Kyoei Steel Ltd.

TSE:5440 Stock Report

Market Cap: JP¥76.9b

Kyoei Steel Valuation

Is 5440 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 5440 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5440 (¥1769) is trading below our estimate of fair value (¥2723.7)

Significantly Below Fair Value: 5440 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5440?

Key metric: As 5440 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5440. This is calculated by dividing 5440's market cap by their current earnings.
What is 5440's PE Ratio?
PE Ratio7x
EarningsJP¥11.03b
Market CapJP¥76.88b

Price to Earnings Ratio vs Peers

How does 5440's PE Ratio compare to its peers?

The above table shows the PE ratio for 5440 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.3x
5482 Aichi Steel
17.8xn/aJP¥89.3b
5461 Chubu Steel Plate
9xn/aJP¥59.3b
5410 Godo Steel
4.6xn/aJP¥56.2b
5445 Tokyo Tekko
6xn/aJP¥57.7b
5440 Kyoei Steel
7x1.3%JP¥76.9b

Price-To-Earnings vs Peers: 5440 is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (9.3x).

Price to Earnings Ratio vs Industry

How does 5440's PE Ratio compare vs other companies in the JP Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5440 7.0xIndustry Avg. 8.9xNo. of Companies12PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5440 is good value based on its Price-To-Earnings Ratio (7x) compared to the JP Metals and Mining industry average (8.9x).

Price to Earnings Ratio vs Fair Ratio

What is 5440'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.

5440 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio9.8x

Price-To-Earnings vs Fair Ratio: 5440 is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (9.8x).

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 5440 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,769.00
JP¥2,010.00
+13.6%
7.5%JP¥2,200.00JP¥1,830.00n/a3
Nov ’25JP¥1,690.00
JP¥2,030.00
+20.1%
11.8%JP¥2,200.00JP¥1,690.00n/a3
Oct ’25JP¥1,732.00
JP¥2,030.00
+17.2%
11.8%JP¥2,200.00JP¥1,690.00n/a3
Sep ’25JP¥1,764.00
JP¥2,030.00
+15.1%
11.8%JP¥2,200.00JP¥1,690.00n/a3
Aug ’25JP¥1,911.00
JP¥2,256.67
+18.1%
1.9%JP¥2,300.00JP¥2,200.00n/a3
Jul ’25JP¥2,114.00
JP¥2,223.33
+5.2%
1.5%JP¥2,270.00JP¥2,200.00n/a3
Jun ’25JP¥2,136.00
JP¥2,267.50
+6.2%
6.5%JP¥2,500.00JP¥2,100.00n/a4
May ’25JP¥2,164.00
JP¥2,230.00
+3.0%
5.7%JP¥2,440.00JP¥2,100.00n/a4
Apr ’25JP¥2,387.00
JP¥2,180.00
-8.7%
7.5%JP¥2,440.00JP¥2,000.00n/a4
Mar ’25JP¥2,435.00
JP¥2,180.00
-10.5%
7.5%JP¥2,440.00JP¥2,000.00n/a4
Feb ’25JP¥2,124.00
JP¥2,152.50
+1.3%
6.9%JP¥2,400.00JP¥2,000.00n/a4
Jan ’25JP¥1,999.00
JP¥2,152.50
+7.7%
6.9%JP¥2,400.00JP¥2,000.00n/a4
Dec ’24JP¥2,103.00
JP¥2,152.50
+2.4%
6.9%JP¥2,400.00JP¥2,000.00n/a4
Nov ’24JP¥2,036.00
JP¥2,087.50
+2.5%
8.0%JP¥2,350.00JP¥1,900.00JP¥1,690.004
Oct ’24JP¥1,990.00
JP¥2,087.50
+4.9%
8.0%JP¥2,350.00JP¥1,900.00JP¥1,732.004
Sep ’24JP¥1,987.00
JP¥2,087.50
+5.1%
8.0%JP¥2,350.00JP¥1,900.00JP¥1,764.004
Aug ’24JP¥2,009.00
JP¥2,020.00
+0.5%
6.0%JP¥2,110.00JP¥1,790.00JP¥1,911.005
Jul ’24JP¥2,026.00
JP¥2,020.00
-0.3%
6.0%JP¥2,110.00JP¥1,790.00JP¥2,114.005
Jun ’24JP¥1,856.00
JP¥1,712.00
-7.8%
13.5%JP¥2,100.00JP¥1,400.00JP¥2,136.005
May ’24JP¥1,771.00
JP¥1,588.00
-10.3%
6.6%JP¥1,710.00JP¥1,400.00JP¥2,164.005
Apr ’24JP¥1,608.00
JP¥1,608.00
0%
6.7%JP¥1,710.00JP¥1,400.00JP¥2,387.005
Mar ’24JP¥1,678.00
JP¥1,542.00
-8.1%
10.2%JP¥1,710.00JP¥1,310.00JP¥2,435.005
Feb ’24JP¥1,443.00
JP¥1,492.00
+3.4%
8.8%JP¥1,650.00JP¥1,310.00JP¥2,124.005
Jan ’24JP¥1,256.00
JP¥1,492.00
+18.8%
8.8%JP¥1,650.00JP¥1,310.00JP¥1,999.005
Dec ’23JP¥1,311.00
JP¥1,690.00
+28.9%
18.9%JP¥2,300.00JP¥1,400.00JP¥2,103.005
Nov ’23JP¥1,284.00
JP¥1,770.00
+37.9%
17.8%JP¥2,300.00JP¥1,470.00JP¥2,036.005

Analyst Forecast: Target price is less than 20% higher than the current share price.

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