Furukawa Electric Co (5801) AI Stock Analysis

• Market Cap: $566.66B
• Dividend Yield: 1.49%
• Average Volume (3M): 4.05M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.47
• Revenue Growth: 13.75%
• EPS Growth: 412.78%
• Country: JP
• Employees: 52,757
• Sector: Industrials
• Sector Strength: 94
• Industry: Electrical Equipment & Parts
• EPS (TTM): 241.32
• Shares Outstanding: 70,666,920
• 10 Day Avg. Volume: 4,409,940
• 30 Day Avg. Volume: 4,051,176
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: $8,023.17
• Price Target Upside: -0.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥9,011.00 ▲(11.92%Upside)

Furukawa Electric Co's strong financial performance and positive technical indicators drive its high stock score. The company has demonstrated significant improvements in profitability and cash flow, bolstered by positive market momentum. However, the stock's valuation is neutral, with a reasonable P/E ratio and modest dividend yield.

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 Co., Ltd. generates revenue through its diversified business segments. The Infrastructure segment, which includes optical fiber cables, power cables, and related products, is a significant revenue stream, driven by the growing demand for telecommunications infrastructure and energy solutions. The Electronics & Automotive Systems segment contributes to revenue by providing products like wire harnesses and electronic components to automotive manufacturers. The Functional Products segment includes specialized materials and products for industries such as semiconductor manufacturing and environmental solutions. The company also benefits from strategic partnerships and investments that enhance its capabilities and market reach, thereby bolstering its financial performance.

Furukawa Electric Co Financial Statement Overview

Summary

Furukawa Electric Co has achieved strong revenue growth and improved profitability, with net profit margin rising from 0.62% to 2.78%. The balance sheet shows a moderate debt-to-equity ratio and improved ROE, while cash flow management has turned positive, indicating good financial health.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Furukawa Electric Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8051.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8051 is above the 20-day moving average (MA) of 7461.60, above the 50-day MA of 7014.18, and above the 200-day MA of 5901.13, indicating a bullish trend. The MACD of 314.98 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 91.18 is Negative, 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
5801	72 Outperform	$566.66B	17.00	9.85%	1.49%	13.75%	412.78%
Sector *	71 Outperform	¥268.02B	13.92	8.47%	2.88%	6.35%	13.11%
MIE1	―	€40.00B	19.84	8.40%	1.61%	―	―
FELTF	―	$7.03B	11.68	14.10%	0.05%	―	―
YASKF	―	$5.71B	15.02	13.09%	0.07%	―	―
FJK	―	€14.05B	25.57	24.26%	1.16%	―	―
7VY	―	€1.52B	21.13	14.22%	1.64%	―	―

Furukawa Electric Co Corporate Events

Furukawa Electric Sets Selling Price for Secondary Share Offering

Furukawa Electric Co., Ltd. has announced the determination of the selling price for its secondary offering of shares, which was resolved at a recent Board of Directors meeting. The secondary offering involves a significant number of shares, with a portion allocated to international investors, excluding the United States and Canada. This move is expected to enhance the company’s capital structure and potentially strengthen its market position.

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 Enhances Board Benefit Trust with Additional Contribution

Furukawa Electric Co., Ltd. announced an additional contribution to its Board Benefit Trust, aimed at acquiring shares for future benefits. This move signifies the company’s commitment to its performance-linked stock remuneration system and may enhance shareholder value by aligning the interests of the board with those of the stakeholders.

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 Announces Delay in Tender Offer for Subsidiary Shares

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

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

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

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.