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Fujitsu Limited (JP:6702)
:6702

Fujitsu (6702) AI Stock Analysis

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Fujitsu

(OTC:6702)

73Outperform
Fujitsu's overall stock score reflects its strong financial foundation and positive technical indicators. While the company benefits from robust service solutions and strategic initiatives, challenges in certain segments and regions, along with a moderate valuation, temper the outlook. The stock's upward trend and balance sheet strength are key positives, but revenue growth inconsistencies and international segment losses are notable risks.

Fujitsu (6702) vs. S&P 500 (SPY)

Fujitsu Business Overview & Revenue Model

Company DescriptionFujitsu Limited, a leading Japanese multinational information and communication technology (ICT) company, specializes in offering a wide range of technology products, solutions, and services. Founded in 1935 and headquartered in Tokyo, Fujitsu operates in several sectors, including IT services, computing products, network products, and electronic devices. The company is renowned for its expertise in digital transformation, cloud computing, artificial intelligence, and the Internet of Things (IoT), serving clients across various industries globally.
How the Company Makes MoneyFujitsu makes money primarily through its IT services segment, which includes system integration, managed services, and consulting services. This segment caters to the needs of businesses and governments looking for comprehensive IT solutions to enhance operational efficiency and drive digital transformation. Additionally, Fujitsu generates revenue from its technology solutions, which encompass computing products like servers and storage systems, as well as network products such as telecommunications equipment. The company also benefits from strategic partnerships and collaborations, which help extend its market reach and enhance its service offerings. Fujitsu's focus on innovation and sustainability further supports its business growth and revenue generation.

Fujitsu Financial Statement Overview

Summary
Fujitsu's financial performance is strong, with efficient cost management and a robust balance sheet. Income statement highlights include a strong gross profit margin but challenges in consistent revenue growth. The balance sheet is characterized by a healthy equity ratio and low leverage. Cash flow shows positive growth but needs optimization for better cash conversion.
Income Statement
―
Fujitsu's income statement reveals strong gross profit margins, averaging around 32% over recent years, indicating efficient cost management. However, the net profit margin has fluctuated, currently at 6.2%, reflecting potential challenges in converting revenue to profit. Revenue growth is inconsistent, with a slight decline in recent periods, challenging sustainability. Overall, the company demonstrates profitability with some growth challenges.
Balance Sheet
80
Fujitsu's balance sheet is robust with a healthy equity ratio of approximately 50%, indicating a strong asset base supported by equity. The debt-to-equity ratio is manageable at around 0.14, suggesting prudent leverage levels. Return on equity is moderate at 12.6%, showing effective use of shareholder funds. The stable equity structure and low leverage position the company well for future investments.
Cash Flow
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The cash flow statement reflects a stable operating cash flow with a positive trajectory. Free cash flow has grown significantly, indicating strong cash generation post-capital expenditures. However, the operating cash flow to net income ratio suggests some discrepancies in cash conversion efficiency. Overall, Fujitsu shows solid cash flow management with room for optimizing cash conversion.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
3.76T3.71T3.59T3.59T3.86T
Gross Profit
1.16T1.14T1.12T1.08T1.11T
EBIT
260.21B335.61B219.20B266.32B211.48B
EBITDA
359.58B457.57B413.15B454.25B420.61B
Net Income Common Stockholders
254.48B215.18B182.69B202.70B160.04B
Balance SheetCash, Cash Equivalents and Short-Term Investments
342.14B355.90B484.02B481.83B451.86B
Total Assets
3.51T3.27T3.33T3.19T3.19T
Total Debt
245.68B211.18B285.32B316.32B405.57B
Net Debt
-96.46B-144.73B-198.70B-165.51B-46.29B
Total Liabilities
1.60T1.53T1.62T1.64T1.84T
Stockholders Equity
1.75T1.59T1.59T1.45T1.24T
Cash FlowFree Cash Flow
113.38B52.23B105.10B179.18B214.29B
Operating Cash Flow
309.22B220.33B248.35B307.95B347.26B
Investing Cash Flow
-157.24B-42.81B-59.27B-71.56B-114.21B
Financing Cash Flow
-181.49B-313.58B-193.69B-219.63B-193.16B

Fujitsu Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3266.00
Price Trends
50DMA
2968.09
Positive
100DMA
2906.91
Positive
200DMA
2832.48
Positive
Market Momentum
MACD
81.50
Negative
RSI
68.21
Neutral
STOCH
90.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6702, the sentiment is Positive. The current price of 3266 is above the 20-day moving average (MA) of 2954.57, above the 50-day MA of 2968.09, and above the 200-day MA of 2832.48, indicating a bullish trend. The MACD of 81.50 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 90.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6702.

