# Daido Steel Co., Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第102期(2025/04/01－2026/03/31) (S100YNEC)
> Page: https://vizora.meequs.com/en/company/daido-steel
> Retrieved: 2026-09-30T20:30:33.290Z

## Company

Daido Steel, founded in 1916, is a company in Auto Parts listed on TSE Prime. It has 12,729 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Daido Steel Co., Ltd. |
| Ticker | 5471 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5471.T) |
| Listing | TSE Prime |
| Head office | 名古屋市東区東桜一丁目1番10号 |
| Representative (per filing) | 代表取締役社長 清水 哲也 |
| Founded | Aug 1916 |
| Share capital | ¥37.2B |
| Employees (consolidated) | 12,729 |
| Average salary (parent only) | ¥8.7M |
| Fiscal year end | March |
| Website | www.daido.co.jp (https://www.daido.co.jp/) |
| Corporate number | 6180001037514 |
| EDINET | E01239 |
| Industries (Vizora) | Auto Parts, Steel, Specialty Trading & Wholesale, Industrial Machinery |

> Profile source: annual securities report (S100YNEC, filed 2026-06-30). As of filing

## Five-axis industry profile

Primary industry: Steel (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Profitability | 84.3 | 35 |
| Cash conversion | 46.8 | 31 |
| Efficiency | 38.6 | 35 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 36% of Daido Steel's sales come from Specialty Steel, with Functional material and magnetic material and Automobile parts and industrial machine parts making up much of the rest.
- Out of every ¥100 of sales, about ¥7 is left as operating profit.
- Revenue changed +0.6% from the prior year, operating profit +6.8%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥578.1B |  |
| Operating income | ¥42.1B | Margin 7.3% |
| Net income | ¥32.6B | Margin 5.6% |
| Free cash flow | — |  |
| Largest business | Specialty Steel | of segment revenue 35.9% |
| Employees (consolidated) | 12,729 |  |
| EPS | ¥161.74 |  |
| Diluted EPS | ¥161.7 |  |
| Book value per share | ¥1567.39 |  |
| Equity ratio | 55.2% | Derived from disclosed figures |
| Shares outstanding | 217,243,845 |  |
| Treasury shares | 17,162,200 |  |
| Shareholders | 41,104 |  |
| Average salary (parent only) | ¥8.7M | Filing company only |
| Cash ratio | 7.4% | Cash ÷ revenue 10.9% |
| Vs. industry median margin | +3.8 pp | Steel |
| ROE | 7.2% | Derived from disclosed figures |
| ROA | 4.0% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 2.0× net income
- FY2026, parent-company salary changed +28% over five years

## What changed in 5 years

Accounting standard changed in FY2022; percentage changes are omitted.

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥412722000000 | ¥578129000000 | — |
| Operating income | ¥10070000000 | ¥42081000000 | — |
| Operating margin | 2.4% | 7.3% | +4.8 pp |
| Employees | 13,109 people | 12,729 people | — |
| Cash and equivalents | ¥65558000000 | ¥63072000000 | — |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 特殊鋼鋼材 → 特殊鋼鋼材 | 35.3% |
| 機能材料・磁性材料 → 事業再編・廃止 | 36.2% |
| 自動車部品・産業機械部品 → 事業再編・廃止 | 19.6% |
| エンジニアリング → エンジニアリング | 4.6% |
| エンジニアリング → 事業再編・廃止 | 0.3% |
| 流通・サービス → 事業再編・廃止 | 4.0% |
| 新設・再編 → 特殊鋼鋼材 | 0.6% |
| 新設・再編 → 機能材料・磁性材料 | 34.6% |
| 新設・再編 → 自動車部品・産業機械部品 | 20.4% |
| 新設・再編 → 流通・サービス | 4.5% |

Segment revenue source references: 10 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Specialty Steel | — | — | ¥207781000000 | 6.4% | 2 |
| Functional material and magnetic material | 3 years | -3.1% | ¥199753000000 | 7.5% | 2 |
| Automobile parts and industrial machine parts | 3 years | +5.2% | ¥117937000000 | 6.9% | 2 |
| Engineering | — | — | ¥26625000000 | 9.8% | 2 |
| Logistics and service | 3 years | +2.1% | ¥26031000000 | 11.6% | 2 |

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 578,129 | 100.0% | S100YNEC |
| Cost of revenue | 476,828 | 82.5% | S100YNEC |
| Gross profit | 101,301 | 17.5% | S100YNEC |
| SG&A | 64,790 | 11.2% | S100YNEC |
| Operating income | 42,081 | 7.3% | S100YNEC |
| Pretax income | 44,756 | 7.7% | S100YNEC |
| Income tax | 9,878 | 1.7% | S100YNEC |
| Net income | 34,878 | 6.0% | S100YNEC |
| Net income attributable to owners | 32,605 | 5.6% | S100YNEC |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 83 |
| SG&A | 11 |
| Other operating | -1 |
| Operating income | 7 |
| (Ref.) Net income | 6 |

