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Tokyo Steel Manufacturing Co
(5423)
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Rating:60Neutral
Price Target:
¥1,824.00
▲(5.31% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by financial performance: strong balance sheet strength is a major positive, but it is tempered by a meaningful FY2026 drop in margins and a sharp deterioration in operating/free cash flow. Technical indicators are broadly neutral and valuation looks reasonable, together providing limited support but not enough to offset the near-term cash flow and profitability pressure.
Positive Factors
Conservative balance sheet
Minimal leverage reduces refinancing risk and preserves financial flexibility during steel downturns, allowing the company to fund operations and withstand cyclical weakness without significant debt pressure.
Negative Factors
Revenue contraction
A substantial revenue decline signals weaker shipment volumes, realized pricing or both. If demand remains subdued, lower throughput can pressure fixed-cost absorption and limit recovery in operating profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Minimal leverage reduces refinancing risk and preserves financial flexibility during steel downturns, allowing the company to fund operations and withstand cyclical weakness without significant debt pressure.
Read all positive factors
Tokyo Steel Manufacturing Co (5423) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥188.27B
Dividend Yield2.75%
Average Volume (3M)320.64K
Price to Earnings (P/E)19.2
Beta (1Y)0.47
Revenue Growth-12.89%
EPS Growth-45.51%
CountryJP
Employees1,161
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)94.77
Shares Outstanding110,064,250
10 Day Avg. Volume267,210
30 Day Avg. Volume320,643
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.75
Price to Sales (P/S)0.62
P/FCF Ratio-6.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,000.00Price Target Upside15.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)18.46
Revenue Forecast (FY)¥309.08B
Tokyo Steel Manufacturing Co Business Overview & Revenue Model
Company Description
Tokyo Steel Manufacturing Co., Ltd. manufactures and sells various steel products in Japan, Europe, Asia, and internationally. The company offers steel building materials, such as H-beams, high-standard electric furnace H-beam, special size H-beam...
How the Company Makes Money
Tokyo Steel makes money primarily by producing and selling finished steel products made via EAF steelmaking. (1) Core revenue stream – steel product sales: The company’s main revenue comes from selling construction-oriented long products such as H...
Tokyo Steel Manufacturing Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 267.16B | 268.10B | 326.77B | 367.24B | 361.25B | 270.88B |
| Gross Profit | 24.48B | 31.75B | 57.77B | 65.09B | 62.68B | 50.00B |
| EBITDA | 15.01B | 22.32B | 36.55B | 45.72B | 43.70B | 37.47B |
| Net Income | 9.71B | 11.56B | 21.20B | 27.96B | 30.85B | 31.94B |
Balance Sheet | ||||||
| Total Assets | 288.90B | 291.60B | 293.96B | 312.13B | 273.87B | 243.65B |
| Cash, Cash Equivalents and Short-Term Investments | 63.38B | 73.97B | 96.11B | 112.22B | 85.07B | 68.64B |
| Total Debt | 11.36B | 273.00M | 39.00M | 0.00 | 396.00M | 1.26B |
| Total Liabilities | 71.56B | 70.46B | 84.04B | 108.22B | 94.61B | 85.36B |
| Stockholders Equity | 217.34B | 221.13B | 209.92B | 203.91B | 179.25B | 158.28B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -25.84B | -2.77B | 36.66B | 30.59B | 17.12B |
| Operating Cash Flow | 0.00 | -3.28B | 19.59B | 53.38B | 39.77B | 26.91B |
| Investing Cash Flow | 0.00 | -10.84B | -21.88B | -18.20B | -11.90B | -9.68B |
| Financing Cash Flow | 0.00 | -8.16B | -13.77B | -8.14B | -11.70B | -7.48B |
Tokyo Steel Manufacturing Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥218.95B | 11.85 | 8.92% | 6.54% | -6.96% | 30.12% | |
74 Outperform | ¥470.73B | 13.14 | 7.65% | 2.99% | 4.19% | 31.79% | |
74 Outperform | ¥422.75B | 14.39 | ― | 3.26% | -1.88% | 20.80% | |
69 Neutral | ¥800.43B | 12.09 | 5.48% | 4.03% | -3.45% | -50.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥188.27B | 19.19 | 4.46% | 2.87% | -12.89% | -45.51% | |
60 Neutral | ¥1.11T | 13.06 | 3.65% | 4.46% | -3.75% | 31.87% |
* Basic Materials Sector Average
JP:5423
Tokyo Steel Manufacturing Co
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Tokyo Steel Manufacturing Co Corporate Events
Tokyo Steel Reports Progress on Ongoing Share Buyback Program
Aug 3, 2026
Tokyo Steel Manufacturing Co., Ltd. reported progress on its ongoing share buyback program authorized by its board in April 2026 under provisions of the Companies Act and its Articles of Incorporation. The company is repurchasing common shares as ...
Tokyo Steel Completes Restricted Stock Treasury Share Disposal for Management
Jul 24, 2026
Tokyo Steel Manufacturing has completed the payment procedures for a restricted stock compensation program involving the disposal of 22,326 treasury shares. The shares, priced at ¥1,739 each for a total value of approximately ¥38.8 milli...
Tokyo Steel Cuts Profit Outlook Despite Higher Sales Forecast and Dividend Reduction
Jul 17, 2026
Tokyo Steel reported non-consolidated net sales of ¥72,927 million for the three months ended June 30, 2026, down 1.3% year on year, with operating and ordinary losses but a 49.5% rise in quarterly profit to ¥1,882 million as earnings pe...
Tokyo Steel Lifts Net Profit Outlook on Gains From Investment Securities
Jul 17, 2026
Tokyo Steel Manufacturing has revised its non-consolidated earnings forecasts for the second quarter and full fiscal year ending March 2027, maintaining projected net sales and operating and ordinary losses but now expecting a net profit. The comp...
Tokyo Steel Advances Share Buyback, Acquires 579,300 Shares Under Ongoing Program
Jul 1, 2026
Tokyo Steel Manufacturing Co., Ltd. reported progress on its ongoing share buyback program, carried out under the authority granted by its Articles of Incorporation and a Board resolution based on the Companies Act. The company is acquiring its ow...
Tokyo Steel Outlines Accounting Standards Approach, Opts Against FASF Membership
Jun 25, 2026
Tokyo Steel Manufacturing has disclosed that, as of March 31, 2026, it is not a member of the Financial Accounting Standards Foundation, a public interest incorporated foundation overseeing accounting standards in Japan. The company states it has ...
Tokyo Steel to Grant Restricted Treasury Shares to Executives and Directors
Jun 24, 2026
Tokyo Steel Manufacturing has approved the disposal of 22,326 treasury shares as part of its restricted stock compensation plan for three directors and six executive officers. The shares, priced at ¥1,739 each for a total of about ¥38.8 ...
Tokyo Steel Details Progress on Share Buyback Program
Jun 1, 2026
Tokyo Steel Manufacturing said it has been buying back its own common shares under a Board-approved program based on Japan’s Companies Act and its articles of incorporation. The move reflects the company’s capital management strategy a...
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.