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

• Market Cap: ¥56.86B
• Dividend Yield: 6.31%
• Average Volume (3M): 41.82K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.91
• 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: ¥6,993.00 ▲(13.16% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Strong balance sheet

Low leverage, a high equity ratio and reported negative net debt provide durable financial flexibility. This capital structure supports investment in plant, absorbs cyclical revenue swings, preserves credit access, and reduces solvency risk across construction cycles.

Improved margins and profitability

Material margin improvement and a return to healthy net profitability reflect sustained cost management and operational efficiency. Stronger margins increase resilience to raw-material swings, support internal reinvestment and sustain cash returns even under moderate demand variability.

Recovering cash generation

Consistent positive operating cash flow and a recovering free cash flow profile indicate the business can self-fund maintenance and some growth capex. Improved cash generation lowers financing dependency and supports stable dividends or balance-sheet repairs over multiple quarters.

Negative Factors

Negative reported revenue growth

Reported negative revenue growth is a durable concern: declining top line reduces operating leverage and constrains margin expansion. If volumes or realizations remain muted for several quarters, profitability gains and cash generation could reverse despite a strong balance sheet.

Input-cost exposure (raw materials, energy)

As a rebar and steel supplier, margins are structurally tied to volatile scrap and energy prices. Persistent input-cost pressure can compress spreads, making earnings and cash flow cyclically sensitive and limiting sustainable margin upside absent pricing power or hedging.

Cyclicality and historical volatility

The company operates in the cyclical construction/steel sector and has shown prior volatility in profits and cash flows. Such cyclicality can produce multi-quarter earnings swings, complicating long-term planning, capital allocation and consistent return generation across cycles.

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 makes money primarily by manufacturing and selling steel construction materials—especially rebar—to customers in the construction supply chain. Its core revenue stream is product sales revenue from rebar and other steel products delivered to construction projects and distributors, with earnings influenced by shipment volume and realized selling prices. Because rebar is a commodity-like construction material, profitability is typically driven by the spread between selling prices and key input costs (e.g., steel raw materials/scrap and energy), as well as plant utilization, production efficiency, and logistics costs. Any additional revenue may come from sales of related steel products and associated services tied to order fulfillment (e.g., processing/handling), but specific breakdowns, named partnerships, or contract structures are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	82.39B	79.14B	70.48B	63.64B	65.63B
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	22.67B	25.98B	24.33B	21.22B	17.59B
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: Negative
• 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 6180 is below the 20-day moving average (MA) of 6257.00, below the 50-day MA of 6349.80, and above the 200-day MA of 5851.42, indicating a neutral trend. The MACD of -3.20 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 61.81 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
5445	72 Outperform	¥56.86B	7.14	―	6.31%	-8.44%	9.50%
5480	71 Outperform	¥72.65B	8.43	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥102.48B	10.61	―	3.70%	-3.06%	1.15%
5408	64 Neutral	¥33.35B	-185.54	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥53.90B	7.67	―	6.27%	-7.45%	-9.12%
5449	60 Neutral	¥78.84B	53.99	―	1.24%	-12.05%	-97.36%

Tokyo Tekko Co., Ltd. Corporate Events

Tokyo Tekko Adjusts Stock Split Figures After Treasury Share Cancellation

Tokyo Tekko has revised the previously disclosed figures related to its planned stock split after resolving to cancel a portion of its treasury shares. The move adjusts the expected number of issued shares before and after the split, while keeping the total number of authorized shares and other stock split conditions unchanged.

Following the cancellation of 920,000 treasury shares effective March 25, 2026, the total shares issued before the split will decrease from 9,365,305 to 8,445,305, and post-split shares will fall from 28,095,915 to 25,335,915. This recalibration fine-tunes the company’s capital structure and share count metrics without altering the broader framework of its previously announced stock split and shareholder arrangements.

The most recent analyst rating on (JP:5445) stock is a Hold with a Yen7019.00 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 to Cancel Nearly 10% of Outstanding Shares to Streamline Capital Structure

Tokyo Tekko Co., Ltd. has approved the cancellation of 920,000 common treasury shares, representing 9.82% of its issued shares prior to the move. The cancellation, scheduled for March 25, 2026, will reduce the total number of issued shares to 8,445,305, signaling an effort to streamline the company’s capital structure and potentially enhance shareholder value through a leaner equity base.

By shrinking its share count, Tokyo Tekko is tightening its equity and potentially improving capital efficiency metrics that are closely monitored in Japan’s steel and manufacturing sector. The move underscores ongoing attention to balance sheet discipline and may modestly strengthen existing shareholders’ ownership stake, while aligning the company with broader market expectations on capital allocation in the Prime Market.

The most recent analyst rating on (JP:5445) stock is a Hold with a Yen7019.00 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 Sees Profit Slump and Cuts Dividend Outlook Amid Weaker Sales

Tokyo Tekko reported a sharp year-on-year decline in performance for the nine months ended December 31, 2025, with net sales down 14.4% to ¥54.1 billion and profit attributable to owners of parent falling 20.1% to ¥6.3 billion, while basic earnings per share slid to ¥740.07. Despite stronger equity and a higher equity-to-asset ratio as of December 31, 2025, the company projects full-year results to remain weaker than the previous fiscal year, forecasting an 11.6% drop in net sales and a 25.4% decline in profit, and plans to reduce its annual dividend payout from ¥375 to ¥300 per share, signaling a more cautious stance that may affect shareholder returns and reflect tougher conditions in its core markets.

The most recent analyst rating on (JP:5445) stock is a Hold with a Yen6855.00 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 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.