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Furukawa Co., Ltd. (JP:5715)
:5715

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

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JP

Furukawa Co., Ltd.

(Frankfurt:5715)

Rating:81Outperform
Price Target:
¥2,491.00
▲(12.82%Upside)
Furukawa Co., Ltd. benefits from a strong overall financial performance, with excellent valuation metrics suggesting potential undervaluation. The positive technical indicators further enhance the stock's attractiveness. However, improvements in cash flow management could strengthen the company's financial flexibility.

Furukawa Co., Ltd. (5715) vs. iShares MSCI Japan ETF (EWJ)

Furukawa Co., Ltd. Business Overview & Revenue Model

Company DescriptionFurukawa Co., Ltd. is a diversified Japanese company engaged in the manufacturing and distribution of a wide range of products and services. It operates in sectors including electronics, automotive, and construction materials. The company is known for its production of non-ferrous metals, electronic components, and advanced materials, serving a broad spectrum of industries globally.
How the Company Makes MoneyFurukawa Co., Ltd. generates revenue primarily through the sale of its non-ferrous metal products, which include copper products, aluminum products, and other advanced materials used in electronics and automotive industries. The company also earns income from its electronic component division, which provides critical parts for various technological applications. Additionally, Furukawa benefits from its construction materials segment, supplying essential materials for infrastructure projects. Strategic partnerships with other industry players and innovations in material technology further enhance its earning potential.

Furukawa Co., Ltd. Financial Statement Overview

Summary
Furukawa Co., Ltd. exhibits strong financial performance, driven by a robust income statement and solid balance sheet. While the cash flow statement indicates potential concerns due to negative free cash flow, the company's overall financial health remains sound.
Income Statement
85
Very Positive
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
78
Positive
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
70
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
188.44B201.22B188.25B214.19B199.10B159.70B
Gross Profit
27.71B29.56B28.62B28.61B26.10B22.19B
EBIT
8.06B10.05B8.52B9.03B7.73B5.59B
EBITDA
26.57B30.58B28.15B13.15B11.74B9.47B
Net Income Common Stockholders
15.92B18.62B16.10B6.21B6.48B7.47B
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.39B24.85B18.51B13.61B14.47B17.75B
Total Assets
207.76B257.11B259.88B232.75B229.73B218.28B
Total Debt
78.28B57.20B59.30B63.42B66.16B70.29B
Net Debt
62.89B32.35B41.10B49.81B51.69B52.55B
Total Liabilities
134.66B123.53B126.61B126.70B129.65B123.91B
Stockholders Equity
71.26B130.81B129.91B102.94B97.25B91.77B
Cash FlowFree Cash Flow
4.40B-7.66B3.83B2.53B3.26B2.64B
Operating Cash Flow
4.40B5.00M10.49B6.15B8.77B6.04B
Investing Cash Flow
0.0015.10B1.92B-1.62B-5.86B2.25B
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 Price2208.00
Price Trends
50DMA
2101.22
Positive
100DMA
2083.71
Positive
200DMA
1828.43
Positive
Market Momentum
MACD
28.50
Positive
RSI
53.79
Neutral
STOCH
18.43
Positive
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 2208 is above the 20-day moving average (MA) of 2198.75, above the 50-day MA of 2101.22, and above the 200-day MA of 1828.43, indicating a bullish trend. The MACD of 28.50 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
€80.05B4.3214.23%0.91%6.88%19.10%
80
Outperform
€124.03B13.616.29%3.39%17.91%37.76%
68
Neutral
$270.68B9.986.92%0.02%-5.37%-2.62%
68
Neutral
¥290.23B8.525.00%4.50%27.35%14.36%
65
Neutral
$87.47B23.486.35%1.73%13.48%-24.74%
56
Neutral
$918.84B55.750.90%3.29%10.24%-71.84%
51
Neutral
$2.03B-1.27-21.09%3.98%2.91%-30.50%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5715
Furukawa Co., Ltd.
2,208.00
447.68
25.43%
JP:1515
Nittetsu Mining Co., Ltd.
7,440.00
2,586.47
53.29%
JP:5714
Dowa Holdings Co
4,549.00
-687.03
-13.12%
JP:5727
Toho Titanium Company
1,229.00
-76.04
-5.83%
JP:5711
Mitsubishi Materials
2,221.50
-524.28
-19.09%
JP:5713
Sumitomo Metal Mining Co
3,344.00
-1,218.46
-26.71%

Furukawa Co., Ltd. Corporate Events

Furukawa Co., Ltd. Advances Share Buyback Strategy
Jun 2, 2025

Furukawa Co., Ltd. has announced the acquisition of its own shares, purchasing 484,700 common shares for approximately ¥1.03 billion between May 1 and May 30, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 7 million shares, aiming to strengthen the company’s market position and potentially increase shareholder value.

