Fujitsu (FJTSY) AI Stock Analysis

• Market Cap: $44.29B
• Dividend Yield: 0.46%
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.37
• Revenue Growth: -10.11%
• EPS Growth: -14.62%
• Country: US
• Employees: 123,527
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.43
• Shares Outstanding: 2,071,108,400
• 10 Day Avg. Volume: 17,243
• 30 Day Avg. Volume: 9,044
• PEG Ratio: 0.82
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

Fujitsu's overall stock score of 76.5 reflects a strong financial performance and positive earnings call insights, particularly in the Service Solutions segment. The technical analysis shows bullish momentum, though caution is advised due to overbought signals. Valuation is neutral, aligning with industry standards. The company appears well-positioned for future growth, despite some challenges in specific segments.

Fujitsu Business Overview & Revenue Model

Company Description

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including personal computers, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. Fujitsu Limited was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fujitsu makes money through a diversified revenue model that includes several key streams. A significant portion of its income is derived from its IT services division, which provides consulting, systems integration, managed services, and IT infrastructure services to businesses, governments, and organizations worldwide. Additionally, Fujitsu generates revenue from its technology solutions segment, which includes the sale of hardware products such as servers, storage devices, and personal computers, as well as telecommunications equipment. The company also earns from its software and solutions offerings, which encompass enterprise applications, middleware, and infrastructure software. Fujitsu's strategic partnerships with other technology firms and collaborations in research and development further enhance its market presence and revenue generation. Factors such as a strong focus on digital transformation and sustainability initiatives also contribute positively to Fujitsu's earnings.

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.

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.

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.

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
EBITDA	461.19B	370.73B	457.57B	446.38B	471.68B	447.69B
Net Income	267.00B	254.48B	215.18B	182.69B	202.70B	160.04B
Balance Sheet
Total Assets	3.46T	3.51T	3.27T	3.33T	3.19T	3.19T
Cash, Cash Equivalents and Short-Term Investments	476.37B	342.14B	355.90B	484.02B	481.83B	451.86B
Total Debt	283.44B	245.68B	211.18B	285.32B	316.32B	405.57B
Total Liabilities	1.52T	1.60T	1.53T	1.62T	1.64T	1.84T
Stockholders Equity	1.78T	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

• Technical Analysis Sentiment: Positive
• Last Price: 24.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FJTSY, the sentiment is Positive. The current price of 24.34 is above the 20-day moving average (MA) of 23.74, above the 50-day MA of 22.77, and above the 200-day MA of 20.15, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 75.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FJTSY.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	81 Outperform	$78.03B	24.28	29.00%	2.78%	3.85%	-0.38%
ACN	77 Outperform	$201.01B	23.52	27.27%	2.00%	6.21%	14.87%
FJTSY	77 Outperform	$44.29B	30.12	11.70%	0.46%	-10.11%	-14.62%
WIT	72 Outperform	$32.41B	20.46	16.62%	1.01%	-2.83%	106.18%
CTSH	71 Outperform	$38.32B	16.37	16.61%	1.59%	4.09%	14.05%
FIS	71 Outperform	$42.45B	50.54	5.25%	1.98%	-9.12%	―
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.71%	9.09%	8.52%