TOKYO ROPE MFG. CO., LTD. (5981) AI Stock Analysis

• Market Cap: ¥25.25B
• Dividend Yield: 5.69%
• Average Volume (3M): 48.95K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.75
• Revenue Growth: >-0.01%
• EPS Growth: 65.65%
• Country: JP
• Employees: 1,488
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 67.51
• Shares Outstanding: 16,268,242
• 10 Day Avg. Volume: 65,480
• 30 Day Avg. Volume: 48,946
• PEG Ratio: 0.10
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 34.41
• 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): 218.1
• Revenue Forecast (FY): ¥64.00B

• Rating: 73 Outperform
• Price Target: ¥1,583.00 ▲(1.09% Upside)

Tokyo Rope MFG. CO., LTD. scores well due to its strong valuation metrics, with a low P/E ratio and high dividend yield. Financial performance is solid, with improved profitability and reduced leverage, though cash flow volatility is a concern. Technical indicators present a mixed picture, with short-term bullishness but neutral momentum.

Positive Factors

Improved Profit Margins

The improvement in net profit margins indicates enhanced profitability and operational efficiency, which can lead to better cash flow and reinvestment opportunities.

Reduced Leverage

The reduction in leverage suggests a stronger financial position, providing the company with more flexibility to invest in growth opportunities and withstand economic downturns.

Stable Gross Profit Margin

A stable gross profit margin reflects the company's ability to maintain pricing power and cost control, supporting long-term profitability and competitive positioning.

Negative Factors

Cash Flow Volatility

Volatile cash flow, particularly in Free Cash Flow, can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Declining Revenue Growth

Declining revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future profitability and market share.

Free Cash Flow Challenges

Challenges in converting income to cash can limit the company's ability to reinvest in the business, pay down debt, or return capital to shareholders, affecting long-term growth prospects.

TOKYO ROPE MFG. CO., LTD. Business Overview & Revenue Model

Company Description

Tokyo Rope Mfg. Co., Ltd. manufactures and sells wire ropes, steel cords, and carbon fiber composite cables (CFCCs) in Japan and internationally. It offers its wire ropes that are used in cranes, elevators, forestry and fisheries, rope slings, and cableways; galvanized wires and strands for use in electric power and communication fields; and steel cords, including steel tire cords that are used in steel radial tires, hose wires to reinforce high pressure hose, and saw wires to produce wafers and chips. The company also provides engineering, bridge and structural cable, and CFCC, as well as aluminum conductor fiber reinforced products. In addition, it designs and constructs road safety devices, such as rock fall prevention nets; and environment protection products, including sound insulation walls, and bridges and cable-suspended bridges, as well as manufactures and sells various industrial machinery and metal fibers. The company was founded in 1887 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TOKYO ROPE MFG. CO., LTD. generates revenue through the sale of its diverse range of rope products, which are utilized in various industries such as construction, shipping, and manufacturing. The company’s revenue model is primarily based on direct sales to businesses, both domestically within Japan and through exports to international markets. Key revenue streams include bulk sales of industrial ropes, customized solutions for specific client needs, and long-term contracts with major corporations in sectors like maritime and construction. Additionally, TOKYO ROPE may benefit from partnerships with distributors and suppliers, enhancing its market reach and increasing sales volumes. The company's focus on high-quality manufacturing and innovation also allows it to maintain premium pricing on its products, further contributing to its profitability.

TOKYO ROPE MFG. CO., LTD. Financial Statement Overview

Summary

Tokyo Rope MFG. CO., LTD. shows strong profitability and balance sheet stability with improved net profit margins and reduced leverage. However, cash flow volatility, particularly in Free Cash Flow, poses a risk that needs attention.

Income Statement

Tokyo Rope MFG. CO., LTD. demonstrates a strong income statement with a consistent Gross Profit Margin around 22% over recent years. The company shows a significant improvement in Net Profit Margin, rising from negative in 2020 to over 5% in 2025, indicating enhanced profitability. Revenue growth has been volatile, with declines in the recent years. EBIT and EBITDA margins have been stable, underscoring operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial structure with a declining Debt-to-Equity Ratio, moving from 1.51 in 2020 to 0.67 in 2025, showcasing reduced leverage. The Equity Ratio has improved, suggesting stronger financial stability. Return on Equity has risen, indicating better utilization of equity to generate profits. Overall, the balance sheet indicates a solid financial standing with reduced risk from debt.

