Tokyo Tekko Co., Ltd. (5445) AI Stock Analysis

• Market Cap: ¥57.85B
• Dividend Yield: 6.31%
• Average Volume (3M): 41.82K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.98
• Revenue Growth: -8.44%
• EPS Growth: 9.50%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 216.37
• Shares Outstanding: 9,365,305
• 10 Day Avg. Volume: 37,400
• 30 Day Avg. Volume: 41,816
• PEG Ratio: 0.12
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 22.86
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥7,115.00 ▲(15.13% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Tokyo Tekko Co., Ltd. scores well due to its strong financial performance and attractive valuation, suggesting potential for growth and income. However, technical analysis indicates bearish momentum, which could pose short-term risks. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Balance Sheet

A high equity ratio, decreasing debt-to-equity and reported negative net debt provide durable financial flexibility. This capital structure supports investment in capacity, cushions cyclic construction demand, and reduces refinancing risk over the next several quarters.

Improving Cash Generation

Recovering operating and free cash flow demonstrates the company’s ability to convert profits into spendable cash. Durable cash generation supports capex, working capital needs and potential shareholder returns while mitigating reliance on external funding during cycles.

Margin and Profitability Recovery

Material improvement in gross and net margins implies better cost control and operational efficiency. Sustained margins increase free cash flow and ROE, allowing the firm to better absorb raw-material swings and fund growth initiatives over the medium term.

Negative Factors

Recent Revenue Decline

Reported negative revenue growth indicates exposure to weaker construction demand or lost volumes. Over a 2-6 month horizon, declining top-line trends can undermine margin recovery, pressure operating leverage, and limit the durability of improved cash flows.

Commodity Input Exposure

As a rebar supplier, earnings depend heavily on volatile scrap, steel and energy prices and limited pricing power. Structural input-price risk can compress margins when commodity costs rise and make earnings less predictable across construction cycles.

Historical Cash-Flow and Liability Volatility

Prior swings in free cash flow and variation in total liabilities point to earnings and working-capital sensitivity to demand and input costs. This volatility can constrain strategic spending and increase the need for active balance-sheet management during downturns.

Tokyo Tekko Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Tekko Co., Ltd. manufactures and sells steel products for the construction industry in Japan and internationally. The company provides high-tensile threaded rebar and joint products that support the construction of high-rise buildings; and high-tensile deformed rebars. It offers steel bars for concrete reinforcement; threaded rebar joints; mechanical anchorage for threaded rebars and shear reinforcement; mortar-grouted joints; mechanical joints; and rebar processing products. The company was incorporated in 1939 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Tekko generates revenue through the sale of its steel products to a diverse range of industries. The company's primary revenue streams include direct sales to construction firms, automotive manufacturers, and other industrial clients who require steel materials for their operations. Additionally, Tokyo Tekko may engage in long-term supply contracts with key customers, ensuring a steady revenue flow. The company also benefits from strategic partnerships with other manufacturers and suppliers, allowing it to expand its market reach and enhance its product offerings. Factors such as fluctuations in steel prices, demand in construction and manufacturing sectors, and the overall economic climate significantly contribute to its earnings.

Tokyo Tekko Co., Ltd. Financial Statement Overview

Summary

Tokyo Tekko Co., Ltd. demonstrates strong financial performance with robust revenue growth and improved profitability metrics. The balance sheet is solid with low leverage and a high equity ratio, while cash flows have shown significant improvement, indicating effective cash management. Despite historical fluctuations, the recent positive trajectory suggests a well-managed recovery and growth strategy.

Income Statement

Tokyo Tekko Co., Ltd. exhibits a robust income statement with strong revenue growth, particularly notable from 2022 to 2025. The gross profit margin improved significantly from previous years, reflecting better cost management. The net profit margin also shows a positive trajectory, bouncing back from negative figures in 2022 to a healthy 13.1% in 2025. Additionally, EBIT and EBITDA margins have strengthened, indicating enhanced operational efficiency. However, the volatility in earlier years could be a concern for stability.

Balance Sheet

The balance sheet of Tokyo Tekko Co., Ltd. is strong, with a solid equity base and low leverage, as reflected by a decreasing debt-to-equity ratio over time. The equity ratio is consistently high, indicating a strong capital structure. Return on equity (ROE) has improved substantially, aligning with the company's rising profitability. While the company has managed its debt well, maintaining negative net debt, the variation in total liabilities suggests some degree of financial risk management is necessary.

Cash Flow

Cash flow analysis reveals a positive operating cash flow trend, with free cash flow recovering strongly in recent years after a dip in 2022. The operating cash flow to net income ratio demonstrates efficient cash generation relative to earnings. Despite some fluctuations in free cash flow, the company has demonstrated resilience, effectively turning around from negative cash flows. The free cash flow to net income ratio further supports a solid cash management strategy, although the historical volatility in cash flows warrants caution.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	80.11B	82.59B	79.62B	79.23B	66.09B	62.39B
Gross Profit	23.20B	23.34B	18.37B	12.01B	7.04B	15.18B
EBITDA	16.81B	17.60B	13.53B	7.41B	-2.62B	9.81B
Net Income	10.33B	10.85B	7.89B	3.66B	-4.72B	4.98B
Balance Sheet
Total Assets	77.19B	81.25B	77.90B	69.77B	63.06B	65.08B
Cash, Cash Equivalents and Short-Term Investments	7.31B	14.17B	16.35B	11.88B	7.38B	11.37B
Total Debt	4.94B	5.08B	6.00B	7.22B	7.69B	2.11B
Total Liabilities	18.02B	21.53B	24.74B	23.63B	20.65B	17.05B
Stockholders Equity	59.14B	59.68B	53.11B	46.09B	42.35B	47.98B
Cash Flow
Free Cash Flow	0.00	2.20B	7.54B	5.08B	-8.48B	4.74B
Operating Cash Flow	0.00	8.18B	12.09B	6.88B	-5.10B	7.89B
Investing Cash Flow	0.00	-5.60B	-4.56B	-1.63B	-3.36B	-3.11B
Financing Cash Flow	0.00	-4.76B	-3.06B	-756.00M	4.47B	-1.37B

Tokyo Tekko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6180.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5445, the sentiment is Positive. The current price of 6180 is below the 20-day moving average (MA) of 6346.50, below the 50-day MA of 6310.40, and above the 200-day MA of 5794.82, indicating a bullish trend. The MACD of -5.03 indicates Positive momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 31.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5445.

