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5801:TSEFurukawa Electric Co., Ltd. Analysis

Data as of 2026-07-23 - not real-time

¥3,513.00

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Furukawa Electric is trading below its 20‑day moving average while the 50‑day average remains higher, indicating short‑term weakness. The MACD shows a bearish divergence and the RSI hovers around the low‑mid 40s, suggesting limited upside momentum in the near term.
However, the company’s forward earnings multiple is dramatically lower than its current trailing PE, and analysts project a substantial price upside, reflecting strong earnings growth prospects and a solid dividend payout. The balance sheet shows ample cash but a high debt‑to‑equity ratio, and the stock benefits from a low payout ratio, supporting dividend sustainability. Overall, the fundamentals point to a longer‑run buying case despite the current technical headwinds.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price below 20‑day SMA
  • bearish MACD histogram
  • RSI in neutral‑to‑low range

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • forward PE well below current PE
  • projected earnings growth above 10%
  • low dividend payout ratio supporting sustainability

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • diversified infrastructure and industrial product portfolio
  • global demand for optical and energy solutions
  • strong ROE with manageable cash generation despite high leverage

Key Metrics & Analysis

Financial Health

Revenue Growth12.20%
Profit Margin5.55%
P/E Ratio34.1
ROE18.77%
ROA3.89%
Debt/Equity75.68
P/B Ratio5.9
Op. Cash Flow¥28.1B
Free Cash Flow¥5.1B
Industry P/E31.2

Technical Analysis

TrendNeutral
RSI40.9
Support¥3,079.00
Resistance¥5,050.00
MA 20¥3,871.75
MA 50¥4,575.14
MA 200¥2,641.65
MACDBearish
VolumeDecreasing
Fear & Greed Index88.04

Valuation

Target Price¥6,513.33
Upside/Downside85.41%
GradeUndervalued
TypeBlend
Dividend Yield0.62%

Risk Assessment

Beta1.46
Volatility102.34%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.