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6702:TSEFujitsu Limited Analysis

Data as of 2026-07-29 - not real-time

¥3,844.00

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Fujitsu appears materially undervalued as its discounted cash flow estimate sits well above the current market price, offering a clear upside potential. The company trades at a price‑earnings multiple comfortably below the industry average and delivers a modest dividend yield with a low payout ratio, supporting the view that the dividend is sustainable. Fundamentally, Fujitsu maintains a strong cash position, manageable leverage, and solid profitability margins, while recent AI partnership announcements and a dividend increase provide fresh growth catalysts.
From a technical perspective, the stock is perched near a key resistance level with a bullish MACD histogram and rising volume, though the RSI signals an overbought condition. The overall market sentiment is extremely positive, reflected in an “Extreme Greed” index reading, suggesting momentum may continue in the short run despite the neutral trend classification.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 7/10

Key Factors

  • Bullish MACD momentum
  • Proximity to resistance level
  • Overbought RSI caution

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • DCF implied upside
  • Sustainable dividend with low payout
  • AI partnership growth narrative

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Strong cash generation and low leverage
  • Stable earnings margins
  • Strategic position in global IT services

Key Metrics & Analysis

Financial Health

Profit Margin12.83%
P/E Ratio22.0
ROE15.62%
ROA6.54%
Debt/Equity6.51
P/B Ratio3.3
Op. Cash Flow¥338.1B
Free Cash Flow¥622.4B
Industry P/E31.8

Technical Analysis

TrendNeutral
RSI72.7
Support¥3,181.00
Resistance¥3,846.00
MA 20¥3,368.45
MA 50¥3,360.14
MA 200¥3,722.75
MACDBullish
VolumeIncreasing
Fear & Greed Index88.07

Valuation

Fair Value¥4,800.37
Target Price¥4,566.15
Upside/Downside18.79%
GradeUndervalued
TypeBlend
Dividend Yield1.49%

Risk Assessment

Beta0.33
Volatility38.86%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.