TSE:6702

Stock Analysis Report

Executive Summary

Fujitsu Limited operates as an information and communication technology (ICT) company.

Rewards

Earnings are forecast to grow 7.7% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (2.2%) are lower than last year (5%)



Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Fujitsu's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6702 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

6702

-0.7%

JP IT

0.7%

JP Market


1 Year Return

42.4%

6702

29.9%

JP IT

8.7%

JP Market

Return vs Industry: 6702 exceeded the JP IT industry which returned 29.9% over the past year.

Return vs Market: 6702 exceeded the JP Market which returned 8.7% over the past year.


Shareholder returns

6702IndustryMarket
7 Day-0.9%-0.7%0.7%
30 Day6.0%4.5%1.7%
90 Day20.5%13.3%7.3%
1 Year45.2%42.4%32.1%29.9%11.4%8.7%
3 Year54.0%46.4%79.3%70.5%21.4%13.1%
5 Year64.6%52.0%125.4%107.0%40.8%26.1%

Price Volatility Vs. Market

How volatile is Fujitsu's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Fujitsu undervalued compared to its fair value and its price relative to the market?

23.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6702 (¥10120) is trading above our estimate of fair value (¥7650.3)

Significantly Below Fair Value: 6702 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6702 is poor value based on its PE Ratio (23.6x) compared to the IT industry average (20.9x).

PE vs Market: 6702 is poor value based on its PE Ratio (23.6x) compared to the JP market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: 6702 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: 6702 is good value based on its PB Ratio (1.8x) compared to the JP IT industry average (2.8x).


Next Steps

Future Growth

How is Fujitsu forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6702's forecast earnings growth (7.7% per year) is above the savings rate (-0.09%).

Earnings vs Market: 6702's earnings (7.7% per year) are forecast to grow slower than the JP market (9.4% per year).

High Growth Earnings: 6702's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6702's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: 6702's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6702's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Fujitsu performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6702 has a large one-off loss of ¥93.1B impacting its September 30 2019 financial results.

Growing Profit Margin: 6702's current net profit margins (2.2%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 6702's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: 6702's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6702 had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the IT industry average (19.1%).


Return on Equity

High ROE: 6702's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fujitsu's financial position?


Financial Position Analysis

Short Term Liabilities: 6702's short term assets (¥1,840.1B) exceed its short term liabilities (¥1,294.1B).

Long Term Liabilities: 6702's short term assets (¥1,840.1B) exceed its long term liabilities (¥531.6B).


Debt to Equity History and Analysis

Debt Level: 6702's debt to equity ratio (59.3%) is considered high.

Reducing Debt: 6702's debt to equity ratio has reduced from 120.9% to 59.3% over the past 5 years.

Debt Coverage: 6702's debt is well covered by operating cash flow (22%).

Interest Coverage: 6702's interest payments on its debt are well covered by EBIT (94.4x coverage).


Balance Sheet

Inventory Level: 6702 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6702's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Fujitsu's current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Fujitsu before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.3%markettop25%2.9%industryaverage1.4%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: 6702's dividend (1.58%) is higher than the bottom 25% of dividend payers in the JP market (1.34%).

High Dividend: 6702's dividend (1.58%) is low compared to the top 25% of dividend payers in the JP market (2.92%).


Stability and Growth of Payments

Stable Dividend: 6702's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6702's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), 6702's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Fujitsu's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Shigeru Sasaki 0

2.7yrs

Tenure

0

Shigeru Sasaki has been the Chief Executive Officer of Fujitsu Limited since April 2017. Shigeru Sasaki served as the Chief Executive Officer of Fujitsu Laboratories Ltd. since April 01, 2016 until Decembe ...


Management Age and Tenure

2.7yrs

Average Tenure

60.5yo

Average Age

Experienced Management: 6702's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

65yo

Average Age

Experienced Board: 6702's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Masami Yamamoto (65yo)

    Senior Advisor & Director

    • Tenure: 9.5yrs
    • Compensation: JP¥122.00m
  • Eithne Wallis

    Managing Director of Government Division

    • Tenure: 10.6yrs
  • Shigeru Sasaki

    Chief Executive Officer and Representative Director

    • Tenure: 2.7yrs
  • Mitsuya Yasui (60yo)

    Head of Global Corporate Functions

    • Tenure: 0.5yrs
  • Takeshi Isobe

    Executive VP

    • Tenure: 0.4yrs
  • Hidehiro Tsukano (61yo)

    Corporate Executive Officer

    • Tenure: 3.8yrs
  • Hidenori Furuta

    CTO, CIO

    • Tenure: 0.5yrs
  • Katsumi Nakano

    Executive VP

    • Tenure: 3.8yrs
  • Takahito Tokita (57yo)

    President

    • Tenure: 0.5yrs
  • Isamu Yamamori

    EVP of Pub Policy

    • Tenure: 3.6yrs

Board Members

  • Kazuto Kojima (76yo)

    Independent Director

    • Tenure: 1.5yrs
  • Atsushi Abe (65yo)

    External Director

    • Tenure: 4.5yrs
  • Masami Yamamoto (65yo)

    Senior Advisor & Director

    • Tenure: 9.5yrs
    • Compensation: JP¥122.00m
  • Shigeru Sasaki

    Chief Executive Officer and Representative Director

    • Tenure: 2.7yrs
  • Mitsuya Yasui (60yo)

    Head of Global Corporate Functions

    • Tenure: 0.5yrs
  • Tatsuya Tanaka (63yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: JP¥126.00m
  • Hidenori Furuta

    CTO, CIO

    • Tenure: 0.5yrs
  • Jun Yokota (72yo)

    External Director

    • Tenure: 5.5yrs
  • Takahito Tokita (57yo)

    President

    • Tenure: 0.5yrs
  • Chiaki Mukai (66yo)

    External Director

    • Tenure: 4.5yrs

Company Information

Fujitsu Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fujitsu Limited
  • Ticker: 6702
  • Exchange: TSE
  • Founded: 1923
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥2.038t
  • Shares outstanding: 202.69m
  • Website: https://www.fujitsu.com

Number of Employees


Location

  • Fujitsu Limited
  • Shiodome City Center
  • 1-5-2 Higashi-Shimbashi
  • Tokyo
  • 105-7123
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FJTS.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
6702TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
FUJ1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
FJTS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 1980

Biography

Fujitsu Limited operates as an information and communication technology (ICT) company. The company's Technology Solutions segment offers system integration services, including system construction and busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 14:51
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.