TSE:5406Metals and Mining
Kobe Steel (TSE:5406) Stock Cools As Profit Margin Shrinks Sharply
Kobe Steel stock came into this earnings print with a modest 30 day gain and a comparatively lower 11.8x trailing P/E than peers, yet the latest Q1 numbers left the market unconvinced. The shares closed at ¥2,016, roughly in line with an analyst fair value estimate, as investors weighed a 2.8% trailing net margin against the basic EPS of ¥30.87 for the quarter.
The key theme this time is margin pressure. Revenue remained in the ¥500b range and net income of ¥12,199m kept Kobe Steel...