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Tokyo Steel Manufacturing Co Ltd (JP:5423)
:5423

Tokyo Steel Manufacturing Co (5423) AI Stock Analysis

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Tokyo Steel Manufacturing Co

(OTC:5423)

Rating:73Outperform
Price Target:
¥1,723.00
▲(9.26%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 (5423) vs. iShares MSCI Japan ETF (EWJ)

Tokyo Steel Manufacturing Co Business Overview & Revenue Model

Company DescriptionTokyo 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 MoneyTokyo 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
75
Positive
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
80
Positive
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
68
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue345.33B326.77B367.24B361.25B270.88B141.45B
Gross Profit59.70B57.77B65.31B62.90B50.19B19.81B
EBITDA36.10B36.55B45.71B43.70B36.33B9.88B
Net Income22.67B21.20B27.96B30.85B31.94B5.89B
Balance Sheet
Total Assets306.54B292.97B310.60B270.98B240.32B185.89B
Cash, Cash Equivalents and Short-Term Investments111.77B96.11B112.22B85.07B68.64B58.33B
Total Debt0.0039.00M0.00396.00M1.26B2.19B
Total Liabilities98.01B83.05B106.70B91.72B82.05B54.99B
Stockholders Equity208.53B209.92B203.91B179.25B158.28B130.90B
Cash Flow
Free Cash Flow0.00-2.77B36.66B30.59B17.12B167.00M
Operating Cash Flow0.0019.59B53.38B39.77B26.91B7.58B
Investing Cash Flow0.00-21.88B-18.20B-11.90B-9.68B-8.95B
Financing Cash Flow0.00-13.77B-8.14B-11.70B-7.48B-7.22B

Tokyo Steel Manufacturing Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1577.00
Price Trends
50DMA
1532.02
Positive
100DMA
1561.06
Positive
200DMA
1591.55
Negative
Market Momentum
MACD
2.69
Negative
RSI
65.20
Neutral
STOCH
71.87
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 1577 is above the 20-day moving average (MA) of 1506.30, above the 50-day MA of 1532.02, and below the 200-day MA of 1591.55, indicating a neutral trend. The MACD of 2.69 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 71.87 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$171.23B7.9210.08%3.19%-11.02%-21.84%
61
Neutral
S$1.24B8.722.01%6.58%-0.53%28.51%
DEDDL
€1.27B7.056.56%5.18%
$1.21B12.676.92%43.23%
DE8T2
€924.89M19.903.23%8.72%
72
Outperform
¥108.00B33.47
1.36%-0.60%3.40%
71
Outperform
¥92.74B8.59
5.62%0.58%-21.95%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5423
Tokyo Steel Manufacturing Co
1,577.00
44.23
2.89%
DE:DDL
Daido Steel Co
5.80
-1.97
-25.35%
YDWAF
Yodogawa Steel Works
7.76
1.04
15.48%
DE:8T2
Aichi Steel Corporation
12.10
7.35
154.74%
JP:5440
Kyoei Steel Ltd.
2,145.00
166.17
8.40%
JP:5449
OSAKA STEEL CO., LTD.
2,826.00
573.03
25.43%

Tokyo Steel Manufacturing Co Corporate Events

Tokyo Steel Completes Treasury Stock Purchase
May 26, 2025

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
May 1, 2025

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
Apr 25, 2025

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
Apr 25, 2025

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
Apr 1, 2025

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.

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.Date of analysis: May 16, 2025