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

• Market Cap: ¥159.89B
• Dividend Yield: 1.62%
• Average Volume (3M): 491.05K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.07
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥4,983.00 ▲(29.60% Upside)

The score is driven primarily by strong operating profitability and a solid balance sheet, supported by an attractive low P/E valuation. Technicals are constructive overall, but overbought momentum signals temper the score, and negative recent free cash flow is the key financial risk.

Positive Factors

Operating profitability

Consistently strong gross and improved net margins, plus healthy EBIT/EBITDA, indicate durable operating leverage. This supports sustainable internal earnings generation, enabling reinvestment, resilience through cycles, and a lasting ability to fund strategic initiatives without relying solely on external capital.

Balance sheet strength

A satisfactory equity ratio, manageable debt-to-equity and improving ROE point to a robust capital base. That balance-sheet resilience lowers refinancing risk, supports capital spending and M&A optionality, and provides a buffer versus cyclical demand shocks over the medium term.

Diversified industrial end-markets and R&D focus

Exposure across electronics, automotive and semiconductor materials, plus active R&D and partnerships, gives structural demand diversification and product differentiation. This reduces single-market dependency and supports long-term revenue durability amid secular trends like electrification and semiconductor investment.

Negative Factors

Negative free cash flow

Negative free cash flow despite positive operating cash raises concerns about cash available after capex and working capital. Persisting FCF deficits can erode liquidity, limit deleveraging or shareholder returns, and force external financing needs if not reversed by improved cash conversion.

Weaker cash flow quality

A weaker cash-flow-quality metric signals earnings may not reliably convert to free cash. This structural gap increases sensitivity to capex and working-capital swings, raising financing and execution risk for long-term projects and constraining strategic flexibility if trends persist.

Cyclical exposure of industrial materials

Core exposure to metals and electronic/automotive supply chains links revenues and margins to commodity prices and end-market cycles. Structural cyclicality can cause durable revenue and margin volatility, requiring conservative capital planning and margin management through downturns to preserve financial stability.

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. The income statement shows consistent gross profit margins and improved net profit margins, indicating effective cost management and enhanced profitability. The balance sheet is solid, with a satisfactory equity ratio and manageable leverage. However, cash flow presents areas for improvement, with negative free cash flow raising concerns about cash generation efficiency.

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: 3845.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 3845 is below the 20-day moving average (MA) of 3904.00, above the 50-day MA of 3713.52, and above the 200-day MA of 2731.46, indicating a bullish trend. The MACD of 160.17 indicates Negative momentum. The RSI at 70.89 is Negative, neither overbought nor oversold. The STOCH value of 75.10 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	77 Outperform	¥159.89B	10.51	11.58%	1.62%	9.81%	30.20%
1515	75 Outperform	¥209.83B	21.05	6.77%	2.30%	8.19%	34.88%
5714	64 Neutral	¥479.83B	23.73	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥522.19B	35.07	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	58 Neutral	¥109.96B	31.97	5.78%	1.49%	0.82%	-1.72%
5713	56 Neutral	¥1.97T	80.59	1.33%	1.98%	3.15%	-63.65%

Furukawa Co., Ltd. Corporate Events

Furukawa Nears Completion of ¥10 Billion Share Buyback Program

Furukawa Co., Ltd. has repurchased 155,700 of its own common shares on the Tokyo Stock Exchange between December 1 and 23, 2025, at a total cost of ¥601.2 million, under a buyback program authorized pursuant to Article 459-1 of Japan’s Companies Act. This transaction forms part of a broader share repurchase resolution approved by the board on February 10, 2025, allowing up to 7 million shares or ¥10 billion to be bought back through February 10, 2026; as of December 23, 2025, the company has cumulatively acquired 3,758,600 shares for approximately ¥9.07 billion, signaling an active capital policy that may support shareholder value and earnings per share by reducing the free float.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen4674.00 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 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.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen4674.00 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 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.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen4674.00 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. 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.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen3662.00 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. 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.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen3662.00 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 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.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen3662.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.