Kobe Steel

5406.TLOWScore: 35.5

Materials / Forgings · Weight: 2%· Data as of 2026-04-21

¥1,941+0.75%

6-month daily

Investment Thesis

Only company globally self-sufficient in ALL RPV materials: forged shells + heavy steel plates + welding materials. Duopoly with JSW in nuclear forgings. ~250B nuclear revenue.

Risk

Altman Z-Score 1.78 (distress zone). Heavy debt D/E 0.65. Thin margins 4.8%. 2017 data fraud scandal. Nuclear is only ~2-4% of revenue — NOT a nuclear play, it is a steel conglomerate.

Monitoring Trigger

Nuclear new-build orders. BWRX-300 component contracts.

Key Metrics

8.7

8.5

Fwd PE

0.59

P/B

7.2%

ROE

4.8%

Op Margin

65%

D/E

4.14%

Div Yield

N/A

FCF

¥761B

Mkt Cap