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

• Market Cap: ¥52.35B
• Dividend Yield: 6.57%
• Average Volume (3M): 41.82K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 1.07
• Revenue Growth: -1.95%
• EPS Growth: 17.09%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 269.53
• 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

• Rating: 76 Outperform
• Price Target: ¥6,498.00 ▲(13.80% Upside)

Tokyo Tekko Co., Ltd. scores well due to its strong financial performance and attractive valuation, which are the most significant factors. The technical analysis presents mixed signals, slightly tempering the overall score. The absence of earnings call and corporate events data does not impact the score.

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

Company Description

Tokyo Tekko Co., Ltd. (5445) is a Japanese company specializing in the manufacturing and distribution of high-quality steel products and materials. Operating primarily in the steel industry, the company caters to various sectors, including construction, automotive, and manufacturing. Its core offerings include steel plates, bars, and various industrial materials that are essential for infrastructure development and manufacturing processes.

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 profitability metrics. The balance sheet is solid, featuring low leverage and a high equity ratio. Cash flows have improved significantly, 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	4.90B	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: Negative
• Last Price: 5710.00
• 50DMA: Negative
• 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 Negative. The current price of 5710 is below the 20-day moving average (MA) of 5783.05, below the 50-day MA of 5846.54, and above the 200-day MA of 5630.95, indicating a neutral trend. The MACD of -33.81 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥38.79B	9.84	―	4.20%	-3.45%	-9.97%
5445	76 Outperform	¥52.35B	4.90	―	6.57%	-1.95%	17.09%
5440	72 Outperform	¥93.05B	8.55	―	4.20%	-1.22%	-13.03%
5480	70 Outperform	¥65.41B	6.03	―	5.04%	-7.69%	-18.05%
5410	67 Neutral	¥57.27B	4.99	―	6.08%	-7.29%	-17.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	55 Neutral	¥78.87B	34.49	―	1.27%	-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.