# Furukawa Electric (5801.JP)

Canonical: https://gigainvestors.com/s/5801.JP

Analysis as of: 2026-10-15T07:10:41.635Z. Financial observations: FY2016–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 3,376.00 per share; close as of 2026-10-15.

Estimated value: low JPY 348.51 per share, central JPY 426.62 per share, high JPY 487.69 per share. Buy at or below the central value JPY 426.62 per share. Valuation as of 2026-10-15T07:10:41.635Z; scenarios are not confidence intervals.

Expected annual return: 3.8% at the stated quote. About 3.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.05×

- FY2019: 0.04×

- FY2020: 0.03×

- FY2021: 0.01×

- FY2022: 0.01×

- FY2023: 0.01×

- FY2024: 0.01×

- FY2025: 0.04×

- FY2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.5%

- ROIC, second-lowest year: 1.2%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 16.6%

- Recent gross margin (lower of latest and 3-year median): 16.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: 2.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 7.6%

- FY2018: 8.1%

- FY2019: 8.3%

- FY2020: 3.5%

- FY2021: 1.2%

- FY2022: 1.3%

- FY2023: 1.8%

- FY2024: 1.2%

- FY2025: 5.5%

- FY2026: 6.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 125B

- Net income, five-year total: JPY 138B

- Return on incremental invested capital: 11.5%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 4.8 pp

- Working capital / revenue, final three-year average: 26.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.84×

- FY2024: 0.37×

- FY2025: 0.88×

- FY2026: 0.96×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.1% vs 5.5%

- Per-share earnings: 249.17 to 473.36 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: JPY 174B

- Cumulative retained earnings: JPY 161B

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 8.4%

- Per-share value change: JPY 224.19

- Per-share value, starting three-year median: JPY 249.17

- Per-share value, ending three-year median: JPY 473.36

- Buybacks concentrated in cheaper years (correlation): -0.82

- Average buyback yield: 0.5%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: JPY 17B

- Cumulative net income, 10 years: JPY 241B

- ROIC, first three-year median: 8.1%

- ROIC, last three-year median: 5.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 249.17

- FY2018: JPY 405.05

- FY2019: JPY 412.98

- FY2020: JPY 250.25

- FY2021: JPY 141.88

- FY2022: JPY 143.40

- FY2023: JPY 225.80

- FY2024: JPY 92.40

- FY2025: JPY 473.36

- FY2026: JPY 1K

### accounting: pass

- Sloan accruals: 4.2%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.39×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.0%

- FY2018: -1.2%

- FY2019: -2.1%

- FY2020: -3.1%

- FY2021: 1.3%

- FY2022: 2.5%

- FY2023: -2.2%

- FY2024: -2.6%

- FY2025: -2.7%

- FY2026: 4.2%

## Holders

## Price story

Down 35% since May 2026 · sales +8.8%

Story as of 2026-10-16T10:00:14.387Z; price observation 2026-10-15.

Price needs cash profits to grow 32.8% a year for ten years

### Sales · FY2025–2026

sales +8.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf; observed 2026-06-24.

- FY2017: JPY 843B 

- FY2018: JPY 967B 

- FY2019: JPY 992B 

- FY2020: JPY 914B 

- FY2021: JPY 812B 

- FY2022: JPY 930B 

- FY2023: JPY 1.07T 

- FY2024: JPY 1.06T 

- FY2025: JPY 1.20T 

- FY2026: JPY 1.31T 

### Gross margin · FY2026

gross margin 17.6%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf; observed 2026-06-24.

- FY2017: 18.3% 

- FY2018: 17.2% 

- FY2019: 16.9% 

- FY2020: 16.4% 

- FY2021: 15.9% 

- FY2022: 14.9% 

- FY2023: 14.7% 

- FY2024: 15.0% 

- FY2025: 16.8% 

- FY2026: 17.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 1.3 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf (filed 2026-06-24); FY2026: revenue 1307560000000; grossProfit 229813000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 15% to 17.6% during 2024–26; it earns 4.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: grossProfit / revenue = 15%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: grossProfit / revenue = 16.8%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf (filed 2026-06-24); FY2026: grossProfit / revenue = 17.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); 10-year return on capital observations [[2017,0.07576600504321851],[2018,0.08097627187632284],[2019,0.08348696980501036],[2020,0.03528995023500138],[2021,0.01186003519792882],[2022,0.013443172995658413],[2023,0.017518475593365893],[2024,0.011949048506111809],[2025,0.05478701318562997],[2026,0.06862168631323505]]; median 0.04503848171031567. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 15% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf (filed 2026-06-24); Gross margin observations: [[2021,0.159328486939379],[2022,0.1490506138661531],[2023,0.14695599657140498]]; range within 2 percentage points.

