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Fujitsu (FJTSY)
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Fujitsu (FJTSY) AI Stock Analysis

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FJTSY

Fujitsu

(OTC:FJTSY)

Rating:77Outperform
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 (FJTSY) vs. SPDR S&P 500 ETF (SPY)

Fujitsu Business Overview & Revenue Model

Company DescriptionFujitsu 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 MoneyFujitsu 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative trends. While Service Solutions showed strong growth and profitability, challenges were evident in Hardware and Ubiquitous Solutions, as well as in international markets. Overall, the company's performance was aligned with its plan, with significant achievements in certain segments but notable challenges in others.
Q2-2025 Updates
Positive Updates
Service Solutions Growth
Service Solutions posted steady improvements with revenue for the first half at ¥1,017.5 billion, a 3.4% increase over the previous year. Adjusted operating profit increased by ¥25.2 billion, with the profit margin improving by 2.3 percentage points to 8.7%.
Record Profit Margins
Adjusted operating profit for the first half reached ¥79.5 billion, up ¥20.7 billion from the previous year, marking a 56.6% increase and a record for Fujitsu.
Uvance Revenue Surge
Revenue from Fujitsu Uvance grew by 31% year over year, with vertical areas nearly doubling their revenue. Uvance now represents 20% of total revenue in Service Solutions.
Modernization Business Expansion
Modernization business revenue for the first half was ¥82.8 billion, a 69% increase from the previous year, on track to meet the full-year target of ¥200 billion.
Improved Profitability
Profitability improved significantly, with a gross margin increase of 2.6 percentage points to 35.1%.
Negative Updates
Decline in Hardware Solutions
Revenue and profit for Hardware Solutions fell due to a pullback from last year's large-scale deals and the negative impact of the weak yen.
Ubiquitous Solutions Revenue Decline
Revenue for Ubiquitous Solutions was down 16.9% from the previous year, primarily due to exiting the business in Europe.
International Region Challenges
Revenue in international regions decreased by 4.4% year on year, impacted by the carveout of low-profit business in Germany.
Slower Demand Recovery in Device Solutions
Device Solutions saw lower than expected demand recovery, with results below plan despite a 3.3% year-over-year revenue increase.
Company Guidance
In the second quarter of fiscal year 2025, Fujitsu reported significant improvements in its financial metrics, particularly in the Service Solutions segment, which drove the company's growth. The segment posted a revenue of ¥1,017.5 billion, up 3.4% from the previous year, with a notable 7% increase in Japan. Adjusted operating profit in the segment rose by ¥25.2 billion to ¥88.7 billion, translating to an operating profit margin of 8.7%, an improvement of 2.3 percentage points. Fujitsu's total consolidated revenue was ¥1,696.6 billion, a 0.9% increase, despite declines in the Hardware and Ubiquitous Solutions segments. The company's overall adjusted operating profit increased by ¥20.7 billion to ¥79.5 billion, achieving a record 56.6% growth compared to the previous year's first half. Fujitsu's financial forecast for 2024 remains unchanged, with expectations of ¥3,760 billion in revenue and ¥303 billion in adjusted operating profit. The company is focusing on expanding its Fujitsu Uvance and modernization business to sustain growth and improve profitability.

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
82
Very Positive
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
78
Positive
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
85
Very Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.55T3.55T3.76T3.71T3.59T3.59T
Gross Profit1.17T1.17T1.16T1.14T1.12T1.08T
EBITDA425.98B445.80B370.73B457.57B446.38B471.68B
Net Income219.81B219.81B254.48B215.18B182.69B202.70B
Balance Sheet
Total Assets3.50T3.50T3.51T3.27T3.33T3.19T
Cash, Cash Equivalents and Short-Term Investments236.08B236.08B342.14B355.90B484.02B481.83B
Total Debt0.000.00245.68B211.18B285.32B316.32B
Total Liabilities1.60T1.60T1.60T1.53T1.62T1.64T
Stockholders Equity1.74T1.74T1.75T1.59T1.59T1.45T
Cash Flow
Free Cash Flow142.98B142.98B113.38B52.23B105.10B179.18B
Operating Cash Flow303.88B303.88B309.22B220.33B248.35B307.95B
Investing Cash Flow-89.18B-89.18B-157.24B-42.81B-59.27B-71.56B
Financing Cash Flow-240.45B-240.45B-181.49B-313.58B-193.69B-219.63B

Fujitsu Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.95
Price Trends
50DMA
23.22
Positive
100DMA
22.92
Positive
200DMA
20.96
Positive
Market Momentum
MACD
0.25
Positive
RSI
60.01
Neutral
STOCH
62.99
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 23.95 is below the 20-day moving average (MA) of 24.05, above the 50-day MA of 23.22, and above the 200-day MA of 20.96, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 62.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FJTSY.

Fujitsu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$43.75B16.9611.82%0.44%-8.93%45.37%
75
Outperform
$68.10B21.1830.46%3.02%4.52%-0.22%
74
Outperform
$35.08B14.5816.69%1.73%6.34%12.16%
73
Outperform
$28.98B20.5616.50%3.01%-1.95%35.65%
72
Outperform
$231.51B40.3122.73%2.62%2.69%-31.73%
70
Outperform
$158.80B20.2927.27%2.32%6.21%14.87%
61
Neutral
$35.56B8.62-10.46%1.86%8.47%-8.26%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FJTSY
Fujitsu
24.68
4.95
25.09%
ACN
Accenture
255.57
-80.06
-23.85%
CTSH
Cognizant
71.19
-3.76
-5.02%
INFY
Infosys
16.79
-5.35
-24.16%
IBM
International Business Machines
256.09
58.15
29.38%
WIT
Wipro
2.75
-0.25
-8.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Feb 01, 2025