TOKYO ROPE MFG. CO., LTD. (JP:5981)
:5981
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TOKYO ROPE MFG. CO., LTD.
(5981)
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Rating:78Outperform
Price Target:
¥1,948.00
▲(19.80% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by attractive valuation (low P/E and high dividend yield) and solid financial performance (improved profitability and reduced leverage). Offsetting factors are cash-flow volatility (notably weaker free cash flow recently) and technicals that are positive but somewhat extended on momentum indicators.
Positive Factors
Improved profitability
A sustained recovery from negative margins to >5% indicates lasting operational improvements in pricing and cost control. Higher net margins enhance internal cash generation capacity, support reinvestment and dividends, and improve resilience to cyclical revenue swings over the next 2–6 months.
Negative Factors
Volatile free cash flow
Inconsistent FCF and a notable recent decline undermine the company’s ability to reliably fund capex, dividends or pay down debt from operations. Over several months this can force reliance on external financing, increasing cost and reducing strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
A sustained recovery from negative margins to >5% indicates lasting operational improvements in pricing and cost control. Higher net margins enhance internal cash generation capacity, support reinvestment and dividends, and improve resilience to cyclical revenue swings over the next 2–6 months.
Read all positive factors
TOKYO ROPE MFG. CO., LTD. (5981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥30.65B
Dividend Yield5.69%
Average Volume (3M)48.95K
Price to Earnings (P/E)5.6
Beta (1Y)0.80
Revenue Growth>-0.01%
EPS Growth65.65%
CountryJP
Employees1,488
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)72.32
Shares Outstanding16,268,242
10 Day Avg. Volume65,480
30 Day Avg. Volume48,946
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.53
Price to Sales (P/S)0.31
P/FCF Ratio34.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)224.3
Revenue Forecast (FY)¥66.00B
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...
How the Company Makes Money
TOKYO ROPE makes money primarily by manufacturing and selling steel wire rope products and related items to business customers. Revenue is generated from (1) product sales of steel wire ropes used in applications like lifting/hoisting and construc...
TOKYO ROPE MFG. CO., LTD. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.37B | 62.87B | 64.23B | 67.14B | 63.78B | 59.18B |
| Gross Profit | 14.00B | 13.62B | 13.92B | 13.72B | 12.28B | 10.50B |
| EBITDA | 5.72B | 5.55B | 5.96B | 5.34B | 3.90B | 3.04B |
| Net Income | 3.13B | 3.25B | 2.04B | 3.78B | 1.31B | 407.00M |
Balance Sheet | ||||||
| Total Assets | 86.77B | 88.05B | 86.80B | 89.20B | 83.81B | 84.47B |
| Cash, Cash Equivalents and Short-Term Investments | 5.94B | 5.97B | 4.95B | 5.74B | 4.44B | 6.10B |
| Total Debt | 24.30B | 24.46B | 23.50B | 26.46B | 26.12B | 28.13B |
| Total Liabilities | 50.56B | 51.36B | 52.22B | 57.90B | 57.66B | 59.67B |
| 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 | 54.00M |
| Financing Cash Flow | 0.00 | -31.00M | -3.97B | -405.00M | -2.29B | -3.13B |
TOKYO ROPE MFG. CO., LTD. Technical Analysis
Positive
1626.00
Price Trends
1818.59
Positive
1674.10
Positive
1515.46
Positive
Market Momentum
34.30
Negative
55.22
Neutral
51.05
Neutral
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 1626 is below the 20-day moving average (MA) of 1844.25, below the 50-day MA of 1818.59, and above the 200-day MA of 1515.46, indicating a bullish trend. The MACD of 34.30 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 51.05 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥256.39B | 9.64 | 8.91% | 3.85% | 1.48% | 8.86% | |
78 Outperform | ¥112.14B | 15.71 | ― | 4.64% | 3.99% | -28.28% | |
78 Outperform | ¥30.65B | 5.62 | ― | 5.69% | >-0.01% | 65.65% | |
77 Outperform | ¥90.37B | 8.96 | ― | 3.82% | 3.68% | -46.19% | |
76 Outperform | ¥200.50B | 11.03 | ― | 2.50% | -2.46% | -10.72% | |
76 Outperform | ¥116.37B | 0.96 | ― | 1.43% | -1.38% | 327.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:5981
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TOKYO ROPE MFG. CO., LTD. Corporate Events
Tokyo Rope Nears Buyback Limit as Share Repurchase Program Concludes
Mar 25, 2026
Tokyo Rope Mfg. Co., Ltd. has completed a share repurchase program authorized by its board on November 12, 2025, under provisions of the Companies Act that allow acquisition of its own common stock. The latest tranche, conducted via market purchas...
Tokyo Rope Advances Share Buyback Program With Additional Treasury Purchases
Mar 2, 2026
Tokyo Rope Mfg. Co., Ltd., a Prime Market-listed Japanese manufacturer of steel ropes and related industrial materials, operates across infrastructure, construction, and broader industrial sectors. Its financial and capital policies, including tre...
Tokyo Rope Lifts Profits, Raises Dividend as Balance Sheet Strengthens
Feb 12, 2026
Tokyo Rope MFG. Co., Ltd. reported consolidated net sales of ¥46.6 billion for the nine months ended Dec. 31, 2025, a slight 0.6% year‑on‑year increase, while sharply boosting operating profit 38.5% to ¥2.8 billion and profit...
Tokyo Rope Reports Progress on Ongoing Share Buyback Program
Feb 2, 2026
Tokyo Rope Mfg. Co., Ltd. has disclosed the status of its share buyback program, reporting the repurchase of 18,000 common shares on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total acquisition cost of ¥30.83 milli...
Tokyo Rope Advances Share Buyback, Repurchasing 121,000 Shares in December
Jan 5, 2026
Tokyo Rope Mfg. Co., Ltd. has reported the status of its ongoing share buyback program, acquiring 121,000 common shares for a total of ¥183,778,300 between December 1 and December 31, 2025 through market purchases on the Tokyo Stock Exchange,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.