Nippon Telegraph and Telephone Corporation (JP:9432)
:9432
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Nippon Telegraph and Telephone
(9432)
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Rating:56Neutral
Price Target:
¥157.00
▲(0.38% Upside)
Action:DowngradedDate:02/07/26
The score is held back mainly by weakening cash flow (TTM free cash flow turning slightly negative) and increased leverage, plus bearish technical momentum below key moving averages. These risks are partially offset by a relatively attractive valuation (modest P/E and solid dividend yield) and a still-profitable core business.
Positive Factors
Diversified recurring-revenue model
NTT's business spans mobile, fixed broadband, enterprise ICT, data centers and cloud with substantial subscription and multi-year contract revenue. This diversified, recurring-revenue mix creates durable cash flow backbones, customer stickiness, and lower volatile sales exposure over months to years.
Negative Factors
Rising leverage
The step-up in leverage meaningfully increases financial risk and reduces balance-sheet flexibility. Higher debt amplifies interest-cost sensitivity and limits capacity for opportunistic investments or defensive spending if earnings weaken or rates rise, pressuring long-term resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified recurring-revenue model
NTT's business spans mobile, fixed broadband, enterprise ICT, data centers and cloud with substantial subscription and multi-year contract revenue. This diversified, recurring-revenue mix creates durable cash flow backbones, customer stickiness, and lower volatile sales exposure over months to years.
Read all positive factors
Nippon Telegraph and Telephone (9432) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥13.42T
Dividend Yield3.36%
Average Volume (3M)163.51M
Price to Earnings (P/E)9.8
Beta (1Y)0.39
Revenue Growth2.10%
EPS Growth-9.29%
CountryJP
Employees338,467
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.03
Shares Outstanding90,550,310,000
10 Day Avg. Volume184,869,517
30 Day Avg. Volume163,509,546
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)1.18
Price to Sales (P/S)0.88
P/FCF Ratio52.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥159.41Price Target Upside1.93% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)12.55
Revenue Forecast (FY)¥14.18T
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 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 busine...
Nippon Telegraph and Telephone Earnings Call Summary
Earnings Call Date:Feb 07, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 08, 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
72
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.08T | 13.70T | 13.37T | 13.14T | 12.16T | 11.94T |
| Gross Profit | 2.14T | 2.39T | 2.63T | 2.50T | 2.46T | 2.36T |
| EBITDA | 3.55T | 3.42T | 3.70T | 3.46T | 3.39T | 3.20T |
| Net Income | 1.08T | 1.00T | 1.28T | 1.21T | 1.18T | 916.18B |
Balance Sheet | ||||||
| Total Assets | 46.83T | 30.93T | 30.43T | 25.76T | 23.86T | 22.97T |
| Cash, Cash Equivalents and Short-Term Investments | 2.82T | 1.61T | 1.05T | 859.65B | 888.65B | 965.09B |
| Total Debt | 18.23T | 11.29T | 10.71T | 9.15T | 8.21T | 8.37T |
| Total Liabilities | 36.85T | 19.59T | 19.54T | 16.41T | 14.84T | 14.76T |
| Stockholders Equity | 9.51T | 10.22T | 9.84T | 8.56T | 8.28T | 7.56T |
Cash Flow | ||||||
| Free Cash Flow | -14.65B | 231.74B | 290.15B | 409.13B | 1.25T | 1.21T |
| Operating Cash Flow | 2.24T | 2.36T | 2.37T | 2.26T | 3.01T | 3.01T |
| Investing Cash Flow | -3.33T | -2.01T | -1.99T | -1.74T | -1.70T | -1.42T |
| Financing Cash Flow | 2.70T | -328.64B | -234.45B | -590.20B | -1.44T | -1.69T |
Nippon Telegraph and Telephone Technical Analysis
Positive
156.40
Price Trends
154.71
Positive
155.00
Positive
154.65
Positive
Market Momentum
1.07
Negative
55.73
Neutral
59.35
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 156.4 is above the 20-day moving average (MA) of 154.44, above the 50-day MA of 154.71, and above the 200-day MA of 154.65, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 59.35 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥327.59B | 18.43 | 13.42% | 2.27% | 5.10% | 12.48% | |
66 Neutral | ¥10.23T | 16.09 | 13.75% | 2.85% | 3.34% | 20.36% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥441.56B | 19.63 | 15.67% | 1.31% | 12.48% | 18.38% | |
60 Neutral | ¥10.49T | 19.08 | ― | 3.99% | 7.79% | 5.53% | |
56 Neutral | ¥13.42T | 9.80 | 11.22% | 3.36% | 2.10% | -9.29% | |
56 Neutral | ¥295.69B | 24.87 | 17.97% | 1.36% | 4.75% | 17.02% |
* Communication Services Sector Average
JP:9432
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157.50
13.72
9.54%
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Nippon Telegraph and Telephone Corporate Events
NTT Cuts Full-Year Profit Forecast on Intensifying Competition and Weaker Global Conditions
Feb 5, 2026
NTT has revised downward its consolidated financial forecasts for the fiscal year ending March 31, 2026, trimming expected operating revenue to ¥14.164 trillion and cutting projected operating profit, profit before taxes and profit attributab...
NTT Issues Cautionary Notice With Nine-Month Financial Results Translation
Feb 5, 2026
NTT released an English translation of its financial results for the nine months ended December 31, 2025, emphasizing that the original Japanese document remains the authoritative version. The company highlighted that any projections or forward-lo...
NTT Posts Higher Nine-Month Earnings as Investment and Leverage Rise
Feb 5, 2026
NTT has released supplementary consolidated financial data for the nine months ended 31 December 2025, showing steady growth in operating revenues and operating profit versus the prior year, alongside a higher consolidated EBITDA and increased dep...
NTT Posts Higher Nine-Month Earnings, Lifts Dividend and Expands into Digital Banking
Feb 5, 2026
NTT reported solid results for the nine months ended 31 December 2025, with operating revenues rising 3.7% year on year to ¥10.42 trillion and operating profit up 4.1% to ¥1.46 trillion, while profit attributable to the company climbed 8...
NTT Reports Progress on Large-Scale Share Buyback Program
Feb 2, 2026
NTT, Inc. has disclosed the latest progress of its ongoing share buyback program, reporting that it repurchased 154,892,700 shares of its common stock on the Tokyo Stock Exchange between January 5 and January 30, 2026, for a total of approximately...
NTT Updates Progress on Large-Scale Share Buyback Program
Jan 5, 2026
NTT, Inc. disclosed the latest status of its ongoing share repurchase program, announcing that it bought back 153,990,500 shares of common stock on the Tokyo Stock Exchange between December 1 and December 23, 2025, for a total of approximately ...
NTT Announces Progress in Stock Repurchase Program
Dec 1, 2025
NTT, Inc. announced the status of its stock repurchase program, revealing that it repurchased 284,454,800 shares of its common stock for a total of 43,378,171,960 yen between November 4 and November 28, 2025. This move is part of a broader strateg...
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.