Fujitsu (6702) AI Stock Analysis

• Market Cap: ¥6.60T
• Dividend Yield: 0.78%
• Average Volume (3M): 5.34M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.75
• Revenue Growth: -8.36%
• EPS Growth: 45.42%
• Country: JP
• Employees: 123,527
• Sector: Technology
• Sector Strength: 96
• Industry: Information Technology Services
• EPS (TTM): 96.64
• Shares Outstanding: 2,071,108,400
• 10 Day Avg. Volume: 6,725,080
• 30 Day Avg. Volume: 5,335,973
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,899.01
• Price Target Upside: 8.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: ¥3,663.00 ▲(2.15% Upside)

Fujitsu demonstrates a strong financial foundation with effective cost management and a healthy balance sheet. While technical indicators highlight mixed momentum, the reasonable valuation provides some upside potential. Revenue growth challenges and bearish technical signals temper the overall outlook.

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 primarily through its IT services and solutions, which constitute the largest segment of its revenue. This includes consulting, system integration, managed services, and outsourcing. Additionally, the company generates revenue from the sale of computing products such as servers, storage devices, and personal computers. Telecommunications services also contribute to its earnings, providing network infrastructure and solutions. Strategic partnerships with other technology firms and a focus on digital transformation initiatives help drive Fujitsu's growth and maintain its competitive edge in the ICT industry.

Fujitsu Financial Statement Overview

Summary

Fujitsu demonstrates a strong financial foundation with robust profitability metrics and balance sheet management. However, challenges in revenue growth present potential risks, while strong equity and efficient cost management provide resilience.

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.55T	3.76T	3.71T	3.59T	3.59T
Gross Profit	1.17T	1.16T	1.14T	1.12T	1.08T
EBITDA	276.65B	359.58B	457.57B	413.15B	454.25B
Net Income	219.81B	254.48B	215.18B	182.69B	202.70B
Balance Sheet
Total Assets	3.50T	3.51T	3.27T	3.33T	3.19T
Cash, Cash Equivalents and Short-Term Investments	236.08B	342.14B	355.90B	484.02B	481.83B
Total Debt	247.09B	245.68B	211.18B	285.32B	316.32B
Total Liabilities	1.60T	1.60T	1.53T	1.62T	1.64T
Stockholders Equity	1.74T	1.75T	1.59T	1.59T	1.45T
Cash Flow
Free Cash Flow	142.98B	113.38B	52.23B	105.10B	179.18B
Operating Cash Flow	303.88B	309.22B	220.33B	248.35B	307.95B
Investing Cash Flow	-114.16B	-157.24B	-42.81B	-59.27B	-71.56B
Financing Cash Flow	-215.47B	-181.49B	-313.58B	-193.69B	-219.63B

Fujitsu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3586.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3586 is above the 20-day moving average (MA) of 3327.50, above the 50-day MA of 3378.72, and above the 200-day MA of 3046.94, indicating a bullish trend. The MACD of 56.80 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 90.08 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6702	70 Outperform	¥6.60T	17.10	11.82%	0.78%	-8.36%	45.42%
Sector *	61 Neutral	$36.31B	7.01	-9.37%	2.01%	7.73%	-9.28%
NIPNF	―	$42.36B	31.85	10.52%	0.12%	―	―
NTTDF	―	$37.48B	35.56	7.93%	0.56%	―	―
NURAF	―	$23.34B	36.66	23.37%	0.99%	―	―
9719	74 Outperform	¥1.46T	29.58		1.52%	33.00%	21.00%
3626	67 Neutral	¥1.17T	22.47		1.41%	4.39%	7.80%

Fujitsu Corporate Events

Fujitsu Reports Strong Profit Growth Despite Revenue Dip in Q1 FY2025

Fujitsu’s financial results for the first quarter of FY2025 show a slight decline in revenue by 1.2% compared to the previous year, but a significant increase in operating profit by 133.7% and profit before income taxes by 86.3%. The company has also reported a substantial rise in profit attributable to owners of the parent by 917.8%. This performance indicates strong operational efficiency and strategic adjustments, despite a challenging market environment. The announcement highlights Fujitsu’s solid financial positioning and its ability to adapt to market changes, which may positively influence stakeholders’ confidence.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Announces Key Appointments to Governance Committees

Fujitsu Limited has announced appointments to its Executive Nomination and Compensation Committees, emphasizing its commitment to transparency and objectivity in corporate governance. The reappointments and new appointments aim to ensure fair processes for nominating directors and determining executive compensation, reinforcing Fujitsu’s governance structure and potentially impacting its operational integrity and stakeholder trust.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Completes Tender Offer for Fujitsu General Limited

Fujitsu Limited announced the successful completion of a tender offer by Paloma Rheem Holdings Co., Ltd. for shares of its affiliated company, Fujitsu General Limited. This transaction aims to take Fujitsu General private and involves several financial adjustments and share repurchases. Fujitsu expects to record an extraordinary income of approximately 80 billion yen from this transaction, though the impact on consolidated financial results is considered minor.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Announces Dividend Distribution from Retained Earnings

Fujitsu Limited announced a decision by its Board of Directors to distribute dividends from retained earnings, with a dividend per share of 14 yen for the fiscal year ending March 31, 2025. This decision follows a stock split conducted on April 1, 2024, and reflects a significant decrease compared to the previous year’s dividend, indicating a strategic financial adjustment by the company.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.