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Furukawa Electric Co Ltd (JP:5801)
:5801
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Furukawa Electric Co (5801) AI Stock Analysis

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JP:5801

Furukawa Electric Co

(5801)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥51,710.00
▲(15.01% Upside)
Action:Downgraded
Date:05/15/26
The score is primarily driven by strong technical momentum and a reasonable valuation, offset by weaker cash-flow consistency and limited transparency from missing 2026 financial ratios, which raise uncertainty about earnings quality and financial resilience.
Positive Factors
Strong Revenue Growth
Sustained top-line expansion to ~¥1.31T with a meaningful net margin improvement indicates the company is gaining scale and improving profitability. Over 2–6 months this supports higher operating leverage, greater investment capacity in production and R&D, and stronger resilience to cyclical demand shifts.
Negative Factors
Inconsistent Cash Generation
Declining operating cash flow and negative free cash flow signal working-capital swings or heavy investment that outpaced earnings. This undermines the durability of earnings conversion to cash, constrains self-funded capex/dividend capacity, and raises reliance on external financing during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained top-line expansion to ~¥1.31T with a meaningful net margin improvement indicates the company is gaining scale and improving profitability. Over 2–6 months this supports higher operating leverage, greater investment capacity in production and R&D, and stronger resilience to cyclical demand shifts.
Read all positive factors

Furukawa Electric Co (5801) vs. iShares MSCI Japan ETF (EWJ)

Furukawa Electric Co Business Overview & Revenue Model

Company Description
Headquartered in Tokyo, Japan, and established in 1884, Furukawa Electric Co., Ltd. is a global enterprise engaged in the manufacturing and distribution of a diverse portfolio of products. The company's offerings span crucial sectors including tel...
How the Company Makes Money
Furukawa Electric generates revenue primarily through the sale of manufactured products to corporate and institutional customers (e.g., telecom network operators and equipment makers, electric utilities, automakers and automotive suppliers, and in...

Furukawa Electric Co Financial Statement Overview

Summary
Strong revenue growth and improved net margin in 2026 support the score, and equity expansion suggests balance-sheet improvement. However, cash-flow quality is a key drag (2026 operating cash flow fell despite higher earnings and free cash flow turned negative), and several 2026 ratios are unavailable (reported as 0.0), reducing visibility into leverage and returns.
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
45
Neutral
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.31T1.20T1.06T1.07T930.50B
Gross Profit229.81B199.84B157.16B155.55B138.47B
EBITDA157.17B104.63B68.41B73.71B58.03B
Net Income72.51B33.37B6.51B15.89B10.09B
Balance Sheet
Total Assets1.07T987.02B985.01B933.47B935.88B
Cash, Cash Equivalents and Short-Term Investments70.97B66.78B53.64B52.56B68.41B
Total Debt329.36B321.64B348.93B339.01B351.26B
Total Liabilities631.14B613.68B626.97B604.37B621.81B
Stockholders Equity417.05B341.44B328.12B301.65B279.22B
Cash Flow
Free Cash Flow-18.00B23.08B-4.52B638.00M-49.76B
Operating Cash Flow28.12B59.83B31.90B36.52B-13.27B
Investing Cash Flow-47.14B-7.24B-24.79B-21.68B-40.07B
Financing Cash Flow19.93B-44.15B-9.32B-34.48B35.02B

Furukawa Electric Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44960.00
Price Trends
50DMA
47685.80
Positive
100DMA
35942.40
Positive
200DMA
22740.87
Positive
Market Momentum
MACD
-287.96
Negative
RSI
58.94
Neutral
STOCH
82.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5801, the sentiment is Positive. The current price of 44960 is below the 20-day moving average (MA) of 49380.50, below the 50-day MA of 47685.80, and above the 200-day MA of 22740.87, indicating a bullish trend. The MACD of -287.96 indicates Negative momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 82.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5801.

Furukawa Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥2.09T22.2112.05%1.50%9.27%3.49%
70
Outperform
¥703.73B16.139.63%2.12%4.94%37.62%
69
Neutral
¥9.06T46.9932.32%0.91%20.73%72.44%
68
Neutral
¥3.76T44.9910.06%1.21%8.80%117.61%
65
Neutral
¥12.71T30.209.29%1.19%6.76%27.28%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥1.86T53.678.39%1.49%0.83%-37.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5801
Furukawa Electric Co
53,360.00
46,834.97
717.77%
JP:6503
Mitsubishi Electric
6,051.00
3,114.59
106.07%
JP:6504
Fuji Electric Co
14,665.00
8,492.41
137.58%
JP:6674
GS Yuasa
7,016.00
4,478.98
176.54%
JP:6506
Yaskawa Electric
7,128.00
3,994.83
127.50%
JP:5803
Fujikura Ltd
5,161.00
4,054.53
366.44%

Furukawa Electric Co Corporate Events

Furukawa Electric to Absorb Optical Components Unit in Streamlining Merger
Jun 9, 2026
Furukawa Electric will execute an absorption-type merger of its wholly owned subsidiary Furukawa FITEL Optical Components, with Furukawa Electric as the surviving entity and FFOC to be dissolved, in a simplified, short-form structure that requires...
Furukawa Electric Announces 10-for-1 Stock Split and Boosts Authorized Shares Tenfold
May 12, 2026
Furukawa Electric Co., Ltd. will implement a 10-for-1 stock split of its common shares, aiming to lower the per-unit investment price and broaden its shareholder base by making the stock more accessible to a wider range of investors. The split wil...
Furukawa Electric Beats Forecasts, Lifts Dividend and Resets Shareholder Return Policy
May 12, 2026
Furukawa Electric reported that its fiscal 2025 consolidated results exceeded earlier forecasts, driven by stronger sales of data center-related products in its Communications Solutions division, higher demand for power cables and transmission com...
Furukawa Electric Delivers Strong FY2026 Earnings, Hikes Dividend and Plans Stock Split
May 12, 2026
Furukawa Electric reported consolidated net sales of ¥1.31 trillion for the fiscal year ended March 31, 2026, up 8.8% year on year, with operating profit rising 35.8% to ¥63.9 billion and profit attributable to owners more than doubling ...
Furukawa Electric to Invest JPY 55 Billion in Data Center Cooling Capacity Expansion
Mar 30, 2026
Furukawa Electric will invest about JPY 55 billion to expand global production of water-cooling modules and air-cooling heat sinks for data centers, responding to rising heat-density challenges and surging demand driven by generative AI. The compa...
Furukawa Electric Writes Off ¥8.3 Billion in Loans as VISCAS Affiliate Set for Dissolution
Mar 27, 2026
Furukawa Electric will waive claims totaling 8,266 million yen against its equity-method affiliate VISCAS Corporation, a power transmission line and cable manufacturer jointly owned with Fujikura, ahead of VISCAS’s planned dissolution on Mar...
Furukawa Electric to Consolidate CATV Operations Under Renamed Subsidiary
Mar 19, 2026
Furukawa Electric will consolidate its cable TV-related operations by transferring the CATV business of its Broadband Solutions division to wholly owned subsidiary Miharu Communications Inc., effective October 1, 2026. Following the absorption-typ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 15, 2026