Furuno Electric Co., Ltd. (6814) AI Stock Analysis

• Market Cap: ¥224.89B
• Dividend Yield: 1.88%
• Average Volume (3M): 666.14K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.59
• Revenue Growth: 6.56%
• EPS Growth: 106.55%
• Country: JP
• Employees: 3,356
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 98.69
• Shares Outstanding: 31,894,554
• 10 Day Avg. Volume: 1,247,270
• 30 Day Avg. Volume: 666,140
• PEG Ratio: 0.07
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 8.50
• 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: ¥11,000.00
• Price Target Upside: 54.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥8,039.00 ▲(12.75% Upside)

Furuno Electric Co., Ltd. demonstrates strong financial performance with solid revenue and profit growth, supported by a healthy balance sheet and cash flow. Technical analysis presents mixed signals, with some bullish momentum but potential oversold conditions. Valuation metrics suggest the stock is fairly valued, with a reasonable P/E ratio and a modest dividend yield.

Positive Factors

Cash Generation

A swing to ¥8.3bn free cash flow indicates sustainable internal funding for capex, R&D, dividends or debt reduction. Consistent FCF supports durable operational resilience, reduces external financing need, and enables strategic investments over the next several quarters.

Profitability and Margins

High gross margins and improving net margins alongside double-digit revenue growth suggest structural cost control and pricing power in core products. These margin levels support reinvestment and durable profit generation even if top-line growth moderate.

Balance Sheet Strength

A strong equity ratio and low leverage provide financial flexibility to fund growth, weather cyclical downturns, and pursue M&A or capex without excessive refinancing risk. This balance-sheet health underpins multi-quarter strategic options.

Negative Factors

Return on Equity

ROE at ~15.9% indicates only moderate capital efficiency given strong margins and cash flow. Improving asset turns or capital allocation is necessary to translate operational strength into higher long‑term shareholder returns and to justify reinvestment.

Revenue Concentration

Heavy reliance on marine electronics ties revenue to shipping, fishing and recreational boating cycles and industry capital spending. This concentration limits diversification and exposes the business to sector-specific downturns and regulatory shifts over several quarters.

Limited Public Guidance/Disclosure

Absence of earnings-call detail and formal guidance reduces visibility into management's near-term plans and capital allocation. For investors and partners, limited forward disclosure can impair confidence when assessing multi-quarter strategy execution and risk management.

Furuno Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Furuno Electric Co., Ltd. engages in the manufacture and sale of marine and industrial electronics equipment, wireless LAN system, and handy terminals in Japan, the Americas, Europe, rest of Asia, and internationally. Its marine business offers radars, AIS and ECDIS systems, and satellite communication equipment for merchant vessels; fish finders, scanning sonars, and radiotelephones for fishing vessels; and network-capable and multi-function navigation systems, as well as GPS and chart plotters, fish finders, and autopilot systems for sport fishing boats, sailboats, and yachts. The company's industrial business provides automotive ETC2.0/ETC systems, dedicated short range communication systems, GPS receivers, and GPS disciplined oscillators for PNT; medical equipment devices, such as clinical chemical analyzers and ultrasound bone densitometers for healthcare industry; and wireless LAN access points and wireless handheld terminals, as well as offers electromagnetic environment testing services. In addition, it provides meteorological monitoring and analyzing systems, as well as displacement monitoring systems. The company was founded in 1938 and is headquartered in Nishinomiya, Japan.

How the Company Makes Money

Furuno Electric Co., Ltd. primarily generates revenue through the sales of its marine electronics products, which cater to commercial shipping, fishing, and recreational boating markets. Key revenue streams include the sale of navigation and communication equipment, as well as after-sales services such as maintenance, repair, and technical support. The company also earns income from contracts for large-scale projects and installations, particularly in the commercial maritime sector. Strategic partnerships with shipbuilders and distributors enhance its market reach, while the growing demand for advanced maritime technologies and safety solutions contributes to its earnings. Additionally, Furuno benefits from ongoing investments in research and development, enabling it to introduce innovative products that meet the evolving needs of its customers.

Furuno Electric Co., Ltd. Financial Statement Overview

Summary

Furuno Electric Co., Ltd. exhibits robust financial health with impressive revenue and profit growth, a strong balance sheet, and enhanced cash flow generation. While profitability and operational efficiency are strengths, further improvement in return on equity could unlock additional shareholder value.

