OTCPK:FJTS.F

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (16.5x) is below the US market (18.4x)

Earnings are forecast to grow 2.4% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet and fair value.


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: FJTS.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

FJTS.F

2.1%

US IT

1.5%

US Market


1 Year Return

46.8%

FJTS.F

37.2%

US IT

20.1%

US Market

Return vs Industry: FJTS.F exceeded the US IT industry which returned 37.2% over the past year.

Return vs Market: FJTS.F exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

FJTS.FIndustryMarket
7 Day0%2.1%1.5%
30 Dayn/a4.4%1.4%
90 Dayn/a13.9%8.7%
1 Year46.8%46.8%38.6%37.2%22.7%20.1%
3 Year1699.3%1699.3%112.3%103.1%50.1%40.5%
5 Year1794.0%1794.0%148.0%125.8%73.1%54.1%

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?

16.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FJTS.F ($100.76) is trading above our estimate of fair value ($65.24)

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


Price To Earnings Ratio

PE vs Industry: FJTS.F is good value based on its PE Ratio (16.5x) compared to the IT industry average (33.1x).

PE vs Market: FJTS.F is good value based on its PE Ratio (16.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: FJTS.F is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: FJTS.F is good value based on its PB Ratio (2.1x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Fujitsu forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FJTS.F's forecast earnings growth (2.4% per year) is above the savings rate (1.7%).

Earnings vs Market: FJTS.F's earnings (2.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: FJTS.F's revenue is expected to decline over the next 3 years (-0.01% per year).

High Growth Revenue: FJTS.F's revenue is forecast to decline over the next 3 years (-0.01% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FJTS.F's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Fujitsu performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FJTS.F has a large one-off loss of ¥93.1B impacting its December 31 2019 financial results.

Growing Profit Margin: FJTS.F's current net profit margins (3.9%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: FJTS.F's earnings have grown by 5.6% per year over the past 5 years.

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

Earnings vs Industry: FJTS.F had negative earnings growth (-7.5%) over the past year, making it difficult to compare to the IT industry average (12%).


Return on Equity

High ROE: FJTS.F's Return on Equity (11.6%) 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: FJTS.F's short term assets (¥1,867.0B) exceed its short term liabilities (¥1,315.4B).

Long Term Liabilities: FJTS.F's short term assets (¥1,867.0B) exceed its long term liabilities (¥483.5B).


Debt to Equity History and Analysis

Debt Level: FJTS.F's debt to equity ratio (57.6%) is considered high.

Reducing Debt: FJTS.F's debt to equity ratio has reduced from 122.5% to 57.6% over the past 5 years.

Debt Coverage: FJTS.F's debt is well covered by operating cash flow (39.5%).

Interest Coverage: FJTS.F's interest payments on its debt are well covered by EBIT (117.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: FJTS.F's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: FJTS.F's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FJTS.F's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.2%), FJTS.F'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?

3.8yrs

Average management tenure


CEO

Takahito Tokita (57yo)

0.7yrs

Tenure

0

Mr. Takahito Tokita has been President and Representative Director at Fujitsu Limited since June 24, 2019. He also serves as its CDXO since October 2019. He served as Head of Global Delivery Group, Technol ...


Leadership Team

NamePositionTenureCompensationOwnership
Takahito Tokita
President0.7yrsno data0.00049% ¥112.5k
Takeshi Isobe
Executive VP0.6yrsno datano data
Hidenori Furuta
CTO, CIO0.7yrsno data0.00072% ¥165.2k
Isamu Yamamori
EVP of Pub Policy3.8yrsno datano data
Masami Yamamoto
Senior Advisor & Director9.7yrsJP¥122.00m0.0084% ¥1.9m
Eithne Wallis
Managing Director of Government Division10.8yrsno datano data
Mitsuya Yasui
Head of Global Corporate Functions0.7yrsno data0.0018% ¥401.6k
Hidehiro Tsukano
Corporate Executive Officer4yrsno data0.0024% ¥543.9k
Katsumi Nakano
Executive VP4yrsno datano data
Hideki Kiwaki
Senior EVP3.8yrsno datano data

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: FJTS.F's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Takahito Tokita
President0.7yrsno data0.00049% ¥112.5k
Hidenori Furuta
CTO, CIO0.7yrsno data0.00072% ¥165.2k
Masami Yamamoto
Senior Advisor & Director9.7yrsJP¥122.00m0.0084% ¥1.9m
Mitsuya Yasui
Head of Global Corporate Functions0.7yrsno data0.0018% ¥401.6k
Kazuto Kojima
Independent Director1.7yrsno data0.00043% ¥98.7k
Atsushi Abe
External Director4.7yrsno data0.00097% ¥222.6k
Tatsuya Tanaka
Chairman0.7yrsJP¥126.00m0.0028% ¥651.8k
Jun Yokota
External Director5.7yrsno data0.00032% ¥73.4k
Chiaki Mukai
External Director4.7yrsno data0.0012% ¥266.2k
Yoshiko Kojo
External Director1.7yrsno data0.00012% ¥27.5k

1.7yrs

Average Tenure

65yo

Average Age

Experienced Board: FJTS.F's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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: FJTS.F
  • Exchange: OTCPK
  • Founded: 1923
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥2.519t
  • Listing Market Cap: JP¥22.949b
  • Shares outstanding: 202.68m
  • 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 business applications; consulting services; front-end technologies comprising ATMs, point-of-sale systems, etc.; and outsourcing services, including datacenters, ICT and application operation/management, SaaS, business process outsourcing, etc. This segment also provides network services, such as business networks and Internet/mobile content distribution; system support services, including maintenance and surveillance services for information systems and networks; and security solutions that include information systems and networks installation. In addition, it offers system products, such as servers, storage systems, and operating system and middleware software; and network management and optical transmission systems, and mobile phone base stations. The company's Ubiquitous Solutions segment provides personal computers and mobile phones, as well as navigation systems and mobile communication equipment. Its Device Solutions segment offers LSI devices for digital consumer electronics, automobiles, mobile phones, and servers; and electronic components, such as semiconductor packages, batteries, optical transceiver modules, printed circuit boards, relays, connectors, etc. The company also provides SAP infrastructure, industry, and business and technology solutions. It serves retail, automotive, manufacturing, financial, telecommunications, and healthcare sectors. The company operates in the Americas, Oceania, and Europe, the Middle East, and Africa, as well as Japan, India, and rest of Asia. Fujitsu Limited was founded in 1923 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:46
End of Day Share Price2020/01/30 00:00
Earnings2019/12/31
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.