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

• Market Cap: ¥117.18B
• Dividend Yield: 4.04%
• Average Volume (3M): 332.33K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.46
• Revenue Growth: 10.54%
• EPS Growth: 83.58%
• Country: JP
• Employees: 3,356
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 92.39
• Shares Outstanding: 31,894,554
• 10 Day Avg. Volume: 429,590
• 30 Day Avg. Volume: 332,333
• PEG Ratio: -0.44
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.38
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥4,070.00 ▲(8.68%Upside)

Furuno Electric Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's solid revenue and profit growth, strong balance sheet, and significant cash flow generation are strengths. However, technical indicators suggest the stock is overbought, which could lead to a short-term correction. No significant earnings call or corporate events data were available to influence the analysis.

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. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	125.94B	126.95B	114.85B	91.33B	84.78B	82.25B
Gross Profit	49.69B	52.97B	41.20B	34.38B	31.64B	30.84B
EBITDA	14.42B	18.08B	11.85B	5.72B	7.10B	8.09B
Net Income	8.65B	11.46B	6.24B	1.35B	2.81B	3.95B
Balance Sheet
Total Assets	117.43B	123.52B	114.37B	106.40B	85.97B	82.25B
Cash, Cash Equivalents and Short-Term Investments	13.82B	16.11B	11.79B	15.38B	14.35B	15.30B
Total Debt	15.11B	17.81B	17.42B	19.32B	9.60B	9.96B
Total Liabilities	49.27B	50.90B	52.94B	53.90B	38.09B	36.56B
Stockholders Equity	67.76B	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: Positive
• Last Price: 3745.00
• 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:6814, the sentiment is Positive. The current price of 3745 is above the 20-day moving average (MA) of 3297.50, above the 50-day MA of 2875.82, and above the 200-day MA of 2469.44, indicating a bullish trend. The MACD of 243.60 indicates Negative momentum. The RSI at 81.42 is Negative, neither overbought nor oversold. The STOCH value of 82.78 is Negative, 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
6814	79 Outperform	¥117.18B	10.24		4.04%	10.54%	83.58%
6590	79 Outperform	¥145.70B	14.01		2.52%	19.77%	18.15%
6957	73 Outperform	¥92.35B	24.07		2.51%	5.02%	-21.81%
6996	71 Outperform	¥81.07B	13.90		3.01%	-3.24%	-29.08%
6866	68 Neutral	¥76.56B	12.37		3.56%	4.55%	4.94%
6908	67 Neutral	¥65.96B	23.84		3.55%	1.92%	-50.25%
Sector *	63 Neutral	$33.24B	5.92	-11.55%	1.90%	5.54%	-20.14%

Furuno Electric Co., Ltd. Corporate Events

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.

Furuno Electric Evaluates Management Strategies and Sets Future Growth Plans

Furuno Electric Co., Ltd. has announced an evaluation of its management strategies with a focus on cost of capital and stock price, following a board meeting on April 9, 2025. The company has maintained a Return on Equity above its shareholder capital cost but aims to improve its Price to Earnings Ratio to enhance its Price to Book Ratio. Furuno has achieved its growth targets for 2030 ahead of schedule and plans to continue strengthening its foundation for sustainable growth. It will enter Phase 3 of its Medium-Term Management Plan in 2026, focusing on improving profitability, particularly in its Marine business, by expanding its aftermarket services.

Furuno Electric Announces Dividend Increase Reflecting Strong Financial Performance

Furuno Electric Co., Ltd. announced an increase in its year-end dividend to 75 yen per share, raising the annual dividend to 110 yen per share. This decision aligns with the company’s medium-term management plan to maintain a stable dividend payout ratio of 30% or more, reflecting its strong financial performance and commitment to shareholder returns.

Furuno Electric Reports Strong Fiscal Year 2025 Results with Increased Dividends

Furuno Electric Co., Ltd. reported strong financial results for the fiscal year ended February 28, 2025, with a notable increase in net sales and profits. The company achieved a 10.5% rise in net sales to ¥126,953 million and a significant 102.1% increase in operating profit. This growth reflects the company’s robust performance and strategic positioning in the electronics industry. The company also announced a substantial increase in dividends, indicating confidence in its financial health and commitment to returning value to shareholders.

Furuno Electric Co., Ltd. Announces Change of Independent Auditor

Furuno Electric Co., Ltd. has announced a change in its independent auditor, transitioning from Deloitte Touche Tohmatsu LLC to KPMG AZSA LLC, effective after the upcoming shareholders’ meeting on May 22, 2025. This strategic move is aimed at bringing fresh perspectives and methodologies to the company’s auditing processes, enhancing the audit of its global business operations, and ensuring continued compliance and financial transparency.