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Furukawa Electric Co
(5801)
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Rating:56Neutral
Price Target:
¥4,037.00
▲(19.16% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improved financial performance (notably the 2026 rebound in revenue and net margin) but is held back by weak and inconsistent cash conversion (negative 2026 free cash flow) and limited visibility from missing 2026 ratios. Technically, signals are mixed with a negative MACD and price below key intermediate moving averages, while valuation is a further drag due to a high P/E and low dividend yield.
Positive Factors
Revenue growth
A sustained step-up in revenue to ~¥1.31T in 2026 indicates durable demand across energy, telecom and automotive end markets. This scale supports long-term contract wins, manufacturing utilization and bargaining power with suppliers, strengthening revenue predictability over months.
Negative Factors
Weak cash conversion
Negative free cash flow despite higher earnings signals working-capital swings or heavy investment, weakening cash conversion reliability. Over a 2–6 month horizon this limits flexibility for organic growth, debt reduction, shareholder returns, and increases execution risk on large projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
A sustained step-up in revenue to ~¥1.31T in 2026 indicates durable demand across energy, telecom and automotive end markets. This scale supports long-term contract wins, manufacturing utilization and bargaining power with suppliers, strengthening revenue predictability over months.
Read all positive factors
Furukawa Electric Co (5801) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.21T
Dividend Yield0.67%
Average Volume (3M)6.64M
Price to Earnings (P/E)30.5
Beta (1Y)1.93
Revenue Growth8.80%
EPS Growth117.66%
CountryJP
Employees49,112
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)103.03
Shares Outstanding706,669,200
10 Day Avg. Volume7,734,420
30 Day Avg. Volume6,640,486
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)4.86
Price to Sales (P/S)1.55
P/FCF Ratio-112.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,290.00Price Target Upside85.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)126.68
Revenue Forecast (FY)¥1.46T
Furukawa Electric Co Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, and established in 1884, Furukawa Electric Co., Ltd. is a global enterprise engaged in the manufacturing and distribution of a diverse portfolio of products. The company's offerings span crucial sectors including tel...
How the Company Makes Money
Furukawa Electric makes money primarily by manufacturing and selling physical products used in energy, telecommunications, and mobility/industrial markets. Key revenue streams typically include: (1) Energy and industrial infrastructure: sales of p...
Furukawa Electric Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.31T | 1.20T | 1.06T | 1.07T | 930.50B |
| Gross Profit | 229.81B | 199.84B | 157.16B | 155.55B | 138.47B |
| EBITDA | 157.17B | 104.63B | 68.41B | 73.71B | 58.03B |
| Net Income | 72.51B | 33.37B | 6.51B | 15.89B | 10.09B |
Balance Sheet | |||||
| Total Assets | 1.07T | 987.02B | 985.01B | 933.47B | 935.88B |
| Cash, Cash Equivalents and Short-Term Investments | 70.97B | 66.78B | 53.64B | 52.56B | 68.41B |
| Total Debt | 329.36B | 321.64B | 348.93B | 339.01B | 351.26B |
| Total Liabilities | 631.14B | 613.68B | 626.97B | 604.37B | 621.81B |
| Stockholders Equity | 417.05B | 341.44B | 328.12B | 301.65B | 279.22B |
Cash Flow | |||||
| Free Cash Flow | -18.00B | 23.08B | -4.52B | 638.00M | -49.76B |
| Operating Cash Flow | 28.12B | 59.83B | 31.90B | 36.52B | -13.27B |
| Investing Cash Flow | -47.14B | -7.24B | -24.79B | -21.68B | -40.07B |
| Financing Cash Flow | 19.93B | -44.15B | -9.32B | -34.48B | 35.02B |
Furukawa Electric Co Technical Analysis
Positive
3388.00
Price Trends
4178.60
Negative
4153.98
Negative
2740.12
Positive
Market Momentum
-221.94
Negative
55.42
Neutral
78.82
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 3388 is below the 20-day moving average (MA) of 3396.50, below the 50-day MA of 4178.60, and above the 200-day MA of 2740.12, indicating a neutral trend. The MACD of -221.94 indicates Negative momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.82 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥2.04T | 19.51 | 13.23% | 1.41% | 10.40% | 15.01% | |
70 Outperform | ¥549.87B | 13.14 | 11.44% | 1.54% | 4.94% | 37.62% | |
68 Neutral | ¥12.42T | 28.48 | 9.80% | 1.19% | 9.57% | 18.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥7.32T | 43.95 | 32.23% | 0.82% | 20.73% | 72.44% | |
56 Neutral | ¥2.21T | 30.52 | 19.52% | 0.62% | 8.80% | 117.66% | |
54 Neutral | ¥1.27T | 37.42 | 7.18% | 1.29% | 4.62% | -38.12% |
* Industrials Sector Average
JP:5801
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Furukawa Electric Co Corporate Events
Furukawa Electric Raises Earnings Outlook on Strong Data Center Demand
Aug 6, 2026
Furukawa Electric has raised its consolidated forecasts for both the first half and full year ending March 31, 2027, citing stronger-than-expected demand for data center-related products in its Optical Solutions and Digital Infrastructure Componen...
Furukawa Electric posts profit surge and lifts full-year outlook after share split
Aug 6, 2026
Furukawa Electric reported strong consolidated results for the first quarter of the fiscal year ending March 31, 2027, with net sales rising 24.3% year on year to ¥365.2 billion. Operating profit surged 205.4% to ¥25.5 billion, ordinary ...
Furukawa Electric to Invest JPY 100 Billion to Double Rollable Ribbon Cable Capacity for AI-Era Data Centers
Aug 4, 2026
Furukawa Electric Co., Ltd. has approved a major capital investment program to expand global production of optical fibers and Rollable Ribbon Cables in response to surging data center demand. The initiative is driven by rapid adoption of generativ...
Furukawa Electric to Absorb Optical Components Unit in Streamlining Merger
Jun 9, 2026
Furukawa Electric will execute an absorption-type merger of its wholly owned subsidiary Furukawa FITEL Optical Components, with Furukawa Electric as the surviving entity and FFOC to be dissolved, in a simplified, short-form structure that requires...
Furukawa Electric Announces 10-for-1 Stock Split and Boosts Authorized Shares Tenfold
May 12, 2026
Furukawa Electric Co., Ltd. will implement a 10-for-1 stock split of its common shares, aiming to lower the per-unit investment price and broaden its shareholder base by making the stock more accessible to a wider range of investors. The split wil...
Furukawa Electric Beats Forecasts, Lifts Dividend and Resets Shareholder Return Policy
May 12, 2026
Furukawa Electric reported that its fiscal 2025 consolidated results exceeded earlier forecasts, driven by stronger sales of data center-related products in its Communications Solutions division, higher demand for power cables and transmission com...
Furukawa Electric Delivers Strong FY2026 Earnings, Hikes Dividend and Plans Stock Split
May 12, 2026
Furukawa Electric reported consolidated net sales of ¥1.31 trillion for the fiscal year ended March 31, 2026, up 8.8% year on year, with operating profit rising 35.8% to ¥63.9 billion and profit attributable to owners more than doubling ...
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.