Fujitsu Current Valuation vs. Operating Margin

FJTSY Stock  USD 18.45  0.24  1.28%   
Based on Fujitsu's profitability indicators, Fujitsu Ltd ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Fujitsu's ability to earn profits and add value for shareholders.
For Fujitsu profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fujitsu to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fujitsu Ltd ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fujitsu's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fujitsu Ltd ADR over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Fujitsu's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fujitsu is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fujitsu's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fujitsu Ltd ADR Operating Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fujitsu's current stock value. Our valuation model uses many indicators to compare Fujitsu value to that of its competitors to determine the firm's financial worth.
Fujitsu Ltd ADR is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Fujitsu Ltd ADR is about  318,207,050,963 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Fujitsu by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fujitsu's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Fujitsu Current Valuation vs. Competition

Fujitsu Ltd ADR is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is currently estimated at about 420.14 Billion. Fujitsu holds roughly 24.79 Billion in current valuation claiming about 6% of equities under Information Technology industry.

Fujitsu Operating Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Fujitsu

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
24.79 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Fujitsu

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.08 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Fujitsu Operating Margin Comparison

Fujitsu is currently under evaluation in operating margin category among its peers.

Fujitsu Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fujitsu, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fujitsu will eventually generate negative long term returns. The profitability progress is the general direction of Fujitsu's change in net profit over the period of time. It can combine multiple indicators of Fujitsu, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Fujitsu Limited operates as an information and communication technology company in Japan and internationally. Fujitsu Limited was founded in 1923 and is headquartered in Tokyo, Japan. Fujitsu operates under Information Technology Services classification in the United States and is traded on OTC Exchange. It employs 124216 people.

Fujitsu Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fujitsu. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fujitsu position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fujitsu's important profitability drivers and their relationship over time.

Use Fujitsu in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fujitsu position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fujitsu will appreciate offsetting losses from the drop in the long position's value.

Fujitsu Pair Trading

Fujitsu Ltd ADR Pair Trading Analysis

The ability to find closely correlated positions to Fujitsu could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fujitsu when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fujitsu - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fujitsu Ltd ADR to buy it.
The correlation of Fujitsu is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fujitsu moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fujitsu Ltd ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fujitsu can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Fujitsu position

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Steel Works Etc
Steel Works Etc Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Steel Works Etc theme has 54 constituents at this time.
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Additional Tools for Fujitsu Pink Sheet Analysis

When running Fujitsu's price analysis, check to measure Fujitsu's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fujitsu is operating at the current time. Most of Fujitsu's value examination focuses on studying past and present price action to predict the probability of Fujitsu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fujitsu's price. Additionally, you may evaluate how the addition of Fujitsu to your portfolios can decrease your overall portfolio volatility.