Fujitsu Ltd

Fujitsu maintains a strong liquidity position with cash and equivalents of ¥476.37 billion, which is significantly higher than its long-term debt of ¥283.44 billion, resulting in a debt-to-equity ratio of 0.16. The company's price-to-book ratio of 3.41 and price-to-tangible-book ratio of 3.41 suggest that the market values the company at a premium relative to its book value. However, the price-to-earnings ratio of 359.06 and EV/EBITDA of 274.31 indicate that the stock is trading at a high multiple, which may reflect investor expectations of future growth or market sentiment.

In terms of profitability, Fujitsu's return on equity (ROE) of 0.95% and return on assets (ROA) of 0.49% are below the industry median for IT Services & Consulting, suggesting that the company is underperforming its peers in generating returns from equity and total assets. The operating margin of 2.58% (calculated from operating income of ¥21.39 billion and revenue of ¥830.03 billion) is also below the industry median, indicating that the company is less efficient in converting revenue into operating profit.

Fujitsu's revenue is primarily concentrated in Japan, with a significant portion of its business derived from domestic clients. The company's exposure to international markets is limited, which may pose a risk in the event of economic downturns in Japan. The company's segments include IT services, systems, and devices, with IT services being the largest contributor to revenue.

Looking at the growth trajectory, Fujitsu's revenue has shown a modest increase in recent years, but the company's outlook for the current fiscal year is for a slight decline in revenue, with a projected decrease of 1.2%. The company's free cash flow of ¥755 million is relatively low, which may limit its ability to invest in growth opportunities or return capital to shareholders. The risk assessment indicates a low probability of dilution and no immediate liquidity concerns, which is a positive sign for investors.

Recent events, including filings and transcripts, have not indicated any significant changes in the company's strategic direction or financial health. The company's management has emphasized the importance of digital transformation and cloud services in driving future growth. Analysts have provided a range of price targets, with a mean of ¥4,704 and a median of ¥4,800, suggesting a generally positive outlook despite the high valuation multiples.

Net income surged 104.5% year-over-year to JPY 449.4 billion in FY2026, demonstrating strong bottom-line growth.

Free cash flow jumped 80.6% to JPY 289.1 billion, significantly outpacing the cohort median cash conversion performance.

Analysts project 43.2% upside to a mean price target of JPY 4,704, reflecting strong market confidence.

Operating income expanded 31.4% to JPY 348.3 billion, indicating improved operational efficiency and profitability.

Long-term debt decreased to JPY 133.1 billion, reducing leverage and strengthening the balance sheet position.

Revenue declined 1.3% year-over-year to JPY 3.5 trillion, signaling weakening top-line growth momentum.

Net margin of 2.0% remains well below the IT Services cohort median of 3.9%.

Return on equity of 0.95% lags the cohort median of 4.3%, indicating poor capital efficiency.

Revenue CAGR of -0.6% over four years highlights a persistent long-term decline in sales.

Revenue ¥1.05T, +13,3% YoY; Operating income −1,8% YoY.

• ▍Revenue ¥1.05T, +13,3% YoY
• ▍Operating income −1,8% YoY
• ▍Net income −19,8% YoY
• ▍Free cash flow +9,8% YoY
• ▍Net margin 10.1%

Revenue ¥884.64B, −4,3% YoY; Operating income +53,4% YoY.

• ▍Revenue ¥884.64B, −4,3% YoY
• ▍Operating income +53,4% YoY
• ▍Net income +55,9% YoY
• ▍Free cash flow +102,3% YoY
• ▍Net margin 9.2%

Revenue ¥816.68B, −5,8% YoY; Operating income +105,3% YoY.

• ▍Revenue ¥816.68B, −5,8% YoY
• ▍Operating income +105,3% YoY
• ▍Net income +381,0% YoY
• ▍Free cash flow +797,7% YoY
• ▍Net margin 11.0%

Revenue ¥749.86B, −9,7% YoY; Operating income +56,6% YoY.

• ▍Revenue ¥749.86B, −9,7% YoY
• ▍Operating income +56,6% YoY
• ▍Net income +917,8% YoY
• ▍Free cash flow +328,5% YoY
• ▍Net margin 22.9%

Revenue ¥928.68B; Operating income ¥139.82B.

• ▍Revenue ¥928.68B
• ▍Operating income ¥139.82B
• ▍Net margin 14.2%

Revenue ¥924.76B; Operating income ¥68.87B.

• ▍Revenue ¥924.76B
• ▍Operating income ¥68.87B
• ▍Net margin 5.7%

Revenue ¥866.65B; Operating income ¥35.01B.

• ▍Revenue ¥866.65B
• ▍Operating income ¥35.01B
• ▍Net margin 2.2%

Revenue ¥830.03B; Operating income ¥21.39B.

• ▍Revenue ¥830.03B
• ▍Operating income ¥21.39B
• ▍Net margin 2.0%

Revenue ¥3.50T, −1,3% YoY; Operating income +31,4% YoY.

• ▍Revenue ¥3.50T, −1,3% YoY
• ▍Operating income +31,4% YoY
• ▍Net income +104,5% YoY
• ▍Free cash flow +80,6% YoY
• ▍Net margin 12.8%

Revenue ¥3.55T, −5,5% YoY; Operating income +65,4% YoY.

• ▍Revenue ¥3.55T, −5,5% YoY
• ▍Operating income +65,4% YoY
• ▍Net income −13,6% YoY
• ▍Free cash flow −15,9% YoY
• ▍Net margin 6.2%

Revenue ¥3.76T, +1,1% YoY; Operating income −52,2% YoY.

• ▍Revenue ¥3.76T, +1,1% YoY
• ▍Operating income −52,2% YoY
• ▍Net income +18,3% YoY
• ▍Free cash flow −9,5% YoY
• ▍Net margin 6.8%

Revenue ¥3.71T, +3,5% YoY; Operating income +53,1% YoY.

• ▍Revenue ¥3.71T, +3,5% YoY
• ▍Operating income +53,1% YoY
• ▍Net income +17,8% YoY
• ▍Free cash flow −0,2% YoY
• ▍Net margin 5.8%