Nippon Telegraph and Telephone (9432) AI Stock Analysis

• Market Cap: ¥13.55T
• Dividend Yield: 3.36%
• Average Volume (3M): 163.51M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.46
• Revenue Growth: 2.10%
• EPS Growth: -9.29%
• Country: JP
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 4.06
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥184.00
• Price Target Upside: 15.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥174.00 ▲(9.37% Upside)

The overall stock score is driven by strong valuation metrics and positive technical indicators. While financial performance shows stable growth and profitability, concerns about leverage and cash flow need to be addressed. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strategic Partnership

The partnership with Bentley Systems enhances NTT's digital construction capabilities, leveraging AI-powered digital twin technology. This collaboration can improve safety, productivity, and sustainability, initially in Japan with potential global expansion, strengthening NTT's market position in digital solutions.

Operational Efficiency

Strong operational margins indicate effective cost management and pricing strategies, supporting long-term profitability. This efficiency provides a competitive edge in the telecommunications industry, allowing NTT to reinvest in growth and innovation.

Revenue Growth

Consistent revenue growth reflects NTT's ability to maintain and expand its customer base across various segments. This stability is crucial for sustaining market leadership and funding future technological advancements.

Negative Factors

Increasing Leverage

Higher leverage can increase financial risk, limiting flexibility in downturns. Managing debt levels is critical to maintaining financial stability and ensuring the company can invest in strategic initiatives without overextending its balance sheet.

Declining Free Cash Flow

A sharp decline in free cash flow limits NTT's ability to fund new projects, pay down debt, or return capital to shareholders. Improving cash flow generation is essential for sustaining long-term growth and financial health.

Gross Profit Margin Pressure

Decreasing gross profit margins suggest rising costs or competitive pricing pressures, which could impact profitability. Addressing these pressures is vital for maintaining competitive advantage and ensuring sustainable earnings growth.

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 shows stable revenue growth and profitability with strong operational margins. However, increasing leverage and declining free cash flow pose potential risks. The company should focus on improving cash flow generation and managing debt levels to maintain financial stability.

Income Statement

Nippon Telegraph and Telephone shows a stable revenue growth with a TTM increase of 1.17%. The company maintains a healthy EBIT margin of 12.20% and EBITDA margin of 24.88% in the TTM, indicating strong operational efficiency. However, the gross profit margin has decreased over time, suggesting rising costs or pricing pressures. The net profit margin remains stable at 7.18%, reflecting consistent profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.48 in the TTM, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity is stable at 9.91%, showing effective use of equity to generate profits. The equity ratio stands at 27.52%, suggesting a balanced approach to financing with equity and debt.

Cash Flow

The free cash flow has significantly declined by 84.14% in the TTM, which is concerning. The operating cash flow to net income ratio is 0.26, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.20, showing limited free cash flow relative to earnings, which could impact future investments or debt repayments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.89T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.10T	2.39T	2.63T	2.50T	2.46T	2.36T
EBITDA	3.49T	3.42T	3.70T	3.46T	3.39T	3.20T
Net Income	1.04T	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	33.45T	30.93T	30.43T	25.76T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	3.32T	1.61T	1.05T	859.65B	888.65B	965.09B
Total Debt	15.59T	11.29T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	23.91T	19.59T	19.54T	16.41T	14.84T	14.76T
Stockholders Equity	9.21T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	85.36B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.22T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-3.65T	-2.01T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	3.53T	-328.64B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph and Telephone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.10
• 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 159.1 is above the 20-day moving average (MA) of 158.03, above the 50-day MA of 155.39, and above the 200-day MA of 152.99, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 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	78 Outperform	¥272.99B	21.27	13.42%	2.27%	5.10%	12.48%
9433	76 Outperform	¥10.35T	15.15	13.75%	2.85%	3.34%	20.36%
9432	73 Outperform	¥13.55T	12.67	10.59%	3.36%	2.10%	-9.29%
3774	71 Outperform	¥480.40B	20.98	15.67%	1.31%	12.48%	18.38%
9984	64 Neutral	$24.32T	7.96	24.50%	0.25%	7.31%	44.73%
9434	64 Neutral	¥10.35T	19.09	―	3.99%	7.79%	5.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Nippon Telegraph and Telephone Corporate Events

NTT Updates Progress on Large-Scale Share Buyback Program

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 ¥23.8 billion. These purchases form part of a larger board-approved buyback authorization, under which NTT is permitted to repurchase up to 1.5 billion shares or ¥200 billion by March 31, 2026; as of December 31, 2025, the company had already acquired 989,292,600 shares for about ¥153.8 billion, underscoring a significant capital return effort that may support earnings per share and signal management confidence in the company’s long-term value to investors.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 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 Progress in Stock Repurchase Program

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 strategy approved by the Board of Directors to repurchase up to 1.5 billion shares by March 31, 2026, with the aim to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen184.00 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 Significant Stock Repurchase

NTT, Inc. announced the repurchase of 325,895,400 shares of its common stock, amounting to 50,776,141,490 yen, conducted on the Tokyo Stock Exchange from October 1 to October 31, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 1.5 billion shares, with a total value of up to 200 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Introduces Stock-Granting System to Boost Employee Engagement

NTT has announced the introduction of a stock-granting system for its managerial employees and those of its major group companies. This initiative, part of its Medium-Term Management Strategy, aims to boost employee motivation and engagement by allowing them to benefit from the company’s stock price increases, thereby enhancing corporate value and aligning employee interests with business performance.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 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 Steady Growth in First Half of 2025

NTT reported its financial results for the six months ending September 30, 2025, showing a slight increase in operating revenues and profit compared to the previous year. The company achieved a 2.8% growth in operating revenues and a 7.4% increase in profit attributable to NTT, reflecting a positive performance in a competitive market. The company maintained stable dividends and provided forecasts for continued growth in the fiscal year ending March 31, 2026, indicating confidence in its strategic direction and market positioning.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.