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

• Market Cap: ¥105.76B
• Dividend Yield: 2.86%
• Average Volume (3M): 247.63K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.99
• Revenue Growth: 29.99%
• EPS Growth: -8.10%
• Country: JP
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 94.76
• 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: 68 Neutral
• Price Target: ¥4,300.00 ▲(22.33% Upside)

The score is driven primarily by solid profitability and revenue growth, offset by weakening cash flow generation and higher leverage risk. Technicals are supportive via trend strength but look overextended, while valuation remains reasonable with a moderate dividend yield.

Positive Factors

Recurring consumable demand

Sputtering targets and thin-film PGM materials are consumables for semiconductor and display manufacturers. This creates recurring, volume-linked revenue as factories operate and technology nodes advance, supporting predictable long-term sales and stronger customer retention across cycles.

Specialized PGM expertise

Deep technical capability in platinum-group metals is a sustainable competitive advantage. PGM processing and fabrication require specialist know-how and equipment, raising barriers to entry, enabling premium pricing, and fostering long-term OEM relationships in industrial and electronics markets.

Robust profitability metrics

Consistent revenue growth alongside robust EBIT/EBITDA margins reflects operational efficiency and pricing power in specialty materials. Durable profitability supports reinvestment in capacity and R&D, enabling the company to maintain product leadership and service levels for key industrial clients.

Negative Factors

Deteriorating free cash flow

A pronounced decline in free cash flow and a low operating-cash-flow-to-net-income ratio impairs internal funding for capex, recycling and working capital. Persistent weak cash conversion increases reliance on external financing and limits strategic investments over the medium term.

Rising leverage

An increased debt-to-equity ratio raises financial risk, particularly given cyclical electronics end markets. Higher leverage reduces liquidity and flexibility to withstand downturns, increases interest burden, and heightens refinancing risk for capital-intensive PGM processing operations.

Margin pressure trend

Noted margin slippage and declining net profit margins suggest cost pressure or adverse product mix. If sustained, margin erosion will weaken returns, constrain reinvestment in high-value PGM capabilities, and reduce the firm's ability to maintain premium pricing over time.

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 (revenue growth and robust EBIT/EBITDA margins) is tempered by margin slippage, rising leverage on the balance sheet, and weak cash conversion with a notable deterioration in free cash flow.

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	57.38B	57.38B	47.53B	48.12B	45.32B	33.84B
Gross Profit	14.19B	14.19B	14.67B	15.38B	16.15B	13.69B
EBITDA	11.94B	11.75B	12.86B	13.72B	14.19B	11.25B
Net Income	6.47B	6.47B	7.41B	9.41B	9.14B	6.89B
Balance Sheet
Total Assets	123.86B	123.86B	112.72B	87.53B	72.66B	55.69B
Cash, Cash Equivalents and Short-Term Investments	13.05B	13.05B	12.30B	3.12B	3.86B	4.26B
Total Debt	29.19B	29.19B	22.05B	22.07B	17.25B	13.49B
Total Liabilities	59.28B	59.28B	52.21B	43.17B	35.97B	27.19B
Stockholders Equity	64.52B	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: Positive
• Last Price: 3515.00
• 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:7826, the sentiment is Positive. The current price of 3515 is below the 20-day moving average (MA) of 3917.75, below the 50-day MA of 3536.80, and above the 200-day MA of 2846.12, indicating a bullish trend. The MACD of 198.60 indicates Negative momentum. The RSI at 70.31 is Negative, neither overbought nor oversold. The STOCH value of 83.58 is Negative, 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	$278.85B	21.68	5.41%	3.28%	11.15%	-19.39%
6855	74 Outperform	¥60.60B	15.91	―	1.72%	36.31%	101.77%
3445	73 Outperform	¥101.05B	9.56	―	0.93%	28.52%	43.16%
6315	71 Outperform	¥224.16B	36.41	10.10%	1.00%	-12.50%	-26.08%
6871	70 Outperform	¥342.62B	34.00	―	1.02%	29.60%	24.39%
7826	68 Neutral	¥105.76B	14.45	―	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 Co., Ltd. Reports Strong Q1 Earnings Growth

Furuya Metal Co., Ltd. reported a significant increase in its consolidated earnings for the first three months of the fiscal year ending June 30, 2026, with net sales rising by 66.9% year-on-year. Despite a forecasted decline in annual net income, the company maintains a strong equity ratio, indicating a stable financial position.

The most recent analyst rating on (JP:7826) stock is a Buy with a Yen3187.00 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 Co., Ltd. Revises Financial and Dividend Forecasts Upward

Furuya Metal Co., Ltd. has revised its financial and dividend forecasts for the fiscal year ending June 30, 2026, due to a moderate recovery in the electronics and communications markets and strong capital investment. The company expects record-high net sales and increased income figures, driven by steady performance in its electronics and thin film segments. Consequently, the dividend forecast has been increased, reflecting the company’s commitment to shareholder returns and performance-based dividends.

The most recent analyst rating on (JP:7826) stock is a Buy with a Yen3187.00 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 Completes Treasury Share Disposition for Director Remuneration

Furuya Metal Co., Ltd. has completed the disposition of 23,300 treasury shares as restricted stock remuneration, a decision made at the Board of Directors meeting on September 25, 2025. This move, involving a total value of ¥68,245,700, is aimed at remunerating specific directors, potentially enhancing their alignment with the company’s long-term goals.

The most recent analyst rating on (JP:7826) stock is a Buy with a Yen3187.00 price target. To see the full list of analyst forecasts on Furuya Metal Co., Ltd. stock, see the JP:7826 Stock Forecast page.