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Furukawa Electric Co Ltd (JP:5801)
:5801
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Furukawa Electric Co (5801) AI Stock Analysis

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JP:5801

Furukawa Electric Co

(5801)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
¥46,412.00
▲(3.23% Upside)
Action:Reiterated
Date:06/29/26
The score is primarily driven by improved financial performance (stronger revenue and profitability) but is capped by weak/uneven cash conversion and limited ratio visibility. Technicals are mixed with near-term weakness below short-term averages, and valuation is a meaningful headwind due to the high P/E and low dividend yield.
Positive Factors
Revenue & Margin Step-up
A sharp 2026 revenue step-up and higher net margin signal a stronger earnings base across product lines. Durable because scale in fiber, cables and components supports sustained demand from telecom, utilities and auto customers, improving operating leverage over the medium term.
Negative Factors
Weak Cash Conversion
Earnings-to-cash divergence and negative free cash flow in 2026 highlight inconsistent cash conversion driven by working-capital swings and elevated capex. This weakens the company's ability to self-fund growth, dividends or deleveraging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Step-up
A sharp 2026 revenue step-up and higher net margin signal a stronger earnings base across product lines. Durable because scale in fiber, cables and components supports sustained demand from telecom, utilities and auto customers, improving operating leverage over the medium term.
Read all positive factors

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

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 generates revenue primarily through the sale of manufactured products to corporate and institutional customers (e.g., telecom network operators and equipment makers, electric utilities, automakers and automotive suppliers, and in...

Furukawa Electric Co Financial Statement Overview

Summary
Strong recent improvement in revenue and profitability (notably the 2026 step-up and net margin ~5.5%), and the balance sheet appears to be improving as equity expands. Offsetting this, cash generation is inconsistent (2026 operating cash flow fell to ~¥28B while earnings surged and free cash flow turned negative ~-¥18B), and several key 2026 ratios are unavailable (reported as 0.0), reducing visibility into leverage and returns.
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
45
Neutral
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.31T1.20T1.06T1.07T930.50B
Gross Profit229.81B199.84B157.16B155.55B138.47B
EBITDA157.17B104.63B68.41B73.71B58.03B
Net Income72.51B33.37B6.51B15.89B10.09B
Balance Sheet
Total Assets1.07T987.02B985.01B933.47B935.88B
Cash, Cash Equivalents and Short-Term Investments70.97B66.78B53.64B52.56B68.41B
Total Debt329.36B321.64B348.93B339.01B351.26B
Total Liabilities631.14B613.68B626.97B604.37B621.81B
Stockholders Equity417.05B341.44B328.12B301.65B279.22B
Cash Flow
Free Cash Flow-18.00B23.08B-4.52B638.00M-49.76B
Operating Cash Flow28.12B59.83B31.90B36.52B-13.27B
Investing Cash Flow-47.14B-7.24B-24.79B-21.68B-40.07B
Financing Cash Flow19.93B-44.15B-9.32B-34.48B35.02B

Furukawa Electric Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price44960.00
Price Trends
50DMA
4818.42
Negative
100DMA
3924.61
Positive
200DMA
2461.54
Positive
Market Momentum
MACD
-152.36
Positive
RSI
40.82
Neutral
STOCH
8.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5801, the sentiment is Neutral. The current price of 44960 is above the 20-day moving average (MA) of 4589.60, above the 50-day MA of 4818.42, and above the 200-day MA of 2461.54, indicating a neutral trend. The MACD of -152.36 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 8.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5801.

Furukawa Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥1.93T19.7512.05%1.50%9.27%3.49%
70
Outperform
¥675.75B15.629.63%2.12%4.94%37.62%
69
Neutral
¥9.40T56.5532.32%0.91%20.73%72.44%
65
Neutral
¥12.49T29.849.29%1.19%6.76%27.28%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥1.96T50.408.39%1.49%0.83%-37.84%
55
Neutral
¥2.81T38.5910.06%1.21%8.80%117.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5801
Furukawa Electric Co
4,000.00
3,308.24
478.23%
JP:6503
Mitsubishi Electric
5,944.00
2,925.10
96.89%
JP:6504
Fuji Electric Co
13,540.00
7,198.62
113.52%
JP:6674
GS Yuasa
6,737.00
4,098.99
155.38%
JP:6506
Yaskawa Electric
7,479.00
4,698.05
168.94%
JP:5803
Fujikura Ltd
5,358.00
4,136.65
338.69%

Furukawa Electric Co Corporate Events

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 ...
Furukawa Electric to Invest JPY 55 Billion in Data Center Cooling Capacity Expansion
Mar 30, 2026
Furukawa Electric will invest about JPY 55 billion to expand global production of water-cooling modules and air-cooling heat sinks for data centers, responding to rising heat-density challenges and surging demand driven by generative AI. The compa...
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: Jun 29, 2026