Tokyo Steel Manufacturing Co Ltd (JP:5423)
:5423
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Tokyo Steel Manufacturing Co
(5423)
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Rating:60Neutral
Price Target:
¥1,936.00
▲(18.12% Upside)
Action:Reiterated
Date:05/15/26
The score is anchored by mixed financial performance: a very strong, low-debt balance sheet offsets recent margin compression and notably weak cash flow. Technicals are mildly constructive due to price strength versus key moving averages, but momentum indicators are neutral-to-soft. Valuation is reasonable but not compelling, with the dividend providing partial support.
Positive Factors
Strong Balance Sheet
Very low leverage and conservative financing give Tokyo Steel durable financial flexibility. Minimal debt and low refinancing risk mean the company can absorb steel-cycle volatility, fund working capital or selective capex, and preserve strategic optionality over the coming months.
Negative Factors
Weak Cash Generation
A reversal to negative operating and free cash flow materially reduces internal funding capacity. If this persists, it will constrain reinvestment, dividend coverage and working capital needs, increasing dependence on external funding despite the strong balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Very low leverage and conservative financing give Tokyo Steel durable financial flexibility. Minimal debt and low refinancing risk mean the company can absorb steel-cycle volatility, fund working capital or selective capex, and preserve strategic optionality over the coming months.
Read all positive factors
Tokyo Steel Manufacturing Co (5423) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥196.35B
Dividend Yield3.42%
Average Volume (3M)481.92K
Price to Earnings (P/E)19.2
Beta (1Y)0.17
Revenue Growth-17.96%
EPS Growth-43.14%
CountryJP
Employees1,103
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)173.92
Shares Outstanding110,064,250
10 Day Avg. Volume492,540
30 Day Avg. Volume481,920
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.75
Price to Sales (P/S)0.62
P/FCF Ratio-6.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)67.3
Revenue Forecast (FY)¥291.16B
Tokyo Steel Manufacturing Co Business Overview & Revenue Model
Company Description
Tokyo Steel Manufacturing Co., Ltd. manufactures and sells various steel products in Japan. The company offers various long products, such as H beams, U-shaped steel-sheet piles, I-beams, checkered H-beams, channels, and deformed bars for use in v...
How the Company Makes Money
Tokyo Steel makes money mainly by manufacturing and selling steel products. Its core revenue stream is the sale of finished steel—especially construction-oriented products such as H-beams (structural steel), along with other steel shapes and produ...
Tokyo Steel Manufacturing Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 306.69B | 268.10B | 326.77B | 367.24B | 361.25B | 270.88B |
| Gross Profit | 52.45B | 31.75B | 57.77B | 65.09B | 62.68B | 50.00B |
| EBITDA | 32.36B | 15.30B | 36.90B | 43.97B | 43.07B | 36.30B |
| Net Income | 18.37B | 11.56B | 21.20B | 27.96B | 30.85B | 31.94B |
Balance Sheet | ||||||
| Total Assets | 296.28B | 291.60B | 293.96B | 312.13B | 273.87B | 243.65B |
| Cash, Cash Equivalents and Short-Term Investments | 90.44B | 73.97B | 96.11B | 112.22B | 85.07B | 68.64B |
| Total Debt | 11.10B | 273.00M | 39.00M | 0.00 | 396.00M | 1.26B |
| Total Liabilities | 86.78B | 70.46B | 84.04B | 108.22B | 94.61B | 85.36B |
| Stockholders Equity | 209.50B | 221.13B | 209.92B | 203.91B | 179.25B | 158.28B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -25.84B | -2.77B | 36.66B | 30.59B | 17.12B |
| Operating Cash Flow | 0.00 | -3.28B | 19.59B | 53.38B | 39.77B | 26.91B |
| Investing Cash Flow | 0.00 | -10.84B | -21.88B | -18.20B | -11.90B | -9.68B |
| Financing Cash Flow | 0.00 | -8.16B | -13.77B | -8.14B | -11.70B | -7.48B |
Tokyo Steel Manufacturing Co Technical Analysis
Positive
1639.00
Price Trends
1680.86
Positive
1599.40
Positive
1535.58
Positive
Market Momentum
19.91
Negative
59.10
Neutral
78.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5423, the sentiment is Positive. The current price of 1639 is below the 20-day moving average (MA) of 1736.20, below the 50-day MA of 1680.86, and above the 200-day MA of 1535.58, indicating a bullish trend. The MACD of 19.91 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5423.
Tokyo Steel Manufacturing Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥455.86B | 12.05 | ― | 3.26% | -6.84% | 4.65% | |
72 Outperform | ¥184.00B | 11.55 | 6.87% | 5.25% | -6.28% | 29.00% | |
69 Neutral | ¥739.64B | 7.95 | 10.78% | 4.68% | -4.64% | -21.94% | |
62 Neutral | ¥377.70B | 8.38 | 6.16% | 2.99% | 0.55% | 20.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥196.35B | 19.21 | 7.36% | 3.42% | -17.96% | -43.14% | |
49 Neutral | ¥992.82B | 16.46 | 2.09% | 4.59% | -6.59% | -23.63% |
* Basic Materials Sector Average
JP:5423
Tokyo Steel Manufacturing Co
1,758.00
285.75
19.41%
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4.15%
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15.98%
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Tokyo Steel Manufacturing Co Corporate Events
Tokyo Steel Corrects FY2026 Non-Consolidated Results After Valuation Error
May 1, 2026
Tokyo Steel Manufacturing has corrected certain figures in its recently released non-consolidated financial results for the fiscal year ended March 31, 2026, after discovering errors in the fair value measurement of investment securities. The revi...
Tokyo Steel Misses Operating Targets but Beats Net Profit Forecast on Tax Gain
Apr 24, 2026
Tokyo Steel Manufacturing reported that its full-year non-consolidated results for the fiscal year ending March 2026 diverged from the earnings forecast issued in January, with revenue and operating and ordinary profit coming in slightly below exp...
Tokyo Steel Launches ¥2.7 Billion Share Buyback to Bolster Capital Policy
Apr 24, 2026
Tokyo Steel Manufacturing Co. has approved a new share buyback program, authorizing the acquisition of up to 1.5 million common shares, equivalent to about 1.46% of its outstanding shares excluding existing treasury stock. The company plans to spe...
Tokyo Steel Profit Plunges Despite Strong Balance Sheet; Dividend Cut Forecast
Apr 24, 2026
Tokyo Steel Manufacturing Co. reported a sharp deterioration in non-consolidated earnings for the fiscal year ended March 31, 2026, as net sales fell 18% to ¥268.1 billion and operating profit plunged 76% to ¥7.2 billion. Ordinary profit...
Tokyo Steel Reshapes Board and Organization Ahead of June Shareholders’ Meeting
Mar 18, 2026
Tokyo Steel Manufacturing has announced a series of leadership changes, appointing Executive Officer Soichiro Tsuda and Executive Officer Gaku Ito as directors, effective following the annual shareholders’ meeting on June 24, 2026. At the sa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.