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.
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 yearNeutral
Model confidence: 6/10
Key Factors
- price below 20‑day SMA
- bearish MACD histogram
- RSI in neutral‑to‑low range
Medium Term
1–3 yearsPositive
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 yearsPositive
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
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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.