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

• Market Cap: ¥54.70B
• Dividend Yield: 5.53%
• Average Volume (3M): 58.18K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.11
• Revenue Growth: -1.95%
• EPS Growth: 17.09%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 269.53
• Shares Outstanding: 9,365,305
• 10 Day Avg. Volume: 42,090
• 30 Day Avg. Volume: 58,176
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥6,300.00
• Price Target Upside: 3.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥6,300.00 ▲(3.96% Upside)

Tokyo Tekko Co., Ltd. scores well due to strong financial performance and attractive valuation. The financials indicate robust growth and effective cash management, while the low P/E ratio and high dividend yield enhance investor appeal. Technical indicators suggest neutral momentum, neither heavily impacting the score positively nor negatively.

Positive Factors

Strong Financial Performance

The company's robust financial performance, characterized by strong revenue growth and profitability, indicates effective management and a solid market position, supporting long-term sustainability.

Cash Flow Resilience

The recovery and positive trend in free cash flow highlight Tokyo Tekko's ability to generate cash efficiently, ensuring liquidity and financial stability over the long term.

Shareholder Value Enhancement

The share buyback initiative reflects Tokyo Tekko's commitment to optimizing its capital structure and increasing shareholder value, which can strengthen investor confidence and support long-term growth.

Negative Factors

Revenue Growth Decline Forecast

The anticipated decline in revenue growth for the next fiscal year could impact Tokyo Tekko's market position and investor sentiment, posing a challenge to sustaining its current growth trajectory.

Volatility in Income and Cash Flows

Past volatility in income and cash flows suggests potential instability, which could affect Tokyo Tekko's ability to maintain consistent financial performance and strategic planning.

Financial Risk Management

The need for improved financial risk management due to liability variations indicates potential vulnerabilities in Tokyo Tekko's financial structure, which could impact long-term stability.

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

Company Description

Tokyo Tekko Co., Ltd. (5445) is a Japanese company primarily engaged in the manufacturing and sale of steel products. The company operates in the iron and steel industry, producing a variety of steel products including concrete reinforcing bars and steel billets. Tokyo Tekko is known for its commitment to quality and sustainability, serving various sectors such as construction, manufacturing, and infrastructure development.

How the Company Makes Money

Tokyo Tekko Co., Ltd. generates revenue through the production and sale of steel products. Its primary revenue streams include sales of concrete reinforcing bars, which are essential in construction projects, and steel billets used in various industrial applications. The company benefits from Japan's demand for infrastructure development and construction materials. Additionally, Tokyo Tekko may engage in strategic partnerships with construction firms and other industrial companies to secure long-term supply contracts, contributing to a stable revenue base. The company's focus on innovation and efficiency in steel production also plays a critical role in maintaining competitive pricing and profitability.

Tokyo Tekko Co., Ltd. Financial Statement Overview

Summary

Tokyo Tekko Co., Ltd. demonstrates commendable financial performance with strong revenue growth and profitability metrics. The balance sheet is robust with low leverage and a high equity ratio, and cash flows have improved significantly, showcasing effective cash management. Historical fluctuations in income and cash flows pose some risk, but the recent positive trajectory indicates 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.59B	82.59B	79.62B	79.23B	66.09B	62.39B
Gross Profit	23.36B	23.34B	18.37B	12.01B	7.04B	15.18B
EBITDA	17.12B	17.60B	13.53B	7.41B	-2.62B	9.81B
Net Income	10.85B	10.85B	7.89B	3.66B	-4.72B	4.98B
Balance Sheet
Total Assets	81.25B	81.25B	77.90B	69.77B	63.06B	65.08B
Cash, Cash Equivalents and Short-Term Investments	14.17B	14.17B	16.35B	11.88B	7.38B	11.37B
Total Debt	5.08B	5.08B	6.00B	7.22B	7.69B	2.11B
Total Liabilities	21.53B	21.53B	24.74B	23.63B	20.65B	17.05B
Stockholders Equity	59.68B	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: 6060.00
• 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 6060 is above the 20-day moving average (MA) of 5990.50, above the 50-day MA of 5752.00, and above the 200-day MA of 5756.83, indicating a bullish trend. The MACD of 113.89 indicates Positive momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.55 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
5464	77 Outperform	¥36.62B	9.29		11.24%	-3.45%	-9.97%
5445	76 Outperform	¥54.70B	5.11		5.53%	-1.95%	17.09%
5440	71 Outperform	¥103.08B	9.47		3.79%	-1.22%	-13.03%
5410	71 Outperform	¥62.24B	5.44		5.64%	-7.29%	-17.17%
5480	64 Neutral	¥67.52B	6.30		4.47%	-7.69%	-18.05%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5449	57 Neutral	¥81.86B	34.49		1.24%	-6.19%	-129.84%

Tokyo Tekko Co., Ltd. Corporate Events

Tokyo Tekko Reports Decline in Q1 2025 Financial Results

Tokyo Tekko Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 11.4% year-on-year. The company also experienced a reduction in operating profit and ordinary profit, reflecting challenging market conditions. Despite the downturn, Tokyo Tekko maintains a strong equity-to-asset ratio, indicating a stable financial position. The company has not revised its forecast for the fiscal year ending March 31, 2026, anticipating a slight decrease in net sales and profits, which suggests cautious optimism in navigating the current economic landscape.

Tokyo Tekko Completes Share Buyback to Strengthen Market Position

Tokyo Tekko Co., Ltd. has completed the acquisition of 74,100 of its own shares, amounting to 412,537,000 yen, as part of a strategic initiative to optimize its capital structure. This move, finalized by the end of July 2025, reflects the company’s ongoing efforts to enhance shareholder value and strengthen its market position, with a total of 180,500 shares acquired under the current plan.

Tokyo Tekko Completes Treasury Share Disposal for Remuneration

Tokyo Tekko Co., Ltd. has completed the payment for the disposal of treasury shares as part of a restricted share remuneration plan. This move, involving 5,130 common shares at a disposal price of 5,540 yen per share, aims to incentivize six directors and six corporate officers, potentially impacting the company’s governance and aligning management interests with shareholder value.

Tokyo Tekko Announces Disposal of Treasury Shares for Director Remuneration

Tokyo Tekko Co., Ltd. has announced the disposal of 5,130 treasury shares as part of a restricted share remuneration plan approved at their 96th Annual General Meeting. This initiative is designed to align the interests of the company’s directors with shareholders by tying their compensation to stock performance, thereby enhancing corporate value and motivation among key personnel.

Tokyo Tekko Co., Ltd. Advances Share Buyback Strategy

Tokyo Tekko Co., Ltd. announced the acquisition of 53,900 of its own shares, amounting to approximately 294.78 million yen, as part of a strategic plan approved by its Board of Directors. This move is part of a broader initiative to acquire up to 250,000 shares, reflecting the company’s efforts to optimize its capital structure and potentially increase shareholder value.

Tokyo Tekko Considers Investment Unit Reduction to Boost Investor Base

Tokyo Tekko Co., Ltd. is considering reducing its investment unit to broaden its investor base and enhance share liquidity. The company is evaluating the necessity and timing of this move, taking into account market trends and share prices, but has not yet decided on specific measures such as a stock split.