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

• Market Cap: ¥184.43B
• Dividend Yield: 2.86%
• Average Volume (3M): 247.63K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.14
• 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: 72 Outperform
• Price Target: ¥7,182.00 ▲(104.32% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is driven primarily by solid financial performance with strong revenue/profitability but weakened by poor recent cash flow and rising leverage. Technicals are supportive due to a strong uptrend, though overbought signals add short-term risk. Valuation is a positive contributor given the low P/E and modest dividend yield.

Positive Factors

PGM Specialization & Recurring Demand

Furuya's focus on platinum-group-metal products used in semiconductors, displays and industrial processes creates durable, recurring demand for consumable sputtering targets and PGM components. This niche specialization supports sticky customer relationships, repeat revenue and pricing power tied to technical performance needs over time.

Consistent Revenue Growth & Operating Margins

The company reports sustained revenue growth and robust operating margins, indicating underlying demand and operational efficiency. Durable top-line expansion and healthy margins provide the ability to invest in process capabilities, maintain product quality, and support long-term competitiveness in specialty PGM materials.

Strong ROE & Stable Equity Ratio

A strong return on equity paired with a stable equity ratio signals effective use of capital and a balanced capital structure. Over a multi-month horizon this supports continued reinvestment, potential shareholder returns, and resilience to cyclical demand swings while facilitating financing for strategic tooling or recycling capacity.

Negative Factors

Weak Free Cash Flow

Recent deterioration in free cash flow and low operating-cash-to-net-income conversion indicate the company struggles to turn accounting profits into cash. This reduces internal funding for capex, inventory for PGM procurement, and recycling investments, increasing dependence on external financing and constraining strategic flexibility over the next several months.

Rising Leverage

An increasing debt-to-equity ratio raises financial risk by adding interest and refinancing exposure. With leverage rising while cash conversion weakens, the company has less buffer to withstand downturns in electronics demand or PGM price volatility, limiting its capacity to pursue growth or absorb cyclical shocks in the medium term.

Eroding Profitability Margins

Although profitable, reported declines in net and gross margins reduce the cushion against raw-material cost swings and competitive pricing pressure. Continued margin erosion can constrain R&D and capital allocation for specialized PGM processes, weakening long-term differentiation and making returns more sensitive to adverse industry shifts.

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

The company primarily makes money by selling platinum-group-metal-based materials, components, and related processing services to industrial and electronics customers. Key revenue streams typically include: (1) Sales of thin-film deposition materials (e.g., sputtering targets and related materials) used by semiconductor, display, and other electronics manufacturers—customers purchase these consumable materials for production, driving recurring demand tied to manufacturing volumes and technology transitions. (2) Sales of PGM-based industrial materials and components (including iridium/ruthenium/platinum-based items) used in chemical and high-temperature industrial processes—revenue is generated from supplying specialized materials where performance requirements (corrosion resistance, high melting point, catalytic properties) justify premium pricing. (3) Precious-metal related processing and recycling—where available, the company can generate revenue from refining, fabrication, recovery, and recycling of PGMs from production scrap and end-of-life materials, helping customers manage costly metals and stabilizing the company’s access to raw materials. Earnings are influenced by demand in electronics and industrial end-markets, the company’s ability to secure and process scarce PGMs (notably iridium), and product mix/value-added fabrication. Specific partnership details are null.

Furuya Metal Co., Ltd. Financial Statement Overview

Summary

Income statement strength (Score 75) shows solid revenue growth and robust operating margins, but profitability margins have declined. Balance sheet is generally solid (Score 70) with strong ROE, though rising leverage adds risk. Cash flow is the main drag (Score 60) due to weak/declining free cash flow and low cash conversion.

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: Neutral
• Last Price: 3515.00
• 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 3515 is below the 20-day moving average (MA) of 7082.00, below the 50-day MA of 5244.70, and above the 200-day MA of 3385.72, indicating a neutral trend. The MACD of 527.87 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 30.97 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
6855	81 Outperform	¥92.86B	6.87	―	1.72%	36.31%	101.77%
6890	76 Outperform	¥309.42B	15.34	5.77%	3.28%	11.15%	-19.39%
7826	72 Outperform	¥184.43B	8.05	―	2.86%	29.99%	-8.10%
6315	71 Outperform	¥202.29B	51.88	10.10%	1.00%	-12.50%	-26.08%
6871	71 Outperform	¥434.43B	22.63	―	1.02%	29.60%	24.39%
3445	69 Neutral	¥113.16B	10.73	―	0.93%	28.52%	43.16%
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.