Nippon Telegraph and Telephone (9432) AI Stock Analysis

• Market Cap: $13.49T
• Dividend Yield: 3.32%
• Average Volume (3M): 163.51M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.48
• Revenue Growth: 1.65%
• EPS Growth: -15.29%
• Country: JP
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 3.14
• Shares Outstanding: 90,550,310,000
• 10 Day Avg. Volume: 184,869,517
• 30 Day Avg. Volume: 163,509,546
• PEG Ratio: -0.58
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 52.21
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 12.42
• Enterprise Value/Ebitda: 7.40
• 1Y Price Target: $149.46
• Price Target Upside: -5.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥174.00 ▲(9.92% Upside)

The overall stock score of 73 reflects strong financial performance and attractive valuation, which are the most significant factors. The technical analysis suggests a neutral to slightly bearish trend, which slightly offsets the positive financial and valuation aspects.

Nippon Telegraph and Telephone Business Overview & Revenue Model

Company Description

NTT, Inc. operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. Its Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers system integration, network system, cloud, global center, and related services, as well as consulting, managed, and system and software development services. Its Others segment engages in the real estate and construction, energy, and other businesses. The company was formerly known as Nippon Telegraph and Telephone Corporation and changed its name to NTT, Inc. in July 2025. NTT, Inc. was founded in 1952 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NTT generates revenue primarily through its diverse telecommunications services, including fixed-line and mobile voice services, broadband internet, and data communications. Key revenue streams include subscription fees from residential and business clients, mobile service charges, and enterprise solutions. The company also earns income from its IT services through NTT Data, which provides consulting, system integration, and managed services. Significant partnerships with global technology firms and its investments in advanced technologies such as 5G networks and cloud computing further contribute to its earnings by expanding service offerings and enhancing operational efficiency.

Nippon Telegraph and Telephone Financial Statement Overview

Summary

Nippon Telegraph and Telephone demonstrates strong revenue growth and cash flow generation, which are positive indicators for future performance. However, the increasing leverage and declining gross profit margins are areas of concern that need to be addressed to ensure long-term financial stability and profitability.

Income Statement

The company shows a strong revenue growth rate of 16.1% in the TTM, indicating robust expansion. However, the gross profit margin has decreased compared to previous years, suggesting rising costs. The net profit margin is stable, but lower than the industry average, indicating room for improvement in profitability.

Balance Sheet

The debt-to-equity ratio has increased to 1.48 in the TTM, reflecting higher leverage which could pose a risk if not managed properly. The return on equity is solid at 9.91%, though it has declined from previous years, indicating a slight decrease in efficiency in generating returns from equity.

Cash Flow

The free cash flow growth rate is impressive at 132.24% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, the free cash flow to net income ratio suggests that not all earnings are being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.73T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.04T	2.39T	2.63T	2.50T	2.46T	2.36T
EBITDA	3.42T	3.42T	3.70T	3.46T	3.39T	3.20T
Net Income	985.59B	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	31.00T	30.93T	30.43T	25.76T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	2.03T	1.61T	1.05T	859.65B	888.65B	965.09B
Total Debt	13.90T	11.29T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	20.92T	19.59T	19.54T	16.41T	14.84T	14.76T
Stockholders Equity	9.40T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	538.20B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.70T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-3.39T	-2.01T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	1.63T	-328.64B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph and Telephone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 158.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9432, the sentiment is Positive. The current price of 158.3 is above the 20-day moving average (MA) of 154.94, above the 50-day MA of 156.38, and above the 200-day MA of 149.71, indicating a bullish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9432.

