Fact based stock research
Furukawa (TSE:5715)

JP3826800009

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Furukawa stock research in summary

furukawakk.co.jp

ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Furukawa (Industrial Machinery, Japan) shares have much better financial characteristics than comparable stocks. Shares of Furukawa are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more

RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Furukawa's financial characteristics. As the company Furukawa's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 100% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	100
Growth Rank	49
Safety Rank	64
Combined Rank	94

Country	Japan
Industry	Industrial Machinery
Index	Copper, Silver
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Furukawa

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	97	97	100
GROWTH
GROWTH	22	71	27	49
SAFETY
SAFETY	27	70	64	64
SENTIMENT
SENTIMENT	n/a	19	61	^new
360° VIEW
360° VIEW	n/a	93	82	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Furukawa is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	100	97	97	100
GROWTH
GROWTH	22	71	27	49
SAFETY
SAFETY	27	70	64	64
COMBINED
COMBINED	56	96	78	94

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Furukawa the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2024, Furukawa shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Furukawa. Price-to-Sales is 96 which means that the stock price compared with what market professionals expect for future sales is lower than for 96% of comparable companies, indicating a good value for Furukawa's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 97% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 100. Compared with other companies in the same industry, dividend yields of Furukawa are expected to be higher than for 71% of all competitors (a Dividend Yield rank of 71). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a buy recommendation based on Furukawa's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Furukawa based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	100	94	90	96
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	98	89	97	97
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	98	96	94	100
DIVIDEND YIELD
DIVIDEND YIELD	96	89	65	71
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	100	97	97	100

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Furukawa; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Furukawa shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Furukawa. Profit Growth, with a rank of 94 (better than 94% of its competitors), and Capital Growth, with a rank of 89, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 13, which means that, currently, professionals expect the company to grow less than 87% of its competitors, and Stock Returns are at a rank of 5. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	41	19	13
PROFIT GROWTH
PROFIT GROWTH	50	93	34	94
CAPITAL GROWTH
CAPITAL GROWTH	n/a	27	23	89
STOCK RETURNS
STOCK RETURNS	46	65	85	5
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	22	71	27	49

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Furukawa.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Furukawa has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Furukawa is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Furukawa and the other two below average. Refinancing is at 85, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. But Leverage is high with a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Liquidity is also on the riskier side with a rank of 44, meaning the company generates less profit to service its debt than 56% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Furukawa has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Furukawa are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Furukawa and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	2	24	30	32
REFINANCING
REFINANCING	98	93	77	85
LIQUIDITY
LIQUIDITY	20	41	46	44
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	27	70	64	64

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Furukawa and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	n/a	n/a	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	30	96	^new
MARKET PULSE
MARKET PULSE	n/a	12	20	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	19	61	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Furukawa.
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