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

JP:5981

TOKYO ROPE MFG. CO., LTD.

(TSE/TYO:5981)

Select Model
Rating:66Neutral
Price Target:JPY 2,028.00â–²(18.18% 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 ExpansionGross 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 GrowthRevenue 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.

TOKYO ROPE MFG. CO., LTD. (5981) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:5981+22.00%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 26.46B
Dividend Yield
4.37%
Average Volume (3M)
86.63K
Price to Earnings (P/E)
7.8
Beta (1Y)
0.86
Revenue Growth
4.12%
EPS Growth
10.62%
Country
Japan
Employees
1,430
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

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 com...

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 const...

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

Summary

Financials show a margin-led turnaround with improved profitability and reduced leverage, supported by a stronger 2026 cash-flow year. The score is held back by relatively flat revenue trends and historically uneven free cash flow, which adds moderate balance-sheet and cash-flow risk if conditions weaken.

Income Statement

72Positive

Balance Sheet

66Positive

Cash Flow

61Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue64.94B64.09B62.87B64.23B67.14B63.78B
Gross Profit15.35B15.34B13.62B13.92B13.72B12.28B
EBITDA6.46B6.66B5.55B5.96B5.34B3.90B
Net Income3.42B3.48B3.25B2.04B3.78B1.31B
Balance Sheet
Total Assets89.74B89.07B88.05B86.80B89.20B83.81B
Cash, Cash Equivalents and Short-Term Investments7.47B7.07B5.97B4.95B5.74B4.44B
Total Debt22.39B23.43B24.46B23.50B26.46B26.12B
Total Liabilities48.16B47.88B51.36B52.22B57.90B57.66B
Stockholders Equity41.57B41.19B36.69B34.57B31.04B25.50B
Cash Flow
Free Cash Flow03.10B560.00M2.11B1.55B601.00M
Operating Cash Flow05.38B2.42B3.43B3.13B1.92B
Investing Cash Flow0-1.66B-1.65B-301.00M-1.69B-1.50B
Financing Cash Flow0-2.69B-31.00M-3.97B-405.00M-2.29B

TOKYO ROPE MFG. CO., LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price1716.00

Price Trends

50DMA1840.95Negative
100DMA1898.06Negative
200DMA1824.81Negative

Market Momentum

MACD-36.75Positive
RSI35.13Neutral
STOCH17.19Positive

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 1716.00 is below the 20-day moving average (MA) of 1789.15, below the 50-day MA of 1840.95, and below the 200-day MA of 1824.81, indicating a bearish trend. The MACD of -36.75 indicates Positive momentum. The RSI at 35.13 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5981 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6371JP:637178OutperformJPY 279.69B9.0610.37%3.00%20.08%36.75%
JP:5195JP:519577OutperformJPY 103.79B9.47―5.27%6.10%397.23%
JP:5192JP:519274OutperformJPY 115.73B14.73―4.61%5.29%20.13%
JP:6490JP:649070OutperformJPY 232.89B21.23―1.99%10.09%30.15%
JP:5981JP:598166NeutralJPY 27.67B7.80―4.37%4.12%10.62%
JP:7279JP:727960NeutralJPY 80.84B1.74―3.71%32.09%3129.41%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%150%JP:5981JP:6371JP:5192JP:5195JP:6490JP:7279Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5981 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5981TOKYO ROPE MFG. CO., LTD.1716.00327.7423.61%
JP:6371Tsubakimoto Chain Co.2665.00570.6327.25%
JP:5192Mitsuboshi Belting Ltd.4190.00644.2018.17%
JP:5195Bando Chemical Industries Ltd.2468.00640.1935.02%
JP:6490Nippon Pillar Packing Co., Ltd.9850.005064.47105.83%
JP:7279Hi-Lex Corporation2157.00-623.20-22.42%

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 both c...

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 allotted...

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 GA...

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, represent...

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 ¥20....

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 sh...

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: Sep 06, 2026