Tokyo Steel Manufacturing Co (5423) AI Stock Analysis

• Market Cap: ¥176.48B
• Dividend Yield: 3.42%
• Average Volume (3M): 481.92K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.25
• Revenue Growth: -18.72%
• EPS Growth: -25.26%
• Country: JP
• Employees: 1,103
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 47.07
• Shares Outstanding: 110,064,250
• 10 Day Avg. Volume: 492,540
• 30 Day Avg. Volume: 481,920
• PEG Ratio: -0.37
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -61.35
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 84.92
• Revenue Forecast (FY): ¥270.51B

• Rating: 73 Outperform
• Price Target: ¥1,723.00 ▲(5.13% Upside)
• Action: Reiterated Date: 05/16/25
• Date: Action: Reiterated 05/16/25

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. 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 various building and civil engineering projects, as well as in automobile and machinery components. It also provides flat products comprising heavy steel plates, hot rolled coils, pickled and oiled coils, hot-dip galvanized coils, checkered coils, and steel sheets for use in construction, industrial equipment, plant equipment, bridges, and ship-buildings. The company was founded in 1934 and is headquartered in Tokyo, Japan.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	306.69B	326.77B	367.24B	361.25B	270.88B	141.45B
Gross Profit	52.20B	57.77B	65.31B	62.90B	50.19B	19.81B
EBITDA	32.51B	36.55B	45.71B	43.70B	36.33B	9.88B
Net Income	18.37B	21.20B	27.96B	30.85B	31.94B	5.89B
Balance Sheet
Total Assets	296.28B	292.97B	310.60B	270.98B	240.32B	185.89B
Cash, Cash Equivalents and Short-Term Investments	90.44B	96.11B	112.22B	85.07B	68.64B	58.33B
Total Debt	11.10B	39.00M	0.00	396.00M	1.26B	2.19B
Total Liabilities	86.78B	83.05B	106.70B	91.72B	82.05B	54.99B
Stockholders Equity	209.50B	209.92B	203.91B	179.25B	158.28B	130.90B
Cash Flow
Free Cash Flow	0.00	-2.77B	36.66B	30.59B	17.12B	167.00M
Operating Cash Flow	0.00	19.59B	53.38B	39.77B	26.91B	7.58B
Investing Cash Flow	0.00	-21.88B	-18.20B	-11.90B	-9.68B	-8.95B
Financing Cash Flow	0.00	-13.77B	-8.14B	-11.70B	-7.48B	-7.22B

Tokyo Steel Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1639.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1639 is above the 20-day moving average (MA) of 1588.45, above the 50-day MA of 1553.26, and above the 200-day MA of 1510.76, indicating a bullish trend. The MACD of 13.35 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 79.51 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	80 Outperform	¥889.62B	8.81	10.78%	4.68%	-1.97%	47.63%
5463	74 Outperform	¥389.40B	11.54	―	3.26%	-7.77%	58.84%
5471	74 Outperform	¥482.46B	17.95	6.84%	2.99%	-0.02%	-40.45%
5451	74 Outperform	¥257.96B	17.94	6.87%	5.25%	-1.43%	171.44%
5423	73 Outperform	¥176.48B	12.17	7.36%	3.42%	-18.72%	-25.26%
5411	64 Neutral	¥1.28T	26.58	2.92%	4.59%	-8.07%	-41.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tokyo Steel Manufacturing Co Corporate Events

Tokyo Steel Profit Plunges as Sales Slide, But Dividend and Balance Sheet Stay Firm

Tokyo Steel reported a sharp deterioration in non-consolidated results for the nine months ended 31 December 2025, with net sales down 20.8% year-on-year to ¥201.8 billion and operating profit dropping 65.2% to ¥8.2 billion, while ordinary profit and profit fell 61.6% and 44.3% respectively. Despite weaker earnings, the company’s financial position remained solid, with total assets rising to ¥303.8 billion, equity increasing to ¥218.7 billion and an equity ratio of 72.0%, and it maintained its dividend stance with a planned full-year payout of ¥50 per share, unchanged from the previous fiscal year. Tokyo Steel also revised its full-year forecast lower, now projecting a 16.7% decline in net sales and a 72.8% plunge in operating profit for the year to March 2026, underscoring tougher market conditions for steel products and the earnings pressure from movements in steel scrap prices.

The most recent analyst rating on (JP:5423) stock is a Buy with a Yen1801.00 price target. To see the full list of analyst forecasts on Tokyo Steel Manufacturing Co stock, see the JP:5423 Stock Forecast page.