Furukawa Co., Ltd. (5715) AI Stock Analysis

• Market Cap: €143.21B
• Dividend Yield: 1.49%
• Average Volume (3M): 491.05K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.02
• Revenue Growth: 9.81%
• EPS Growth: 30.20%
• Country: JP
• Employees: 2,855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 74.86
• Shares Outstanding: 36,445,568
• 10 Day Avg. Volume: 762,500
• 30 Day Avg. Volume: 491,050
• PEG Ratio: 0.22
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -9.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 19,461.95
• Revenue Forecast (FY): €29.87T

• Rating: 76 Outperform
• Price Target: ¥4,674.00 ▲(15.69% Upside)

Furukawa Co., Ltd. scores well due to its strong financial performance and attractive valuation. The robust income statement and solid balance sheet underpin its financial health, while the low P/E ratio suggests potential undervaluation. However, technical indicators point to an overbought condition, which could lead to short-term volatility. Improvements in cash flow management would further enhance the company's financial flexibility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profitability

Improved profitability reflects efficient operations and cost management, enhancing the company's ability to reinvest in growth opportunities.

Balance Sheet Health

A strong balance sheet with manageable leverage provides financial stability and flexibility for future investments and growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential issues in capital expenditure management, which could limit financial flexibility and growth.

Debt Levels

Increasing debt levels, even if manageable, can pose risks to financial stability if not carefully monitored and managed.

Cash Generation Efficiency

While cash conversion is adequate, improvements are needed to ensure efficient cash generation and support ongoing operations.

Furukawa Co., Ltd. Business Overview & Revenue Model

Company Description

Furukawa Co.,Ltd., together with its subsidiaries, manufactures and sells machinery, metals, materials, and chemical products in Japan, rest of Asia, and internationally. Its Industrial Machinery segment offers slurry, sewage, water, shield construction slurry, and special pumps; and electrostatic precipitators, sewage-related machinery, crushers, grinding mills, briquetting machines, classifiers and separators, high-manganese steel and high-chromium steel castings, sabel reinforcement castings, low-alloy castings, and heat-resistant and special wear-resistant complex castings. The company's Rock Drill Machinery segment provides hydraulic breakers, hydraulic crushers, boring drills, air pressure crawler drills, hydraulic crawler drills, down-the-hole drills, hydraulic furnace drills, tunnel and mining drill jumbos, concrete sprayers, and environmental machinery. Its UNIC Machinery segment offers UNIC cranes, mini crawler cranes, ocean cranes, and UNIC carriers, as well as UNIC PAL and UNIPPY products. The company's Metals segment manufactures and distributes electrolytic copper, gold, and silver, as well as sulfuric acid. Its Electronic segment manufactures and sells high-purity metallic arsenics, gallium phosphorus polycrystals, crystals, cores and coils, diffractive optical elements, aluminum nitride ceramics, and optical components. The company's Chemicals segment offers cuprous and cupric oxides, copper carbonate, iron sulfate heptahydrate, ferric polysulfate aqueous solution, aluminum sulfate, sulfuric acid, cuprous dioxide and copper dioxide, and titanium dioxide. Its Real Estate segment trades in, intermediates, and leases real estate properties; and refurbishes office buildings. The company also offers transportation services through trucks and sea. The company was formerly known as Furukawa Mining Co., Ltd. and changed its name to Furukawa Co.,Ltd. in 1989. Furukawa Co.,Ltd. was founded in 1875 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Furukawa Co., Ltd. generates revenue through multiple key streams. The primary source of income comes from the sale of its metal products, including copper wire and other alloys, which are essential for electrical components used in a wide range of industries. Additionally, the company earns revenue from its semiconductor materials and advanced manufacturing solutions, catering to the growing demand in the electronics sector. Furukawa also benefits from strategic partnerships with other companies in the technology and automotive sectors, enhancing its market reach and providing opportunities for collaborative projects. The company's focus on research and development enables it to innovate and introduce new products, further contributing to its overall earnings.

Furukawa Co., Ltd. Financial Statement Overview

Summary

Furukawa Co., Ltd. demonstrates a strong financial profile with robust income statement performance and a well-structured balance sheet. However, cash flow presents areas for improvement, particularly with negative free cash flow, which could impact financial flexibility.

Income Statement

Furukawa Co., Ltd. has shown strong performance in its income statement. The gross profit margin has remained consistent, indicating effective cost management. The net profit margin has improved significantly from previous years, reflecting enhanced profitability. Revenue growth has been stable, with a notable increase in the most recent year, supporting a robust financial trajectory. The EBIT and EBITDA margins are healthy, showcasing operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a satisfactory equity ratio highlighting a strong capital structure. The debt-to-equity ratio is within acceptable limits, suggesting manageable leverage. Return on equity has improved, indicating efficient use of shareholder capital. The overall stability and strength of the balance sheet position Furukawa Co., Ltd. well for future growth, despite a slight increase in total debt.