Fujitsu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.75T26.588.97%0.76%-1.55%17.24%
77
Outperform
$16.77T27.4410.50%1.16%0.56%5.32%
75
Outperform
Â¥81.84B6.578.57%2.94%10.79%138.11%
73
Outperform
$5.80T26.0811.70%0.85%-5.48%-11.96%
71
Outperform
$940.63B9.8025.48%2.75%30.34%55.11%
70
Outperform
$3.94T11.827.23%2.26%1.72%-33.60%
60
Neutral
$10.83B10.47-6.71%2.99%7.73%-12.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6702
Fujitsu
3,266.00
940.76
40.46%
JP:6501
Hitachi,Ltd.
3,818.00
954.77
33.35%
JP:6752
Panasonic
1,699.50
412.22
32.02%
JP:7735
SCREEN Holdings Co
9,857.00
-5,173.97
-34.42%
JP:6703
OKI Electric Industry Company
1,095.00
106.62
10.79%
JP:6701
NEC
3,678.00
1,553.04
73.09%

Fujitsu Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q3-2024)
|
% Change Since: 11.05%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the Service Solutions segment and Fujitsu Uvance, driven by digital transformation, with improvements in operating profit and cash flow. However, there were significant challenges in the Hardware and Device Solutions segments, as well as losses from international operations, particularly in Europe. While there are positive trends in core areas, the negative impacts from certain segments and regions balanced the sentiment.
Q3-2024 Updates
Positive Updates
Service Solutions Revenue Growth
Service Solutions segment revenue increased by 12.9% year-on-year, driven by digital transformation and modernization projects, reaching JPY 1.522 trillion.
Fujitsu Uvance Performance
Fujitsu Uvance saw a 67% increase in revenue year-on-year, contributing significantly to the overall revenue growth.
Improvement in Adjusted Operating Profit
Adjusted operating profit for Service Solutions was JPY 116.3 billion, up JPY 61.8 billion from the prior year, with a steady increase in profitability.
Strong Order Backlog
Orders in Japan increased by 16% year-on-year, with significant growth in the finance, public, and healthcare segments, leading to a high order backlog.
Core Free Cash Flow Increase
Core free cash flow increased by JPY 39.2 billion from the previous year, reaching JPY 75 billion.
Negative Updates
Decline in Hardware and Device Solutions
Hardware Solutions revenue decreased by 6% and Device Solutions revenue fell by 30.2% year-on-year, with significant drops in operating profit.
Losses from International Operations
Losses were recorded from the sale of private cloud business in Germany and the exit of CCD business in Europe, totaling a JPY 50 billion onetime loss.
Weak Demand for Device Solutions
Demand for semiconductor packaging significantly decreased, impacting revenue and operating profit in Device Solutions.
Challenges in Europe Segment
The European segment faced profitability challenges, with ongoing difficulties despite efforts to improve the business portfolio.
Company Guidance
During the Q3 2024 earnings call for Fujitsu Limited (6702.T), Takeshi Isobe, an executive, detailed the company's financial performance for the first nine months of fiscal year 2023. Key metrics included a total consolidated revenue of JPY 2.6427 trillion, marking a 1.7% increase year-on-year, and an adjusted operating profit of JPY 118.8 billion, which saw a decline of JPY 32.9 billion from the previous year. The Service Solutions segment emerged as the most significant contributor, with revenues reaching JPY 1.522 trillion, up by 12.9% from the prior year, and an adjusted operating profit of JPY 116.3 billion, a substantial increase of JPY 61.8 billion. Despite strong demand in digital transformation, there was a noted decrease in the Hardware Solutions and Device Solutions segments, with the latter experiencing a dramatic 30.2% drop in revenue to JPY 212.4 billion. Fujitsu's Fujitsu Uvance initiative saw a 67% revenue increase, contributing significantly to the Service Solutions segment. Isobe also mentioned strategic investments and restructuring efforts, including a 1:10 stock split set for April 2024, aiming to enhance share liquidity.

Fujitsu Corporate Events

Fujitsu to Take Fujitsu General Private in Strategic Move
Apr 25, 2025

Fujitsu Limited has announced a strategic move to take its affiliate, Fujitsu General Limited, private through a series of transactions with Paloma Rheem Holdings Co., Ltd. This involves a tender offer and share consolidation, ensuring Fujitsu and the Offeror become the sole shareholders. This move is expected to streamline Fujitsu’s operations and potentially enhance its market position by focusing on core digital services. The tender offer is set to commence on April 28, 2025, and will last until May 28, 2025.

Fujitsu Establishes 1FINITY Inc. to Enhance Photonics and Mobile Systems Business
Apr 24, 2025

Fujitsu announced the establishment of a new subsidiary, 1FINITY Inc., through a company split to enhance its photonics and mobile systems business. This strategic move aligns with Fujitsu’s Medium-Term Management Plan to transform into a technology company that emphasizes digital services by 2030. By creating 1FINITY, Fujitsu aims to strengthen the business, improve decision-making, and foster innovation, particularly in the artificial intelligence data center market, thereby increasing value for customers and supporting corporate and societal transformation.

