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Nippon Telegraph and Telephone
(9432)
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Rating:68Neutral
Price Target:
¥173.00
▲(14.34% Upside)
Action:Reiterated
Date:08/09/26
The score is held back primarily by weakening cash generation (negative free cash flow) and higher leverage, despite steady revenue and profitability. Offsetting this, technical momentum is constructive and valuation is supportive with a modest P/E and a solid dividend yield.
Positive Factors
Steady revenue growth
Sustained top-line growth over multiple years indicates durable demand for NTT’s core connectivity and ICT offerings. Consistent revenue expansion supports reinvestment in networks and services and underpins long-term contract renewals and cross-sell opportunities with enterprise customers.
Negative Factors
Rising leverage
Material increase in debt reduces financial flexibility and raises refinancing and interest‑rate sensitivity. Elevated leverage limits capacity to fund large capital programs organically and increases the risk that cashflow shocks could constrain dividends, buybacks, or acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Sustained top-line growth over multiple years indicates durable demand for NTT’s core connectivity and ICT offerings. Consistent revenue expansion supports reinvestment in networks and services and underpins long-term contract renewals and cross-sell opportunities with enterprise customers.
Read all positive factors
Nippon Telegraph and Telephone (9432) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.99T
Dividend Yield3.48%
Average Volume (3M)163.51M
Price to Earnings (P/E)12.1
Beta (1Y)0.28
Revenue Growth5.14%
EPS Growth5.33%
CountryJP
Employees344,196
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)12.84
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)12.41
Revenue Forecast (FY)¥15.08T
Nippon Telegraph and Telephone Business Overview & Revenue Model
Company Description
NTT, Inc. functions as a prominent telecommunications provider with a significant presence across Japan and internationally. The company structures its operations across four primary divisions: Integrated ICT Business, Regional Communications Busi...
How the Company Makes Money
NTT makes money primarily by charging recurring service fees and usage-based charges for communications and ICT services delivered across its group companies. Key revenue streams include: (1) Mobile telecommunications: service revenues from consum...
Nippon Telegraph and Telephone Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strategic and operational progress (record revenue, data center growth and REIT listing, fiber net additions, launch of tsuzumi 2, IOWN demonstrations) suggest solid long‑term positioning, while near‑term profit metrics were weaker (EBITDA, operating profit and net profit declines), driven by DOCOMO mobile softness, increased sales/marketing spend and FX headwinds. Management indicated these issues are being managed and expects to pursue cost reductions, enterprise growth and to achieve the annual plan, but short‑term execution and overseas SI recovery remain watchpoints.Positive Updates
Record Operating Revenue (Q1 FY2026)
Operating revenue reached a new record of JPY 3,262 billion in Q1, up JPY 22 billion year‑on‑year (approximately +0.68%), achieved despite an adverse foreign exchange headwind of roughly JPY 50 billion (≈ -1.5% of revenue).
Negative Updates
Decline in Profitability (Q1 FY2026)
EBITDA was JPY 801.4 billion, down JPY 13.9 billion YoY (approx. -1.71%). Operating profit was JPY 405.2 billion, down JPY 30.6 billion YoY (approx. -7.02%). Profit was JPY 259.7 billion, down JPY 14.4 billion YoY (approx. -5.25%).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Operating Revenue (Q1 FY2026)
Operating revenue reached a new record of JPY 3,262 billion in Q1, up JPY 22 billion year‑on‑year (approximately +0.68%), achieved despite an adverse foreign exchange headwind of roughly JPY 50 billion (≈ -1.5% of revenue).
