Tokyo Steel Manufacturing Co (5423) AI Stock Analysis

• Market Cap: ¥171.12B
• Dividend Yield: 3.18%
• Average Volume (3M): 450.25K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.32
• Revenue Growth: -11.02%
• EPS Growth: -21.84%
• Country: JP
• Employees: 1,103
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 36.18
• Shares Outstanding: 110,064,250
• 10 Day Avg. Volume: 694,490
• 30 Day Avg. Volume: 450,250
• PEG Ratio: -1.63
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,000.00
• Price Target Upside: 27.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,723.00 ▲(9.96%Upside)

Tokyo Steel Manufacturing Co maintains a stable financial foundation with strong profitability and low leverage. However, challenges in revenue growth and diminished cash flow pose risks. While technical indicators show mixed signals with a slight bearish trend, the company is attractively valued, offering a solid dividend yield and low P/E ratio, which enhances its investment appeal.

Tokyo Steel Manufacturing Co Business Overview & Revenue Model

Company Description

Tokyo Steel Manufacturing Co., Ltd. is a leading Japanese steel manufacturer specializing in the production of a wide range of steel products. Established in 1934, the company is a key player in the steel industry, focusing on the production and distribution of steel sheets, sections, bars, and pipes. Tokyo Steel is known for its use of electric arc furnaces to recycle scrap steel, making it one of the largest producers of recycled steel in Japan. The company caters to various sectors including construction, manufacturing, and infrastructure development, providing high-quality steel products that meet diverse industrial needs.

How the Company Makes Money

Tokyo Steel Manufacturing Co., Ltd. generates revenue primarily through the sale of its steel products. The company's revenue model relies on manufacturing and distributing a variety of steel products such as H-beams, I-beams, steel sheets, and billets, which are essential materials for construction and industrial applications. A significant portion of their income is derived from domestic sales in Japan, although they also have a strong presence in international markets. Tokyo Steel's strategy includes leveraging its advanced recycling technologies to produce cost-effective and environmentally sustainable products, which is a key competitive advantage. Additionally, the company benefits from strategic partnerships and collaborations with construction and manufacturing firms, which help to secure steady demand for its products. Factors such as fluctuations in raw material prices, particularly scrap steel, and global steel demand trends can significantly impact the company's earnings.

Tokyo Steel Manufacturing Co Financial Statement Overview

Summary

Tokyo Steel Manufacturing Co exhibits solid profitability and a stable financial position supported by strong equity. Yet, declining revenue and cash flow highlight areas for improvement, such as enhancing demand and optimizing operations.

Income Statement

The company demonstrated a strong gross profit margin and consistent EBIT and EBITDA margins, indicating efficient cost management. However, there is a notable decline in revenue growth from the previous year, reflecting potential challenges in market demand or pricing power.

Balance Sheet

With a robust equity ratio and low debt-to-equity ratio, the company's balance sheet is stable and signifies strong capital structure and low financial risk. Return on Equity remains healthy, showcasing effective use of shareholders' capital.

Cash Flow

Operating cash flow remains positive but has decreased significantly year-over-year, impacting free cash flow negatively. The company needs to manage its capital expenditures better to improve cash flow sustainability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	326.77B	367.24B	361.25B	270.88B	141.45B
Gross Profit	57.77B	65.31B	62.90B	50.19B	19.81B
EBITDA	36.55B	45.71B	43.70B	36.33B	9.88B
Net Income	21.20B	27.96B	30.85B	31.94B	5.89B
Balance Sheet
Total Assets	292.97B	310.60B	270.98B	240.32B	185.89B
Cash, Cash Equivalents and Short-Term Investments	96.11B	112.22B	85.07B	68.64B	58.33B
Total Debt	39.00M	0.00	396.00M	1.26B	2.19B
Total Liabilities	83.05B	106.70B	91.72B	82.05B	54.99B
Stockholders Equity	209.92B	203.91B	179.25B	158.28B	130.90B
Cash Flow
Free Cash Flow	-2.77B	36.66B	30.59B	17.12B	167.00M
Operating Cash Flow	19.59B	53.38B	39.77B	26.91B	7.58B
Investing Cash Flow	-21.88B	-18.20B	-11.90B	-9.68B	-8.95B
Financing Cash Flow	-13.77B	-8.14B	-11.70B	-7.48B	-7.22B

