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

• Market Cap: ¥129.95B
• Dividend Yield: 2.67%
• Average Volume (3M): 407.82K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.45
• Revenue Growth: 9.11%
• EPS Growth: 114.88%
• Country: JP
• Employees: 3,356
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 111.75
• Shares Outstanding: 31,894,554
• 10 Day Avg. Volume: 540,710
• 30 Day Avg. Volume: 407,816
• PEG Ratio: 0.34
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,501.00
• Price Target Upside: -17.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥4,759.00 ▲(12.24%Upside)

Furuno Electric Co., Ltd. demonstrates strong financial health and attractive valuation, with the stock priced below its earnings potential and offering a solid dividend yield. However, technical indicators signal the stock is overbought, introducing short-term correction risk.

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

Company Description

Furuno Electric Co., Ltd. (6814) is a Japanese company specializing in the design, development, and manufacturing of marine electronics and communication equipment. The company operates across various sectors, including maritime, industrial, and healthcare, offering a range of products such as navigation systems, fish finders, radar, sonar, and GPS devices. Furuno is renowned for its innovative technologies and solutions that enhance safety and efficiency in marine operations.

How the Company Makes Money

Furuno Electric Co., Ltd. generates revenue primarily through the sale of its electronic and communication equipment designed for maritime applications. The company's key revenue streams include the sale of navigation systems, radar, sonar, and fish finders, which are critical for both commercial shipping and fishing industries. In addition to product sales, Furuno also earns income from providing maintenance services, technical support, and software updates for its equipment, ensuring operational reliability and customer satisfaction. Significant partnerships with shipbuilders, shipping companies, and government agencies further bolster its sales, as these relationships often involve long-term contracts and bulk purchases. Furuno's commitment to research and development enables the company to introduce cutting-edge technology, maintaining its competitive edge and driving continuous growth in its revenue.

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. Profitability and operational efficiency are strengths, though 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.95B	114.85B	91.33B	84.78B	82.25B
Gross Profit	52.97B	41.20B	34.38B	31.64B	30.84B
EBITDA	18.08B	11.85B	5.72B	7.10B	8.09B
Net Income	11.46B	6.24B	1.35B	2.81B	3.95B
Balance Sheet
Total Assets	123.52B	114.37B	106.40B	85.97B	82.25B
Cash, Cash Equivalents and Short-Term Investments	16.11B	11.79B	15.38B	14.35B	15.30B
Total Debt	17.81B	17.42B	19.32B	9.60B	9.96B
Total Liabilities	50.90B	52.94B	53.90B	38.09B	36.56B
Stockholders Equity	72.19B	61.04B	52.11B	47.88B	45.36B
Cash Flow
Free Cash Flow	8.30B	-637.00M	-9.07B	1.70B	4.32B
Operating Cash Flow	10.82B	2.71B	-6.49B	6.19B	8.51B
Investing Cash Flow	-4.59B	-3.59B	-3.03B	-4.39B	-4.55B
Financing Cash Flow	-2.70B	-3.56B	8.26B	-3.52B	-850.00M

Furuno Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4240.00
• 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:6814, the sentiment is Positive. The current price of 4240 is above the 20-day moving average (MA) of 3906.50, above the 50-day MA of 3313.46, and above the 200-day MA of 2626.90, indicating a bullish trend. The MACD of 257.31 indicates Positive momentum. The RSI at 68.89 is Neutral, neither overbought nor oversold. The STOCH value of 55.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6590	79 Outperform	¥140.42B	13.51		2.61%	19.77%	18.15%
6814	75 Outperform	¥129.95B	9.50		2.67%	9.11%	114.88%
6957	73 Outperform	¥93.27B	24.31		2.49%	5.02%	-21.81%
6996	71 Outperform	¥82.15B	14.09		2.89%	-3.24%	-29.08%
6866	68 Neutral	¥72.46B	12.26		3.77%	4.55%	4.94%
6908	67 Neutral	¥66.13B	23.90		3.54%	1.92%	-50.25%
Sector *	63 Neutral	$34.55B	5.25	-11.40%	1.91%	5.47%	-20.39%

Furuno Electric Co., Ltd. Corporate Events

Furuno Electric Reports Strong Quarterly Growth but Cautious Annual Outlook

Furuno Electric Co., Ltd. reported a significant increase in its financial performance for the three months ending May 31, 2025, with net sales rising by 11% and profit attributable to owners of the parent soaring by 175.7% compared to the previous year. Despite the strong quarterly results, the company forecasts a modest growth in net sales and a decline in profits for the fiscal year ending February 28, 2026, indicating potential challenges ahead.

Furuno Electric Completes Treasury Share Disposal for Executive Remuneration

Furuno Electric Co., Ltd. has completed the payment process for the disposal of treasury shares as restricted share-based remuneration, following a resolution by its Board of Directors. This strategic move involves the disposal of 11,340 common shares, amounting to a total of ¥36,004,500, and is aimed at aligning the interests of its directors and executive officers with the company’s performance.

Furuno Electric Announces Treasury Share Disposal for Executive Remuneration

Furuno Electric Co., Ltd. announced its decision to dispose of 11,340 treasury shares as part of a restricted share-based remuneration plan for its directors and executive officers. This move aims to align the interests of the company’s leadership with its long-term performance goals. The shares will be allocated to eligible directors and executive officers, with restrictions on transfer until their retirement, ensuring commitment to the company’s strategic objectives.