Furukawa Electric Co (5801) AI Stock Analysis

• Market Cap: ¥1.98T
• Dividend Yield: 1.21%
• Average Volume (3M): 6.64M
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.66
• Revenue Growth: 10.52%
• EPS Growth: 60.75%
• Country: JP
• Employees: 52,757
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 320.48
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥16,810.24
• Price Target Upside: -40.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 587.13
• Revenue Forecast (FY): ¥1.24T

• Rating: 61 Neutral
• Price Target: ¥29,721.00 ▲(5.77% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by improving financial performance (better margins and a sharp improvement in free cash flow) and a strong uptrend versus moving averages. Offsetting this, valuation is demanding (high P/E and low yield) and technicals are extremely overbought (RSI/Stoch), raising near-term pullback risk.

Positive Factors

Improving Profitability

Sustained margin expansion indicates improving cost control and pricing power across core infrastructure businesses. Higher gross and net margins, if maintained, increase resilience to cyclical revenue swings, enabling reinvestment in projects and supporting longer-term operating leverage.

Stronger Cash Generation

Conversion of earnings into positive free cash flow and an OCF/NI well above 1 demonstrate durable cash generation. This improves funding capacity for capex, R&D and debt reduction, reducing reliance on external financing and supporting sustained investment in infrastructure capabilities.

Manageable Leverage with Improving ROE

A moderate debt-to-equity ratio with a marked ROE rebound signals better capital efficiency and a balanced capital structure. Manageable leverage preserves financial flexibility for large infrastructure contracts while improving returns suggests clearer value generation from invested capital.

Negative Factors

Commodity Cost Exposure

Heavy reliance on copper and aluminum exposes margins to prolonged commodity cycles. Persistent raw-material cost inflation or volatile metal prices can erode profitability unless fully passed through to customers or hedged, making long-term margin predictability challenging.

Equity Buffer Is Modest

A mid‑thirty percent equity ratio provides limited shock absorption against major project setbacks or prolonged downturns. For a capital‑intensive infrastructure supplier, a modest equity buffer increases reliance on debt or external funding when large capex or contract disputes arise, raising structural risk.

Revenue Lumpy and Capex‑Driven

Dependence on utility capex and large project awards creates lumpy revenue and working capital swings. Project timing and competitive bidding can cause multi‑quarter volatility, complicating capacity planning and margin consistency unless multi‑year contracts and diversified end markets are expanded.

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

Financials are improving: revenue and profitability strengthened with gross margin rising (14.88% to 16.78%) and net margin improving (0.62% to 2.78%). Cash flow quality is strong with free cash flow turning positive and operating cash flow well above net income (OCF/NI 1.79). Balance sheet leverage is manageable (debt-to-equity 0.93) with better ROE (9.77%), though the equity ratio (34.59%) leaves some room to further strengthen stability.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 28100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 28100 is above the 20-day moving average (MA) of 21026.00, above the 50-day MA of 14924.70, and above the 200-day MA of 10085.37, indicating a bullish trend. The MACD of 3775.45 indicates Negative momentum. The RSI at 87.82 is Negative, neither overbought nor oversold. The STOCH value of 91.64 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
6674	73 Outperform	¥557.69B	16.36	8.89%	2.12%	3.05%	-16.11%
6506	72 Outperform	¥1.44T	38.61	13.26%	1.49%	-2.18%	30.16%
5803	72 Outperform	¥7.38T	51.29	32.32%	0.91%	27.53%	137.34%
6503	71 Outperform	¥12.59T	33.01	10.23%	1.19%	4.62%	40.65%
6504	64 Neutral	¥1.99T	23.82	12.05%	1.50%	5.44%	-5.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5801	61 Neutral	¥1.98T	37.68	10.06%	1.21%	10.52%	60.75%

Furukawa Electric Co Corporate Events

Furukawa Electric Books ¥13 Billion Gain from Retirement Plan Overhaul

Furukawa Electric will revise its retirement benefit plan effective March 1, 2026, consolidating its existing lump-sum retirement allowance and defined benefit pension schemes into a corporate-type defined contribution pension plan. The move is expected to generate an extraordinary income of about JPY 13.0 billion in the fourth quarter of the fiscal year ending March 31, 2026, under applicable Japanese accounting standards.

