Nippon Telegraph and Telephone Corporation (JP:9432)
:9432
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Nippon Telegraph and Telephone
(9432)
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Rating:57Neutral
Price Target:
¥155.00
▲(0.65% Upside)
Action:Reiterated
Date:05/10/26
The score is held back mainly by weakening cash flow (negative free cash flow) and higher leverage, reinforced by bearish technicals (below major moving averages with negative MACD). These risks are partly balanced by an inexpensive valuation (low P/E) and a solid dividend yield.
Positive Factors
Diversified telecom & ICT portfolio
NTT’s broad service mix across mobile, fixed broadband, enterprise ICT, global network and data centers creates durable, recurring revenue streams and cross-sell opportunities. This diversification reduces single-market cyclicality and supports long-term contract visibility and enterprise relationships.
Negative Factors
Rising leverage
A meaningful increase in leverage reduces financial flexibility and heightens sensitivity to higher funding costs. With substantially more debt on the balance sheet, NTT faces greater refinancing and interest-rate risk, which can constrain strategic spending and elevate downside in stressed scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified telecom & ICT portfolio
NTT’s broad service mix across mobile, fixed broadband, enterprise ICT, global network and data centers creates durable, recurring revenue streams and cross-sell opportunities. This diversification reduces single-market cyclicality and supports long-term contract visibility and enterprise relationships.
Read all positive factors
Nippon Telegraph and Telephone (9432) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.74T
Dividend Yield3.36%
Average Volume (3M)163.51M
Price to Earnings (P/E)11.6
Beta (1Y)0.34
Revenue Growth5.14%
EPS Growth5.49%
CountryJP
Employees338,467
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)12.60
Shares Outstanding90,550,310,000
10 Day Avg. Volume184,869,517
30 Day Avg. Volume163,509,546
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)1.33
Price to Sales (P/S)0.90
P/FCF Ratio-16.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.07
Revenue Forecast (FY)¥14.88T
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 off...
How the Company Makes Money
NTT primarily makes money by charging customers for communications connectivity and for enterprise IT/ICT services delivered through its operating subsidiaries. Major revenue streams include: (1) Mobile telecommunications: recurring monthly fees a...
Nippon Telegraph and Telephone Earnings Call Summary
Earnings Call Date:Feb 07, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there are positive developments in global solutions and Smart Life Business, the company faces significant challenges with declining profits and intense market competition affecting several key segments.Positive Updates
Record High Operating Revenue
Operating revenue increased by JPY332.9 billion, reaching a record high of JPY10,049.7 billion for the third quarter due to a boost in domestic and global revenue.
Negative Updates
Decrease in Operating Profit
Operating profit decreased by JPY87 billion, reaching JPY1,399.2 billion, due to a decline in communication service revenues and the impact of slowing down non-core assets.
Read all updates
Q3-2024 Updates
Positive
Negative
Record High Operating Revenue
Operating revenue increased by JPY332.9 billion, reaching a record high of JPY10,049.7 billion for the third quarter due to a boost in domestic and global revenue.
Read all positive updates
Company Guidance
During the call, NTT provided guidance on their financial results for the third quarter of fiscal year 2024, noting a record high operating revenue of JPY10,049.7 billion, an increase of JPY332.9 billion year-on-year, largely driven by domestic and global revenue growth, particularly from the Smart Life Business at Docomo. However, operating profit decreased by JPY87 billion to JPY1,399.2 billion due to declines in communication service revenues in mobile and fixed-line segments and measures to strengthen Docomo's customer base. Profit also fell by JPY160.4 billion to JPY850.7 billion, influenced by a rebound from gains on stock sales the previous year. EBITDA was reported at JPY2,552.5 billion, down JPY19.2 billion. The company highlighted challenges in achieving annual profit targets but emphasized ongoing efforts to enhance marketing and cost reduction initiatives. Additionally, they discussed segment-specific performances, including the Integrated ICT business, Regional Communication Business, and Global Solution business, each facing unique challenges and growth opportunities. Looking ahead, NTT expressed commitment to regional revitalization and urban development initiatives, expansion of their data center business, and participation in global events, such as the Mobile World Congress.Nippon Telegraph and Telephone Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.41T | 13.70T | 13.37T | 13.14T | 12.16T |
