Kobe Steel
5406.TLOWMaterials / Forgings · Weight: 2%· Data as of 2026-04-21
¥1,941+0.75%
6-month dailyInvestment 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
PE
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
Peer Comparison
| Company | PE | Fwd PE | ROE | Op Margin | FCF |
|---|---|---|---|---|---|
| IHI Corporation | 23.7 | 22 | 26.8% | 8.8% | +¥68B |
| Hitachi | 28.96 | 27.58 | 13.65% | 11.1% | +¥1,390B |
| Japan Steel Works | 33.5 | 31.1 | 9.09% | 8.4% | -¥19.7B |
| Yokogawa Electric | 38.8 | 23.8 | 11.5% | 13.7% | +¥44B |
| Fuji Electric | 20.3 | 17.7 | 11.8% | 10.3% | +¥51B |
| Kanadevia | 10.97 | 11 | 5.2% | 1.9% | -¥22.6B |
| Organo Corporation | 27 | 27 | 21.7% | 20.6% | +¥19B |
| Kurita Water Industries | 22.3 | 21.8 | 6.8% | 12.4% | +¥25B |
| Sumitomo Heavy Industries | 19.3 | 18 | 5.0% | 4.8% | -¥2.3B |
| Toyo Tanso | 23.2 | 23.8 | 5.7% | 14.6% | -¥5.8B (capex phase) |
| Okano Valve | 21.6 | 8.2% | 10.1% | +¥624M | |
| Kobe Steel | 8.7 | 8.5 | 7.2% | 4.8% | N/A |
| Ebara | 30.9 | 25.4 | 15.8% | 12.1% | -¥51.5B (capex) |
| Stella Pharma | -9.8% | -23.6% | N/A | ||
| Teikoku Denki | 10.49 | 9.5 | 12% | 18% | N/A |