The overhaul aims to align benefits with extended retirement ages, enhance employee motivation, and give workers more flexibility and portability in building retirement assets amid more fluid career paths. Management also positions the change as a step to strengthen the company’s fiscal health and ensure the long-term sustainability of its retirement program, with the anticipated gain already factored into its latest full-year earnings forecast.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen14255.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Lifts FY2026 Earnings Outlook and Hikes Dividend Forecast

Furukawa Electric has raised its full-year forecast for the fiscal year ending March 31, 2026, citing a weaker yen, solid demand for automotive wire harnesses, stronger data center-related sales and firm power and industrial cable demand. Despite headwinds in its functional products segment from delayed semiconductor-related recovery and higher copper costs, the company now expects higher net sales, operating profit, ordinary profit and profit attributable to owners, supported also by improved equity-method income, foreign-exchange gains and a gain linked to retirement benefit plan revisions.

Reflecting the stronger earnings outlook and its policy of performance-linked, stable shareholder returns, Furukawa Electric increased its projected year-end dividend from ¥120 to ¥160 per share. The company said the payout aligns with its medium-term plan prioritizing growth investment, balance sheet improvement and dividends targeted at roughly 30% of profit attributable to owners, underscoring a more confident outlook for profitability in FY2025 under its Road to Vision 2030 strategy.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen14255.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Lifts Earnings Outlook and Dividend as Profit Surges

Furukawa Electric reported consolidated net sales of ¥948.9 billion for the first nine months of the fiscal year ending March 31, 2026, up 7.6% year on year, with operating profit rising 11.9% to ¥35.1 billion and profit attributable to owners of the parent more than doubling to ¥35.5 billion. The company strengthened its financial position, lifting its equity ratio to 36.7%, revised its full-year forecast higher to ¥1.3 trillion in sales and ¥54 billion in net profit, and announced a dividend hike to ¥160 per share for the year, while reshaping its portfolio through the addition of six optical and submarine cable-related subsidiaries and the deconsolidation of six battery-related and other units.

For the full fiscal year, Furukawa Electric now expects operating profit of ¥56 billion and ordinary profit of ¥65 billion, representing double-digit growth over the prior year and signaling improved profitability from its core businesses. The group’s revised dividend plan and portfolio moves, including the consolidation of new optical component entities and a submarine cable company, indicate a sharper focus on communications and infrastructure assets and are likely to be viewed positively by shareholders seeking growth and higher returns.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen14255.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Finalizes Exit From Furukawa Battery Through Share Buyback

Furukawa Electric Co., Ltd. has completed the transfer of all 18,781,200 shares it held in its consolidated subsidiary The Furukawa Battery Co., Ltd. via a share buyback executed by Furukawa Battery. This transaction follows a previously agreed framework under which Furukawa Electric did not participate in a tender offer for Furukawa Battery shares by AP78 Co., Ltd., a vehicle backed by funds associated with Advantage Partners and Tokyo Century, and was structured so that after a share consolidation only Furukawa Electric and AP78 initially remained as shareholders before Furukawa Electric’s full exit. The completion of the share transfer marks Furukawa Electric’s divestment from Furukawa Battery, potentially streamlining its portfolio and shifting control of the battery business to a financial-investor-led ownership structure, which may alter strategic direction and capital allocation within that segment.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen12092.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric Transfers Subsidiary Amid Market Challenges

Furukawa Electric Co., Ltd. has decided to transfer all its equity interest in its wholly-owned subsidiary, Shenyang Furukawa Cable Co., Ltd., to Anhui Wei Guang Wire & Cable Co., Ltd. This decision comes as a response to intensified price competition and slow economic recovery in the Chinese market, which has impacted the subsidiary’s profitability. The transfer aims to deconsolidate the subsidiary and improve the company’s financial positioning by focusing on more profitable ventures.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen12092.00 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 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.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen12092.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.

Furukawa Electric 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.

The most recent analyst rating on (JP:5801) stock is a Buy with a Yen12092.00 price target. To see the full list of analyst forecasts on Furukawa Electric Co stock, see the JP:5801 Stock Forecast page.