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

• Market Cap: ¥139.34B
• Dividend Yield: 1.62%
• Average Volume (3M): 491.05K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.32
• Revenue Growth: 9.81%
• EPS Growth: 30.20%
• Country: JP
• Employees: 2,855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 143.53
• Shares Outstanding: 32,545,567
• 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): 218.3
• Revenue Forecast (FY): ¥199.85B

• Rating: 76 Outperform
• Price Target: ¥5,468.00 ▲(42.21% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong financial performance (profitability and a solid balance sheet), tempered by negative free cash flow. Technicals add support due to a strong uptrend and positive momentum, while valuation is only moderately supportive due to a low dividend yield.

Positive Factors

Improved profitability

Consistent gross margins, improved net margins and healthy EBIT/EBITDA indicate durable operational efficiency. Sustained profitability supports reinvestment, resilience to industrial cycles, and the ability to fund value‑add activities and maintain supplier and customer relationships over time.

Solid balance sheet

A satisfactory equity ratio, manageable debt-to-equity and rising ROE point to a robust capital structure. This financial strength provides strategic flexibility to invest, endure downturns, and access capital for long-term projects without immediate solvency pressure.

Stable revenue growth

A recurring revenue growth rate around 6.5% signals steady demand and market penetration in core nonferrous markets. Predictable top-line expansion supports margin leverage, planning for capital deployment, and reduces reliance on one-off gains, strengthening fundamentals over months.

Negative Factors

Negative free cash flow

Free cash flow turning negative despite positive operating cash flow suggests heavy capex or working capital pressure. Persistent negative FCF can erode liquidity, limit discretionary spending or dividends, and force external financing that constrains long‑term strategic options.

Commodity price exposure

Revenue and margins are structurally tied to copper and other metal price swings and processing spreads. Without durable hedges or long-term contracts, commodity volatility can materially compress margins and cash generation, posing sustained earnings risk over 2–6 months.

Slightly rising debt

A modest uptick in total debt, when combined with negative free cash flow, raises the risk that leverage could grow if cash generation doesn't improve. Continued debt accumulation would increase interest costs and reduce room for strategic investment or cyclical resilience.

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 primarily through the sale of nonferrous metal products and related processed materials. Key revenue streams generally include (1) sales of copper and copper-alloy materials and products to industrial customers, and (2) sales of processed/finished nonferrous-metal-based products used in manufacturing supply chains. Earnings are influenced by shipment volumes, product mix (value-added versus commodity-like items), and metal price movements (particularly copper), as sales prices for many nonferrous products are typically linked to underlying metal prices plus processing premiums; the company’s profitability therefore depends on its ability to secure favorable processing spreads and manage input-cost/price volatility. Any material contributions from long-term supply agreements, named strategic partnerships, service/maintenance revenues, or segment-specific margins are null due to unavailable specific data.

Furukawa Co., Ltd. Financial Statement Overview

Summary

Strong income statement (consistent gross margin, improved net margin, healthy EBIT/EBITDA) and a solid balance sheet with manageable leverage support a strong baseline. The main offset is cash flow quality: operating cash flow is positive but free cash flow turned negative, creating a meaningful risk to 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 3845.00
• 50DMA: Negative
• 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 Negative. The current price of 3845 is below the 20-day moving average (MA) of 5479.50, below the 50-day MA of 5123.10, and above the 200-day MA of 3443.55, indicating a neutral trend. The MACD of -95.56 indicates Positive momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 23.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥139.34B	6.59	11.58%	1.62%	9.81%	30.20%
5713	68 Neutral	¥2.73T	7.93	5.18%	1.98%	3.15%	-63.65%
1515	68 Neutral	¥238.54B	16.52	6.77%	2.30%	8.19%	34.88%
5711	66 Neutral	¥658.32B	3.88	3.12%	2.83%	-0.64%	-65.65%
5714	66 Neutral	¥586.58B	22.37	5.02%	2.12%	-7.98%	-42.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5707	53 Neutral	¥18.94B	1.14	-111.61%	―	-11.92%	61.16%

Furukawa Co., Ltd. Corporate Events

Furukawa Posts Higher Sales and Ordinary Profit but Lowers Full-Year Earnings Outlook

Furukawa Co., Ltd. reported consolidated net sales of ¥149.97 billion for the nine months ended December 31, 2025, up 2.6% year on year, with operating profit rising 18.3% to ¥7.61 billion and ordinary profit jumping 53.1% to ¥9.76 billion. Profit attributable to owners of parent fell 29.2% to ¥9.66 billion due mainly to prior-year factors, while comprehensive income surged 225.0% to ¥13.86 billion.

Total assets increased to ¥272.20 billion and net assets to ¥138.16 billion, though the equity ratio slipped slightly to 49.7%, indicating a still-solid financial base. The company revised its full-year forecasts, projecting fiscal 2026 net sales of ¥206.20 billion, a 2.5% rise, with ordinary profit expected to grow 12.3% but profit attributable to owners of parent to decline 40.9%, and it lifted its full-year dividend outlook to ¥80 per share, signaling continued emphasis on shareholder returns amid mixed earnings trends.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen6303.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Nears ¥10 Billion Ceiling as Share Buyback Program Concludes

Furukawa Co., Ltd. has completed the acquisition of its own common shares under an authorization granted by its board, using Article 459-1 of Japan’s Companies Act to execute the buyback on the Tokyo Stock Exchange. The company purchased 50,400 shares for about ¥254.9 million between February 2 and 10, 2026, through market transactions.

