tiprankstipranks
Trending News
More News >
Furukawa Electric Co Ltd (JP:5801)
:5801

Furukawa Electric Co (5801) AI Stock Analysis

Compare
1 Followers

Top Page

JP

Furukawa Electric Co

(OTC:5801)

Rating:70Neutral
Price Target:
¥7,135.00
▼(-0.88%Downside)
Furukawa Electric Co benefits from improved financial performance and a strong technical outlook, despite the potential overbought condition in technical indicators. The valuation is attractive with a reasonable P/E ratio and a moderate dividend yield. The absence of recent earnings call data and notable corporate events does not significantly detract from the overall assessment.

Furukawa Electric Co (5801) vs. iShares MSCI Japan ETF (EWJ)

Furukawa Electric Co Business Overview & Revenue Model

Company DescriptionFurukawa Electric Co., Ltd. manufactures and sells telecommunications, energy, automobile, electronic, and construction products worldwide. It operates through Infrastructure, Electronics & Automotive Systems, Functional Products, and Service and Developments segments. The company offers telecommunications products, such as broadband systems, routers/network equipment, and wireless products; and optical fiber cables and identifiers, optical closures/termination boxes, optical connectors/cords, fusion splicers/optical connecting tools, optical fiber line monitoring/management systems, optical component/devices, and metal communication cables, as well as wiring materials. It also offers energy products, including power cables, cable-related equipment/connection and terminal products, industrial machine-related equipment, fire-prevention products, electrical conductors, power distribution products, and cable conduit materials; and automobile products comprising wire harnesses, connectors, functional products and materials, and interior finishing materials. In addition, the company provides electronics parts materials, fluorescent lamps, LED reflectors, and tapes, as well as healthcare products, such as shape memory/super-elastic alloys; construction products, including water distribution piping and fluid transport piping products, heat insulators, and cable-related equipment/connection and terminal products; superconducting cables, industrial lasers, flow cytometers, and fluorescent silica nanoparticles; and maintenance/inspection solutions. Furukawa Electric Co., Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyFurukawa Electric Co. generates revenue through the sale of its diverse product portfolio across its various business segments. The Infrastructure segment contributes significantly to the company's earnings by providing optical fiber cables, power cables, and related solutions to telecommunications and energy sectors. The Electronics & Automotive Systems segment earns revenue through the sale of automotive components, such as wire harnesses and electronic parts, catering to automotive manufacturers. The Functional Products segment includes sales of copper products and specialty plastics used in various industrial applications. Additionally, Furukawa Electric benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, further contributing to its revenue streams. The company's global presence and its ability to adapt to changing market demands are also pivotal in maintaining its revenue growth.

Furukawa Electric Co Financial Statement Overview

Summary
Furukawa Electric Co has shown robust revenue growth and improved profitability margins from 2024 to 2025. The balance sheet reflects manageable leverage with a moderate debt-to-equity ratio, and there is significant improvement in free cash flow generation. However, there is room to enhance equity ratios and further strengthen financial stability.
Income Statement
72
Positive
Furukawa Electric Co has demonstrated a robust revenue growth trajectory, particularly from 2024 to 2025, with a notable increase in gross profit margin from 14.88% to 16.78%. The net profit margin also improved significantly, from 0.62% in 2024 to 2.78% in 2025, indicating better profitability. However, the EBIT and EBITDA margins, while improved, could benefit from further enhancement to ensure stable long-term profitability.
Balance Sheet
68
Positive
The company's balance sheet reflects a moderate debt-to-equity ratio of 0.93, suggesting a balanced leverage position in 2025. Return on Equity (ROE) increased to 9.77% from 1.98% in 2024, indicating better utilization of equity. The equity ratio stands at 34.59%, suggesting a solid equity foundation, but there is room for improvement in reducing liabilities to strengthen financial stability.
Cash Flow
75
Positive
As of 2025, Furukawa Electric Co has shown strong free cash flow growth, turning from negative in 2024 to positive, which indicates improved cash management and operational efficiency. The operating cash flow to net income ratio is 1.79, which reflects good cash generation relative to net income. However, the company should keep an eye on capital expenditures to maintain healthy free cash flow levels.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.17T1.20T1.06T1.07T930.50B811.60B
Gross Profit195.46B201.72B157.16B156.70B138.69B129.31B
EBITDA98.11B104.56B50.12B73.71B58.03B57.69B
Net Income29.39B33.37B6.51B15.89B10.09B10.00B
Balance Sheet
Total Assets1.01T987.02B985.01B934.84B935.88B832.04B
Cash, Cash Equivalents and Short-Term Investments59.48B66.78B53.64B52.56B68.41B87.28B
Total Debt344.05B318.63B345.56B323.83B342.12B290.62B
Total Liabilities652.21B613.68B626.97B603.85B621.81B540.43B
Stockholders Equity328.25B341.44B328.12B303.55B279.22B259.87B
Cash Flow
Free Cash Flow0.0023.08B-8.37B-2.74B-53.28B-41.19B
Operating Cash Flow0.0059.83B31.90B36.52B-13.27B-479.00M
Investing Cash Flow0.00-7.24B-24.79B-21.68B-40.07B-1.91B
Financing Cash Flow0.00-44.15B-9.32B-34.48B35.02B35.14B

