Back to top

Analyst Blog

We issued an updated research report on Fujifilm Holdings Corporation (FUJIY - Analyst Report) on May 27, 2014. The company reported mixed results for the fiscal fourth quarter of 2014 (ended Mar 31, 2014). Earnings per ADR (American Depositary Receipt) dropped 27% year over year to 37 cents, while revenues increased 10% year over year to ¥665.6 billion ($6,473.1 million). The rise was attributable to strong sales in the medical systems business, graphic systems business, documents business and favorable effects of yen depreciation.

The medical systems business is expected to register a double-digit year-over-year sales growth in fiscal 2015. Additionally, the company is optimistic of registering a rise in the sales of its subsidiaries Toyama Chemical and Fujifilm Pharma. Moreover, yen exchange rate is expected to remain low in fiscal 2015, which will boost revenues.

Fujifilm has been attempting to increase shareholders value over the past quarters. In fiscal 2014, the company paid an ordinary dividend of ¥20.00 per ADR, while another ¥20.00 of ordinary dividend and ¥10.00 per ADR of special dividend are expected to be disbursed for fiscal 2014.

However, Fujifilm has been exposed to international socio-political risks due to its overseas operations. Moreover, the company is affected by the ever-increasing prices of raw materials, hurting margins.

Fujifilm’s diversified product portfolio exposes it to stiff competition from different players for various products. Thus, it becomes difficult for the company to manage its prices while checking costs. Also, the traditional photo imaging business of the company is expected to decline because of competition from smartphones and camera-equipped cellphones.

With a market capitalization of $12.8 billion, Fujifilm currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the industry include Cohu, Inc. (COHU - Snapshot Report), Kulicke and Soffa Industries, Inc. (KLIC - Snapshot Report) and Ultratech, Inc. (UTEK - Snapshot Report). While Cohu and Kulicke and Soffa Industries sport a Zacks Rank #1 (Strong Buy), Ultratech has a Zacks Rank #2 (Buy).

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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%