Back to top

Analyst Blog

On Jun 17, 2013, we maintained photographic image company, Fujifilm Holdings Corporation (FUJIY - Analyst Report), at Underperform based on the company’s disappointing business prospects.

Why Underperform?

Fujifilm has been facing a continuous downward trend in its traditional businesses over the past few quarters with no visible signs of improvement. The introduction of smart phones as well as digital cameras has been usurping the company’s market share.

Fiscal 2013 revenues were negatively impacted by a reduction in demand for compact digital cameras, resulting in reduced revenues for the Imaging Solutions segment. Further, a decline of 30.0% is feared in the electronic imaging business in the coming fiscal year. Moreover, a reduction in the demand for IT equipment also hampered revenues. 

A significant amount of revenue is derived from Fujifilm’s Documents segment, which has been performing poorly, of late. The segment experienced a decline in its operating profit to the tune of 7.2% year over year in fiscal 2013. This was a result of change in product mix as well as declining unit selling prices. Moreover, total shipments by Fuji Xerox Corporation diminished during fiscal fourth quarter.

Also, the recent downturn of the European economy was a major blow to the company’s financials in fiscal 2013. Additionally, the company’s results are hurt by the ever increasing prices of raw materials. This may induce high cost of production, impacting margins.

Other Stocks to Consider

Due to its diversified product offerings, Fujifilm faces stiff competition from various market players. Although, there aren’t many companies which offer the same range of products as Fujifilm, the company has to contend with its peers, which makes it even harder for Fuji to keep innovating and experimenting. Some of the companies that compete with Fujifilm are Alliance Fiber Optic Products Inc. (AFOP - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy), whereas, Axcelis Technologies Inc. (ACLS - Snapshot Report) and Ciena Corporation (CIEN - Analyst Report) carry a Zacks Rank #2 (Buy), each.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%