Furukawa Electric Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7198.00
Price Trends
50DMA
6184.36
Positive
100DMA
5854.37
Positive
200DMA
5584.20
Positive
Market Momentum
MACD
243.54
Positive
RSI
61.91
Neutral
STOCH
72.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5801, the sentiment is Positive. The current price of 7198 is above the 20-day moving average (MA) of 6968.00, above the 50-day MA of 6184.36, and above the 200-day MA of 5584.20, indicating a bullish trend. The MACD of 243.54 indicates Positive momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5801.

Furukawa Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$506.63B15.209.85%1.67%13.75%412.78%
61
Neutral
C$6.56B9.413.50%2.82%6.99%-11.09%
€38.09B19.358.40%1.94%
$6.63B11.0614.10%0.02%
$5.71B16.4513.09%1.97%
DEFJK
€12.18B22.2524.26%1.77%
DE7VY
€1.38B19.1814.22%2.19%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5801
Furukawa Electric Co
7,198.00
3,374.32
88.25%
DE:MIE1
Mitsubishi Electric
18.40
2.79
17.87%
FELTF
Fuji Electric Co
46.63
-10.22
-17.98%
YASKF
Yaskawa Electric
23.00
-12.00
-34.29%
DE:FJK
Fujikura Ltd
44.90
27.62
159.84%
DE:7VY
SWCC Showa Holdings Co., Ltd.
45.20
19.36
74.92%

Furukawa Electric Co Corporate Events

Furukawa Electric Announces Delay in Tender Offer for Subsidiary Shares
Jun 20, 2025

Furukawa Electric Co., Ltd. announced a delay in the commencement of a tender offer for shares of its subsidiary, The Furukawa Battery Co., Ltd., by AP78 Co., Ltd. This delay is due to ongoing consultations with the Japan Fair Trade Commission regarding competition law procedures. The tender offer is now expected to begin by mid-August 2025, and Furukawa Electric is assessing the potential impact of this schedule change on its future outlook.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen4950.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Revises Stock Remuneration System to Boost Corporate Value
May 13, 2025

Furukawa Electric Co., Ltd. announced a partial revision to its Performance-Linked Stock Remuneration System, which aims to enhance the alignment of director and officer compensation with the company’s performance and long-term corporate value growth. The revision involves changes to the maximum remuneration amount and the structure of eligible participants, reflecting the company’s transition to a new corporate organization with an Audit & Supervisory Committee. This move is intended to motivate directors and officers to contribute to the company’s value over the mid- to long-term, pending approval at the upcoming shareholders meeting.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen4950.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Proposes Amendments to Enhance Governance and Agility
May 13, 2025

Furukawa Electric Co., Ltd. has announced proposed amendments to its Articles of Incorporation, which will be discussed at the upcoming Annual Shareholders Meeting. The amendments aim to transition the company to a structure with an Audit & Supervisory Committee, reduce the board size for enhanced effectiveness, and streamline decision-making processes. Additionally, the company seeks to enable quicker shareholder value distribution by allowing the Board of Directors to make surplus distribution decisions.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen4950.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Reports Strong Financial Growth and Expands Operations
May 13, 2025

Furukawa Electric Co., Ltd. reported a significant financial improvement for the fiscal year ended March 31, 2025, with net sales increasing by 13.7% and operating profit surging by 321.6%. The company also announced a substantial increase in dividends per share, indicating a strong financial position and commitment to returning value to shareholders. The inclusion of seven new subsidiaries reflects an expansion in its operational scope, potentially enhancing its market position and offering new growth opportunities.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen4950.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

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: May 27, 2025