Fuji Soft Incorporated (9749) AI Stock Analysis

• Market Cap: $637.47B
• Dividend Yield: 0.43%
• Average Volume (3M): 226.64K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.09
• Revenue Growth: 6.92%
• EPS Growth: 25.38%
• Country: JP
• Employees: 19,689
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 66.38
• Shares Outstanding: 63,030,247
• 10 Day Avg. Volume: 123,660
• 30 Day Avg. Volume: 226,636
• PEG Ratio: 2.20
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 102.76
• 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: 72 Outperform
• Price Target: $10,858.00 ▲(10.80%Upside)

Fuji Soft Incorporated's overall score reflects its strong financial performance, which is the main driver of the score. The company's solid revenue growth, profitability, and stable financial position are major strengths. However, the technical indicators suggest a lack of clear momentum, and the valuation indicates the stock may be overvalued, which tempers the overall score.

Fuji Soft Incorporated Business Overview & Revenue Model

Company Description

Fuji Soft Incorporated is a Japanese information technology company that provides a wide range of IT services and solutions. The company operates in sectors such as software development, systems integration, and IT infrastructure management. Its core offerings include customized software solutions, cloud services, and IT outsourcing services, catering to various industries including finance, manufacturing, and public services.

How the Company Makes Money

Fuji Soft Incorporated makes money primarily through its comprehensive IT services and solutions. The company's revenue model includes custom software development projects, where they design and implement software tailored to the specific needs of their clients. They also generate income from systems integration services, helping businesses integrate various IT systems and processes. Additionally, Fuji Soft earns revenue from its cloud services, which include cloud infrastructure setup and management. IT outsourcing is another significant revenue stream, where Fuji Soft provides ongoing IT support and maintenance for businesses, allowing them to focus on their core operations. The company's earnings are also supported by strategic partnerships with other technology firms, enhancing their service offerings and market reach.

Fuji Soft Incorporated Financial Statement Overview

Summary

Fuji Soft Incorporated demonstrates strong financial performance across key metrics. The income statement reflects robust revenue and profit growth, supported by effective cost management. The balance sheet indicates financial stability with reduced leverage. The cash flow statement shows efficient cash generation and increasing free cash flow. Overall, the company's financial position is strong, with growth potential and reduced financial risk.

Income Statement

Fuji Soft Incorporated has shown consistent revenue growth, with a significant increase from ¥231.07 billion in 2019 to ¥317.48 billion in 2024. The gross profit margin improved over time, reaching 23.5% in 2024. Net profit margin also increased to 6.7% in 2024, indicating improved profitability. The EBIT margin was stable, and the EBITDA margin was strong at 8.5% in 2024, reflecting effective cost management. Overall, the income statement indicates strong growth and profitability.

Balance Sheet

The company maintains a solid balance sheet with increasing stockholders' equity, reaching ¥139.46 billion in 2024. The debt-to-equity ratio decreased over time, indicating reduced leverage and financial risk. The equity ratio improved, suggesting a stable financial position. Return on equity was strong, supported by growing net income. Overall, the balance sheet reflects financial stability and reduced leverage risk.

Cash Flow

Fuji Soft's free cash flow showed a positive trajectory, with a notable growth rate over the years, reaching ¥7.19 billion in 2024. The operating cash flow to net income ratio was strong, indicating efficient cash generation from operations. The free cash flow to net income ratio improved, showing enhanced cash conversion capabilities. Overall, the cash flow statement reflects strong cash management and growing free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
317.48B	298.86B	278.78B	257.89B	240.95B
	Gross Profit
74.60B	67.24B	61.57B	56.84B	54.85B
	EBIT
22.03B	20.68B	18.27B	16.84B	15.97B
	EBITDA
34.55B	24.67B	22.50B	22.50B	21.98B
	Net Income Common Stockholders
21.15B	11.85B	11.38B	9.13B	8.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.16B	43.42B	41.24B	45.35B	44.33B
	Total Assets
258.70B	257.60B	240.84B	228.91B	234.54B
	Total Debt
49.24B	60.03B	26.64B	28.83B	44.67B
	Net Debt
13.58B	24.70B	-6.10B	-11.52B	6.34B
	Total Liabilities
117.05B	128.68B	88.09B	85.95B	99.38B
	Stockholders Equity
139.46B	124.35B	134.69B	125.67B	119.55B
Cash Flow		Free Cash Flow
7.19B	5.03B	1.24B	9.17B	4.61B
	Operating Cash Flow
16.24B	16.15B	13.52B	15.91B	14.79B
	Investing Cash Flow
4.40B	-9.21B	-15.52B	4.89B	-16.11B
	Financing Cash Flow
-21.44B	-5.45B	-5.91B	-17.87B	12.70B

Fuji Soft Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9800.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9749, the sentiment is Negative. The current price of 9800 is below the 20-day moving average (MA) of 9804.55, below the 50-day MA of 9800.44, and above the 200-day MA of 9388.22, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9749.

Fuji Soft Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4689	78 Outperform	¥3.72T	25.24		1.32%	5.67%	39.04%
9719	74 Outperform	¥1.31T	29.10		1.69%	24.10%	11.27%
9735	74 Outperform	$2.34T	20.28	8.55%	1.77%	3.91%	7.86%
6702	74 Outperform	¥6.21T	27.92	11.70%	0.79%	-5.48%	-11.96%
9749	72 Outperform	$637.47B	33.20	13.64%	0.43%	6.92%	25.38%
4768	71 Outperform	$1.11T	19.75	16.17%	2.58%	15.49%	18.42%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%