Income Statement

Furuno Electric Co., Ltd. has demonstrated robust revenue growth, with a 10.56% increase from 2024 to 2025, and strong profitability, as evidenced by a gross profit margin of 41.72% and a net profit margin of 9.02% for 2025. The EBIT and EBITDA margins, at 10.39% and 14.24% respectively, indicate efficient cost management and operational strength. These positive trends reflect a well-executed growth strategy and operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity position with an equity ratio of 58.44% in 2025, indicating financial stability. The debt-to-equity ratio is relatively low at 0.25, suggesting prudent leverage use. However, the return on equity of 15.87% in 2025, while respectable, could be improved to enhance shareholder value. The overall financial health is sound with manageable debt levels and strong equity.

Cash Flow

Furuno Electric has shown exceptional cash flow performance with a significant improvement in free cash flow from a negative position in 2024 to ¥8.3 billion in 2025. The operating cash flow to net income ratio of 0.94 suggests effective conversion of profits into cash. The strong free cash flow to net income ratio of 0.72 in 2025 reinforces the company's ability to generate cash, supporting future growth and debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.81B	126.95B	114.85B	91.33B	84.78B	82.25B
Gross Profit	56.07B	52.97B	41.20B	34.38B	31.64B	30.84B
EBITDA	20.45B	18.08B	11.85B	5.72B	7.10B	8.09B
Net Income	16.58B	11.46B	6.24B	1.35B	2.81B	3.95B
Balance Sheet
Total Assets	127.32B	123.52B	114.37B	106.40B	85.97B	82.25B
Cash, Cash Equivalents and Short-Term Investments	17.34B	16.11B	11.79B	15.38B	14.35B	15.30B
Total Debt	16.16B	19.84B	17.42B	19.32B	9.60B	9.96B
Total Liabilities	47.00B	50.90B	52.94B	53.90B	38.09B	36.56B
Stockholders Equity	79.85B	72.19B	61.04B	52.11B	47.88B	45.36B
Cash Flow
Free Cash Flow	0.00	8.30B	-637.00M	-9.07B	1.70B	4.32B
Operating Cash Flow	0.00	10.82B	2.71B	-6.49B	6.19B	8.51B
Investing Cash Flow	0.00	-4.59B	-3.59B	-3.03B	-4.39B	-4.55B
Financing Cash Flow	0.00	-2.70B	-3.56B	8.26B	-3.52B	-850.00M

Furuno Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7130.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6814, the sentiment is Negative. The current price of 7130 is below the 20-day moving average (MA) of 7873.00, below the 50-day MA of 7971.80, and above the 200-day MA of 5590.02, indicating a neutral trend. The MACD of -274.40 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 23.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6814.

Furuno Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	79 Outperform	¥84.06B	15.28	―	3.23%	7.28%	4.16%
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
6590	74 Outperform	¥309.08B	26.61	―	1.49%	18.20%	28.13%
6908	70 Outperform	¥77.92B	19.74	―	3.05%	10.79%	12.28%
6996	69 Neutral	¥114.01B	33.43	―	2.18%	-0.93%	-45.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Furuno Electric Co., Ltd. Corporate Events

Furuno Electric Posts Strong Nine-Month Earnings, Lifts Annual Dividend Outlook

Furuno Electric Co., Ltd., a Japan-based electronics manufacturer listed on the Tokyo Stock Exchange, develops and supplies specialized electronic equipment, notably marine electronics and related systems, for industrial and commercial customers worldwide. For the nine months ended November 30, 2025, Furuno reported solid growth with net sales up 9.8% year on year to ¥102.8 billion and profit attributable to owners of parent surging 55.9% to ¥13.3 billion, while operating and ordinary profits rose 21.0% and 32.3%, respectively, and basic earnings per share climbed to ¥421.17. The company’s financial position also strengthened, with total assets increasing to ¥131.4 billion, equity ratio improving to 62.4%, and net assets per share rising to ¥2,594.99. Reflecting this robust performance, Furuno maintained its full-year forecast for fiscal 2025, projecting net sales of ¥137.5 billion and a 35.3% rise in full-year profit attributable to owners of parent to ¥15.5 billion, and it plans to raise annual dividends to ¥150 per share, signaling confidence in earnings momentum and a continued shareholder-return focus.

The most recent analyst rating on (JP:6814) stock is a Buy with a Yen9009.00 price target. To see the full list of analyst forecasts on Furuno Electric Co., Ltd. stock, see the JP:6814 Stock Forecast page.