Fact based stock research
Fujitsu (TSE:6702)

JP3818000006

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Fujitsu stock research in summary

fujitsu.com

ANALYSIS: With an Obermatt Combined Rank of 44 (worse than 56% compared with investment alternatives), Fujitsu (IT Consulting & oth. Services, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Fujitsu are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives), show above-average growth (Growth Rank of 57) but are riskily financed (Safety Rank of 33), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 44, is a hold recommendation based on Fujitsu's financial characteristics. As the company Fujitsu's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 57) and above-average growth (Obermatt Growth Rank of 57), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 33) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	57
Growth Rank	57
Safety Rank	33
Combined Rank	44

Country	Japan
Industry	IT Consulting & oth. Services
Index	TOPIX 100, Recycling, Nikkei 225
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Fujitsu

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	77	61	57
GROWTH
GROWTH	45	49	25	57
SAFETY
SAFETY	80	35	34	33
SENTIMENT
SENTIMENT	n/a	74	47	^new
360° VIEW
360° VIEW	n/a	64	31	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Fujitsu is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	77	61	57
GROWTH
GROWTH	45	49	25	57
SAFETY
SAFETY	80	35	34	33
COMBINED
COMBINED	97	53	19	44

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Fujitsu the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), Fujitsu shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Fujitsu. Price-to-Sales is 65 which means that the stock price compared with what market professionals expect for future sales is lower than for 65% of comparable companies, indicating a good value for Fujitsu's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 63% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 53. Compared with other companies in the same industry, dividend yields of Fujitsu are expected to be higher than for 56% of all competitors (a Dividend Yield rank of 56). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 57, is a buy recommendation based on Fujitsu's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Fujitsu based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90	89	78	65
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	90	81	70	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	50	75	61	53
DIVIDEND YIELD
DIVIDEND YIELD	82	61	54	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	77	61	57

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Fujitsu; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Fujitsu shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Fujitsu. Capital Growth has a rank of 97, which means that currently professionals expect the company to grow its invested capital more than 19% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has only a rank of 6, which means that, currently, professionals expect the company to grow less than 94% of its competitors, and Profit Growth is also low at a rank of 19. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Fujitsu, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	16	10	12	6
PROFIT GROWTH
PROFIT GROWTH	29	22	27	19
CAPITAL GROWTH
CAPITAL GROWTH	n/a	91	42	97
STOCK RETURNS
STOCK RETURNS	76	77	57	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	45	49	25	57

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Fujitsu.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 33 (better than 33% compared with alternatives), the company Fujitsu has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Fujitsu is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Fujitsu. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 49, meaning the company has an above-average debt-to-equity ratio. It has more debt than 51% of its competitors. Finally, Refinancing is at a rank of 37 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 33 (worse than 67% compared with alternatives), Fujitsu has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Fujitsu because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	40	31	45	49
REFINANCING
REFINANCING	82	49	45	37
LIQUIDITY
LIQUIDITY	81	55	53	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	80	35	34	33

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Fujitsu and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	53	45	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	31	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	96	98	^new
MARKET PULSE
MARKET PULSE	n/a	42	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	74	47	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Fujitsu.
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