Furukawa Co., Ltd. Reports Increased Sales and Dividend for FY2025
May 30, 2025

Furukawa Co., Ltd. reported consolidated financial results for the fiscal year ended March 31, 2025, showing a 6.9% increase in net sales to ¥201,216 million and a 14.5% rise in operating profit to ¥9,763 million. However, ordinary profit decreased by 6.5% to ¥9,705 million. The company also announced a dividend increase, including a commemorative dividend, reflecting a positive outlook for shareholders. Despite some declines in profit metrics, the company maintains a stable financial position with a slight increase in equity-to-asset ratio, suggesting resilience in its operations.

Furukawa Co., Ltd. to Acquire EarthTechnica from Kawasaki Heavy Industries
May 13, 2025

Furukawa Co., Ltd. and Kawasaki Heavy Industries have signed a Memorandum of Understanding to discuss the transfer of shares of EarthTechnica Co., Ltd., a subsidiary of Kawasaki Heavy Industries. This move is expected to bolster Furukawa’s technological capabilities and expand its presence in the industrial machinery and environmental recycling sectors, enhancing its competitiveness and operations in international markets.

Furukawa Co., Ltd. Reports Increased Profits and Dividends for FY 2025
May 13, 2025

Furukawa Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 6.9% increase in net sales to ¥201,216 million and a 14.5% rise in operating profit to ¥9,763 million. Despite a decline in ordinary profit by 6.5%, the profit attributable to owners of the parent increased by 15.7% to ¥18,619 million. The company also announced an increase in annual dividends per share from ¥55.00 to ¥70.00, including a commemorative dividend, reflecting a positive outlook for stakeholders. However, the forecast for the fiscal year ending March 31, 2026, anticipates a decrease in net sales and profits, indicating potential challenges ahead.

Furukawa Co., Ltd. Acquires Own Shares as Part of Strategic Initiative
May 1, 2025

Furukawa Co., Ltd. announced the acquisition of 750,200 of its own shares for approximately ¥1.5 billion during April 2025. This move is part of a broader strategy to acquire up to 7 million shares, representing 19.30% of its total issued shares, by February 2026, which could impact the company’s market positioning and shareholder value.

Furukawa Co., Ltd. Announces Executive Leadership Changes for Sustainable Growth
Apr 30, 2025

Furukawa Co., Ltd. has announced changes in its executive leadership, aiming to strengthen its corporate foundation for sustainable growth. The company will see a reduction in the number of Representative Directors from two to one, with Naohisa Miyakawa stepping down from his role as Representative Director to become Chairman & Director, leaving Minoru Nakatogawa as the sole Representative Director. Additionally, several other executive roles will be adjusted to align with the company’s strategic goals.

Furukawa Co., Ltd. Announces Share Buyback Initiative
Apr 1, 2025

Furukawa Co., Ltd. announced the acquisition of 462,500 of its own shares, valued at approximately ¥1.02 billion, as part of a broader plan to buy back up to 7 million shares. This strategic move is aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting a proactive approach to managing its equity base.

Furukawa Co., Ltd. Launches Employee Stock Ownership Plan
Mar 31, 2025

Furukawa Co., Ltd. has announced the disposal of its treasury shares as part of a new Employee Stock Ownership Plan with Restricted Stock Incentive System. This initiative aims to enhance employee welfare by allowing eligible employees to acquire restricted stock, thereby promoting personal wealth building and aligning employee interests with corporate value growth. The disposal involves 179,400 common shares at ¥2,150 per share, with the total disposal amounting to ¥385,710,000. This strategic move is expected to foster a sustainable increase in corporate value and strengthen the company’s market position by encouraging employees to share in the company’s success.

Furukawa Co., Ltd. Acquires Shares in Mitsui Miike Machinery to Boost Machinery Business
Mar 27, 2025

Furukawa Co., Ltd. has announced its decision to acquire shares in Mitsui Miike Machinery Company, Limited, converting it into an equity-method affiliate. This strategic move is intended to create synergies in sales and production, aligning with Furukawa’s Vision for 2025 to foster sustainable growth in its Machinery business. The acquisition is expected to have minimal impact on Furukawa’s financial results.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.