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): 10.7
• Beta (1Y): 0.21
• Revenue Growth: -18.72%
• EPS Growth: -25.26%
• Country: JP
• Employees: 1,103
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 8.25
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,723.00 ▲(6.62% 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. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1616.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1616 is above the 20-day moving average (MA) of 1509.50, above the 50-day MA of 1453.70, and above the 200-day MA of 1507.62, indicating a bullish trend. The MACD of 43.46 indicates Negative momentum. The RSI at 81.64 is Negative, neither overbought nor oversold. The STOCH value of 95.70 is Negative, 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
5471	74 Outperform	¥417.83B	14.40	6.84%	2.99%	-0.02%	-40.45%
5451	74 Outperform	¥224.83B	15.13	6.87%	5.25%	-1.43%	171.44%
5423	73 Outperform	¥176.48B	10.65	7.36%	3.42%	-18.72%	-25.26%
5482	72 Outperform	¥212.23B	20.61	5.06%	1.80%	4.10%	152.90%
5440	70 Outperform	¥115.51B	10.35	―	3.70%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	61 Neutral	¥94.54B	2,332.45	―	1.24%	-12.05%	-97.36%

Tokyo Steel Manufacturing Co Corporate Events

Tokyo Steel Revises Financial Forecasts Amid Market Challenges

Tokyo Steel Manufacturing Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2026, due to lower-than-expected product shipment volumes and increased fixed costs. The company cites labor shortages in the domestic construction sector and rising scrap iron prices as key challenges. Despite resolving a tariff issue with the United States, uncertainty in domestic demand persists, prompting the company to focus on restoring selling prices and reducing costs.

The most recent analyst rating on (JP:5423) stock is a Hold with a Yen1450.00 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 Reports Significant Decline in Financial Performance

Tokyo Steel Manufacturing Co., Ltd. reported a significant decline in its financial performance for the six months ended September 30, 2025, with net sales dropping by 23.2% and operating profit by 56.6% compared to the previous year. The company has revised its financial forecasts, anticipating further declines in net sales and profits for the full fiscal year ending March 31, 2026, which may impact stakeholders and reflect challenging market conditions.

The most recent analyst rating on (JP:5423) stock is a Hold with a Yen1450.00 price target. To see the full list of analyst forecasts on Tokyo Steel Manufacturing Co stock, see the JP:5423 Stock Forecast page.