### Where the cash goes

Spends 12.8% of cash earnings on expansion; earns 11.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2017: growth capex 0; upkeep 30982000000; owner earnings 11607323227.819885. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2018: growth capex 12776000000; upkeep 25106000000; owner earnings 28547000000. Growth capex / owner earnings = 0.44754264896486495.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2019: growth capex 5601341231.936066; upkeep 41448658768.063934; owner earnings 15491797959.045645. Growth capex / owner earnings = 0.361568182514635.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2021: growth capex 0; upkeep 40711000000; owner earnings 2934078614.532529. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2022: growth capex 6293000000; upkeep 33721000000; owner earnings 10093000000. Growth capex / owner earnings = 0.623501436639255.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2023: growth capex 158000000; upkeep 39098000000; owner earnings 13430000000. Growth capex / owner earnings = 0.011764705882352941.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: growth capex 0; upkeep 40263000000; owner earnings 2391000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: growth capex 178000000; upkeep 41349000000; owner earnings 29446000000. Growth capex / owner earnings = 0.0060449636622970865.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf (filed 2026-06-24); FY2026: growth capex 8908000000; upkeep 43218000000; owner earnings 69422000000. Growth capex / owner earnings = 0.1283166719483737.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Incremental return on capital 0.11513749578083618, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Dividend observations: [[2017,2823000000],[2018,3885000000],[2019,5647000000],[2020,5998000000],[2021,6001000000],[2022,4240000000],[2023,4234000000],[2024,5636000000],[2025,4241000000],[2026,8461000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 32.8% yearly over ten years; actual growth was 24.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Ten-year compound average after fade. Initial solved rate 0.4696328784416123. Price 3376; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 107.62326636904763 → FY2026 986.2435080122459. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 353.50 per share

