TOKYO ROPE MFG. CO., LTD. (5981) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Thompson Co., Ltd.

Daido Metal Co., Ltd.

Mitsubishi Steel Mfg. Co., Ltd.

ALCONIX Corp.

Maezawa Kyuso Industries Co., Ltd.

Nippon Seisen Co., Ltd.

TOKYO ROPE MFG. CO., LTD.

Neturen Co., Ltd.

CK San-Etsu Co., Ltd.

Nippon Denko Co., Ltd.

Tsubaki Nakashima Co., Ltd

Why is TOKYO ROPE MFG. CO., LTD. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.07% and Operating profit at 62.13% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.32% signifying low profitability per unit of shareholders funds

The company declared positive results in Mar'25 after negative results in Dec'24

NET PROFIT(HY) Higher at JPY 2,265.69 MM
RAW MATERIAL COST(Y) Fallen by -8.71% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 50.71 %

With ROCE of 6.59%, it has a very attractive valuation with a 0.70 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 21.40%, its profits have fallen by -13.4%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TOKYO ROPE MFG. CO., LTD. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TOKYO ROPE MFG. CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TOKYO ROPE MFG. CO., LTD.

18.54%

0.59

24.03%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.07%

EBIT Growth (5y)

62.13%

EBIT to Interest (avg)

10.23

Debt to EBITDA (avg)

4.42

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

1.10

Tax Ratio

15.35%

Dividend Payout Ratio

31.11%

Pledged Shares

Institutional Holding

ROCE (avg)

5.12%

ROE (avg)

8.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.55

EV to EBIT

10.55

EV to EBITDA

6.81

EV to Capital Employed

0.70

EV to Sales

0.60

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

6.59%

ROE (Latest)

9.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET PROFIT(HY)

Higher at JPY 2,265.69 MM

RAW MATERIAL COST(Y)

Fallen by -8.71% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 50.71 %

-17What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.71%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,069.57

NET SALES(Q)

Lowest at JPY 14,418 MM

INTEREST(Q)

Highest at JPY 115 MM

Here's what is working for TOKYO ROPE MFG. CO., LTD.

Net Profit

At JPY 2,265.69 MM has Grown at 1,021.42%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 2,265.69 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 50.71 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for TOKYO ROPE MFG. CO., LTD.

Interest

At JPY 115 MM has Grown at 36.9%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,069.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 2.71% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 14,418 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 14,418 MM has Fallen at -8.26%

over average net sales of the previous four periods of JPY 15,716.75 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Interest

Highest at JPY 115 MM

in the last five periods and Increased by 36.9% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)