| Gross Profit | 2.20T | 2.39T | 2.63T | 2.50T | 2.46T |
| EBITDA | 3.70T | 3.42T | 3.70T | 3.46T | 3.39T |
| Net Income | 1.04T | 1.00T | 1.28T | 1.21T | 1.18T |
Balance Sheet | |||||
| Total Assets | 46.72T | 30.93T | 30.43T | 25.76T | 23.86T |
| Cash, Cash Equivalents and Short-Term Investments | 1.92T | 1.61T | 1.05T | 859.65B | 888.65B |
| Total Debt | 16.92T | 11.29T | 10.71T | 9.15T | 8.21T |
| Total Liabilities | 36.50T | 19.59T | 19.54T | 16.41T | 14.84T |
| Stockholders Equity | 9.73T | 10.22T | 9.84T | 8.56T | 8.28T |
Cash Flow | |||||
| Free Cash Flow | -770.54B | 231.74B | 290.15B | 409.13B | 1.25T |
| Operating Cash Flow | 1.49T | 2.36T | 2.37T | 2.26T | 3.01T |
| Investing Cash Flow | -3.33T | -2.01T | -1.99T | -1.74T | -1.70T |
| Financing Cash Flow | 2.74T | -328.64B | -234.45B | -590.20B | -1.44T |
Nippon Telegraph and Telephone Technical Analysis
Negative
154.00
Price Trends
153.18
Negative
152.88
Negative
153.00
Negative
Market Momentum
-0.54
Positive
42.32
Neutral
11.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9432, the sentiment is Negative. The current price of 154 is above the 20-day moving average (MA) of 151.37, above the 50-day MA of 153.18, and above the 200-day MA of 153.00, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 11.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9432.
Nippon Telegraph and Telephone Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥559.13B | 22.73 | 15.67% | 1.31% | 9.02% | 21.15% | |
73 Outperform | ¥10.26T | 18.73 | ― | 3.99% | 7.55% | 3.27% | |
70 Outperform | ¥327.52B | 24.76 | 13.42% | 2.27% | 2.41% | 9.05% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥12.74T | 11.58 | 11.22% | 3.36% | 5.14% | 5.49% | |
56 Neutral | ¥339.57B | 19.25 | 17.97% | 1.36% | 5.57% | 31.99% | |
56 Neutral | ¥9.86T | 14.36 | 13.75% | 2.85% | 4.05% | 13.53% |
* Communication Services Sector Average
JP:9432
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Nippon Telegraph and Telephone Corporate Events
NTT Overhauls Board Representation in Management Restructure
May 8, 2026
NTT, Inc. announced changes to its top leadership, with the Board deciding to adjust representative members of the board as part of a broader management restructuring. President and CEO Akira Shimada will be reappointed as president, while Senior ...
NTT Launches ¥200 Billion Share Buyback to Boost Capital Efficiency
May 8, 2026
NTT’s board has approved a new share repurchase program, authorizing the buyback of up to 1.4 billion shares, or about 1.72% of its outstanding common stock, for a total amount of up to 200 billion yen. The company plans to conduct the purch...
NTT Revamps Medium-Term Strategy and Incentives to Drive AI and Data Center Growth
May 8, 2026
NTT has partially revised its Medium-Term Management Strategy, resetting its financial targets to aim for consolidated EBITDA of 4 trillion yen and ROIC of 5.5% by fiscal 2030, excluding financial businesses. The company plans to broaden value-add...
NTT Issues Fiscal 2026 Results and Cautious Outlook for 2027
May 8, 2026
NTT released its financial results for the fiscal year ended March 31, 2026, along with forecasts for the year ending March 31, 2027. The company emphasized that its projections are based on current information and assumptions about its operations...
NTT lifts full-year revenue and profit as infrastructure spending rises
May 8, 2026
NTT reported consolidated IFRS results for the fiscal year ended March 31, 2026, showing growth in operating revenues, expenses, and EBITDA, with an improving EBITDA margin and higher profit attributable to the company. Segment data and quarterly ...
NTT lifts revenues and earnings, raises dividend but signals softer profit outlook
May 8, 2026
NTT reported a 5.1% rise in operating revenues to ¥14.41 trillion and a 3.4% increase in operating profit to ¥1.71 trillion for the year ended March 31, 2026, while profit attributable to the company grew 3.7% to ¥1.04 trillion and ...
NTT Completes ¥200 Billion Share Repurchase Program
Feb 18, 2026
NTT has completed a board-authorized share repurchase program of its common stock, conducted under Japan’s Companies Act, signaling an active capital return policy to shareholders. The latest tranche ran from February 2 to February 17, 2026,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.