This latest tranche brings the cumulative repurchase under the current program, effective from February 12, 2025 to February 10, 2026, to 3,956,000 shares at a total cost of approximately ¥9.9999 billion, essentially reaching the ¥10 billion ceiling. The buyback, which allows the company to retire a sizable portion of its outstanding stock, signals a continued commitment to shareholder returns and may support earnings per share and capital efficiency metrics over time.

The most recent analyst rating on (JP:5715) stock is a Hold with a Yen6685.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Lifts Full-Year Profit Outlook and Hikes Dividend on Stronger Segments and Asset Sales

Furukawa Co., Ltd. revised its full-year consolidated forecast for the year ending March 31, 2026, raising estimates for net sales, operating profit, ordinary profit and profit attributable to owners. The upgrade reflects stronger performance in the Rock Drill Machinery and Metals segments, foreign exchange gains and a sizeable gain on sales of investment securities from additional disposals of strategic shareholdings.

While the Industrial Machinery and Electronics segments are expected to underperform earlier plans due to project deferrals and weaker aluminum nitride ceramics sales, overall results are still projected to surpass previous guidance. On a non-consolidated basis, profit is now forecast to more than double versus the prior outlook, and the company plans to lift its year-end dividend forecast by ¥10 to ¥50 per share, signaling confidence while continuing to prioritize investment for sustainable growth and corporate value enhancement.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen5636.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa to Cancel 3.9 Million Treasury Shares, Tightening Equity Base

Furukawa Co., Ltd. has resolved to cancel 3.9 million of its own common shares, representing 10.70% of its issued shares prior to cancellation, under Article 178 of Japan’s Companies Act. The cancellation, scheduled for February 27, 2026, will significantly reduce the company’s outstanding share count, potentially enhancing capital efficiency and shareholder value by consolidating earnings per share and tightening its equity base.

Following the cancellation, the company’s capital structure will reflect a lower float compared with the 32,482,617 shares previously issued excluding treasury stock, and 3,962,951 shares held as treasury shares as of January 31, 2026. This move underscores management’s active use of balance sheet resources and signals confidence in Furukawa’s financial position, which may improve its standing among investors focused on disciplined capital allocation in Japan’s industrial sector.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen5636.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa to Acquire EarthTechnica from Kawasaki Heavy Industries in Two-Stage Share Transfer

Furukawa Co., Ltd. and Kawasaki Heavy Industries have signed a definitive share transfer agreement under which Furukawa will acquire all shares of EarthTechnica Co., Ltd., Kawasaki’s wholly owned subsidiary engaged in crushing and grinding equipment. The transaction will be executed in two stages, with Furukawa first purchasing 60% of EarthTechnica’s shares and then the remaining 40%, after which EarthTechnica will become a core operating company in the Furukawa group.

By integrating EarthTechnica’s advanced crushing, grinding and sorting technologies and strong customer base, Furukawa expects to boost technological capabilities, productivity, cost competitiveness and service quality in its industrial machinery segment. The deal is also intended to accelerate Furukawa’s expansion in the environmental recycling and global mining and quarry markets, combining both companies’ sales and service networks to cover the industry value chain from upstream to downstream and strengthen overseas operations.

Kawasaki Heavy Industries determined that Furukawa’s mining-centered machinery business is highly compatible with EarthTechnica’s growth strategy, particularly in environmental business and international expansion. Both companies expect the transfer to generate mutual benefits and drive further development of the domestic quarry industry, while enabling EarthTechnica to achieve greater growth under Furukawa’s ownership and better address evolving customer needs.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen5636.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Posts Higher Sales and Ordinary Profit but Cuts Full-Year Earnings Outlook

Furukawa Co., Ltd. reported consolidated net sales of ¥149.97 billion for the nine months ended Dec. 31, 2025, up 2.6% year on year, with operating profit rising 18.3% to ¥7.61 billion and ordinary profit jumping 53.1% to ¥9.76 billion. Despite these gains, profit attributable to owners of parent fell 29.2% to ¥9.66 billion, while comprehensive income more than tripled, and total assets and equity increased, though the equity ratio edged down to 49.7%.

The company maintained an interim dividend of ¥30 per share and raised its full-year dividend forecast to ¥80, signaling a stronger shareholder return policy alongside revised full-year guidance. For the year ending March 31, 2026, Furukawa now projects net sales of ¥206.2 billion and ordinary profit of ¥10.9 billion, but expects operating profit and profit attributable to owners of parent to decline versus the prior year, indicating ongoing earnings pressure even as the balance sheet and cash returns remain robust.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen5636.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

Furukawa Nears Completion of Aggressive ¥10 Billion Share Buyback

Furukawa Co., Ltd. has disclosed the status of its ongoing share buyback program conducted under Article 459-1 of Japan’s Companies Act, reporting that it repurchased 147,000 of its own common shares on the Tokyo Stock Exchange between January 5 and 30, 2026, for a total of ¥673,882,500 via market purchases under a discretionary transaction agreement. This latest tranche forms part of a larger buyback framework authorized by the board in February 2025 for up to 7 million shares or ¥10 billion through February 10, 2026, under which the company has cumulatively acquired 3,905,600 shares for ¥9,745,044,300 as of January 30, 2026, signaling an aggressive capital return policy that may enhance per-share value and adjust capital structure for existing shareholders.

The most recent analyst rating on (JP:5715) stock is a Buy with a Yen5459.00 price target. To see the full list of analyst forecasts on Furukawa Co., Ltd. stock, see the JP:5715 Stock Forecast page.

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.