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

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JP:5981

TOKYO ROPE MFG. CO., LTD.

(TSE/TYO:5981)

Select Model
Rating:77Outperform
Price Target:JPY 1,816.00â–²(6.14% Upside)
Action:reiterated
Date:09/06/26

Strong financial performance with improving profitability and balance sheet strength is the primary driver, reinforced by attractive valuation; short-term technical weakness tempers the score.

Positive Factors
Margin ExpansionThe sustained expansion in gross and operating margins indicates that profitability has improved materially beyond a single-period earnings effect. Better operating economics can strengthen internal funding capacity, support resilience against cost pressure, and provide a more durable earnings base.
Negative Factors
Limited Revenue GrowthModest top-line momentum limits the company’s ability to compound earnings through expanding demand and scale. With recent profitability gains driven more by margins than revenue growth, future earnings progression may depend heavily on continued efficiency improvements rather than broad-based business expansion.

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

-10%0%10%20%30%40%50%JP:5981+20.99%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 26.43B
Dividend Yield
4.38%
Average Volume (3M)
76.74K
Price to Earnings (P/E)
7.8
Beta (1Y)
0.90
Revenue Growth
3.79%
EPS Growth
-8.08%
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...

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

Summary

Improving profitability with expanding margins and net income growth, supported by a strong balance sheet with rising equity and lower leverage, though offset by cash flow volatility.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

70Positive
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 Price1711.00

Price Trends

50DMA1798.62Negative
100DMA1868.81Negative
200DMA1826.97Negative

Market Momentum

MACD-33.86Negative
RSI45.16Neutral
STOCH84.40Negative

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 1711.00 is below the 20-day moving average (MA) of 1724.50, below the 50-day MA of 1798.62, and below the 200-day MA of 1826.97, indicating a bearish trend. The MACD of -33.86 indicates Negative momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.40 is Negative, 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 278.12B8.9410.37%3.02%20.08%36.75%
JP:5981JP:598177OutperformJPY 27.78B7.84―4.38%3.79%-8.08%
JP:5192JP:519274OutperformJPY 119.18B12.09―4.48%7.58%46.70%
JP:5195JP:519574OutperformJPY 103.15B9.13―5.47%7.15%267.28%
JP:6490JP:649066NeutralJPY 219.42B16.10―2.14%26.93%56.60%
JP:7279JP:727964NeutralJPY 82.64B1.81―3.57%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 '26Nov '26
JP:5981 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5981TOKYO ROPE MFG. CO., LTD.1711.00302.5621.48%
JP:6371Tsubakimoto Chain Co.2653.00589.6328.58%
JP:5192Mitsuboshi Belting Ltd.4305.00749.6621.09%
JP:5195Bando Chemical Industries Ltd.2377.00523.7228.26%
JP:6490Nippon Pillar Packing Co., Ltd.9170.004654.70103.09%
JP:7279Hi-Lex Corporation2241.00-654.52-22.60%

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...

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