Cash Flow

Cash flow analysis reveals a mixed picture. Although Operating Cash Flow has been positive, Free Cash Flow has seen fluctuations, especially with a significant drop in the latest year. The Free Cash Flow to Net Income Ratio indicates a challenge in converting income into cash. The Operating Cash Flow to Net Income Ratio suggests cash generation relative to income is robust, but the trajectory of Free Cash Flow growth is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.37B	62.87B	64.23B	67.14B	63.78B	59.18B
Gross Profit	14.00B	13.85B	14.15B	13.93B	12.46B	10.97B
EBITDA	6.08B	6.08B	5.00B	5.93B	3.08B	2.63B
Net Income	3.13B	3.25B	2.04B	3.78B	1.31B	408.00M
Balance Sheet
Total Assets	86.77B	87.37B	85.84B	88.75B	83.72B	84.14B
Cash, Cash Equivalents and Short-Term Investments	5.94B	5.97B	4.95B	5.74B	4.44B	6.10B
Total Debt	24.30B	24.40B	23.45B	26.41B	26.06B	28.05B
Total Liabilities	50.56B	50.68B	51.28B	57.46B	57.58B	59.34B
Stockholders Equity	36.21B	36.69B	34.57B	31.04B	25.50B	23.32B
Cash Flow
Free Cash Flow	0.00	560.00M	2.11B	1.55B	601.00M	1.21B
Operating Cash Flow	0.00	2.42B	3.43B	3.13B	1.92B	2.83B
Investing Cash Flow	0.00	-1.65B	-301.00M	-1.69B	-1.50B	-396.00M
Financing Cash Flow	0.00	-31.00M	-3.97B	-405.00M	-2.29B	-2.68B

TOKYO ROPE MFG. CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1566.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5981, the sentiment is Positive. The current price of 1566 is above the 20-day moving average (MA) of 1505.15, above the 50-day MA of 1482.54, and above the 200-day MA of 1344.15, indicating a bullish trend. The MACD of 22.64 indicates Negative momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 94.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5981.

TOKYO ROPE MFG. CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6455	78 Outperform	¥125.19B	11.68	―	2.25%	12.64%	34.19%
5982	77 Outperform	¥57.26B	11.93	―	3.43%	5.51%	13.00%
5981	73 Outperform	¥25.25B	6.60	―	5.69%	>-0.01%	65.65%
5984	70 Outperform	¥9.90B	7.95	―	3.51%	-0.33%	390.98%
6486	69 Neutral	¥139.07B	18.52	―	3.88%	1.70%	18.50%
6490	67 Neutral	¥114.44B	13.31	―	2.50%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

TOKYO ROPE MFG. CO., LTD. Corporate Events

Tokyo Rope MFG. Announces Treasury Share Buyback

TOKYO ROPE MFG. CO., LTD. has announced the acquisition of 9,000 treasury shares for a total of 13,352,600 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 200,000 shares, reflecting the company’s efforts to manage its capital structure and potentially enhance shareholder value.

Tokyo Rope Completes Treasury Stock Repurchase to Enhance Shareholder Returns

TOKYO ROPE MFG. CO., LTD. has completed the repurchase of 100,000 shares of its own stock at a total price of JPY 152,500,000 through off-auction trading on the Tokyo Stock Exchange. This move is part of a broader strategy to enhance shareholder returns, achieve a total payout ratio of 40% or more, and support sustainable growth through investments in human capital. The company plans to continue purchasing treasury stock within the limits set by its board of directors.

Tokyo Rope Announces Treasury Stock Repurchase Plan

TOKYO ROPE MFG. CO., LTD. announced its decision to repurchase up to 100,000 shares of its common stock through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading. This move is part of a broader strategy to manage its treasury stock, with a maximum acquisition price set at 152,500,000 yen. The company has also been notified by NIPPON STEEL CORPORATION of their intention to sell a portion of the company’s stock, potentially impacting the market dynamics and shareholder value.

Tokyo Rope MFG. Announces Treasury Stock Acquisition Plan

TOKYO ROPE MFG. CO., LTD. has announced a decision by its Board of Directors to acquire up to 200,000 shares of its own stock, representing 1.27% of its total issued shares, as part of a flexible capital policy. This move aims to enhance shareholder returns, achieve a consolidated total return ratio of 40% or more, and invest in human capital for sustainable growth, including incentive plans for executives and engagement measures.

Tokyo Rope Reports Increased Profits in Semi-Annual Financial Results

Tokyo Rope MFG. CO., LTD. reported its consolidated financial results for the six months ended September 30, 2025, showing a modest increase in net sales by 1.9% to ¥30,360 million. The company also achieved significant growth in operating profit and ordinary profit, with increases of 20.7% and 23.7% respectively, reflecting improved operational efficiency and market conditions.