Tokyo Tekko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5445	72 Outperform	¥57.85B	5.95	―	6.31%	-8.44%	9.50%
5480	71 Outperform	¥80.12B	9.30	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥115.38B	12.02	―	3.70%	-3.06%	1.15%
5408	64 Neutral	¥34.32B	12.12	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥59.39B	5.98	―	6.27%	-7.45%	-9.12%
5449	60 Neutral	¥78.00B	-216.13	―	1.24%	-12.05%	-97.36%

Tokyo Tekko Co., Ltd. Corporate Events

Tokyo Tekko Sees Profit Slump and Cuts Dividend Outlook Amid Weaker Sales

Tokyo Tekko reported a sharp year-on-year decline in performance for the nine months ended December 31, 2025, with net sales down 14.4% to ¥54.1 billion and profit attributable to owners of parent falling 20.1% to ¥6.3 billion, while basic earnings per share slid to ¥740.07. Despite stronger equity and a higher equity-to-asset ratio as of December 31, 2025, the company projects full-year results to remain weaker than the previous fiscal year, forecasting an 11.6% drop in net sales and a 25.4% decline in profit, and plans to reduce its annual dividend payout from ¥375 to ¥300 per share, signaling a more cautious stance that may affect shareholder returns and reflect tougher conditions in its core markets.

The most recent analyst rating on (JP:5445) stock is a Hold with a Yen6855.00 price target. To see the full list of analyst forecasts on Tokyo Tekko Co., Ltd. stock, see the JP:5445 Stock Forecast page.

Tokyo Tekko Announces Three-for-One Stock Split and Overhauls Shareholder Incentive Program

Tokyo Tekko will implement a three-for-one stock split of its common shares, effective April 1, 2026, tripling the number of shares issued to 28,095,915 and raising authorized shares to 84 million, with the aim of lowering the minimum investment per trading unit and attracting a broader range of investors. In conjunction with this, the company will amend its Articles of Incorporation to reflect the higher authorized share count and will revise its shareholder benefit program from March 31, 2027, adjusting minimum shareholding thresholds in line with the split and introducing a stepped long-term incentive system under which shareholders holding 300 shares or more for one and three years receive progressively larger benefits, designed to promote longer-term share ownership.

The most recent analyst rating on (JP:5445) stock is a Hold with a Yen6931.00 price target. To see the full list of analyst forecasts on Tokyo Tekko Co., Ltd. stock, see the JP:5445 Stock Forecast page.

Tokyo Tekko Cuts Full-Year Earnings Forecast Amid Construction Delays and Cost Pressures

Tokyo Tekko has revised down its full-year consolidated forecast for the fiscal year ending March 31, 2026, cutting projected net sales from 77.0 billion yen to 73.0 billion yen and trimming profit targets by about 4–5% across operating, ordinary, and net profit compared with its previous outlook. The company cited lower-than-planned shipment volumes, mainly caused by construction delays stemming from labor shortages and changes in working conditions in the construction industry, as well as higher steel scrap prices pressuring margins despite efforts to push high-value-added products and reduce costs; however, it kept its planned year-end dividend unchanged at 200 yen per share, signaling an intention to maintain shareholder returns despite the earnings downgrade.

The most recent analyst rating on (JP:5445) stock is a Hold with a Yen6931.00 price target. To see the full list of analyst forecasts on Tokyo Tekko Co., Ltd. stock, see the JP:5445 Stock Forecast page.

Tokyo Tekko Nears Upper Limit of ¥500 Million Share Buyback Program

Tokyo Tekko Co., Ltd. has completed a share buyback program authorized by its board of directors, acquiring 43,800 of its own common shares for a total of ¥253.4 million between December 1 and December 23, 2025. Under the broader repurchase framework approved on October 31, 2025, the company has cumulatively bought back 88,100 shares for approximately ¥499.6 million, approaching the upper limit of the planned ¥500 million program, a move that is likely aimed at enhancing shareholder returns and optimizing its capital structure.

The most recent analyst rating on (JP:5445) stock is a Buy with a Yen6216.00 price target. To see the full list of analyst forecasts on Tokyo Tekko Co., Ltd. stock, see the JP:5445 Stock Forecast page.

Tokyo Tekko Announces Share Buyback Plan

Tokyo Tekko Co., Ltd. has announced the acquisition of its own common shares as part of a resolution made by its Board of Directors. The company acquired 44,300 shares at a total cost of 246,277,000 yen between November 5 and November 30, 2025. This move is part of a broader plan to acquire up to 110,000 shares, with a maximum budget of 500 million yen, aimed at enhancing shareholder value.

The most recent analyst rating on (JP:5445) stock is a Buy with a Yen6216.00 price target. To see the full list of analyst forecasts on Tokyo Tekko Co., Ltd. stock, see the JP:5445 Stock Forecast page.