OTCPK:FJTS.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate 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


Market Performance


7 Day Return

0.1%

FJTS.Y

-4.6%

US IT

0.07%

US Market


1 Year Return

24.9%

FJTS.Y

19.0%

US IT

8.9%

US Market

Return vs Industry: FJTS.Y exceeded the US IT industry which returned 19% over the past year.

Return vs Market: FJTS.Y exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

FJTS.YIndustryMarket
7 Day0.1%-4.6%0.07%
30 Day0.6%-3.7%-0.3%
90 Day12.1%-7.8%-1.6%
1 Year24.9%24.9%20.2%19.0%11.3%8.9%
3 Year50.6%50.6%88.3%80.6%46.3%36.8%
5 Year26.8%26.8%136.9%115.2%62.1%44.3%

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?

46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FJTS.Y ($16.27) is trading above our estimate of fair value ($11.79)

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


Price To Earnings Ratio

PE vs Industry: FJTS.Y is poor value based on its PE Ratio (46x) compared to the IT industry average (36.1x).

PE vs Market: FJTS.Y is poor value based on its PE Ratio (46x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FJTS.Y is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: FJTS.Y is good value based on its PB Ratio (1.6x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

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

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FJTS.Y's forecast earnings growth (10.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FJTS.Y's earnings (10.5% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: FJTS.Y's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: FJTS.Y's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FJTS.Y's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Fujitsu performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FJTS.Y's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: FJTS.Y'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.Y had negative earnings growth (-83.4%) over the past year, making it difficult to compare to the IT industry average (9.8%).


Return on Equity

High ROE: FJTS.Y's Return on Equity (3.3%) is considered low.


Return on Assets

ROA vs Industry: FJTS.Y's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: FJTS.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fujitsu's financial position?


Financial Position Analysis

Short Term Liabilities: FJTS.Y's short term assets (¥1,749.8B) exceeds its short term liabilities (¥1,197.4B)

Long Term Liabilities: FJTS.Y's short term assets (1,749.8B) exceeds its long term liabilities (593.8B)


Debt to Equity History and Analysis

Debt Level: FJTS.Y's debt to equity ratio (58.4%) is considered high

Reducing Debt: FJTS.Y's debt to equity ratio has reduced from 135.2% to 58.4% over the past 5 years.

Debt Coverage: FJTS.Y's debt is not well covered by operating cash flow (15.4%).

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


Balance Sheet

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

Debt Coverage by Assets: FJTS.Y's debt is covered by short term assets (assets are 2.422360x debt).


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FJTS.Y's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FJTS.Y's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.5%), FJTS.Y's payments are 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?

2.5yrs

Average management tenure


CEO

Shigeru Sasaki 0

2.5yrs

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

2.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: FJTS.Y's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

65yo

Average Age

Experienced Board: FJTS.Y's board of directors are not considered experienced ( 1.9 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


Management Team

  • Masami Yamamoto (65yo)

    Senior Advisor & Director

    • Tenure: 9.3yrs
    • Compensation: JP¥122.00m
  • Eithne Wallis

    Managing Director of Government Division

    • Tenure: 10.4yrs
  • Shigeru Sasaki

    Chief Executive Officer and Representative Director

    • Tenure: 2.5yrs
  • Mitsuya Yasui (60yo)

    Head of Global Corporate Functions

    • Tenure: 0.3yrs
  • Takeshi Isobe

    Executive VP

    • Tenure: 0.3yrs
  • Hidehiro Tsukano (61yo)

    Corporate Executive Officer

    • Tenure: 3.7yrs
  • Hidenori Furuta

    CTO, CIO

    • Tenure: 0.3yrs
  • Katsumi Nakano

    Executive VP

    • Tenure: 3.7yrs
  • Takahito Tokita (57yo)

    President

    • Tenure: 0.3yrs
  • Isamu Yamamori

    EVP of Pub Policy

    • Tenure: 3.4yrs

Board Members

  • Kazuto Kojima (76yo)

    Director

    • Tenure: 1.3yrs
  • Atsushi Abe (65yo)

    External Director

    • Tenure: 4.3yrs
  • Masami Yamamoto (65yo)

    Senior Advisor & Director

    • Tenure: 9.3yrs
    • Compensation: JP¥122.00m
  • Shigeru Sasaki

    Chief Executive Officer and Representative Director

    • Tenure: 2.5yrs
  • Mitsuya Yasui (60yo)

    Head of Global Corporate Functions

    • Tenure: 0.3yrs
  • Tatsuya Tanaka (63yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: JP¥122.00m
  • Hidenori Furuta

    CTO, CIO

    • Tenure: 0.3yrs
  • Jun Yokota (72yo)

    External Director

    • Tenure: 5.3yrs
  • Takahito Tokita (57yo)

    President

    • Tenure: 0.3yrs
  • Chiaki Mukai (66yo)

    External Director

    • Tenure: 4.3yrs

Company Information

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


Key Information

  • Name: Fujitsu Limited
  • Ticker: FJTS.Y
  • Exchange: OTCPK
  • Founded: 1923
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥1.783t
  • Listing Market Cap: JP¥16.424b
  • 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 busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:45
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.