TSE:6702

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Fujitsu Limited operates as an information and communication technology (ICT) company in japan and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6702's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

6702

2.0%

JP IT

0.6%

JP Market


1 Year Return

36.0%

6702

26.5%

JP IT

4.7%

JP Market

Return vs Industry: 6702 exceeded the JP IT industry which returned 26.5% over the past year.

Return vs Market: 6702 exceeded the JP Market which returned 4.7% over the past year.


Shareholder returns

6702IndustryMarket
7 Day0%2.0%0.6%
30 Day12.0%10.7%9.8%
90 Day1.1%6.7%8.5%
1 Year38.3%36.0%28.5%26.5%7.3%4.7%
3 Year81.4%71.9%81.3%72.7%9.5%1.9%
5 Year132.6%113.7%121.6%103.5%30.6%16.0%

Long-Term 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?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6702 (¥13865) is trading below our estimate of fair value (¥14748.5)

Significantly Below Fair Value: 6702 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6702 is good value based on its PE Ratio (19.4x) compared to the JP IT industry average (29.3x).

PE vs Market: 6702 is poor value based on its PE Ratio (19.4x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6702 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 6702 is good value based on its PB Ratio (2.2x) compared to the JP IT industry average (3x).


Next Steps

Future Growth

How is Fujitsu forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6702's forecast earnings growth (8.4% per year) is above the savings rate (0.05%).

Earnings vs Market: 6702's earnings (8.4% per year) are forecast to grow slower than the JP market (17.7% per year).

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

Revenue vs Market: 6702's revenue (2% per year) is forecast to grow slower than the JP market (5.5% per year).

High Growth Revenue: 6702's revenue (2% per year) is forecast to grow slower than 20% 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 (12.3%).


Next Steps

Past Performance

How has Fujitsu performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6702 has high quality earnings.

Growing Profit Margin: 6702's current net profit margins (3.9%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 6702's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: 6702's earnings growth over the past year (63.4%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: 6702 earnings growth over the past year (63.4%) exceeded the IT industry 6.4%.


Return on Equity

High ROE: 6702's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Fujitsu's financial position?


Financial Position Analysis

Short Term Liabilities: 6702's short term assets (¥1,731.4B) exceed its short term liabilities (¥1,224.6B).

Long Term Liabilities: 6702's short term assets (¥1,731.4B) exceed its long term liabilities (¥409.1B).


Debt to Equity History and Analysis

Debt Level: 6702's debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: 6702's debt to equity ratio has reduced from 110.2% to 38.7% over the past 5 years.

Debt Coverage: 6702's debt is well covered by operating cash flow (74.1%).

Interest Coverage: 6702 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6702's dividend (1.44%) is higher than the bottom 25% of dividend payers in the JP market (1.27%).

High Dividend: 6702's dividend (1.44%) is low compared to the top 25% of dividend payers in the JP market (3.04%).


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 (28%), 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

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Takahito Tokita (58 yo)

1.5yrs

Tenure

Mr. Takahito Tokita has been Representative Director at Fujitsu Limited since June 24, 2019 and serves as its Chief Executive Officer since 2020. He also serves as CDXO at Fujitsu Limited since October 201...


Leadership Team

NamePositionTenureCompensationOwnership
Takahito Tokita
CEO, CDXO & Representative Director1.5yrsno data0.00050%
¥ 14.0m
Takeshi Isobe
Executive VP0.50yrno data0.000030%
¥ 841.4k
Hidenori Furuta
COO & Representative Director1.5yrsno data0.00073%
¥ 20.5m
Yuzuru Fukuda
CIO, Assistant CDXO & Corporate Executive Officer0.92yrno datano data
Isamu Yamamori
Head of Public and IR Division4.58yrsno datano data
Kyoko Mizuguchi
General Counsel0.92yrno datano data
Hiroki Hiramatsu
Head of Global Human Resources & Corporate Affairs Unit and Corporate Executive Officer0.92yrno datano data
Masami Yamamoto
Senior Advisor & Director10.5yrsJP¥122.00m0.0087%
¥ 242.9m
Eithne Wallis
Managing Director of Government Division11.58yrsno datano data
Katsumi Nakano
Head of Japan Business Group & Corporate Executive Officer4.83yrsno datano data
Hideki Kiwaki
Vice Head of Technology Solutions Business & Corporate Executive Officer4.58yrsno datano data
Masaki Kubota
Head of Japan Region4.83yrsno datano data

1.5yrs

Average Tenure

58yo

Average Age

Experienced Management: 6702's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Takahito Tokita
CEO, CDXO & Representative Director1.5yrsno data0.00050%
¥ 14.0m
Takeshi Isobe
Executive VP0.50yrno data0.000030%
¥ 841.4k
Hidenori Furuta
COO & Representative Director1.5yrsno data0.00073%
¥ 20.5m
Masami Yamamoto
Senior Advisor & Director10.5yrsJP¥122.00m0.0087%
¥ 242.9m
Atsushi Abe
Independent External Director5.5yrsno data0.0012%
¥ 33.7m
Megumi Yamamuro
Audit & Supervisory Board Member15.5yrsno datano data
Scott Anderberg Callon
Independent Director0.50yrno datano data
Youichi Hirose
Audit & Supervisory Board Memberno datano datano data
Koji Hatsukawa
External Audit & Supervisory Board Memberno datano data0.00075%
¥ 21.0m
Jun Yokota
Independent External Director6.5yrsno data0.00041%
¥ 11.5m
Chiaki Mukai
Independent Director5.5yrsno data0.0014%
¥ 39.3m
Yoshiko Kojo
Independent External Director2.5yrsno data0.00025%
¥ 7.0m

4.0yrs

Average Tenure

66yo

Average Age

Experienced Board: 6702's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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¥2.805t
  • Shares outstanding: 200.27m
  • 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)UNSP ADR EACH REP 0.2 ORD SHSUSUSDJan 1980
FUJADB (Deutsche Boerse AG)UNSP ADR EACH REP 0.2 ORD SHSDEEURJan 1980

Biography

Fujitsu Limited operates as an information and communication technology (ICT) company in japan and internationally. The company operates through Technology Solutions, Ubiquitous Solutions, and Device Solut...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 08:14
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.