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

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Tokyo Tekko Co., Ltd.

(TSE/TYO:5445)

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Rating:74Outperform

Price Target:JPY 2,064.00▲(8.23% Upside)

Action:reiterated

Date:11/10/26

The score is driven primarily by solid financial strength (low leverage and good profitability) and attractive valuation (low P/E and high dividend yield). Offsetting factors are weaker cash-flow quality (negative 2026 free cash flow) and bearish technicals (price below major moving averages with negative MACD), which raise near-term risk despite oversold readings.

Positive Factors

Conservative Balance SheetVery low leverage gives Tokyo Tekko greater financial resilience through construction-market cycles and reduces the burden of interest and refinancing. The growing equity base also supports continued operations and investment while preserving flexibility if steel demand or margins weaken.

Negative Factors

Revenue ContractionThe latest revenue decline signals weaker demand or shipment conditions for Tokyo Tekko's construction-related steel products. If lower sales persist, reduced operating scale could pressure earnings and limit the company's ability to sustain recent profitability through the next several quarters.

Tokyo Tekko Co., Ltd. (5445) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 48.23B
Dividend Yield: 5.59%
Average Volume (3M): 97.86K
Price to Earnings (P/E): 7.3
Beta (1Y): 0.72
Revenue Growth: -2.19%
EPS Growth: -34.09%
Country: Japan
Employees: 815
Sector: General
Sector Strength: 55
Industry: Steel

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

Company Description

Tokyo Tekko Co., Ltd. functions as a global producer and distributor of steel materials specifically designed for the building and construction industry, serving both its domestic Japanese market and international clients. The firm is known for suppl...

How the Company Makes Money

Tokyo Tekko primarily makes money by producing steel products and selling them to customers in construction-related supply chains (e.g., building and civil engineering projects). Its revenue model is mainly product-sales driven: the company purchases...

Tokyo Tekko Co., Ltd. Financial Statement Overview

Summary

Strong rebound from 2022 with healthy profitability and a conservative balance sheet (very low debt-to-equity ~0.07 in 2026). However, 2026 revenue declined (-9.45%) and free cash flow turned negative, signaling softer momentum and weaker cash conversion despite still-solid margins.

Income Statement

74Positive

Balance Sheet

86Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	73.36B	72.54B	82.59B	79.62B	79.23B	66.09B
Gross Profit	19.58B	20.41B	23.34B	18.37B	12.01B	7.04B
EBITDA	13.68B	14.59B	17.60B	13.53B	7.41B	-2.62B
Net Income	7.28B	8.07B	10.85B	7.89B	3.66B	-4.72B
Balance Sheet
Total Assets	84.66B	80.45B	82.39B	79.14B	70.48B	63.64B
Cash, Cash Equivalents and Short-Term Investments	7.52B	7.17B	14.17B	16.35B	11.88B	7.38B
Total Debt	8.59B	4.75B	5.08B	6.00B	7.22B	7.69B
Total Liabilities	21.62B	17.03B	22.67B	25.98B	24.33B	21.22B
Stockholders Equity	62.99B	63.39B	59.68B	53.11B	46.09B	42.35B
Cash Flow
Free Cash Flow	0	-1.79B	2.20B	7.54B	5.08B	-8.48B
Operating Cash Flow	0	5.18B	8.18B	12.09B	6.88B	-5.10B
Investing Cash Flow	0	-6.96B	-5.60B	-4.56B	-1.63B	-3.36B
Financing Cash Flow	0	-5.22B	-4.76B	-3.06B	-756.00M	4.47B

Tokyo Tekko Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1907.00

Price Trends

50DMA1967.81Negative

100DMA1926.03Negative

200DMA1923.32Negative

Market Momentum

MACD-24.06Positive

RSI45.97Neutral

STOCH57.94Neutral

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 1907.00 is below the 20-day moving average (MA) of 1924.85, below the 50-day MA of 1967.81, and below the 200-day MA of 1923.32, indicating a bearish trend. The MACD of -24.06 indicates Positive momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5445 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5445	74Outperform	JPY 47.98B	7.31	―	5.59%	-2.19%	-34.09%
JP:5480	69Neutral	JPY 83.44B	8.46	―	3.96%	0.73%	-1.97%
JP:5440	67Neutral	JPY 73.58B	9.65	―	5.27%	6.83%	-31.05%
JP:5410	63Neutral	JPY 35.34B	9.34	―	4.95%	-1.00%	-66.17%
JP:5408	58Neutral	JPY 34.46B	9.49	―	3.70%	-6.05%	-30.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5449	48Neutral	JPY 67.92B	-4.23	―	―	-16.85%	-55241.82%

* General Sector Average

Performance Comparison

JP:5445 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5445	Tokyo Tekko Co., Ltd.	1907.00	139.31	7.88%
JP:5408	Nakayama Steel Works,Ltd.	514.00	-44.90	-8.03%
JP:5410	Godo Steel,Ltd.	2424.00	-1148.71	-32.15%
JP:5440	Kyoei Steel Ltd.	1708.00	-487.64	-22.21%
JP:5449	OSAKA STEEL CO., LTD.	2265.00	-371.00	-14.07%
JP:5480	Nippon Yakin Kogyo Co., Ltd.	5560.00	1490.38	36.62%

Tokyo Tekko Co., Ltd. Corporate Events

Tokyo Tekko Reports Higher Sales, Lower Profits for Six Months

Nov 10, 2026

For the six months ended September 30, 2026, Tokyo Tekko Co., Ltd.’s consolidated net sales rose 7.4% year on year to ¥39,472 million, while operating profit fell 26.0% to ¥4,944 million. Profit attributable to owners of the parent declined 32.4% to...

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.

Date of analysis: Nov 10, 2026

Tokyo Tekko Co., Ltd. AI Stock Analysis