Cash Flow

Cash flow analysis reveals a mixed picture. While operating cash flow remains positive, free cash flow has turned negative in the most recent year, raising concerns about cash generation efficiency. The operating cash flow to net income ratio suggests adequate cash conversion, but the negative free cash flow to net income ratio highlights potential challenges in managing capital expenditures. Improvements in cash flow management could enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	202.15B	201.22B	188.25B	214.19B	199.10B	159.70B
Gross Profit	30.03B	29.56B	28.25B	28.61B	26.10B	22.19B
EBITDA	32.47B	30.58B	28.15B	13.15B	13.57B	9.47B
Net Income	18.76B	18.62B	16.10B	6.21B	6.48B	7.47B
Balance Sheet
Total Assets	248.39B	257.11B	259.88B	232.75B	229.73B	218.28B
Cash, Cash Equivalents and Short-Term Investments	15.87B	24.85B	18.51B	13.61B	14.47B	17.75B
Total Debt	54.52B	57.20B	59.30B	63.42B	66.16B	70.29B
Total Liabilities	115.94B	123.53B	126.61B	126.70B	129.65B	123.91B
Stockholders Equity	129.71B	130.81B	129.91B	102.94B	97.25B	91.77B
Cash Flow
Free Cash Flow	0.00	-7.66B	3.83B	2.53B	3.26B	2.64B
Operating Cash Flow	0.00	5.00M	10.49B	6.15B	8.77B	6.04B
Investing Cash Flow	0.00	15.10B	1.92B	-1.62B	-5.86B	2.25B
Financing Cash Flow	0.00	-9.23B	-8.45B	-5.93B	-6.57B	-3.12B

Furukawa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4040.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5715, the sentiment is Positive. The current price of 4040 is above the 20-day moving average (MA) of 3869.00, above the 50-day MA of 3326.40, and above the 200-day MA of 2563.03, indicating a bullish trend. The MACD of 192.89 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 52.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5715.

Furukawa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	76 Outperform	€143.21B	9.41	11.58%	1.49%	9.81%	30.20%
1515	76 Outperform	€148.61B	14.28	6.77%	2.30%	8.19%	34.88%
5714	69 Neutral	$333.16B	15.33	5.02%	2.23%	-7.98%	-42.51%
5711	66 Neutral	¥430.35B	28.90	2.14%	2.88%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	58 Neutral	¥89.39B	25.99	5.78%	1.51%	0.82%	-1.72%
5713	57 Neutral	$1.36T	61.90	1.33%	2.20%	3.15%	-63.65%

Furukawa Co., Ltd. Corporate Events

Furukawa Co., Ltd. Advances Share Buyback Strategy

Furukawa Co., Ltd. has announced the acquisition of 180,600 of its own shares, valued at ¥623,373,600, as part of a broader plan to buy back up to 7,000,000 shares by February 2026. This strategic move is aimed at consolidating the company’s share value and enhancing shareholder returns, reflecting a proactive approach in managing its capital structure.

Furukawa Co., Ltd. Reports Mixed Financial Results for First Half of 2025

Furukawa Co., Ltd. reported a 4.4% increase in net sales for the six months ending September 30, 2025, compared to the previous year. Despite a significant rise in operating and ordinary profits, the profit attributable to owners of the parent decreased by 43.8%. The company also noted a substantial increase in comprehensive income, reflecting a robust financial performance. The forecast for the fiscal year ending March 31, 2026, anticipates a slight decline in net sales and operating profit, with a notable drop in profit attributable to owners of the parent. This forecast revision indicates potential challenges in maintaining profitability levels.

Furukawa Co., Ltd. Revises Financial Forecasts Upward Following Strong Q2 Performance

Furukawa Co., Ltd. announced that its actual financial results for the second quarter of fiscal 2025 exceeded previous forecasts, primarily due to higher sales and profits in the Metals segment, benefiting from favorable metal price fluctuations. The company has revised its full-year forecasts upward, expecting higher net sales and operating profit, despite challenges in the Industrial Machinery and UNIC Machinery segments due to project delays and supply issues. The upward revision is also supported by gains from strategic shareholding sales and increased shipments in the Rock Drill Machinery segment.

Furukawa Co., Ltd. Unveils Long-Term Vision for Sustainable Growth

Furukawa Co., Ltd. has announced its long-term vision, ‘Vision F 2035,’ aiming to guide the company towards sustainable growth by addressing global environmental issues, demographic changes, and technological advancements. The vision outlines a strategy to enhance social infrastructure with a focus on environmental stewardship and urban development, while strengthening the company’s technological, human, and financial capabilities to create value for stakeholders.

Furukawa Co., Ltd. Reports Mixed Financial Results Amidst Growth

Furukawa Co., Ltd. reported a notable increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 4.4% and ordinary profit surging by 83.7% compared to the previous year. Despite these positive figures, the profit attributable to owners of the parent decreased by 43.8%, indicating challenges in profitability. The company has revised its forecast for the fiscal year ending March 31, 2026, reflecting a cautious outlook with expected declines in net sales and operating profit, suggesting potential impacts on its market positioning and stakeholder expectations.

Furukawa Co., Ltd. Acquires Own Shares to Enhance Shareholder Value

Furukawa Co., Ltd. announced the acquisition of its own shares, purchasing 182,100 common shares for approximately ¥526.9 million between September 1 and September 22, 2025. This move is part of a larger plan approved in February 2025, allowing for the acquisition of up to 7 million shares, aiming to enhance shareholder value and optimize capital structure.