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Fujitsu (FJTSY)
OTHER OTC:FJTSY
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Fujitsu
(OTC:FJTSY)
77Outperform
Fujitsu (FJTSY) vs. S&P 500 (SPY)
Market Cap
$35.77B
Dividend Yield0.54%
Average Volume (3M)172.54K
Price to Earnings (P/E)17.0
Beta (1Y)0.28
Revenue Growth-6.98%
EPS Growth126.74%
CountryUS
Employees136,890
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)1.15
Shares Outstanding2,071,108,400
10 Day Avg. Volume181,026
30 Day Avg. Volume172,537
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)0.97
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Fujitsu Business Overview & Revenue Model
Company DescriptionFujitsu Ltd delivers total solutions in the field of information and communication technology. The company provides solutions/system integration services focused on information system consulting and construction, and infrastructure services centered on outsourcing services. Fujitsu provides services across a wide range of countries and regions, including Europe, the Americas, Asia, and Oceania. It operates in three segments namely, Technology Solutions; Ubiqitous Solutions and Device Solutions. Ubiquitous Solutions consists of PCs, mobile phones, and mobilewear. In PCs, Fujitsu's lineup includes desktop and laptop PCs known for energy efficiency, security, and other enhanced features, as well as water- and dust-resistant tablets.
How the Company Makes MoneyFujitsu generates revenue through its diversified portfolio of products and services. The Technology Solutions segment is the largest contributor to its earnings, encompassing IT services such as system integration, infrastructure services, and outsourcing. This segment caters to both public and private sectors with customized IT solutions. The Ubiquitous Solutions segment generates income from personal computing devices and mobile phones, although this has become a smaller portion of the company's revenue over time. The Device Solutions segment involves semiconductors and electronic components, contributing to the earnings through sales to various industries, including automotive and electronics. Fujitsu also benefits from strategic partnerships and collaborations with other technology firms, enhancing its product offerings and market reach. The company focuses on digital transformation and innovation to maintain its competitive edge and drive growth.
Fujitsu Financial Statement Overview
Summary
Fujitsu displays a solid financial performance with strong profitability, effective cost management, and efficient cash flow generation. The balance sheet is stable with manageable leverage, though attention should be paid to increasing liabilities. Overall, the company is well-positioned in the software industry, exhibiting growth potential and sound financial health.Income Statement
Fujitsu shows strong profitability with a consistent increase in net income over the past years, leading to a robust net profit margin. The company has managed to maintain a stable gross profit margin, reflecting efficient cost management. Revenue growth is moderate, indicating steady expansion in its operations. The EBIT and EBITDA margins are healthy, showcasing solid operational performance.82
Very Positive
Balance Sheet
The balance sheet reflects a strong equity position with an improving equity ratio, indicating stability. The debt-to-equity ratio is manageable, reflecting prudent financial leverage. However, there is a noticeable increase in total liabilities, which could pose potential risks if not managed carefully. Return on equity is healthy, suggesting efficient use of equity to generate profits.78
Positive
Cash Flow
Fujitsu exhibits impressive cash flow management with a significant increase in free cash flow, driven by strong operating cash flow. This indicates effective conversion of revenue into actual cash, enhancing liquidity. The free cash flow to net income ratio is robust, supporting sustainable financial health. The company maintains a positive trajectory in operating cash flow growth.85
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.79T | 3.76T | 3.71T | 3.59T | 3.59T | 3.86T | Gross Profit |
| 1.19T | 1.16T | 1.14T | 1.12T | 1.08T | 1.11T | EBIT |
| 223.98B | 260.21B | 335.61B | 219.20B | 266.32B | 211.48B | EBITDA |
| 461.19B | 370.73B | 457.57B | 446.38B | 471.68B | 447.69B | Net Income Common Stockholders |
| 267.00B | 254.48B | 215.18B | 182.69B | 202.70B | 160.04B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 362.29B | 342.14B | 355.90B | 484.02B | 481.83B | 451.86B | Total Assets |
| 2.99T | 3.51T | 3.27T | 3.33T | 3.19T | 3.19T | Total Debt |
| 344.75B | 245.68B | 211.18B | 285.32B | 316.32B | 405.57B | Net Debt |
| -17.55B | -342.14B | -144.73B | -198.70B | -165.51B | -46.29B | Total Liabilities |
| 1.81T | 1.60T | 1.53T | 1.62T | 1.64T | 1.84T | Stockholders Equity |
| 1.07T | 1.75T | 1.59T | 1.59T | 1.45T | 1.24T |
| Cash Flow | Free Cash Flow | ||||
| 117.76B | 113.38B | 52.23B | 105.10B | 179.18B | 214.29B | Operating Cash Flow |
| 314.70B | 309.22B | 220.33B | 248.35B | 307.95B | 347.26B | Investing Cash Flow |
| -157.92B | -157.24B | -42.81B | -59.27B | -71.56B | -114.21B | Financing Cash Flow |
| -163.27B | -181.49B | -313.58B | -193.69B | -219.63B | -193.16B |
Fujitsu Technical Analysis
Neutral
20.02
Price Trends
19.04
Positive
18.82
Positive
18.17
Positive
Market Momentum
0.34
Positive
51.34
Neutral
35.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FJTSY, the sentiment is Neutral. The current price of 20.02 is below the 20-day moving average (MA) of 20.13, above the 50-day MA of 19.04, and above the 200-day MA of 18.17, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FJTSY.
