Earnings quality
Compare earnings and operating cash flow for earnings quality.
Kobe Steel, Ltd.
Ticker 5406 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-18 · Period end 2026-03-31
Takeaway
Dig deeperThe numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
operating margin is 5.3%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin5.3%
Equity ratio—
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
株式会社 神戸製鋼所 is a Japanese listed company. Its reportable segments include Iron And Steel, Welding, Machinery, Advanced Materials.
- Iron And Steel
- Welding
- Machinery
- Advanced Materials
- Steel And Aluminum
- Engineering
- Total Of
- Operating Segments Not Included In
Segments Iron And Steel · Welding · Machinery · Advanced Materials · Steel And Aluminum · Engineering
Compare trends
No phone/email found in this filing · Filing date 2026-06-18
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | ¥2.6T | ¥2.4T |
| Cost of sales* | ¥2.1T | ¥2.0T |
| Gross profit | ¥423.2B | ¥403.2B |
| Operating profit (loss) | ¥158.7B | ¥129.9B |
| Finance income | — | — |
| Finance costs | — | — |
| Income tax expense | ¥20.3B | ¥23.0B |
| Profit (loss) | ¥120.8B | ¥97.8B |
| Profit (loss) attributable to owners | ¥120.2B | ¥93.7B |
| Basic EPS (¥) | — | — |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥219.9B | ¥189.0B |
| Current assets | ¥1.4T | ¥1.4T |
| Non-current assets | ¥1.5T | ¥1.5T |
| Total assets | ¥2.9T | ¥2.9T |
| Short-term borrowings | ¥190.3B | ¥143.7B |
| Current liabilities | ¥914.6B | ¥850.9B |
| Non-current liabilities* | ¥739.4B | ¥683.9B |
| Total liabilities | ¥1.7T | ¥1.5T |
| Equity attributable to owners | — | — |
| Total equity | — | — |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥148.3B | ¥201.7B |
| Cash flows from investing activities | — | — |
| Cash flows from financing activities | -¥96.2B | -¥162.4B |
| Net increase (decrease) in cash | -¥54.0B | -¥30.8B |
| Cash at end of period | ¥219.9B | ¥189.0B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥2.1T | ¥2.5T | ¥2.5T | ¥2.6T | ¥2.4T | |
| Operating profit | ¥93.2B | ¥106.8B | ¥160.9B | ¥157.2B | ¥121.3B | |
| Profit to owners | — | — | — | ¥120.2B | ¥93.7B | |
| Total assets | ¥2.7T | ¥2.9T | ¥2.9T | ¥2.9T | ¥2.9T | |
| Cash & equivalents | — | — | ¥278.7B | ¥219.9B | ¥189.0B | |
| Owners’ equity | ¥872.3B | ¥977.7B | ¥1.1T | ¥1.2T | ¥1.3T |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Mixed
The numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
On the income statement, revenue moved from ¥2.6T to ¥2.4T (▼ -4.6%), so the top line did not break. Gross profit only slipped from ¥423.2B to ¥403.2B, while operating profit swung from ¥158.7B to ¥129.9B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥201.7B (prior ¥148.3B), and cash on the balance sheet rose to ¥189.0B from ¥219.9B. When profits collapse but operating cash stays positive, read the notes for impairments and other non-cash charges before assuming the business stopped generating cash.
Goodwill on the balance sheet fell from ¥2.2B to ¥1.8B, consistent with heavy write-downs of past acquisitions’ carrying values.
The balance sheet got heavier on leverage. Total liabilities rose to ¥1.5T while owners’ equity fell to —. ROE moved from 10.8% to 7.7%, and the equity ratio from 40.2% to 44.0%. Employee count is 38,614 vs 39,294 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Capital structure held relatively steady.
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Source: EDINET S100YCDA
(株式会社 神戸製鋼所), period end 2026-03-31.