Fujitsu Net Income vs. Return On Equity

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 Return On Equity vs. Net Income 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 one of the top stocks in net income category among its peers. It also is one of the top stocks in return on equity category among its peers . The ratio of Net Income to Return On Equity for Fujitsu Ltd ADR is about  1,493,793,949,305 . 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 Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Fujitsu

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
182.69 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Fujitsu

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Fujitsu Return On Equity Comparison

Fujitsu is currently under evaluation in return on equity 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

In addition to having Fujitsu in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Volatility ETFs Thematic Idea Now

Volatility ETFs
Volatility ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Volatility ETFs theme has 27 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Volatility ETFs Theme or any other thematic opportunities.
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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.