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

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

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Furukawa Co., Ltd.

(Frankfurt:5715)

Rating:82Outperform
Price Target:
¥2,866.00
▲(15.75%Upside)
Furukawa Co., Ltd. has a robust overall stock score, driven primarily by strong valuation metrics indicating the stock is undervalued. The financial performance is solid, particularly in the income statement and balance sheet. However, cash flow concerns need to be addressed. Technical analysis shows positive momentum, but caution is advised due to potential overbought conditions.

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

Furukawa Co., Ltd. Business Overview & Revenue Model

Company DescriptionFurukawa 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 MoneyFurukawa Co., Ltd. generates revenue primarily through the sale of its diverse range of products and solutions across its key business segments. The company earns a significant portion of its income from the production and sale of non-ferrous metal products, particularly copper and aluminum, which are crucial in numerous industrial applications. Additionally, Furukawa's electronics segment contributes to its earnings by supplying electronic materials and components that are integral to the manufacturing of electronic devices. The company's machinery division also adds to its revenue through the development and sale of industrial machinery, including products used in construction and mining. Strategic partnerships and innovations in product development further enhance Furukawa's ability to maintain a competitive edge and sustain its revenue streams.

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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue188.44B201.22B188.25B214.19B199.10B159.70B
Gross Profit27.71B29.56B28.62B28.61B26.10B22.19B
EBITDA26.57B30.58B28.15B13.15B11.74B9.47B
Net Income15.92B18.62B16.10B6.21B6.48B7.47B
Balance Sheet
Total Assets207.76B257.11B259.88B232.75B229.73B218.28B
Cash, Cash Equivalents and Short-Term Investments15.39B24.85B18.51B13.61B14.47B17.75B
Total Debt78.28B57.20B59.30B63.42B66.16B70.29B
Total Liabilities134.66B123.53B126.61B126.70B129.65B123.91B
Stockholders Equity71.26B130.81B129.91B102.94B97.25B91.77B
Cash Flow
Free Cash Flow4.40B-7.66B3.83B2.53B3.26B2.64B
Operating Cash Flow4.40B5.00M10.49B6.15B8.77B6.04B
Investing Cash Flow0.0015.10B1.92B-1.62B-5.86B2.25B
Financing Cash Flow0.00-9.23B-8.45B-5.93B-6.57B-3.12B

Furukawa Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2476.00
Price Trends
50DMA
2187.14
Positive
100DMA
2151.76
Positive
200DMA
1887.33
Positive
Market Momentum
MACD
61.71
Negative
RSI
71.32
Negative
STOCH
84.92
Negative
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 2476 is above the 20-day moving average (MA) of 2227.95, above the 50-day MA of 2187.14, and above the 200-day MA of 1887.33, indicating a bullish trend. The MACD of 61.71 indicates Negative momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 84.92 is Negative, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
€87.70B4.7414.23%0.83%6.88%19.15%
58
Neutral
HK$16.58B4.52-5.52%5.28%-3.57%-61.41%
$1.93B11.196.92%0.02%
$2.01B9.065.00%4.12%
$6.65B60.990.90%3.06%
$616.32M22.676.35%1.73%
DE7GI
€720.79M12.816.29%3.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5715
Furukawa Co., Ltd.
2,476.00
706.04
39.89%
DWMNF
Dowa Holdings Co
33.21
-0.85
-2.50%
MIMTF
Mitsubishi Materials
15.47
-2.36
-13.24%
STMNF
Sumitomo Metal Mining Co
24.00
-7.53
-23.88%
TTNNF
Toho Titanium Company
7.72
-1.16
-13.06%
DE:7GI
Nittetsu Mining Co., Ltd.
43.40
16.10
58.97%

Furukawa Co., Ltd. Corporate Events

Furukawa Co., Ltd. Acquires Own Shares to Boost Shareholder Value
Jul 1, 2025

Furukawa Co., Ltd. has announced the acquisition of 276,600 of its own shares as part of a strategic move to enhance shareholder value. This acquisition, conducted through market purchases on the Tokyo Stock Exchange, is part of a broader plan approved by the Board of Directors to acquire up to 7 million shares by February 2026, with a maximum budget of ¥10 billion.

Furukawa Co., Ltd. Announces Treasury Share Disposal for Director Compensation
Jun 27, 2025

Furukawa Co., Ltd. has announced the disposal of 17,136 treasury shares as part of a restricted share compensation plan for its directors, excluding outside directors. This initiative is designed to align the interests of the directors with those of the shareholders and to incentivize sustainable corporate growth. The plan includes a 30-year transfer restriction period, with specific conditions for the removal of these restrictions, ensuring long-term commitment from the directors.

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.

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.Date of analysis: Jul 04, 2025