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

• Market Cap: ¥111.67B
• Dividend Yield: 2%
• Average Volume (3M): 256.52K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.96
• Revenue Growth: 7.28%
• EPS Growth: 22.26%
• Country: JP
• Employees: 2,855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 70.23
• Shares Outstanding: 36,445,568
• 10 Day Avg. Volume: 411,790
• 30 Day Avg. Volume: 256,520
• 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

• Rating: 84 Outperform
• Price Target: ¥3,662.00 ▲(23.47% Upside)

Furukawa Co., Ltd. receives a strong overall stock score driven by its attractive valuation and positive technical indicators. The company's robust financial performance supports this score, although improvements in cash flow management are necessary to enhance financial flexibility. The absence of earnings call data and corporate events did not impact the score.

Furukawa Co., Ltd. Business Overview & Revenue Model

Company Description

Furukawa Co., Ltd. (5715) is a Japanese company primarily engaged in the manufacturing and sales of industrial materials, particularly in the sectors of electronics and metal materials. The company offers a diverse range of products, including copper and other metal products, semiconductor materials, and advanced materials for various industrial applications. Known for its commitment to innovation and quality, Furukawa plays a significant role in the supply chains of electronics, automotive, and other high-tech industries.

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. has a strong income statement with consistent gross profit margins and improved net profit margins. The balance sheet is solid with a satisfactory equity ratio and manageable leverage. However, the cash flow presents some concerns with negative free cash flow despite positive operating cash flow. Overall, the financial health is sound, but improvements in cash flow management are needed.

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: 2966.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2966 is above the 20-day moving average (MA) of 2900.95, above the 50-day MA of 2848.72, and above the 200-day MA of 2304.28, indicating a bullish trend. The MACD of 70.73 indicates Negative momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 59.87 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	―	¥111.67B	5.76	15.20%	2.00%	7.28%	22.26%
1515	―	¥137.51B	16.43	5.92%	2.69%	12.71%	-1.52%
5714	―	$337.32B	15.58	5.76%	2.66%	-9.15%	-31.58%
5711	―	¥394.42B	42.55	1.33%	3.39%	11.12%	-80.21%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5713	―	$1.47T	68.07	1.31%	2.11%	5.12%	-63.31%
5727	―	¥110.03B	39.38	4.87%	1.25%	7.37%	-47.09%

Furukawa Co., Ltd. Corporate Events

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.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen2866.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Co., Ltd. Advances Share Buyback Program

Furukawa Co., Ltd. has announced the acquisition of 262,200 of its own shares, valued at ¥683,320,900, during August 2025. This acquisition is part of a larger plan approved by the Board of Directors to buy back up to 7,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen2866.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Co., Ltd. Reports Q1 Financial Growth Amid Revised Forecasts

Furukawa Co., Ltd. reported a 2% increase in net sales and a significant rise in ordinary profit by 25.1% for the three months ended June 30, 2025, compared to the same period in 2024. The company also revised its forecast for the fiscal year ending March 31, 2026, indicating a decrease in expected net sales and profits, which may impact its market positioning and stakeholder expectations.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen2866.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Completes Treasury Share Disposal for Employee Stock Plan

Furukawa Co., Ltd. announced the completion of the payment process for the disposal of treasury shares as part of a stock incentive plan with transfer restrictions for its Employee Stock Ownership Plan. The disposal, initially approved by the Board of Directors in March 2025, saw a revision in the number of shares and total disposal amount due to some members forfeiting their participation. This adjustment reflects the company’s ongoing efforts to align employee incentives with corporate goals, potentially impacting its financial strategy and stakeholder interests.

Furukawa Co., Ltd. Upgrades Financial Forecasts Amid Mixed Segment Performance

Furukawa Co., Ltd. has revised its financial forecasts for the second quarter and full fiscal year ending March 31, 2026, reflecting an optimistic outlook with increased net sales and operating profits. Despite expected declines in certain segments like UNIC Machinery and Electronics, the company anticipates overall profit growth driven by higher dividend income and improved performance in the Metals and Chemicals segments.

Furukawa Co., Ltd. Reports Q1 Financial Growth Amid Revised Year-End Forecast

Furukawa Co., Ltd. reported a positive financial performance for the three months ended June 30, 2025, with a 2.0% increase in net sales and significant growth in operating and ordinary profit compared to the previous year. The company also revised its forecast for the fiscal year ending March 31, 2026, indicating a decrease in net sales and profits, which may impact its market positioning and stakeholder expectations.

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

Furukawa Co., Ltd. announced the acquisition of 334,800 of its own shares, valued at approximately ¥795,995,500, during July 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 7,000,000 shares, aiming to enhance shareholder value and optimize capital structure.