### Margin funnel

Gross margin 17.5% → Operating margin 7.3% → Net margin 5.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +0.6%; Core profit growth: +6.8%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 12.25×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 574,945 | 578,129 | 3,184 | +0.6% |
| Gross profit | 104,187 | 101,301 | -2,886 | -2.8% |
| Operating income | 39,408 | 42,081 | 2,673 | +6.8% |
| Net income attributable to owners | 28,314 | 32,605 | 4,291 | +15.2% |
| Operating cash flow | 53,516 | 66,096 | 12,580 | +23.5% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 490,421 | 24,768 | 5.1% | 10,987 | 41,033 | -4,382 | S100LLRJ |
| FY ending Mar 2021 | 412,722 | 10,070 | 2.4% | 4,516 | 33,766 | 5,947 | S100OD7G |
| FY ending Mar 2022 | 529,667 | 36,982 | 7.0% | 26,894 | -16,684 | -35,750 | S100R5A1 |
| FY ending Mar 2023 | 579,013 | 50,025 | 8.6% | 36,301 | 27,907 | 6,457 | S100TRHQ |
| FY ending Mar 2024 | 578,564 | 42,250 | 7.3% | 30,555 | 50,239 | — | S100W28E |
| FY ending Mar 2025 | 574,945 | 39,408 | 6.9% | 28,314 | 53,516 | — | S100YNEC |
| FY ending Mar 2026 | 578,129 | 42,081 | 7.3% | 32,605 | 66,096 | — | S100YNEC |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥45.4M |
| Operating income per employee (consolidated) | ¥3.3M |
| Net income per employee (consolidated) | ¥2.6M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 12,605 | 12,422 | 11,941 | 12,054 | 12,729 |
| Average salary (parent company) | ¥6.8M | ¥7.6M | ¥7.9M | ¥8.1M | ¥8.7M |
| Average age (parent company) | 39.1 years | 39.7 years | 40.0 years | 40.1 years | 40.2 years |
| Average tenure (parent company) | 16.6 years | 17.3 years | 17.6 years | 17.8 years | 17.9 years |

Year over year: Employees (consolidated) +5.6% · Revenue (consolidated) +0.6%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Specialty Steel | 207,781 | 35.9% | 13,380 | 6.4% |
| Functional material and magnetic material | 199,753 | 34.6% | 14,884 | 7.5% |
| Automobile parts and industrial machine parts | 117,937 | 20.4% | 8,160 | 6.9% |
| Engineering | 26,625 | 4.6% | 2,622 | 9.8% |
| Logistics and service | 26,031 | 4.5% | 3,022 | 11.6% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Specialty Steel | 35.9% | 31.8% | -4.1 | 6.4% |
| Functional material and magnetic material | 34.6% | 35.4% | 0.8 | 7.5% |
| Automobile parts and industrial machine parts | 20.4% | 19.4% | -1.0 | 6.9% |
| Engineering | 4.6% | 6.2% | 1.6 | 9.8% |
| Logistics and service | 4.5% | 7.2% | 2.7 | 11.6% |