- 2016-12: JPY 342.00 per share

- 2017-01: JPY 383.50 per share

- 2017-02: JPY 410.50 per share

- 2017-03: JPY 400.00 per share

- 2017-04: JPY 451.00 per share

- 2017-05: JPY 495.50 per share

- 2017-06: JPY 500.00 per share

- 2017-07: JPY 498.00 per share

- 2017-08: JPY 596.00 per share

- 2017-09: JPY 618.00 per share

- 2017-10: JPY 688.00 per share

- 2017-11: JPY 594.00 per share

- 2017-12: JPY 556.00 per share

- 2018-01: JPY 598.00 per share

- 2018-02: JPY 588.00 per share

- 2018-03: JPY 571.00 per share

- 2018-04: JPY 540.00 per share

- 2018-05: JPY 421.00 per share

- 2018-06: JPY 387.50 per share

- 2018-07: JPY 393.50 per share

- 2018-08: JPY 382.50 per share

- 2018-09: JPY 378.00 per share

- 2018-10: JPY 305.50 per share

- 2018-11: JPY 331.50 per share

- 2018-12: JPY 276.20 per share

- 2019-01: JPY 325.00 per share

- 2019-02: JPY 342.00 per share

- 2019-03: JPY 279.10 per share

- 2019-04: JPY 292.80 per share

- 2019-05: JPY 290.40 per share

- 2019-06: JPY 315.50 per share

- 2019-07: JPY 294.20 per share

- 2019-08: JPY 232.50 per share

- 2019-09: JPY 259.90 per share

- 2019-10: JPY 306.00 per share

- 2019-11: JPY 301.00 per share

- 2019-12: JPY 282.00 per share

- 2020-01: JPY 260.20 per share

- 2020-02: JPY 237.70 per share

- 2020-03: JPY 196.50 per share

- 2020-04: JPY 204.20 per share

- 2020-05: JPY 263.20 per share

- 2020-06: JPY 260.90 per share

- 2020-07: JPY 250.70 per share

- 2020-08: JPY 252.80 per share

- 2020-09: JPY 250.20 per share

- 2020-10: JPY 260.50 per share

- 2020-11: JPY 264.40 per share

- 2020-12: JPY 278.20 per share

- 2021-01: JPY 281.70 per share

- 2021-02: JPY 278.10 per share

- 2021-03: JPY 297.00 per share

- 2021-04: JPY 290.40 per share

- 2021-05: JPY 291.30 per share

- 2021-06: JPY 276.70 per share

- 2021-07: JPY 280.80 per share

- 2021-08: JPY 236.60 per share

- 2021-09: JPY 245.90 per share

- 2021-10: JPY 248.70 per share

- 2021-11: JPY 225.50 per share

- 2021-12: JPY 232.20 per share

- 2022-01: JPY 235.80 per share

- 2022-02: JPY 227.50 per share

- 2022-03: JPY 217.60 per share

- 2022-04: JPY 212.00 per share

- 2022-05: JPY 215.50 per share

- 2022-06: JPY 222.80 per share

- 2022-07: JPY 231.80 per share

- 2022-08: JPY 244.90 per share

- 2022-09: JPY 229.30 per share

- 2022-10: JPY 229.60 per share

- 2022-11: JPY 259.70 per share

- 2022-12: JPY 247.40 per share

- 2023-01: JPY 251.10 per share

- 2023-02: JPY 238.10 per share

- 2023-03: JPY 246.10 per share

- 2023-04: JPY 247.70 per share

- 2023-05: JPY 238.20 per share

- 2023-06: JPY 253.70 per share

- 2023-07: JPY 272.65 per share

- 2023-08: JPY 250.50 per share

- 2023-09: JPY 238.20 per share

- 2023-10: JPY 224.30 per share

- 2023-11: JPY 237.85 per share

- 2023-12: JPY 221.70 per share

- 2024-01: JPY 270.00 per share

- 2024-02: JPY 296.45 per share

- 2024-03: JPY 323.90 per share

- 2024-04: JPY 338.70 per share

- 2024-05: JPY 423.30 per share

- 2024-06: JPY 407.40 per share

- 2024-07: JPY 414.50 per share

- 2024-08: JPY 360.00 per share

- 2024-09: JPY 360.80 per share

- 2024-10: JPY 383.90 per share

- 2024-11: JPY 615.50 per share

- 2024-12: JPY 668.50 per share

- 2025-01: JPY 714.80 per share

- 2025-02: JPY 621.80 per share

- 2025-03: JPY 493.00 per share

- 2025-04: JPY 446.60 per share

- 2025-05: JPY 687.80 per share

- 2025-06: JPY 703.30 per share

- 2025-07: JPY 919.50 per share

- 2025-08: JPY 937.40 per share

- 2025-09: JPY 911.20 per share

- 2025-10: JPY 1,100.00 per share

- 2025-11: JPY 992.80 per share

- 2025-12: JPY 1,001.00 per share

- 2026-01: JPY 1,353.00 per share

- 2026-02: JPY 2,810.00 per share

- 2026-03: JPY 2,878.50 per share

- 2026-04: JPY 4,237.00 per share

- 2026-05: JPY 5,206.00 per share

- 2026-06: JPY 4,730.00 per share

- 2026-07: JPY 3,145.00 per share

- 2026-08: JPY 4,020.00 per share

- 2026-09: JPY 3,856.00 per share

- 2026-10: JPY 3,925.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 2,438.67 per share, central JPY 2,707.77 per share, high JPY 3,065.99 per share

- FY2021: low JPY 2,565.46 per share, central JPY 2,804.28 per share, high JPY 3,122.21 per share

- FY2022: low JPY 2,106.81 per share, central JPY 2,322.92 per share, high JPY 2,610.61 per share

- FY2023: low JPY 2,239.75 per share, central JPY 2,487.38 per share, high JPY 2,817.04 per share

- FY2024: low JPY 1,054.34 per share, central JPY 1,136.06 per share, high JPY 1,244.86 per share

- FY2025: low JPY 2,628.48 per share, central JPY 2,907.25 per share, high JPY 3,278.36 per share

- FY2026: low JPY 3,485.08 per share, central JPY 4,266.19 per share, high JPY 4,876.92 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCF0.pdf); period 2026-03-31, filed 2026-06-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.