Nippon Telegraph and Telephone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	75 Outperform	¥246.91B	19.56	13.98%	2.44%	7.33%	10.59%
9432	73 Outperform	$13.49T	13.38	10.39%	3.32%	1.65%	-15.29%
9433	70 Outperform	$8.96T	13.95	13.28%	3.27%	2.66%	11.83%
3774	70 Neutral	$479.13B	23.07	15.20%	1.39%	12.19%	4.12%
9984	63 Neutral	$33.69T	19.32	15.53%	0.19%	6.69%	2988.22%
9434	61 Neutral	¥10.25T	20.40	―	3.99%	7.71%	-1.03%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Nippon Telegraph and Telephone Corporate Events

NTT DOCOMO Initiates Tender Offer for CARTA HOLDINGS

NTT DOCOMO, a subsidiary of NTT, Inc., announced the commencement of a tender offer to acquire CARTA HOLDINGS Inc. shares, aiming to delist the company and form a business and capital alliance with Dentsu Group Inc. The tender offer is part of a strategic move to consolidate ownership and enhance market positioning, with regulatory procedures in Japan and South Korea completed, and pending in China.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Reports Mixed Financial Results for Q2 2025

NTT reported a slight increase in operating revenues for the three months ended June 30, 2025, compared to the same period in 2024, but experienced declines in operating profit, profit before taxes, and profit attributable to NTT. The company’s equity ratio also decreased, indicating a shift in its financial position. Despite these declines, NTT has maintained its dividend forecasts for the fiscal year ending March 31, 2026, suggesting confidence in its long-term financial stability. The announcement highlights the challenges NTT faces in maintaining profitability amidst changing market conditions.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Completes Successful Tender Offer for NTT DATA Shares

NTT has successfully completed a tender offer to acquire shares of NTT DATA Group Corporation, purchasing a total of 336,797,773 shares, which exceeded the minimum requirement of 125,314,700 shares. This acquisition strengthens NTT’s position in the data services sector, potentially enhancing its market influence and operational capabilities.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT DOCOMO to Acquire CARTA HOLDINGS and Form Alliance with Dentsu Group

NTT DOCOMO, a subsidiary of Nippon Telegraph and Telephone Corporation, announced plans to acquire CARTA HOLDINGS Inc. through a tender offer and establish a business and capital alliance with CARTA’s parent company, Dentsu Group Inc. This strategic move aims to delist CARTA HOLDINGS from the Tokyo Stock Exchange, making NTT DOCOMO and Dentsu Group the sole shareholders, thereby strengthening NTT’s market position and expanding its business operations.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Announces Amendments to Tender Offer for SBI Sumishin Net Bank

NTT announced changes to its previous notice regarding a tender offer by its subsidiary, NTT DOCOMO, for SBI Sumishin Net Bank. The tender offer, which began on May 30, 2025, received necessary approvals from the Financial Services Agency, leading to amendments in the tender offer statement and related documents. These changes do not affect the conditions of purchase, maintaining the stability of the offer and potentially strengthening NTT’s market position in the financial services sector.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT DOCOMO to Acquire SBI Sumishin Net Bank and Form Strategic Alliance

NTT announced that its subsidiary, NTT DOCOMO, will acquire SBI Sumishin Net Bank through a tender offer and establish a business alliance with SBI Holdings and Sumitomo Mitsui Trust Bank. This strategic move aims to take SBI Sumishin Net Bank private, ultimately making it a consolidated subsidiary of NTT DOCOMO, enhancing NTT’s market positioning and operational capabilities in the financial services sector.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen160.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Forms Strategic Alliance with SBI Holdings to Enhance Financial Services

NTT has entered into a capital and business alliance with SBI Holdings to create innovative financial services and enhance customer convenience in a rapidly evolving digital society. This alliance includes NTT DOCOMO’s acquisition of SBI Sumishin Net Bank’s stock and aims to strengthen collaborations in banking, asset management, and renewable energy sectors, contributing to sustainable growth and societal development.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen160.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Addresses Media Speculation on Banking Sector Entry

NTT has acknowledged media reports about its subsidiary, NTT DOCOMO, potentially entering the banking sector through acquiring SBI Sumishin Net Bank. However, NTT clarifies that these reports are not based on any official announcement from the company. The matter is set to be discussed in NTT DOCOMO’s Board of Directors meeting, and further announcements will be made if necessary.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen160.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.