ScoreWhy is Daido Steel Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 3.23% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
The company declared very negative results in Mar'25 after positive results in Dec'24
- NET PROFIT(HY) At JPY 11,561 MM has Grown at -68.76%
- ROCE(HY) Lowest at 6.54%
- RAW MATERIAL COST(Y) Grown by 6.09% (YoY)
3
With ROCE of 7.92%, it has a very attractive valuation with a 0.60 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 32.61%, its profits have fallen by -43.7%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Daido Steel Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Daido Steel Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Daido Steel Co., Ltd.
32.61%
-0.03
32.56%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.23%
EBIT Growth (5y)
12.41%
EBIT to Interest (avg)
36.34
Debt to EBITDA (avg)
2.37
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
0.94
Tax Ratio
28.35%
Dividend Payout Ratio
34.93%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
6.75%
ROE (avg)
8.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.50
EV to EBIT
7.57
EV to EBITDA
4.44
EV to Capital Employed
0.60
EV to Sales
0.56
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
7.92%
ROE (Latest)
7.12%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 27.32 %
INVENTORY TURNOVER RATIO(HY)
Highest at 2.4%
-10What is not working for the Company
NET PROFIT(HY)
At JPY 11,561 MM has Grown at -68.76%
ROCE(HY)
Lowest at 6.54%
RAW MATERIAL COST(Y)
Grown by 6.09% (YoY
Here's what is working for Daido Steel Co., Ltd.
Debt-Equity Ratio
Lowest at 27.32 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 2.4%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Daido Steel Co., Ltd.
Net Profit
At JPY 11,561 MM has Grown at -68.76%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 6.09% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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