Fujitsu Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $35.77B | 17.02 | 19.16% | 0.54% | -6.98% | 126.74% | |
76 Outperform | $205.03B | 27.48 | 27.10% | 1.69% | 2.75% | 10.53% | |
74 Outperform | $241.36B | 26.59 | 20.02% | 2.65% | -5.34% | -30.57% | |
67 Neutral | $230.84B | 38.74 | 24.14% | 2.68% | 1.45% | -20.56% | |
67 Neutral | $20.15B | 7.59 | 12.09% | 3.45% | 10.93% | 43.19% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
47 Neutral | $3.17B | 267.98 | -2.46% | ― | -5.65% | 78.20% |
* Technology Sector Average
Performance Comparison
FJTSY
Fujitsu
20.02
3.66
22.37%
ACN
Accenture
317.07
-54.93
-14.77%
CSCO
Cisco Systems
59.67
11.40
23.62%
IBM
International Business Machines
245.80
58.66
31.35%
HPE
Hewlett Packard Enterprise
14.77
-2.42
-14.08%
DXC
DXC Technology
16.85
-3.66
-17.84%
Fujitsu Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 5.76% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the Service Solutions segment, driven by Fujitsu Uvance and a strong order backlog in Japan. However, challenges remain in the Hardware and Device Solutions segments, with notable declines in revenue and profits. While core free cash flow improved, the impact of one-time losses from business restructuring adds complexity to the overall financial picture.Highlights
Service Solutions Revenue Growth
Revenue in the Service Solutions segment increased by 12.9%, reaching JPY 1.522 trillion, driven by digital transformation and modernization projects.
Fujitsu Uvance Performance
Fujitsu Uvance experienced a 67% increase in revenue, contributing significantly to the overall revenue growth in the Service Solutions segment.
Improvement in Adjusted Operating Profit
Adjusted operating profit increased by JPY 61.8 billion, reaching JPY 116.3 billion, more than twice the previous year, due to higher revenue and profitability improvements.
Strong Order Backlog in Japan
Orders in Japan increased by 16%, with significant growth in the Finance (21%), Public and Healthcare (26%), and Mission-critical segments (15%).
Positive Core Free Cash Flow
Core free cash flow increased by JPY 39.2 billion, reaching JPY 75 billion, due to improved working capital management.
Lowlights
Decline in Hardware Solutions Revenue
Hardware Solutions revenue decreased by 6% year-on-year, mainly due to a large pullback in network product demand.
Device Solutions Revenue and Profit Decrease
Device Solutions revenue dropped by 30.2%, and adjusted operating profit decreased by JPY 58.2 billion year-on-year due to weak semiconductor packaging demand.
One-time Loss from Business Restructuring
A one-time loss of approximately JPY 50 billion was recorded from exiting the private cloud business in Germany and the CCD business in Europe.
Company Guidance
In the third quarter earnings call for fiscal year 2023, Takeshi Isobe detailed Fujitsu's financial performance and guidance. Service Solutions emerged as the most significant segment, with revenue reaching JPY 1.522 trillion, up 12.9% year-on-year, and adjusted operating profit doubling to JPY 116.3 billion. This growth was driven by strong demand for digital transformation and modernization projects, particularly in Japan. Fujitsu Uvance saw a remarkable 67% revenue increase, contributing significantly to the overall performance. However, Hardware and Device Solutions experienced declines, with Device Solutions' revenue dropping 30.2% year-on-year. The company's core free cash flow improved to JPY 75 billion, up JPY 39.2 billion from the previous year. Despite some challenges, such as reduced demand for hardware and network products, the company maintained its full-year forecast, projecting revenue of JPY 3.810 trillion and an adjusted operating profit of JPY 320 billion for fiscal 2023. Fujitsu also announced a 1:10 stock split effective April 1, 2024, to enhance share liquidity.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.