Read all positive updates
Company Guidance
The company reiterated guidance to achieve its annual consolidated plan by continuing cost reductions and expanding growth areas (enterprise and Smart Life), noting Q1 operating revenue reached a record JPY 3,262 billion (up JPY 22 billion YoY) despite an adverse FX impact of ~JPY 50 billion, EBITDA was JPY 801.4 billion (down JPY 13.9 billion YoY), operating profit JPY 405.2 billion (down JPY 30.6 billion YoY) and profit JPY 259.7 billion (down JPY 14.4 billion YoY); management highlighted Q1 positives such as cumulative MNP net additions turning positive, year-on-year growth in fiber net additions and enterprise revenue, the October release of the improved Tsuzumi 2 LLM (4x accuracy on accounting manual queries and single‑GPU/on‑premise capability), the July 14, 2025 listing of NTT DC REIT following transfer of six data centers to accelerate investment recovery, a target to complete the NTT DATA TOB (aiming to acquire ~81%) by end‑of‑September, a plan to transition fixed‑line copper services to fiber/wireless by 2035, and an FY2026 target to commercialize IOWN with twice the EXPO version’s communication capacity.Nippon Telegraph and Telephone Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.76T | 14.41T | 13.70T | 13.37T | 13.14T | 12.16T |
| Gross Profit | 2.22T | 2.20T | 2.39T | 2.63T | 2.50T | 2.46T |
| EBITDA | 3.62T | 3.61T | 3.42T | 3.70T | 3.46T | 3.39T |
| Net Income | 1.05T | 1.04T | 1.00T | 1.28T | 1.21T | 1.18T |
Balance Sheet | ||||||
| Total Assets | 47.46T | 46.72T | 30.93T | 30.43T | 25.76T | 23.86T |
| Cash, Cash Equivalents and Short-Term Investments | 2.39T | 1.92T | 1.61T | 1.05T | 859.65B | 888.65B |
| Total Debt | 17.43T | 16.92T | 11.29T | 10.71T | 9.15T | 8.21T |
| Total Liabilities | 37.11T | 36.50T | 19.59T | 19.54T | 16.41T | 14.84T |
| Stockholders Equity | 9.86T | 9.73T | 10.22T | 9.84T | 8.56T | 8.28T |
Cash Flow | ||||||
| Free Cash Flow | -761.84B | -770.54B | 231.74B | 290.15B | 409.13B | 1.25T |
| Operating Cash Flow | 1.53T | 1.49T | 2.36T | 2.37T | 2.26T | 3.01T |
| Investing Cash Flow | -2.05T | -3.33T | -2.01T | -1.99T | -1.74T | -1.70T |
| Financing Cash Flow | 843.65B | 2.74T | -328.64B | -234.45B | -590.20B | -1.44T |
Nippon Telegraph and Telephone Technical Analysis
Positive
151.30
Price Trends
149.07
Positive
151.15
Positive
151.90
Positive
Market Momentum
1.73
Negative
62.81
Neutral
44.42
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 151.3 is below the 20-day moving average (MA) of 152.65, above the 50-day MA of 149.07, and below the 200-day MA of 151.90, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.42 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥357.04B | 25.58 | 13.57% | 1.74% | 3.09% | 12.81% | |
74 Outperform | ¥631.41B | 25.66 | 16.08% | 1.12% | 9.02% | 21.15% | |
68 Neutral | ¥12.99T | 12.10 | 10.96% | 3.50% | 5.14% | 5.33% | |
67 Neutral | ¥10.52T | 15.52 | 14.41% | 2.71% | 3.58% | 11.30% | |
66 Neutral | ¥10.67T | 19.70 | ― | 3.88% | 7.55% | 3.35% | |
65 Neutral | ¥439.73B | 25.27 | 16.96% | 1.49% | 5.57% | 31.99% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:9432
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Nippon Telegraph and Telephone Corporate Events
NTT Extends and Expands Stock-Based Incentive Plan for Group Executives
Aug 6, 2026
NTT has decided to make additional funding contributions to its performance-linked stock compensation system for eligible directors and executive officers of the parent company and key subsidiaries, including NTT DATA entities and NTT DOCOMO Finan...
NTT outlines cautionary context for Q1 FY2026 results and projections
Aug 6, 2026
NTT released an English translation of its Japanese financial results for the three months ended June 30, 2026, noting that the original Japanese document remains the authoritative version. The company emphasized that any projections or forward-lo...
NTT Posts Steady Q1 FY2026 Results and Reaffirms Full-Year Outlook
Aug 6, 2026
NTT reported its consolidated financial results for the first quarter of fiscal 2026, showing stable operating revenues and EBITDA under IFRS, alongside detailed disclosure of operating expenses, depreciation, and segment performance. The company ...
NTT Delivers Strong First-Quarter Revenue Growth and Confirms Full-Year Outlook
Aug 6, 2026
NTT reported a solid start to its fiscal year, with operating revenue for the quarter ended June 30, 2026 rising 10.9% year on year to ¥3.62 trillion and operating profit up 4.9% to ¥425.1 billion, lifting profit attributable to NTT by 5...
NTT Reports Progress on Multi-Billion Yen Share Buyback Program
Aug 3, 2026
NTT, Inc. has disclosed the latest progress in its share repurchase program, confirming it bought back 239,783,600 shares of common stock for a total of about ¥36.1 billion between July 1 and July 31, 2026, via acquisitions on the Tokyo Stock...
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.