76B | 1.84B | -316.85M | -502.21M |
| Investing Cash Flow | 0.00 | 442.40M | 31.47M | -602.67M | -587.92M | -118.10M |
| Financing Cash Flow | 0.00 | -1.34B | 696.85M | -357.39M | 2.96B | -238.00M |
Molitec Steel Co., Ltd. Technical Analysis
Positive
191.00
Price Trends
245.26
Positive
238.61
Positive
223.15
Positive
Market Momentum
3.34
Positive
59.36
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5986, the sentiment is Positive. The current price of 191 is below the 20-day moving average (MA) of 255.55, below the 50-day MA of 245.26, and below the 200-day MA of 223.15, indicating a bullish trend. The MACD of 3.34 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5986.
Molitec Steel Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥4.99B | 6.86 | ― | 3.63% | 4.27% | 35.23% | |
74 Outperform | ¥5.76B | 4.50 | ― | 4.67% | -4.49% | 295.28% | |
70 Outperform | ¥4.08B | 8.68 | ― | 2.94% | 2.45% | 66.08% | |
58 Neutral | ¥6.19B | 12.85 | ― | 0.54% | -2.07% | -43.66% | |
56 Neutral | ¥4.41B | 55.77 | ― | 2.19% | -15.07% | -69.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥4.19B | -7.67 | ― | 0.73% | -14.77% | -208.13% |
* General Sector Average
JP:5986
Molitec Steel Co., Ltd.
257.00
51.59
25.11%
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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.