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

• Market Cap: ¥49.10B
• Dividend Yield: 8.64%
• Average Volume (3M): 48.88K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 1.16
• Revenue Growth: 3.74%
• EPS Growth: 39.89%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Steel
• EPS (TTM): 336.12
• Shares Outstanding: 9,365,305
• 10 Day Avg. Volume: 56,610
• 30 Day Avg. Volume: 48,883
• PEG Ratio: 0.10
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.07
• 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

• Rating: 78 Outperform
• Price Target: ¥6,202.00 ▲(14.85%Upside)

The overall stock score reflects strong financial performance and an attractive valuation, which are key strengths. However, the technical analysis indicates some potential challenges with market sentiment and momentum.

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

Company Description

Tokyo Tekko Co., Ltd. (5445) is a Japanese company primarily engaged in the production and sale of steel products. It operates within the iron and steel sector, focusing on the manufacture of steel bars and sections for construction and industrial applications. The company is known for its high-quality steel products that cater to a variety of industries, ranging from construction to manufacturing.

How the Company Makes Money

Tokyo Tekko Co., Ltd. generates revenue through the production and sale of steel products, including steel bars and sections. The company's primary revenue streams include the sale of these products to the construction and industrial sectors. It leverages its expertise in metallurgy and advanced manufacturing processes to offer high-quality steel that meets stringent industry standards. Additionally, Tokyo Tekko may engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. The company's earnings are influenced by factors such as steel demand, raw material costs, and economic conditions affecting the construction and manufacturing industries.

Tokyo Tekko Co., Ltd. Financial Statement Overview

Summary

Tokyo Tekko Co., Ltd. demonstrates solid financial performance, marked by strong revenue growth, improved profit margins, and a robust balance sheet with low leverage. Cash flows have also shown significant improvement, though historical volatility remains a consideration.

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	84.31B	82.59B	79.62B	79.23B	66.09B	62.39B
Gross Profit	22.65B	23.34B	18.37B	12.01B	7.04B	15.18B
EBITDA	16.37B	17.60B	13.53B	6.45B	-2.62B	10.03B
Net Income	10.40B	10.85B	7.89B	3.66B	-4.72B	4.98B
Balance Sheet
Total Assets	77.90B	81.25B	77.90B	69.77B	63.06B	65.08B
Cash, Cash Equivalents and Short-Term Investments	17.51B	14.17B	16.35B	11.88B	7.38B	11.37B
Total Debt	6.30B	5.08B	6.00B	7.22B	7.69B	2.11B
Total Liabilities	21.14B	21.53B	24.74B	23.63B	20.65B	17.05B
Stockholders Equity	56.73B	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: Neutral
• Last Price: 5400.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 5400 is below the 20-day moving average (MA) of 5419.50, below the 50-day MA of 5506.00, and below the 200-day MA of 5638.18, indicating a neutral trend. The MACD of -28.69 indicates Negative momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 61.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	¥49.10B	4.39		8.64%	3.74%	39.89%
5449	72 Outperform	¥108.00B	33.47		1.36%	-0.60%	3.40%
5440	71 Outperform	¥92.74B	8.59		5.62%	0.58%	-21.95%
5410	71 Outperform	¥54.71B	4.83		7.49%	-7.92%	-25.47%
5464	71 Outperform	¥32.66B	7.86		6.18%	-3.67%	-8.20%
5480	64 Neutral	¥59.90B	4.84		1.01%	-4.57%	-12.17%
Sector *	43 Neutral	AU$1.42B	-6.13	-40.62%	4.05%	-4.78%	-42.91%

Tokyo Tekko Co., Ltd. Corporate Events

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.

Tokyo Tekko Announces Share Buyback

Tokyo Tekko Co., Ltd. announced the acquisition of its own shares as per the resolution passed by its Board of Directors. The company acquired 52,500 common shares at a total cost of 292,317,000 yen between May 9 and May 30, 2025, as part of a broader plan to acquire up to 250,000 shares by July 31, 2025. This move could potentially impact the company’s market positioning and shareholder value.

Tokyo Tekko Reports Strong Financial Growth Amid Future Challenges

Tokyo Tekko Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 3.7% and operating profit surging by 38.1% compared to the previous year. Despite the positive results, the company forecasts a decline in financial performance for the fiscal year ending March 31, 2026, with expected decreases in net sales and profits, which may impact stakeholder expectations and market positioning.

Tokyo Tekko Announces Executive Leadership Changes

Tokyo Tekko Co., Ltd. has announced a series of changes in its executive leadership, including the nomination of new directors and the appointment of new corporate officers. These changes, effective after the upcoming Annual General Meeting and subsequent dates, are part of the company’s strategic efforts to strengthen its management team and enhance operational efficiency.

Tokyo Tekko Announces Share Buyback to Enhance Capital Efficiency

Tokyo Tekko Co., Ltd. has announced a resolution to acquire up to 250,000 of its own shares, representing 2.87% of its total issued shares, excluding treasury shares. This move, with a maximum cost of 1 billion yen, aims to implement flexible capital policies to enhance shareholder returns and improve capital efficiency, reflecting the company’s strategic response to changes in the business environment.

Tokyo Tekko Announces Increased Year-End Dividend

Tokyo Tekko Co., Ltd. has announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, from a previously forecasted 235 yen per share to 275 yen per share. This decision reflects the company’s commitment to stable profit distribution, considering its financial performance and shareholder returns, resulting in an annual dividend of 375 yen per share.

Tokyo Tekko Reports Strong Financial Growth and Increased Dividends

Tokyo Tekko Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 3.7% to ¥82,593 million and operating profit surging by 38.1% to ¥14,676 million. The company also announced an increase in dividends, reflecting a strong financial position and commitment to shareholder returns, despite forecasting a decrease in profits for the next fiscal year.