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

• Market Cap: ¥55.69B
• Dividend Yield: 6.31%
• Average Volume (3M): 41.82K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.03
• 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: ¥6,849.00 ▲(10.83% 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

Balance Sheet Strength

A strong equity base and low leverage provide durable financial flexibility, letting the company fund maintenance capex, smooth investment through construction cycles, and prioritize deleveraging or dividends without relying on volatile external financing markets.

Margin Recovery

Sustained improvement in gross and net margins indicates better cost control and operational efficiency. Higher margins support long-term cash generation, resilience to price swings, and the ability to reinvest in productivity or return capital to shareholders.

Improved Cash Generation

Recovering free cash flow and consistently positive operating cash flow strengthen the company's ability to fund working capital, service obligations, and capital projects internally, reducing dependence on external financing during cyclical downturns.

Negative Factors

Recent Revenue Contraction

Negative recent revenue growth signals persistent demand or pricing pressure that can erode scale benefits and weaken pricing leverage. If revenue declines continue, sustaining margins, cover fixed costs, and funding reinvestment or dividends becomes materially harder.

Input-Cost Exposure

Reliance on volatile raw material and energy spreads creates structural margin risk. In a commodity-linked business, adverse input-cost moves can compress margins for prolonged periods if pass-through to customers is limited by competition or weak construction demand.

Historical Operating Volatility

Past swings in profitability and prior negative margins imply operational and demand cyclicality. This elevates forecasting and capital allocation risk, as management must maintain buffers for downturns while ensuring plants remain efficiently utilized in recovery phases.

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: 6180.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6401.00, above the 50-day MA of 6070.00, and above the 200-day MA of 5713.26, indicating a neutral trend. The MACD of 73.30 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, 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	¥38.95B	11.21	―	4.09%	-3.99%	-12.45%
5445	72 Outperform	¥55.69B	5.73	―	6.31%	-8.44%	9.50%
5480	71 Outperform	¥72.05B	7.12	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥108.17B	11.27	―	3.70%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥58.51B	5.89	―	6.27%	-7.45%	-9.12%
5449	61 Neutral	¥94.39B	2,328.76	―	1.24%	-12.05%	-97.36%

Tokyo Tekko Co., Ltd. Corporate Events

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.

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.

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.