Tokyo Steel Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1567.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5423, the sentiment is Negative. The current price of 1567 is below the 20-day moving average (MA) of 1582.10, above the 50-day MA of 1539.32, and below the 200-day MA of 1571.86, indicating a neutral trend. The MACD of 16.68 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 22.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5423.

Tokyo Steel Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5471	77 Outperform	¥229.95B	7.90	6.56%	4.51%	-1.09%	-42.47%
5451	76 Outperform	¥183.90B	12.60	6.92%	6.06%	2.21%	202.59%
5482	75 Outperform	¥169.00B	22.27	3.23%	7.22%	0.93%	19.15%
5423	73 Outperform	¥171.12B	9.01	8.92%	3.18%	-11.02%	-21.84%
5440	71 Outperform	¥98.39B	9.12		3.99%	0.58%	-21.95%
Sector *	71 Outperform	¥184.85B	11.23	6.29%	3.20%	3.88%	3.23%
5449	68 Neutral	¥114.82B	35.58		1.18%	-0.60%	3.40%

Tokyo Steel Manufacturing Co Corporate Events

Tokyo Steel Completes Treasury Stock Purchase

Tokyo Steel Manufacturing Co., Ltd. announced the completion of its treasury stock purchase, acquiring 455,300 common shares between May 1 and May 21, 2025, at a cost of ¥715,003,100. This move is part of a broader strategy resolved in July 2024 to acquire up to 6,800,000 shares, enhancing shareholder value and potentially impacting the company’s market positioning.

The most recent analyst rating on (JP:5423) stock is a Buy with a Yen2150.00 price target. To see the full list of analyst forecasts on Tokyo Steel Manufacturing Co stock, see the JP:5423 Stock Forecast page.

Tokyo Steel Announces Share Buyback Progress

Tokyo Steel Manufacturing Co., Ltd. announced the acquisition of 1,230,500 of its own common shares, costing approximately ¥1.93 billion, as part of a broader share buyback program. This move is part of a previously resolved plan to acquire up to 6.8 million shares, aiming to enhance shareholder value and optimize capital structure, with implications for market perception and investor confidence.

Tokyo Steel Reports Decline in Financial Performance for FY2025

Tokyo Steel Manufacturing Co., Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales and profits showing significant decreases compared to the previous year. The company also provided a forecast for the next fiscal year, anticipating further declines in sales and profits, highlighting the challenges posed by fluctuating raw material prices and market conditions.

Tokyo Steel Expands Product Line with New Investment in Cold Rolled Coils

Tokyo Steel Manufacturing Co., Ltd. has announced an investment to modify the hot dip galvanizing line at its Okayama Plant, enabling the production of cold rolled coils. This strategic move aims to expand the company’s product lineup and meet the growing demand for low-CO2 steel products, aligning with global sustainability trends. The investment, amounting to approximately 10 billion yen, is expected to start operations in early fiscal year 2027, with an anticipated production output of 250,000 tons per year. The company expects this development to have an immaterial impact on its business results for the fiscal year ending March 31, 2026.

Tokyo Steel Acquires Own Shares to Optimize Capital Structure

Tokyo Steel Manufacturing Co., Ltd. announced the acquisition of 635,800 of its own common shares between March 1 and March 31, 2025, at a cost of ¥1,050,564,700. This move is part of a broader strategy approved by the Board of Directors to acquire up to 6,800,000 shares, aiming to optimize capital structure and potentially enhance shareholder value.