Furuya Metal Co., Ltd. (7826) AI Stock Analysis

• Market Cap: ¥62.33B
• Dividend Yield: 3.88%
• Average Volume (3M): 221.53K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.03
• Revenue Growth: 22.82%
• EPS Growth: -0.40%
• Country: JP
• Employees: 410
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 63.28
• Shares Outstanding: 25,389,635
• 10 Day Avg. Volume: 399,800
• 30 Day Avg. Volume: 221,526
• PEG Ratio: 1.05
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥2,750.00 ▲(11.79%Upside)

The overall stock score is driven primarily by the company's solid valuation and financial performance, despite technical indicators suggesting bearish market sentiment. The stock's undervaluation and attractive dividend yield provide strong investment potential, but concerns over leverage and inconsistent cash flow may pose risks. Addressing these issues could enhance the stock's attractiveness.

Furuya Metal Co., Ltd. Business Overview & Revenue Model

Company Description

Furuya Metal Co., Ltd. (7826) is a Japanese company that specializes in the manufacturing and sale of precious metal products. The company operates across various sectors including electronics, industrial, and medical fields. Its core products include iridium, platinum, and other precious metal materials, which are used in a wide range of applications from industrial equipment to consumer electronics and medical devices.

How the Company Makes Money

Furuya Metal Co., Ltd. generates revenue primarily through the production and sale of precious metal products. The company's key revenue streams include sales of iridium and platinum-based materials, which are highly sought after for their unique properties such as durability and conductivity. These metals are essential components in the manufacturing of electronic devices, automotive catalytic converters, glass manufacturing, and medical equipment. Furuya Metal also engages in refining and recycling services, extracting value from precious metals in used products. Significant partnerships with companies in the electronics and automotive industries contribute to its earnings, as these sectors are major consumers of the precious metals that Furuya Metal supplies.

Furuya Metal Co., Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and solid profitability in its income statement, supported by efficient operations. The balance sheet reflects a solid equity base with increasing leverage, while cash flow management is inconsistent, posing a risk to financial flexibility. The overall financial health is good but could be improved by addressing leverage and cash flow consistency.

Income Statement

The company demonstrates robust revenue growth with a notable increase from previous periods. Gross profit margin remains strong at approximately 30%, and the net profit margin is solid at around 15.6% in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operational management. However, a slight decline in gross profit margin over time suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a strong equity position with an improving equity ratio. The debt-to-equity ratio is manageable, though it has increased over time, indicating rising leverage. Return on equity is solid, highlighting effective utilization of shareholders' investments. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

The cash flow statement reveals volatility, with inconsistent free cash flow across periods. While the company has managed to generate positive operating cash flow recently, historical negative free cash flow points to challenges in sustaining cash generation. The absence of current cash flow data limits a comprehensive evaluation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
53.23B	47.53B	48.12B	45.32B	33.84B	22.83B
	Gross Profit
15.93B	14.67B	15.38B	16.15B	13.69B	6.07B
	EBIT
11.13B	9.81B	11.48B	13.05B	10.45B	3.68B
	EBITDA
12.30B	12.86B	12.42B	13.83B	11.10B	4.14B
	Net Income Common Stockholders
8.32B	7.41B	9.41B	9.14B	6.89B	2.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.06B	12.30B	3.12B	3.86B	4.26B	2.05B
	Total Assets
128.52B	112.72B	87.53B	72.66B	55.69B	31.83B
	Total Debt
32.13B	22.05B	22.07B	17.25B	13.49B	12.90B
	Net Debt
22.07B	9.75B	18.96B	13.39B	9.23B	10.85B
	Total Liabilities
66.42B	52.21B	43.17B	35.97B	27.19B	17.40B
	Stockholders Equity
61.97B	60.37B	44.22B	36.53B	28.32B	14.43B
Cash Flow		Free Cash Flow
0.00	1.08B	-2.77B	-2.98B	-5.56B	-321.00M
	Operating Cash Flow
0.00	3.21B	-461.00M	-1.23B	-3.45B	664.00M
	Investing Cash Flow
0.00	-2.19B	-2.33B	-1.79B	-2.11B	-987.00M
	Financing Cash Flow
0.00	8.14B	2.02B	2.72B	7.68B	623.00M

Furuya Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2460.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7826, the sentiment is Negative. The current price of 2460 is below the 20-day moving average (MA) of 2607.80, below the 50-day MA of 2516.28, and below the 200-day MA of 3254.73, indicating a bearish trend. The MACD of -18.52 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 11.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7826.

Furuya Metal Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6890	80 Outperform	¥126.40B	8.05	7.01%	6.46%	23.36%	3.63%
6855	79 Outperform	¥26.00B	7.53		1.94%	36.47%	454.91%
3445	76 Outperform	¥77.25B	8.21		1.19%	11.53%	20.33%
6315	75 Outperform	€120.96B	14.87	13.50%	1.26%	5.96%	26.04%
7826	68 Neutral	¥62.33B	7.61		3.88%	22.82%	-0.40%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%

Furuya Metal Co., Ltd. Corporate Events

Furuya Metal Co., Ltd. Reports Strong Earnings Growth and Dividend Forecast

Furuya Metal Co., Ltd. reported a significant increase in its consolidated earnings for the first nine months of the fiscal year ending June 30, 2025, with net sales rising by 22.3% compared to the previous year. The company also announced a forecasted annual dividend for the fiscal year ending June 30, 2025, reflecting a stable financial outlook and commitment to shareholder returns.

Furuya Metal Co., Ltd. Reports on Parent Company Financials and Relationships

Furuya Metal Co., Ltd. announced the financial results for its non-listed parent company, TANAKA Precious Metals Co., Ltd., for the fiscal year ending December 31, 2024. The announcement highlights the capital and transactional relationships between Furuya Metal and TANAKA Precious Metal Technologies, emphasizing that these relationships are managed fairly and do not adversely affect minority shareholders.