| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1508.21 | -10 |
| Intrinsic value (DCF) | 542.69 | -68 |
| Graham-Dodd Method | 2751.53 | 64 |
| Graham Formula | 1239.80 | -26 |
Tokyo Rope Mfg. Co., Ltd. (TYO: 5981) is a leading Japanese manufacturer specializing in wire ropes, steel cords, and carbon fiber composite cables (CFCCs). Founded in 1887 and headquartered in Tokyo, the company serves diverse industries, including construction, automotive, and infrastructure, with high-performance cable solutions. Its product portfolio includes wire ropes for cranes and elevators, galvanized wires for power transmission, and steel tire cords for radial tires. Tokyo Rope also provides engineering services for bridge construction and environmental protection products like sound insulation walls. With a strong presence in Japan and international markets, the company leverages advanced materials technology, particularly in CFCCs, to cater to industrial and infrastructure demands. As a key player in the industrial machinery sector, Tokyo Rope combines traditional manufacturing expertise with innovation in composite materials, positioning itself for growth in sustainable infrastructure and high-tech applications.
Tokyo Rope Mfg. Co. presents a stable investment opportunity with a market cap of ¥19.6 billion and a beta of 0.909, indicating lower volatility relative to the market. The company reported ¥64.2 billion in revenue and ¥2 billion in net income for FY 2024, with a diluted EPS of ¥128.08. Operating cash flow stood at ¥3.4 billion, though capital expenditures were modest at ¥1.3 billion. While the company maintains a solid dividend yield (¥60 per share), its high total debt (¥23.5 billion) relative to cash reserves (¥4.9 billion) raises liquidity concerns. Tokyo Rope’s niche expertise in wire ropes and CFCCs provides competitive insulation, but reliance on industrial demand cycles and raw material costs poses risks. Investors should weigh its established market position against sector-specific headwinds.
Tokyo Rope Mfg. Co. holds a competitive edge in specialized wire and cable manufacturing, particularly in high-strength applications like bridge cables and steel tire cords. Its long-standing reputation in Japan and technological advancements in carbon fiber composites differentiate it from generic manufacturers. However, the company faces intense competition from global industrial giants with broader product lines and greater economies of scale. Tokyo Rope’s focus on high-margin niche segments (e.g., CFCCs for infrastructure) mitigates some pricing pressures, but its limited international footprint compared to multinational peers restricts growth opportunities. The company’s engineering capabilities in structural projects provide sticky customer relationships, yet reliance on Japan’s construction sector exposes it to regional economic fluctuations. While its R&D in lightweight composites aligns with sustainability trends, slower adoption rates in emerging markets could delay returns. Competitors with stronger balance sheets may outperform in commoditized segments, but Tokyo Rope’s specialization in premium cables supports its defensibility.