Fujitsu Announces Stock Repurchase Plan to Boost Shareholder Returns
Apr 24, 2025

Fujitsu has announced a stock repurchase plan following improved financial conditions in fiscal 2024 and 2025. The company aims to enhance shareholder returns and promote capital efficiency by repurchasing up to 120 million shares, equivalent to 6.75% of its outstanding shares, with a maximum aggregate value of 170 billion yen. The repurchase will occur through market trades on the Tokyo Stock Exchange between May 1, 2025, and March 31, 2026.

Fujitsu Reports Modest Revenue Growth Amid Strategic Adjustments
Apr 24, 2025

Fujitsu’s financial results for the fiscal year ending March 31, 2025, show a modest revenue increase of 2.1% to 3,550,116 million yen, with a significant rise in operating profit by 77.5% to 265,089 million yen. Despite these gains, the company experienced a decline in profit for the year attributable to owners of the parent by 13.6%. The reclassification of Device Solutions as discontinued operations and a stock split on April 1, 2024, were notable changes impacting financial reporting. These results reflect Fujitsu’s strategic adjustments and operational shifts, potentially affecting its market positioning and stakeholder interests.

Fujitsu Adjusts European Subsidiary Reorganization Plans
Mar 28, 2025

Fujitsu has announced changes to its planned reorganization of its European subsidiaries, initially set to be completed by April 2025. The reorganization aims to integrate European services under Fujitsu Technology Solutions and manage the hardware business through a European subsidiary of Fsas Technologies Inc. However, due to delays in obtaining necessary approvals, the completion date has been postponed. The hardware business will temporarily remain under Fujitsu’s management, with plans to transfer it to Fsas Technologies Inc. after reorganization. These changes are expected to have a negligible impact on Fujitsu’s financial results for the current fiscal year.

Fujitsu Announces Board Nominations in Line with Governance Policy
Mar 27, 2025

Fujitsu Limited has announced nominations for its Board of Directors and Audit & Supervisory Board, with appointments subject to approval at the upcoming Annual Shareholders’ Meeting. These changes align with Fujitsu’s Corporate Governance Policy, potentially impacting the company’s strategic direction and reinforcing its commitment to governance standards, which may influence stakeholder confidence and market positioning.

Fujitsu Completes Significant Share Repurchase Program
Mar 25, 2025

Fujitsu Limited announced the completion of its share repurchase program, which was approved by its Board of Directors in April 2024. The company repurchased a total of 62,653,500 shares, amounting to approximately JPY 180 billion. This move is part of Fujitsu’s strategic financial management, potentially impacting its market position and shareholder value.

Fujitsu Completes Tender Offer for SHINKO, Plans Strategic Financial Gains
Mar 19, 2025

Fujitsu has successfully completed a tender offer for shares of its consolidated subsidiary, SHINKO ELECTRIC INDUSTRIES CO., LTD., in collaboration with JICC-04, Ltd. This move is part of a strategic plan to take SHINKO private, impacting Fujitsu’s financial results significantly. The company expects to record substantial gains from the sale of subsidiaries’ stocks, classifying SHINKO’s business as discontinued operations, which will influence its financial statements for the fiscal year ending March 31, 2026.

Fujitsu Reports Progress on Share Repurchase Program
Mar 4, 2025

Fujitsu Limited announced the status of its share repurchase program, having repurchased 7,779,800 shares of common stock for JPY 23,278,756,550 between February 1 and February 28, 2025. This initiative is part of a broader plan approved by the Board of Directors to repurchase up to 150,000,000 shares, reflecting Fujitsu’s strategic efforts to optimize capital structure and enhance shareholder value.

Fujitsu Initiates Tender Offer for SHINKO Shares to Pursue Privatization
Feb 17, 2025

Fujitsu Limited announced the commencement of a tender offer by JICC-04 for shares of its subsidiary, SHINKO Electric Industries, as part of a strategy to privatize SHINKO. This move involves Fujitsu transferring its shares through SHINKO’s repurchase plan post-tender, which could impact the company’s market operations and stakeholder interests.

Fujitsu to Divest FDK Shares in Strategic Portfolio Shift
Feb 12, 2025

Fujitsu announced its decision to tender all shares of its consolidated subsidiary, FDK Corporation, as part of a strategic move to accelerate its portfolio transformation. The agreement with Silitech Technology Corporation aims to enhance Fujitsu’s corporate value by reallocating resources to digital and cloud services and shareholder returns, reflecting a shift in Fujitsu’s focus away from FDK’s battery and electronics businesses amid fierce industry competition.

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.