Furukawa Electric Co (5801) AI Stock Analysis

• Market Cap: $506.63B
• Dividend Yield: 1.67%
• Average Volume (3M): 3.79M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.47
• Revenue Growth: 13.75%
• EPS Growth: 412.78%
• Country: JP
• Employees: 52,757
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): 241.32
• Shares Outstanding: 70,666,920
• 10 Day Avg. Volume: 4,286,530
• 30 Day Avg. Volume: 3,789,463
• PEG Ratio: 0.14
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -63.22
• 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: $6,934.99
• Price Target Upside: -3.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 70 Neutral
• Price Target: ¥7,135.00 ▼(-0.88%Downside)

Furukawa Electric Co benefits from improved financial performance and a strong technical outlook, despite the potential overbought condition in technical indicators. The valuation is attractive with a reasonable P/E ratio and a moderate dividend yield. The absence of recent earnings call data and notable corporate events does not significantly detract from the overall assessment.

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. generates revenue through the sale of its diverse product portfolio across its various business segments. The Infrastructure segment contributes significantly to the company's earnings by providing optical fiber cables, power cables, and related solutions to telecommunications and energy sectors. The Electronics & Automotive Systems segment earns revenue through the sale of automotive components, such as wire harnesses and electronic parts, catering to automotive manufacturers. The Functional Products segment includes sales of copper products and specialty plastics used in various industrial applications. Additionally, Furukawa Electric benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, further contributing to its revenue streams. The company's global presence and its ability to adapt to changing market demands are also pivotal in maintaining its revenue growth.

Furukawa Electric Co Financial Statement Overview

Summary

Furukawa Electric Co has shown robust revenue growth and improved profitability margins from 2024 to 2025. The balance sheet reflects manageable leverage with a moderate debt-to-equity ratio, and there is significant improvement in free cash flow generation. However, there is room to enhance equity ratios and further strengthen financial 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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.17T	1.20T	1.06T	1.07T	930.50B	811.60B
Gross Profit	195.46B	201.72B	157.16B	156.70B	138.69B	129.31B
EBITDA	98.11B	104.56B	50.12B	73.71B	58.03B	57.69B
Net Income	29.39B	33.37B	6.51B	15.89B	10.09B	10.00B
Balance Sheet
Total Assets	1.01T	987.02B	985.01B	934.84B	935.88B	832.04B
Cash, Cash Equivalents and Short-Term Investments	59.48B	66.78B	53.64B	52.56B	68.41B	87.28B
Total Debt	344.05B	318.63B	345.56B	323.83B	342.12B	290.62B
Total Liabilities	652.21B	613.68B	626.97B	603.85B	621.81B	540.43B
Stockholders Equity	328.25B	341.44B	328.12B	303.55B	279.22B	259.87B
Cash Flow
Free Cash Flow	0.00	23.08B	-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: 7198.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 7198 is above the 20-day moving average (MA) of 6968.00, above the 50-day MA of 6184.36, and above the 200-day MA of 5584.20, indicating a bullish trend. The MACD of 243.54 indicates Positive momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 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
5801	70 Neutral	$506.63B	15.20	9.85%	1.67%	13.75%	412.78%
Sector *	61 Neutral	C$6.56B	9.41	3.50%	2.82%	6.99%	-11.09%
MIE1		€38.09B	19.35	8.40%	1.94%	―	―
FELTF		$6.63B	11.06	14.10%	0.02%	―	―
YASKF		$5.71B	16.45	13.09%	1.97%	―	―
FJK		€12.18B	22.25	24.26%	1.77%	―	―
7VY		€1.38B	19.18	14.22%	2.19%	―	―

Furukawa Electric Co Corporate Events

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.