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

• Market Cap: ¥70.93B
• Dividend Yield: 3.4%
• Average Volume (3M): 281.76K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.97
• Revenue Growth: 20.73%
• EPS Growth: -17.60%
• Country: JP
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 41.44
• Shares Outstanding: 25,389,635
• 10 Day Avg. Volume: 229,180
• 30 Day Avg. Volume: 281,763
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,714.00
• Price Target Upside: -2.48% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥2,714.00 ▼(-2.48% Downside)

Furuya Metal Co., Ltd. scores well due to its strong valuation, with an attractive P/E ratio and dividend yield. However, financial performance is mixed, with strong revenue growth but concerns over leverage and cash flow. Technical analysis suggests a neutral to slightly bearish trend, which tempers the overall score.

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

Company Description

Furuya Metal Co., Ltd. manufactures and sells industrial-use precious metal products and temperature sensors in Japan. The company offers various metals processing products, such as iridium products comprising crucibles, seed holders, and after heaters; platinum (Pt) equipment and Pt alloy or reinforced Pt products for melting optical and LCD glass; Pt crucibles, evaporation dishes, and boats; mesh, sheets, foils, pipes, and wire products; and thermocouples, which are used in temperature measurement and control in high temperature processes, as well as high temperature furnace. It also provides precious metal sputtering targets for magnetic recording media, flat panel display, semiconductor, and electronic component applications; evaporation materials; and made-to-order sputtering services for magnetic recording, touch panels, non-volatile semiconductor memory, electric devices, and electric components, as well as offers patterning and thin film analysis services. In addition, the company provides inorganic and organic compounds, SAPd catalyst, and recycling and refining products. Further, it offers vibration testers and parts palletizers under the IDEX brand; and iridium tools for friction stir welding. The company's products have applications in the information and communication, clean energy, semiconductor, environment, and electronic sectors. Furuya Metal Co., Ltd. was founded in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Furuya Metal Co., Ltd. generates revenue primarily through the sale of its precision metal components and electronic materials. The company has diversified its revenue streams by catering to various industries, including electronics, where its products are essential for manufacturing components like semiconductors and circuit boards. Key revenue streams include direct sales to manufacturers, long-term contracts with major clients, and partnerships with other firms for joint development projects. Additionally, Furuya Metal benefits from fluctuations in demand for electronic products and industrial applications, which can affect pricing and sales volume. Strategic collaborations with technology firms and investments in research and development further enhance its market position and profitability.

Furuya Metal Co., Ltd. Financial Statement Overview

Summary

Furuya Metal Co., Ltd. shows strong revenue growth and profitability, with a solid income statement. However, increasing leverage and negative cash flow trends are concerns. The company needs to improve cash flow management and maintain margins to sustain financial health.

Income Statement

Furuya Metal Co., Ltd. has demonstrated a strong revenue growth rate of 7.81% in the latest year, indicating a positive trajectory. The gross profit margin is solid, although it has slightly decreased over the years. The net profit margin remains healthy, but there is a noticeable decline compared to previous years. EBIT and EBITDA margins are robust, reflecting efficient operations. Overall, the income statement shows strong growth and profitability, with some room for improvement in maintaining margins.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed carefully. However, the return on equity remains strong, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. Overall, the balance sheet reflects a solid financial position with some caution needed regarding increasing debt levels.

Cash Flow

Furuya Metal Co., Ltd. has faced challenges in generating positive free cash flow, with a significant decline in the latest year. The operating cash flow to net income ratio is low, indicating potential issues in converting profits into cash. The free cash flow to net income ratio has also deteriorated. While the company has shown growth in operating cash flow in previous years, the recent negative trend is a concern. Overall, the cash flow statement highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.98B	57.38B	47.53B	48.12B	45.32B	33.84B
Gross Profit	15.72B	14.19B	14.67B	15.38B	16.15B	13.69B
EBITDA	14.18B	11.75B	12.86B	13.72B	14.19B	11.25B
Net Income	8.02B	6.47B	7.41B	9.41B	9.14B	6.89B
Balance Sheet
Total Assets	125.41B	123.86B	112.72B	87.53B	72.66B	55.69B
Cash, Cash Equivalents and Short-Term Investments	10.54B	13.05B	12.30B	3.12B	3.86B	4.26B
Total Debt	37.44B	29.19B	22.05B	22.07B	17.25B	13.49B
Total Liabilities	61.76B	59.28B	52.21B	43.17B	35.97B	27.19B
Stockholders Equity	63.51B	64.52B	60.37B	44.22B	36.53B	28.32B
Cash Flow
Free Cash Flow	0.00	-2.99B	1.08B	-2.77B	-2.98B	-5.56B
Operating Cash Flow	0.00	921.00M	3.21B	-461.00M	-1.23B	-3.45B
Investing Cash Flow	0.00	-4.93B	-2.19B	-2.33B	-1.79B	-2.11B
Financing Cash Flow	0.00	4.79B	8.14B	2.02B	2.72B	7.68B

Furuya Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2783.00
• 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:7826, the sentiment is Neutral. The current price of 2783 is below the 20-day moving average (MA) of 2847.85, above the 50-day MA of 2628.56, and above the 200-day MA of 2685.78, indicating a neutral trend. The MACD of 39.80 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 42.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3445	80 Outperform	¥100.45B	10.64	―	0.92%	20.23%	20.22%
6855	78 Outperform	¥48.07B	13.43	―	1.61%	32.53%	182.70%
6890	77 Outperform	$200.56B	14.79	6.22%	3.86%	22.01%	-13.47%
6315	73 Outperform	€170.35B	28.81	10.40%	0.93%	-10.90%	-19.72%
7826	70 Outperform	¥70.93B	10.74	―	3.40%	20.73%	-17.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.