The Japan Steel Works, Ltd.

TSE:5631 Stock Report

Market Cap: JP¥477.4b

Japan Steel Works Valuation

Is 5631 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 5631 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5631 (¥6486) is trading above our estimate of fair value (¥5459.84)

Significantly Below Fair Value: 5631 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5631?

Key metric: As 5631 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5631. This is calculated by dividing 5631's market cap by their current earnings.
What is 5631's PE Ratio?
PE Ratio30.8x
EarningsJP¥15.52b
Market CapJP¥477.40b

Price to Earnings Ratio vs Peers

How does 5631's PE Ratio compare to its peers?

The above table shows the PE ratio for 5631 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24x
6005 Miura
20.3x10.7%JP¥415.8b
6406 Fujitec
25.6x10.5%JP¥454.0b
6302 Sumitomo Heavy Industries
17.4x15.2%JP¥395.0b
6481 THK
32.6x22.4%JP¥440.2b
5631 Japan Steel Works
30.8x13.5%JP¥477.4b

Price-To-Earnings vs Peers: 5631 is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the peer average (23.9x).

Price to Earnings Ratio vs Industry

How does 5631's PE Ratio compare vs other companies in the JP Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5631 30.8xIndustry Avg. 12.2xNo. of Companies39PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5631 is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the JP Machinery industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is 5631's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5631 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.8x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: 5631 is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 5631 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥6,486.00
JP¥5,650.00
-12.9%
8.0%JP¥6,300.00JP¥5,100.00n/a6
Nov ’25JP¥5,128.00
JP¥5,650.00
+10.2%
8.0%JP¥6,300.00JP¥5,100.00n/a6
Oct ’25JP¥5,413.00
JP¥5,516.67
+1.9%
6.2%JP¥6,200.00JP¥5,100.00n/a6
Sep ’25JP¥4,538.00
JP¥5,316.67
+17.2%
4.0%JP¥5,600.00JP¥5,000.00n/a6
Aug ’25JP¥4,100.00
JP¥5,316.67
+29.7%
4.0%JP¥5,600.00JP¥5,000.00n/a6
Jul ’25JP¥4,397.00
JP¥5,300.00
+20.5%
4.3%JP¥5,600.00JP¥5,000.00n/a5
Jun ’25JP¥4,731.00
JP¥4,480.00
-5.3%
15.9%JP¥5,600.00JP¥3,800.00n/a5
May ’25JP¥3,751.00
JP¥3,710.00
-1.1%
14.9%JP¥4,200.00JP¥2,650.00n/a5
Apr ’25JP¥3,350.00
JP¥3,608.33
+7.7%
12.8%JP¥4,100.00JP¥2,650.00n/a6
Mar ’25JP¥2,896.00
JP¥3,541.67
+22.3%
12.9%JP¥4,100.00JP¥2,650.00n/a6
Feb ’25JP¥2,377.50
JP¥3,491.67
+46.9%
11.7%JP¥3,800.00JP¥2,650.00n/a6
Jan ’25JP¥2,450.00
JP¥3,583.33
+46.3%
9.0%JP¥3,800.00JP¥2,900.00n/a6
Dec ’24JP¥2,559.50
JP¥3,700.00
+44.6%
10.6%JP¥4,200.00JP¥2,900.00n/a6
Nov ’24JP¥2,456.00
JP¥3,766.67
+53.4%
11.5%JP¥4,200.00JP¥2,900.00JP¥5,128.006
Oct ’24JP¥2,777.00
JP¥3,766.67
+35.6%
11.5%JP¥4,200.00JP¥2,900.00JP¥5,413.006
Sep ’24JP¥2,993.50
JP¥3,750.00
+25.3%
12.5%JP¥4,200.00JP¥2,800.00JP¥4,538.006
Aug ’24JP¥2,993.50
JP¥3,633.33
+21.4%
14.4%JP¥4,200.00JP¥2,800.00JP¥4,100.006
Jul ’24JP¥3,076.00
JP¥3,633.33
+18.1%
14.4%JP¥4,200.00JP¥2,800.00JP¥4,397.006
Jun ’24JP¥2,969.00
JP¥3,500.00
+17.9%
17.9%JP¥4,200.00JP¥2,400.00JP¥4,731.006
May ’24JP¥2,477.00
JP¥3,600.00
+45.3%
9.5%JP¥4,200.00JP¥3,100.00JP¥3,751.006
Apr ’24JP¥2,479.00
JP¥3,700.00
+49.3%
7.6%JP¥4,200.00JP¥3,400.00JP¥3,350.005
Mar ’24JP¥2,574.00
JP¥3,900.00
+51.5%
6.5%JP¥4,200.00JP¥3,600.00JP¥2,896.006
Feb ’24JP¥2,727.00
JP¥4,100.00
+50.3%
6.1%JP¥4,400.00JP¥3,600.00JP¥2,377.506
Jan ’24JP¥2,609.00
JP¥4,100.00
+57.1%
6.1%JP¥4,400.00JP¥3,600.00JP¥2,450.006
Dec ’23JP¥2,986.00
JP¥4,100.00
+37.3%
6.1%JP¥4,400.00JP¥3,600.00JP¥2,559.506
Nov ’23JP¥3,150.00
JP¥4,133.33
+31.2%
5.9%JP¥4,500.00JP¥3,700.00JP¥2,456.006

Analyst Forecast: Target price is lower than the current share price.

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