Nippon Steel (FRA:NPS) Moat Score: 5/10 (As of Jul. 04, 2026)


FRA:NPS Nippon Steel Corp FRA:NPS
71 GF Score
Price €2.97
GF Value €4.06
Valuation Modestly Undervalued
! 8 Warning Signs
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What is Nippon Steel Moat Score?

Nippon Steel FRA:NPS +0.76% 71 Moat Score is 5 as of Jul. 04, 2026. GuruFocus rates FRA:NPS with a GF Score™ of 71/100 and a GF Value™ of €4.06 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 644 Steel companies, Nippon Steel ranks better than 98.6% on this metric.

Nippon Steel has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Nippon Steel has Narrow Moat: Nippon Steel Corp has a solid narrow moat due to its economies of scale and strong brand in the steel industry. However, it faces intense competition and lacks significant regulatory barriers or unique technology to achieve a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Nippon Steel might have Narrow Moat - Solid narrow moat.

Nippon Steel  (FRA:NPS) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Nippon Steel Moat Score Related Terms

FRA:NPS vs NUE, STLD, RS: Moat Score Comparison

For the Steel subindustry, Nippon Steel's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Nippon Steel Moat Score vs Steel Industry

For the Steel industry and Basic Materials sector, Nippon Steel's Moat Score distribution charts can be found below:

* The bar in red indicates where Nippon Steel's Moat Score falls into.


FRA:NPS
71GF Score
Nippon Steel Corp FRA:NPS
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Nippon Steel (FRA:NPS) has a Moat Score of 5 as of Jul. 04, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Nippon Steel ranks #9 out of 644 companies in the Steel industry, placing it in the top 1.4%.
Is Nippon Steel's Moat Score too high?
Nippon Steel's current Moat Score is 5. Based on the distribution chart, Nippon Steel ranks #9 out of 644 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Steel has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Steel's Moat Score compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Steel ranks #9 out of 644 companies for Moat Score. This places Nippon Steel in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Steel company?
A good Moat Score depends on the Steel industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Nippon Steel's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Steel stock overvalued right now?
Based on GuruFocus' analysis, Nippon Steel (FRA:NPS) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.06, compared to a current price of €2.97 — trading 26.8% below its estimated fair value. The current Moat Score is 5. Nippon Steel's overall GF Score™ is 71/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Nippon Steel (FRA:NPS), the current Moat Score is 5 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Nippon Steel (FRA:NPS) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Steel stock appears to be undervalued. The current stock price of €2.97 is trading 26.8% below its estimated GF Value™ of €4.06. GuruFocus considers Nippon Steel to be Modestly Undervalued.

Key valuation signals for FRA:NPS:

  • Moat Score: 5
  • GF Value™: €4.06 vs. price of €2.97 (26.8% below fair value)
  • GF Score™: 71/100 with 8 warning signs

No single metric tells the full story. See the FRA:NPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nippon Steel Business Description

Address 2-6-1 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-8071
Nippon Steel Corp is mainly engaged in the steel manufacturing business, engineering business, chemical & material business, and system solution business. The company operates through four business segments. The Chemicals & Materials segment manufactures and sells coal chemicals, petrochemicals, electronic materials, semiconductors, carbon fibers, composites, and processed metal products. The Engineering segment handles industrial machinery, steel structures, construction contracting, waste disposal, recycling, and energy supply. The Steel segment focuses on the production and sale of steel products. The System Solutions segment provides IT consulting, outsourcing, and related services. It generates the majority of its revenue from the Steel segment.
71GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€2.97
Price
€4.06
GF Value