Furukawa Electric Co (5801) AI Stock Analysis

• Market Cap: $774.93B
• Dividend Yield: 1.21%
• Average Volume (3M): 6.64M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.41
• Revenue Growth: 10.52%
• EPS Growth: 60.75%
• Country: JP
• Employees: 52,757
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 110.65
• Shares Outstanding: 70,666,920
• 10 Day Avg. Volume: 7,734,420
• 30 Day Avg. Volume: 6,640,486
• PEG Ratio: 0.03
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 18.98
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥12,092.00 ▲(26.18% Upside)

Furukawa Electric Co's stock is supported by strong financial performance and positive technical indicators. The company's robust revenue growth and improved profitability are significant strengths. The stock's valuation is reasonable, though not particularly attractive. Overall, the stock is on a positive trajectory with potential for continued improvement.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective product demand, supporting long-term business sustainability.

Cash Flow Improvement

Positive cash flow reflects efficient operations and financial health, enabling reinvestment and debt reduction, supporting future growth.

Profit Margin Improvement

Improved profit margins suggest better cost management and pricing strategies, enhancing profitability and competitive positioning.

Negative Factors

EBIT and EBITDA Margins

Suboptimal EBIT and EBITDA margins may limit profitability, indicating potential inefficiencies that could affect long-term financial performance.

Equity Ratio

A moderate equity ratio indicates potential vulnerability to financial instability, necessitating careful management of liabilities.

Capital Expenditures

High capital expenditures could strain free cash flow, affecting liquidity and limiting the ability to invest in growth opportunities.

Furukawa Electric Co Business Overview & Revenue Model

Company Description

Furukawa 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 Money

Furukawa Electric generates revenue through multiple key streams, including the sale of telecommunications equipment, electrical wires and cables, and electronic components. The telecommunications segment is a significant contributor, with revenues derived from the production and sale of optical fiber cables and related infrastructure. The electric wire and cable segment capitalizes on the demand for power transmission products, while the electronics segment offers components for consumer and industrial electronics. Additionally, the automotive segment provides wiring harnesses and components to automotive manufacturers. The company also benefits from strategic partnerships and collaborations, enhancing its market reach and innovation capabilities. Factors such as technological advancements, the growing demand for renewable energy solutions, and the expansion of telecommunications networks contribute to Furukawa Electric's earnings.

Furukawa Electric Co Financial Statement Overview

Summary

Furukawa Electric Co has demonstrated robust revenue growth and improved profitability, with significant improvements in net profit margin and positive cash flow growth. The balance sheet is stable with manageable leverage, although there is room to enhance equity ratios.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22T	1.20T	1.06T	1.07T	930.50B	811.60B
Gross Profit	210.02B	201.72B	157.16B	156.70B	138.47B	128.89B
EBITDA	94.02B	104.56B	68.25B	73.21B	57.53B	57.06B
Net Income	33.85B	33.37B	6.51B	15.89B	10.09B	10.00B
Balance Sheet
Total Assets	974.00B	987.02B	985.01B	934.84B	935.88B	832.04B
Cash, Cash Equivalents and Short-Term Investments	58.27B	66.78B	53.64B	52.56B	68.41B	87.28B
Total Debt	323.85B	318.63B	345.56B	336.38B	342.12B	290.62B
Total Liabilities	604.17B	613.68B	626.97B	603.84B	621.81B	540.42B
Stockholders Equity	338.55B	341.44B	328.12B	301.65B	279.22B	259.87B
Cash Flow
Free Cash Flow	0.00	18.31B	-8.37B	-2.74B	-53.28B	-41.19B
Operating Cash Flow	0.00	59.83B	31.90B	36.52B	-13.27B	-479.00M
Investing Cash Flow	0.00	-7.24B	-24.79B	-21.68B	-40.07B	-1.91B
Financing Cash Flow	0.00	-44.15B	-9.32B	-34.48B	35.02B	35.14B

Furukawa Electric Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9583.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9583 is below the 20-day moving average (MA) of 9702.25, below the 50-day MA of 9717.90, and above the 200-day MA of 7540.14, indicating a bullish trend. The MACD of 30.31 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 36.12 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6504	76 Outperform	$1.55T	18.89	12.05%	1.50%	5.44%	-5.19%
5801	73 Outperform	$774.93B	22.92	10.06%	1.21%	10.52%	60.75%
6503	72 Outperform	€9.10T	22.71	10.23%	1.15%	4.62%	40.65%
5805	72 Outperform	€239.01B	20.60	18.26%	1.61%	7.08%	65.71%
6506	70 Outperform	$1.14T	19.82	13.26%	1.35%	-2.18%	30.16%
5803	63 Neutral	€5.71T	55.30	32.32%	0.87%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Furukawa Electric Co Corporate Events

Furukawa Electric Reports 16 Billion Yen Gain from Securities Sale

Furukawa Electric Co., Ltd. announced the sale of a portion of its investment securities, resulting in an extraordinary income gain of 16 billion yen. This transaction has been incorporated into the company’s financial forecasts for the fiscal year ending March 31, 2026, and any revisions to earnings forecasts will be disclosed promptly.

Furukawa Electric to Record Extraordinary Income from Securities Sale

Furukawa Electric Co., Ltd. announced the sale of a portion of its investment securities, expecting to record a gain of approximately 16 billion yen as extraordinary income in the third quarter of the fiscal year ending March 31, 2026. This strategic move aims to enhance asset efficiency and improve the company’s financial position, with the gain already factored into the financial forecasts for the fiscal year.

Furukawa Electric Reports Strong First-Half Earnings and Expansion

Furukawa Electric Co. reported a 7.1% increase in net sales and a 15.7% rise in profit attributable to owners for the first half of the fiscal year ending March 31, 2026. The company has expanded its consolidation scope by adding six new subsidiaries, which could enhance its operational capabilities and market reach.

Furukawa Electric Co. Invests in HVDC Cable Production for Carbon Neutrality

Furukawa Electric Co. has announced a significant capital expenditure to establish a manufacturing line for 500kV-class HVDC cables, aiming to support the transition to a carbon-neutral society by 2050. This investment, supported by a government subsidy, reflects the company’s strategy to enhance its renewable energy business and improve profitability, with operations expected to start by 2030.