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TOKYO ROPE MFG. CO., LTD.
(5981)
Select Model
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Rating:66Neutral
Price Target:
¥2,028.00
▲(24.72% Upside)
Action:Downgraded
Date:09/06/26
The score is driven primarily by improving financial performance (stronger margins and reduced leverage, though with limited revenue growth and uneven free cash flow) and supported by attractive valuation (low P/E and solid dividend yield). These positives are partially offset by weak near-term technical momentum with the stock trading below key moving averages.
Positive Factors
Margin Expansion
Gross and operating margin expansion indicates the company is converting sales into more profit, supporting earnings resilience even without rapid volume growth. If maintained, the improved cost economics can strengthen reinvestment capacity and competitive execution.
Negative Factors
Limited Revenue Growth
Revenue has been relatively flat, including declines in 2024–2025, and only returned to slight growth in 2026. Limited top-line expansion makes future profit gains dependent mainly on margins, leaving less evidence of broadening demand or market share.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Gross and operating margin expansion indicates the company is converting sales into more profit, supporting earnings resilience even without rapid volume growth. If maintained, the improved cost economics can strengthen reinvestment capacity and competitive execution.
Read all positive factors
TOKYO ROPE MFG. CO., LTD. (5981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥29.31B
Dividend Yield3.85%
Average Volume (3M)103.67K
Price to Earnings (P/E)8.3
Beta (1Y)0.83
Revenue Growth4.12%
EPS Growth10.62%
CountryJP
Employees1,430
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)219.86
Shares Outstanding16,268,242
10 Day Avg. Volume79,320
30 Day Avg. Volume103,666
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)0.71
Price to Sales (P/S)0.46
P/FCF Ratio9.43
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)220.5
Revenue Forecast (FY)¥68.00B
TOKYO ROPE MFG. CO., LTD. Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1887, Tokyo Rope Mfg. Co., Ltd. is a global leader in the production and distribution of advanced materials and engineering solutions. The company specializes in an extensive range of wire ropes, which are critical ...
How the Company Makes Money
TOKYO ROPE primarily makes money by manufacturing and selling wire-rope and related steel wire products to industrial customers. Revenue is generated through (1) product sales of wire ropes and associated engineered wire/strand products used in co...
TOKYO ROPE MFG. CO., LTD. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.94B | 64.09B | 62.87B | 64.23B | 67.14B | 63.78B |
| Gross Profit | 15.35B | 15.34B | 13.62B | 13.92B | 13.72B | 12.28B |
| EBITDA | 6.46B | 6.66B | 5.55B | 5.96B | 5.34B | 3.90B |
| Net Income | 3.42B | 3.48B | 3.25B | 2.04B | 3.78B | 1.31B |
Balance Sheet | ||||||
| Total Assets | 89.74B | 89.07B | 88.05B | 86.80B | 89.20B | 83.81B |
| Cash, Cash Equivalents and Short-Term Investments | 7.47B | 7.07B | 5.97B | 4.95B | 5.74B | 4.44B |
| Total Debt | 22.39B | 23.43B | 24.46B | 23.50B | 26.46B | 26.12B |
| Total Liabilities | 48.16B | 47.88B | 51.36B | 52.22B | 57.90B | 57.66B |
| Stockholders Equity | 41.57B | 41.19B | 36.69B | 34.57B | 31.04B | 25.50B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.10B | 560.00M | 2.11B | 1.55B | 601.00M |
| Operating Cash Flow | 0.00 | 5.38B | 2.42B | 3.43B | 3.13B | 1.92B |
| Investing Cash Flow | 0.00 | -1.66B | -1.65B | -301.00M | -1.69B | -1.50B |
| Financing Cash Flow | 0.00 | -2.69B | -31.00M | -3.97B | -405.00M | -2.29B |
TOKYO ROPE MFG. CO., LTD. Technical Analysis
Negative
1626.00
Price Trends
1948.60
Negative
1901.87
Negative
1798.68
Positive
Market Momentum
-37.31
Positive
37.95
Neutral
18.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5981, the sentiment is Negative. The current price of 1626 is below the 20-day moving average (MA) of 1914.35, below the 50-day MA of 1948.60, and below the 200-day MA of 1798.68, indicating a neutral trend. The MACD of -37.31 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 18.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5981.
TOKYO ROPE MFG. CO., LTD. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥279.59B | 9.06 | 10.64% | 3.00% | 13.51% | 48.95% | |
77 Outperform | ¥103.03B | 9.41 | ― | 3.09% | 6.10% | 397.23% | |
75 Outperform | ¥92.53B | 1.99 | ― | 1.83% | 32.09% | 3129.41% | |
74 Outperform | ¥116.70B | 14.85 | ― | 4.52% | 5.29% | 20.13% | |
72 Outperform | ¥213.74B | 19.49 | ― | 1.44% | 10.09% | 30.15% | |
66 Neutral | ¥29.31B | 8.27 | ― | 3.85% | 4.12% | 10.62% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:5981
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TOKYO ROPE MFG. CO., LTD. Corporate Events
Tokyo Rope Completes Restricted Stock Treasury Share Disposal for Employees
Aug 21, 2026
Tokyo Rope Mfg. Co., Ltd. has completed the payment process for the disposal of treasury shares under a restricted stock scheme for employees, following a Board resolution adopted on July 24, 2026. The program involves issuing common shares to bot...
Tokyo Rope Completes Treasury Share Disposal for Executive Restricted Stock Compensation
Aug 21, 2026
Tokyo Rope Mfg. Co., Ltd. has completed the payment process for the disposal of 10,239 shares of its treasury stock as restricted stock compensation for its executives. The shares, priced at 1,971 yen each for a total of 20,181,069 yen, were allot...
Tokyo Rope Posts Higher Sales but Lower Profits in Q1, Keeps Full-Year Outlook and Dividend
Aug 10, 2026
Tokyo Rope MFG. Co., Ltd., a Tokyo-listed manufacturer of steel ropes and related materials for infrastructure and industrial applications, reported consolidated results for the three months ended June 30, 2026. The company operates under Japanese...
Tokyo Rope to Grant Restricted Treasury Shares to Employees in Long-Term Incentive Plan
Jul 24, 2026
Tokyo Rope Mfg. Co., Ltd. has approved the disposal of 5,943 treasury shares as restricted stock to 31 employees of the company and its subsidiaries, at a price of 1,971 yen per share for a total value of about 11.7 million yen. The shares, repres...
Tokyo Rope to Grant Restricted Treasury Shares as Executive Compensation
Jul 24, 2026
Tokyo Rope MFG. CO., LTD. will dispose of 10,239 shares of its treasury stock as restricted stock compensation to four internal directors and four executive officers, at a disposal price of ¥1,971 per share for a total of approximately ¥...
Tokyo Rope Eases Concern as Nippon Steel Steps Back as Major Shareholder
Jun 24, 2026
Tokyo Rope MFG. CO., LTD. has disclosed that Nippon Steel Corporation’s stake has fallen below the 10% voting rights threshold following a planned share sale, meaning Nippon Steel is no longer classified as a major shareholder or the largest...
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.