Segment → industry: Automobile parts and industrial machine parts → Auto Parts / Functional material and magnetic material → Steel / Specialty Steel → Steel / Logistics and service → Specialty Trading & Wholesale / Engineering → Industrial Machinery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 66,096 | 11.4% | S100YNEC |
| Investing cash flow | -48,248 | -8.3% | S100YNEC |
| Financing cash flow | -18,459 | -3.2% | S100YNEC |
| Dividends paid | 9,765 | 1.7% | S100YNEC |
| Share buyback | 6,604 | 1.1% | S100YNEC |
| Change in cash | 1,853 | 0.3% | S100YNEC |
| Cash and equivalents | 63,072 | 10.9% | S100YNEC |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 55,644 | 56,488 | 46,008 | 61,218 | 63,072 | S100TRHQ, S100W28E, S100YNEC |
| Total assets | 728,986 | 772,361 | 788,734 | 782,974 | 856,380 | S100TRHQ, S100W28E, S100YNEC |
| Net assets | 359,408 | 394,767 | 457,313 | 469,144 | 513,457 | S100TRHQ, S100W28E, S100YNEC |
| Share capital | 37,172 | 37,172 | 37,172 | 37,172 | 37,172 | S100TRHQ, S100W28E, S100YNEC |
| Inventories | 174,624 | 201,523 | — | — | — | S100R5A1 |
| Property, plant and equipment | 218,085 | 217,056 | 220,030 | 234,469 | 255,302 | S100TRHQ, S100W28E, S100YNEC |
| Intangible assets excluding goodwill | 3,776 | 4,530 | — | — | — | S100R5A1 |
| Investment securities | 86,456 | 90,309 | — | — | — | S100R5A1 |
| Current assets | 382,218 | 416,853 | 415,434 | 416,999 | 447,288 | S100TRHQ, S100W28E, S100YNEC |
| Current liabilities | 230,104 | 215,226 | — | — | — | S100R5A1 |
| Trade payables | 53,847 | 48,656 | — | — | — | S100R5A1 |
| Short-term borrowings | 84,562 | 93,309 | — | — | — | S100R5A1 |
| Long-term borrowings | 69,911 | 79,980 | — | — | — | S100R5A1 |
| Bonds | 25,000 | 35,000 | — | — | — | S100R5A1 |
| Interest-bearing debt | 179,473 | 208,289 | — | — | — | 算出 |
| Total liabilities | 369,577 | 377,593 | 331,420 | 313,830 | 342,922 | S100TRHQ, S100W28E, S100YNEC |
| Non-controlling interests | 35,290 | 36,760 | — | — | — | S100R5A1 |
| Equity attributable to owners of parent | 324,494 | 358,122 | 418,562 | 429,278 | 472,565 | S100TRHQ, S100W28E, S100YNEC |
| Retained earnings | 248,574 | 274,326 | 312,243 | 332,888 | 360,715 | S100TRHQ, S100W28E, S100YNEC |
| Treasury stock | -3,663 | -3,668 | -3,674 | -12,078 | -18,610 | S100TRHQ, S100W28E, S100YNEC |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 7% | S100YNEC |
| Property, plant and equipment | 30% | S100YNEC |
| Other assets | 63% | S100YNEC |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 40% | S100YNEC |
| Equity | 60% | S100YNEC |
| Other liabilities | 0% | S100YNEC |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 728,986 | 772,361 | 788,734 | 782,974 | 856,380 |
| Equity | 359,408 | 394,767 | 457,313 | 469,144 | 513,457 |
| Interest-bearing debt | 179,473 | 208,289 | — | — | — |
| Cash | 55,644 | 56,488 | 46,008 | 61,218 | 63,072 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 44.2% | S100YNEC |
| Fixed assets ÷ total assets | 29.8% | S100YNEC |
| Goodwill ÷ parent equity | — | —, S100YNEC |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 7.4% |
| Cash ÷ revenue | 10.9% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 157.1% |
| Cash vs. profit gap | 33,491 JPY mn (of net income 102.7%) |
| Shareholder returns / net income | 50.2% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 29.9% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | — |
| Investing CF relative to operating CF | 73.0% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 5.1% | 0.73× | 3.7% | 2.25× | 8.3% | S100R5A1, S100TRHQ |
| 2023 | 6.3% | 0.77× | 4.8% | 2.20× | 10.6% | S100TRHQ |
| 2024 | 5.3% | 0.74× | 3.9% | 2.01× | 7.9% | S100W28E |
| 2025 | 4.9% | 0.73× | 3.6% | 1.85× | 6.7% | S100YNEC |
| 2026 | 5.6% | 0.71× | 4.0% | 1.82× | 7.2% | S100YNEC |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 10.3% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 5.5% | 2026-03-31 |
| 日本製鉄㈱ | Major shareholder | 5.4% | 2026-03-31 |
| 明治安田生命保険（相） | Major shareholder | 5.2% | 2026-03-31 |
| 日本発條㈱ | Major shareholder | 3.6% | 2026-03-31 |
| ㈱みずほ銀行 | Major shareholder | 3.3% | 2026-03-31 |
| ㈱三菱UFJ銀行 | Major shareholder | 3.0% | 2026-03-31 |
| トヨタ自動車㈱ | Major shareholder | 2.2% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505223 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 2.0% | 2026-03-31 |
| 日鉄興和不動産㈱ | Major shareholder | 1.9% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for FY ending Mar 2026 was ¥578.1B, almost flat from ¥574.9B (+0.6%).
- Gross profit slipped to ¥101.3B (-2.8%), yet operating income climbed to ¥42.1B (+6.8%) and net income to ¥32.6B (+15.2%).
- Operating cash flow grew to ¥66.1B from ¥53.5B, up 23.5%.

### Drivers

- Orders from the auto industry, its biggest customer group, held at last year's level, so sales hardly changed.
- Functional material and magnetic material earned more, helped by demand for magnets free of heavy rare earths and by the absence of last year's cost of closing a magnet subsidiary in China.
- Automobile parts and industrial machine parts grew sales but earned less after booking one-off costs for shifting high-alloy production.

### Risks

- Production cuts at carmakers, a faster shift to EVs, or a weaker economy could hurt results.
- Swings in the prices of scrap, ferroalloys, rare earths, power and LNG can raise costs and disrupt supply.
- Geopolitical tension and trade policy changes could push up raw material prices or make them harder to get.

Cited: Annual Securities Report (102nd term) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual Securities Report (102nd term) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第102期(2025/04/01－2026/03/31) | S100YNEC | 2026-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YNEC,, |
| 有価証券報告書－第101期(2024/04/01－2025/03/31) | S100W28E | 2025-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W28E,, |
| 有価証券報告書－第100期(2023/04/01－2024/03/31) | S100TRHQ | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TRHQ,, |
| 有価証券報告書－第99期(2022/04/01－2023/03/31) | S100R5A1 | 2023-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R5A1,, |
| 有価証券報告書－第98期(令和3年4月1日－令和4年3月31日) | S100OD7G | 2022-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OD7G,, |
| 有価証券報告書－第97期(令和2年4月1日－令和3年3月31日) | S100LLRJ | 2021-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LLRJ,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).