Want to see JP:5423 full AI Analyst Report?
Top Page
Tokyo Steel Manufacturing Co
(5423)
Select Model
Select Model
Rating:60Neutral
Price Target:
¥1,936.00
▲(11.14% 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
¥193.51B
Dividend Yield2.82%
Average Volume (3M)481.92K
Price to Earnings (P/E)18.7
Beta (1Y)0.16
Revenue Growth-12.89%
EPS Growth-45.51%
CountryJP
Employees1,161
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)94.77
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 Target
¥2,000.00Price Target Upside14.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)18.46
Revenue Forecast (FY)¥309.08B
Tokyo Steel Manufacturing Co Business Overview & Revenue Model
Company Description
Tokyo Steel Manufacturing Co., Ltd. manufactures and sells various steel products in Japan, Europe, Asia, and internationally. The company offers steel building materials, such as H-beams, high-standard electric furnace H-beam, special size H-beam...
How the Company Makes Money
Tokyo Steel makes money primarily by producing and selling finished steel products made via EAF steelmaking. (1) Core revenue stream – steel product sales: The company’s main revenue comes from selling construction-oriented long products such as H...
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 | 267.16B | 268.10B | 326.77B | 367.24B | 361.25B | 270.88B |
| Gross Profit | 24.48B | 31.75B | 57.77B | 65.09B | 62.68B | 50.00B |
| EBITDA | 15.01B | 22.32B | 36.55B | 45.72B | 43.70B | 37.47B |
| Net Income | 9.71B | 11.56B | 21.20B | 27.96B | 30.85B | 31.94B |
Balance Sheet | ||||||
| Total Assets | 288.90B | 291.60B | 293.96B | 312.13B | 273.87B | 243.65B |
| Cash, Cash Equivalents and Short-Term Investments | 63.38B | 73.97B | 96.11B | 112.22B | 85.07B | 68.64B |
| Total Debt | 11.36B | 273.00M | 39.00M | 0.00 | 396.00M | 1.26B |
| Total Liabilities | 71.56B | 70.46B | 84.04B | 108.22B | 94.61B | 85.36B |
| Stockholders Equity | 217.34B | 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 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥429.22B | 15.15 | ― | 3.26% | -6.84% | 5.08% | |
72 Outperform | ¥212.36B | 11.49 | 8.84% | 6.54% | -6.28% | 29.39% | |
69 Neutral | ¥816.50B | 8.73 | 7.80% | 4.03% | -4.64% | -21.93% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥468.16B | 12.92 | 7.28% | 2.99% | 4.19% | 31.79% | |
60 Neutral | ¥193.51B | 18.70 | 4.46% | 2.87% | -12.89% | -45.51% | |
60 Neutral | ¥1.09T | 16.48 | 2.76% | 4.46% | -6.59% | -23.63% |
* Basic Materials Sector Average
JP:5423
Tokyo Steel Manufacturing Co
1,776.00
200.11
12.70%
JP:5471
Daido Steel Co
2,304.00
1,107.34
92.54%
JP:5411
JFE Holdings
1,865.50
161.02
9.45%
JP:5406
Kobe Steel
2,040.00
366.69
21.91%
JP:5451
Yodogawa Steel Works
1,450.00
197.01
15.72%
JP:5463
Maruichi Steel Tube Ltd.
1,831.50
675.17
58.39%
Tokyo Steel Manufacturing Co Corporate Events
Tokyo Steel Completes Restricted Stock Treasury Share Disposal for Management
Jul 24, 2026
Tokyo Steel Manufacturing has completed the payment procedures for a restricted stock compensation program involving the disposal of 22,326 treasury shares. The shares, priced at ¥1,739 each for a total value of approximately ¥38.8 milli...
Tokyo Steel Cuts Profit Outlook Despite Higher Sales Forecast and Dividend Reduction
Jul 17, 2026
Tokyo Steel reported non-consolidated net sales of ¥72,927 million for the three months ended June 30, 2026, down 1.3% year on year, with operating and ordinary losses but a 49.5% rise in quarterly profit to ¥1,882 million as earnings pe...
Tokyo Steel Lifts Net Profit Outlook on Gains From Investment Securities
Jul 17, 2026
Tokyo Steel Manufacturing has revised its non-consolidated earnings forecasts for the second quarter and full fiscal year ending March 2027, maintaining projected net sales and operating and ordinary losses but now expecting a net profit. The comp...
Tokyo Steel Advances Share Buyback, Acquires 579,300 Shares Under Ongoing Program
Jul 1, 2026
Tokyo Steel Manufacturing Co., Ltd. reported progress on its ongoing share buyback program, carried out under the authority granted by its Articles of Incorporation and a Board resolution based on the Companies Act. The company is acquiring its ow...
Tokyo Steel Outlines Accounting Standards Approach, Opts Against FASF Membership
Jun 25, 2026
Tokyo Steel Manufacturing has disclosed that, as of March 31, 2026, it is not a member of the Financial Accounting Standards Foundation, a public interest incorporated foundation overseeing accounting standards in Japan. The company states it has ...
Tokyo Steel to Grant Restricted Treasury Shares to Executives and Directors
Jun 24, 2026
Tokyo Steel Manufacturing has approved the disposal of 22,326 treasury shares as part of its restricted stock compensation plan for three directors and six executive officers. The shares, priced at ¥1,739 each for a total of about ¥38.8 ...
Tokyo Steel Details Progress on Share Buyback Program
Jun 1, 2026
Tokyo Steel Manufacturing said it has been buying back its own common shares under a Board-approved program based on Japan’s Companies Act and its articles of incorporation. The move reflects the company’s capital management strategy a...
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...
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.