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

• Market Cap: ¥49.91B
• Dividend Yield: 6.36%
• Average Volume (3M): 41.82K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.04
• Revenue Growth: -8.44%
• EPS Growth: 9.50%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 254.17
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥6,216.00 ▲(5.36% Upside)

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

Profitability Improvement

The improvement in net profit margin indicates better cost management and operational efficiency, enhancing long-term profitability.

Cash Flow Resilience

Strong recovery in free cash flow demonstrates effective cash management, supporting sustainable operations and growth.

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio provides financial stability and flexibility for future investments.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can hinder the company's ability to expand and compete effectively in the market.

Historical Volatility

Past volatility in financial performance may indicate potential risks in maintaining consistent growth and profitability.

Financial Risk Management

Fluctuating liabilities highlight the need for improved financial risk management to ensure long-term financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 5900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5900 is above the 20-day moving average (MA) of 5690.00, above the 50-day MA of 5674.40, and above the 200-day MA of 5607.44, indicating a bullish trend. The MACD of 44.22 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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	78 Outperform	¥36.39B	9.86	―	4.23%	-3.99%	-12.45%
5445	72 Outperform	¥49.91B	4.63	―	6.36%	-8.44%	9.50%
5480	71 Outperform	¥64.58B	6.38	―	5.20%	-9.28%	-7.18%
5440	70 Outperform	¥101.69B	9.11	―	3.80%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥54.93B	4.93	―	6.32%	-7.45%	-9.12%
5449	61 Neutral	¥76.74B	1,893.27	―	1.24%	-12.05%	-97.36%

Tokyo Tekko Co., Ltd. Corporate Events

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.

Tokyo Tekko Reports Decline in Financial Performance for 2025

Tokyo Tekko Co., Ltd. reported a decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 13.3% compared to the previous year. Despite the decrease in profits and sales, the company maintained a strong equity-to-asset ratio of 76.4%, indicating a stable financial position. The company has revised its financial forecast for the fiscal year ending March 31, 2026, projecting further declines in net sales and profits, which may impact its market positioning and stakeholder confidence.

Tokyo Tekko Announces Share Buyback to Enhance Shareholder Value

Tokyo Tekko Co., Ltd. has announced a decision by its Board of Directors to acquire up to 110,000 of its own shares, representing 1.29% of its total issued shares, for a maximum cost of 500 million yen. This move is aimed at implementing flexible capital policies to enhance shareholder returns and improve capital efficiency, reflecting the company’s strategic response to a changing business environment.

Tokyo Tekko Revises Financial Forecast Amid Shipment Delays

Tokyo Tekko Co., Ltd. has revised its financial forecast for the fiscal year ending March 31, 2026, due to lower-than-expected product shipment volumes caused by labor shortages and extreme heat. Despite a reduction in net sales forecast by 4.3%, the company maintains its profit forecasts by focusing on high-value-added products and cost reduction measures. The company also plans to maintain its dividend payouts as previously announced.

Tokyo Tekko Reports Decline in Financial Performance

Tokyo Tekko Co., Ltd. reported a decline in its financial performance for the six months ending September 30, 2025, with net sales and profits showing a year-on-year decrease. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating expected declines in net sales, operating profit, and profit attributable to owners of the parent, suggesting potential challenges in market conditions or operational efficiencies.