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

• Market Cap: ¥193.96B
• Dividend Yield: 2.86%
• Average Volume (3M): 247.63K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.15
• Revenue Growth: 29.99%
• EPS Growth: -8.10%
• Country: JP
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 25,389,635
• 10 Day Avg. Volume: 222,600
• 30 Day Avg. Volume: 247,630
• PEG Ratio: -0.52
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -20.77
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥8,582.00 ▲(144.15% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

Score is primarily driven by solid financial performance supported by revenue growth and profitability, tempered by weak cash flow generation and some leverage risk. Technicals are strong but appear overextended, and valuation looks relatively expensive with only a modest dividend yield.

Positive Factors

Recurring consumable revenue

Furuya’s core sales of sputtering targets and thin-film deposition materials are consumables used in semiconductor and display manufacturing. That creates recurring demand tied to production volumes and technology refresh cycles, supporting predictable revenue streams and higher customer lifetime value over months.

Strong topline growth

Reported high revenue growth indicates expanding sales scale and successful market penetration. Durable top-line expansion enhances the firm's ability to invest in capacity, R&D and to absorb cyclical downturns, improving long-term competitiveness in PGM-based materials markets.

Robust profitability and margins

Consistently solid gross and operating margins reflect efficient fabrication and value-added product mix in high-margin PGM components. Strong margins support internal investment, sustain ROE, and provide a buffer against input-cost volatility over multiple quarters.

Negative Factors

Weak free cash flow conversion

Despite profitability, the company struggles to convert earnings into free cash flow. Weak cash conversion constrains capacity to fund capex, repay debt, or return capital to shareholders without relying on external financing, raising medium-term liquidity and flexibility risks.

Rising leverage risk

An increasing debt burden reduces financial flexibility and raises interest-cost sensitivity. Higher leverage magnifies downside in cyclical demand periods for electronics, potentially forcing austerity on R&D or capex and increasing refinancing risk over the next several quarters.

Concentration on scarce PGM inputs

The business depends on scarce platinum-group metals like iridium and ruthenium. Structural supply constraints or price spikes for these inputs can raise costs, disrupt production and compress margins. Long-term raw-material concentration elevates supply-chain and commodity-price risk.

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

Income statement strength (score 75) shows solid revenue growth and robust profitability, but is partially offset by rising leverage on the balance sheet (score 70) and weak/declining cash flow conversion with negative free cash flow trends (score 60).

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

Furuya Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7826, the sentiment is Positive. The current price of 3515 is below the 20-day moving average (MA) of 6356.00, below the 50-day MA of 4814.80, and above the 200-day MA of 3249.65, indicating a bullish trend. The MACD of 923.14 indicates Negative momentum. The RSI at 77.34 is Negative, neither overbought nor oversold. The STOCH value of 74.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	¥303.31B	22.48	5.41%	3.28%	11.15%	-19.39%
6315	71 Outperform	¥221.38B	40.35	10.10%	1.00%	-12.50%	-26.08%
6855	71 Outperform	¥100.07B	20.87	―	1.72%	36.31%	101.77%
6871	71 Outperform	¥478.98B	39.16	―	1.02%	29.60%	24.39%
3445	69 Neutral	¥115.28B	11.80	―	0.93%	28.52%	43.16%
7826	67 Neutral	¥193.96B	24.86	―	2.86%	29.99%	-8.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Furuya Metal Co., Ltd. Corporate Events

Furuya Metal Posts Strong First-Half Earnings and Raises Full-Year Forecasts, Dividend Outlook

Furuya Metal reported strong consolidated results for the first half of the fiscal year ending June 30, 2026, with net sales surging 63.7% year on year to ¥43.9 billion and net income attributable to owners of the parent rising 28.7% to ¥5.0 billion, reflecting robust demand and improved profitability. The company also strengthened its financial position, with total assets of ¥121.9 billion, net assets of ¥67.3 billion, and an equity ratio improving to 55.1%, while revising upward its full-year earnings and dividend forecasts, now projecting a 53.4% increase in net sales to ¥88.0 billion and a 70.1% jump in full-year net income to ¥11.0 billion, alongside a higher year-end dividend forecast of ¥120 per share, signaling confidence in sustained earnings growth and enhanced shareholder returns.

The most recent analyst rating on (JP:7826) stock is a Buy with a Yen4379.00 price target. To see the full list of analyst forecasts on Furuya Metal Co., Ltd. stock, see the JP:7826 Stock Forecast page.

Furuya Metal Lifts FY2026 Profit Outlook and Hikes Dividend Forecast on Strong Electronics Demand

Furuya Metal has sharply upgraded its full-year earnings outlook for the fiscal year ending June 30, 2026, projecting record-high net sales of ¥88 billion and significant increases in operating, ordinary, and net income, driven by strong performance in its electronics and thin-film businesses, solid demand from data centers and telecom-related capital expenditure, and better-than-expected results in its supply chain support segment. Reflecting the stronger profit forecast and its policy of performance-linked shareholder returns with a payout ratio target of at least 25%, the company also raised its forecast for the fiscal-year-end dividend from ¥75 to ¥120 per share, signaling a substantial increase in cash returns to shareholders compared with the prior year.

The most recent analyst rating on (JP:7826) stock is a Buy with a Yen4379.00 price target. To see the full list of analyst forecasts on Furuya Metal Co., Ltd. stock, see the JP:7826 Stock Forecast page.