Fujitsu (6702) AI Stock Analysis

• Market Cap: $5.95T
• Dividend Yield: 0.87%
• Average Volume (3M): 4.80M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.76
• Revenue Growth: -5.48%
• EPS Growth: -10.98%
• Country: JP
• Employees: 123,527
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): 62.41
• Shares Outstanding: 2,071,108,400
• 10 Day Avg. Volume: 4,560,130
• 30 Day Avg. Volume: 4,800,843
• PEG Ratio: 0.81
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.47
• 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: $3,785.42
• Price Target Upside: 17.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: ¥3,710.00 ▲(14.72%Upside)

Fujitsu's strong technical momentum and solid financial management are the primary drivers of its stock score, despite valuation concerns. The robust balance sheet and positive cash flow management support its stability in the IT services sector. However, high valuation metrics and revenue growth challenges temper the overall attractiveness.

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 efficient cost management and a robust balance sheet. However, revenue growth challenges and cash conversion inefficiencies slightly dampen its financial outlook.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 3234.00
• 50DMA: Negative
• 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 JP:6702, the sentiment is Neutral. The current price of 3234 is below the 20-day moving average (MA) of 3341.45, below the 50-day MA of 3358.64, and above the 200-day MA of 3021.20, indicating a neutral trend. The MACD of -43.05 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 24.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6702.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6702	74 Outperform	$5.95T	26.74	11.70%	0.87%	-5.48%	-10.98%
Sector *	63 Neutral	$34.61B	5.36	-11.67%	1.95%	5.33%	-20.62%
NIPNF	―	$37.09B	31.59	8.97%	0.19%	―	―
NTTDF	―	$37.65B	39.91	7.94%	0.73%	―	―
NURAF	―	$20.85B	34.21	22.20%	0.04%	―	―
3626	74 Outperform	¥1.08T	21.54		1.51%	4.13%	5.66%
9719	74 Outperform	¥1.39T	30.80		1.60%	24.10%	11.27%

Fujitsu Corporate Events

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.

Fujitsu to Take Fujitsu General Private in Strategic Move

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

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

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

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.