Furukawa Electric Co (5801) AI Stock Analysis

• Market Cap: $664.01B
• Dividend Yield: 1.15%
• Average Volume (3M): 6.64M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.38
• Revenue Growth: 12.76%
• EPS Growth: 162.49%
• Country: JP
• Employees: 52,757
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 73.18
• 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: 1.19
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $11,151.55
• Price Target Upside: 6.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥11,600.00 ▲(10.74% Upside)

Furukawa Electric Co's stock is supported by strong financial performance and positive technical indicators, indicating a bullish trend. However, the valuation suggests potential overvaluation, which could limit upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

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 shown significant improvements in revenue growth and profitability, with enhanced gross and net profit margins. The balance sheet is stable with a moderate debt-to-equity ratio and improved ROE. Strong free cash flow growth indicates good cash management, although there is room for improvement in equity ratios and capital expenditure management.

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	68.25B	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: 10475.00
• 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 10475 is above the 20-day moving average (MA) of 9418.70, above the 50-day MA of 9091.18, and above the 200-day MA of 7114.61, indicating a bullish trend. The MACD of 284.67 indicates Negative momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 89.75 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
6504	―	$1.54T	16.18	14.11%	1.45%	2.67%	21.99%
6503	―	€8.31T	21.80	9.91%	1.32%	4.21%	33.53%
5801	―	$664.01B	18.93	10.54%	1.15%	12.76%	162.49%
6506	―	$1.09T	18.91	13.26%	1.56%	-2.18%	30.16%
5805	―	¥215.73B	18.57	15.00%	2.30%	9.28%	8.86%
5803	―	€4.53T	43.91	27.92%	0.70%	24.29%	75.04%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Furukawa Electric Co Corporate Events

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.

The most recent analyst rating on (JP:5801) stock is a Hold with a Yen9200.00 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 Q1 Earnings Growth

Furukawa Electric Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of electrical and electronic equipment, with a focus on optical fiber cables and related products. The company operates in the telecommunications and energy sectors, distinguishing itself with its advanced technology and global reach.

Furukawa Electric Announces Tender Offer for Subsidiary Shares

Furukawa Electric Co., Ltd. has announced the commencement of a tender offer for shares of its subsidiary, The Furukawa Battery Co., Ltd., by AP78 Co., Ltd., a subsidiary of Sustainable Battery Holdings, Inc. The tender offer period is set from August 8 to September 8, 2025. Furukawa Electric will not participate in the tender offer and plans to transfer its shares of Furukawa Battery through a share buyback following the successful closing of the tender offer. This strategic move is expected to streamline Furukawa Electric’s operations and potentially enhance its focus on core business areas.

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 Co. Reports Strong Q1 Profits and Expands Global Reach

Furukawa Electric Co. reported a significant increase in operating profit by 139.8% for the first three months of the fiscal year ending March 31, 2026, compared to the previous year. The company has also expanded its consolidation scope by including five new subsidiaries, which may enhance its market positioning and operational capabilities.

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.