Tokyo Steel Manufacturing Co., Ltd.

TSE:5423 Stock Report

Market Cap: JP¥158.5b

Tokyo Steel Manufacturing Valuation

Is 5423 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 5423 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5423 (¥1470) is trading below our estimate of fair value (¥4323.43)

Significantly Below Fair Value: 5423 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5423?

Key metric: As 5423 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5423. This is calculated by dividing 5423's market cap by their current earnings.
What is 5423's PE Ratio?
PE Ratio7.1x
EarningsJP¥22.18b
Market CapJP¥158.48b

Price to Earnings Ratio vs Peers

How does 5423's PE Ratio compare to its peers?

The above table shows the PE ratio for 5423 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.1x
7485 Okaya
5.5x5.3%JP¥134.5b
5451 Yodogawa Steel Works
29.7xn/aJP¥150.3b
5449 Osaka Steel
59.4xn/aJP¥118.9b
5463 Maruichi Steel Tube
13.9x7.6%JP¥269.8b
5423 Tokyo Steel Manufacturing
7.1x3.5%JP¥158.5b

Price-To-Earnings vs Peers: 5423 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (27.1x).

Price to Earnings Ratio vs Industry

How does 5423's PE Ratio compare vs other companies in the JP Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
5423 7.1xIndustry Avg. 8.9xNo. of Companies12PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5423 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the JP Metals and Mining industry average (8.9x).

Price to Earnings Ratio vs Fair Ratio

What is 5423's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5423 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio11.2x

Price-To-Earnings vs Fair Ratio: 5423 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 5423 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,470.00
JP¥1,910.00
+29.9%
13.5%JP¥2,250.00JP¥1,700.00n/a5
Nov ’25JP¥1,492.00
JP¥1,910.00
+28.0%
13.5%JP¥2,250.00JP¥1,700.00n/a5
Oct ’25JP¥1,972.00
JP¥2,100.00
+6.5%
6.2%JP¥2,250.00JP¥1,900.00n/a5
Sep ’25JP¥1,999.00
JP¥2,040.00
+2.1%
5.7%JP¥2,200.00JP¥1,900.00n/a5
Aug ’25JP¥1,913.00
JP¥1,954.00
+2.1%
5.2%JP¥2,150.00JP¥1,870.00n/a5
Jul ’25JP¥1,646.00
JP¥1,906.00
+15.8%
1.4%JP¥1,950.00JP¥1,870.00n/a5
Jun ’25JP¥1,566.00
JP¥2,000.00
+27.7%
7.4%JP¥2,300.00JP¥1,870.00n/a6
May ’25JP¥1,658.00
JP¥1,983.33
+19.6%
8.0%JP¥2,300.00JP¥1,850.00n/a6
Apr ’25JP¥1,627.00
JP¥1,983.33
+21.9%
8.0%JP¥2,300.00JP¥1,850.00n/a6
Mar ’25JP¥1,676.00
JP¥1,983.33
+18.3%
8.0%JP¥2,300.00JP¥1,850.00n/a6
Feb ’25JP¥1,807.00
JP¥1,983.33
+9.8%
8.0%JP¥2,300.00JP¥1,850.00n/a6
Jan ’25JP¥1,729.00
JP¥1,975.00
+14.2%
10.1%JP¥2,300.00JP¥1,720.00n/a6
Dec ’24JP¥1,835.00
JP¥1,941.67
+5.8%
9.9%JP¥2,300.00JP¥1,720.00n/a6
Nov ’24JP¥1,740.00
JP¥1,908.33
+9.7%
7.1%JP¥2,100.00JP¥1,720.00JP¥1,492.006
Oct ’24JP¥1,685.00
JP¥1,908.33
+13.3%
7.7%JP¥2,100.00JP¥1,670.00JP¥1,972.006
Sep ’24JP¥1,669.00
JP¥1,908.33
+14.3%
7.1%JP¥2,070.00JP¥1,670.00JP¥1,999.006
Aug ’24JP¥1,758.00
JP¥1,845.71
+5.0%
8.7%JP¥2,070.00JP¥1,670.00JP¥1,913.007
Jul ’24JP¥1,358.00
JP¥1,784.29
+31.4%
8.1%JP¥2,000.00JP¥1,650.00JP¥1,646.007
Jun ’24JP¥1,366.00
JP¥1,785.71
+30.7%
9.6%JP¥2,100.00JP¥1,650.00JP¥1,566.007
May ’24JP¥1,387.00
JP¥1,784.29
+28.6%
9.6%JP¥2,100.00JP¥1,650.00JP¥1,658.007
Apr ’24JP¥1,366.00
JP¥1,748.57
+28.0%
12.1%JP¥2,100.00JP¥1,440.00JP¥1,627.007
Mar ’24JP¥1,530.00
JP¥1,700.00
+11.1%
11.2%JP¥2,100.00JP¥1,440.00JP¥1,676.007
Feb ’24JP¥1,397.00
JP¥1,698.57
+21.6%
11.3%JP¥2,100.00JP¥1,440.00JP¥1,807.007
Jan ’24JP¥1,195.00
JP¥1,740.00
+45.6%
12.5%JP¥2,100.00JP¥1,440.00JP¥1,729.007
Dec ’23JP¥1,369.00
JP¥1,772.86
+29.5%
11.6%JP¥2,100.00JP¥1,440.00JP¥1,835.007
Nov ’23JP¥1,313.00
JP¥1,838.57
+40.0%
13.8%JP¥2,300.00JP¥1,440.00JP¥1,740.007

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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