Nippon Telegraph and Telephone (9432) AI Stock Analysis

• Market Cap: $13.51T
• Dividend Yield: 3.18%
• Average Volume (3M): 160.41M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.50
• Revenue Growth: 2.47%
• EPS Growth: -20.86%
• Country: JP
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 1.81
• Shares Outstanding: 90,550,310,000
• 10 Day Avg. Volume: 175,130,528
• 30 Day Avg. Volume: 160,407,893
• PEG Ratio: -3.17
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -83.95
• 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: $150.91
• Price Target Upside: -4.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: ¥182.00 ▲(14.83%Upside)

Nippon Telegraph and Telephone demonstrates strong financial performance with consistent revenue growth and solid profitability, which is the most significant factor. Technical analysis shows positive momentum, although there are signs of a potential overbought condition. The valuation is reasonable with a fair P/E ratio and a healthy dividend yield, making it attractive for income investors.

Nippon Telegraph and Telephone Business Overview & Revenue Model

Company Description

Nippon Telegraph and Telephone Corporation (NTT) is a leading Japanese telecommunications company, headquartered in Tokyo. It operates in various sectors including fixed-line and mobile communications, network services, and system integration. NTT provides a wide range of products and services, such as voice communication, internet services, data communications, and IT solutions, catering to both individual and corporate clients globally.

How the Company Makes Money

NTT generates revenue through multiple streams, primarily from its telecommunications services. The company earns a substantial portion of its income from mobile communications, which includes voice calls, data services, and related products. Fixed-line communications, offering traditional telephone services and broadband internet, also contribute significantly to its earnings. Additionally, NTT's network services and system integration segments provide IT infrastructure, data centers, and cloud services, driving further revenue. Key partnerships with technology firms and enterprises enhance its service offerings and expand its market reach, supporting its financial performance.

Nippon Telegraph and Telephone Financial Statement Overview

Summary

Nippon Telegraph and Telephone presents a robust financial profile with strong profitability and efficient operations. The income statement reflects consistent revenue growth and high margins, while the balance sheet demonstrates a stable capital structure with moderate leverage. Cash flow management shows strong operating cash flow, but the negative free cash flow growth highlights challenges in capital expenditure management. Overall, the company's financial health is strong, with areas for improvement in cash flow efficiency.

Income Statement

The company maintained a healthy gross profit margin of 19.2% TTM, and its net profit margin stood at 8.2% TTM, reflecting strong profitability in the telecommunications sector. Revenue growth has been consistent over the years, with a 4.4% increase from the previous year. The EBIT and EBITDA margins of 20.5% and 26.0% TTM respectively, indicate robust operational efficiency. Strengths include stable revenue growth and high profitability margins, while the slight decline in net income TTM compared to the previous year could be a potential area for improvement.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 1.2 TTM, which is reasonable for the industry, indicating moderate leverage. The return on equity (ROE) is 11.0% TTM, showcasing effective use of shareholders' funds. The equity ratio stands at 33.2% TTM, reflecting a stable capital structure. The company has effectively managed its assets and liabilities, though the increasing trend in total debt warrants monitoring.

Cash Flow

The cash flow statement shows a negative free cash flow growth, primarily due to increased capital expenditures. However, the operating cash flow to net income ratio of 1.8 TTM demonstrates strong cash generation relative to net income. The free cash flow to net income ratio is currently negative, indicating challenges in converting earnings to free cash flow. While operating cash flow remains strong, the decline in free cash flow growth suggests potential cash management issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
13.71T	13.37T	13.14T	12.16T	11.94T	11.90T
	Gross Profit
2.63T	1.92T	10.37T	9.59T	9.48T	9.47T
	EBIT
2.82T	1.92T	1.83T	1.77T	1.67T	1.56T
	EBITDA
3.56T	3.70T	3.41T	3.33T	3.20T	3.07T
	Net Income Common Stockholders
1.12T	1.28T	1.21T	1.18T	916.18B	855.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.20T	982.87B	892.57B	923.00B	977.46B	1.07T
	Total Assets
30.60T	29.60T	25.31T	23.86T	22.97T	23.01T
	Total Debt
12.09T	10.71T	9.15T	8.21T	8.37T	4.75T
	Net Debt
10.89T	9.73T	8.36T	7.37T	7.44T	3.72T
	Total Liabilities
19.32T	18.71T	15.96T	14.84T	14.76T	11.55T
	Stockholders Equity
10.16T	9.84T	8.56T	8.28T	7.56T	9.06T
Cash Flow		Free Cash Flow
-152.31B	290.15B	409.13B	1.25T	1.21T	1.14T
	Operating Cash Flow
2.02T	2.37T	2.26T	3.01T	3.01T	3.00T
	Investing Cash Flow
-1.83T	-1.99T	-1.74T	-1.70T	-1.42T	-1.85T
	Financing Cash Flow
23.41B	-234.45B	-590.20B	-1.44T	-1.69T	-1.04T

Nippon Telegraph and Telephone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 158.50
• 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 158.5 is above the 20-day moving average (MA) of 154.80, above the 50-day MA of 150.17, and above the 200-day MA of 148.48, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 73.14 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
9434	80 Outperform	¥10.44T	20.02		3.91%	7.57%	6.30%
9432	80 Outperform	$13.51T	13.25	9.84%	3.18%	2.47%	-20.86%
9436	76 Outperform	€233.58B	19.06	12.86%	2.58%	8.11%	6.48%
3774	73 Outperform	$510.62B	25.18	14.78%	1.18%	14.76%	0.69%
9433	70 Outperform	¥9.12T	14.23	13.04%	2.94%	2.85%	12.63%
9984	65 Neutral	$10.77T	9.43	10.28%	0.57%	7.21%	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%

Nippon Telegraph and Telephone Corporate Events

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.

NTT Announces Changes in Board Leadership

Nippon Telegraph and Telephone Corporation announced changes in its board of directors, with the reappointment of Akira Shimada as President and Takashi Hiroi as Senior Executive Vice President, and the new appointment of Riaki Hoshino as Senior Executive Vice President. These changes, driven by a shift in management structure, will be finalized at the upcoming General Meeting of Shareholders, potentially impacting the company’s strategic direction and stakeholder interests.

NTT Announces Significant Stock Repurchase Plan

NTT announced a stock repurchase plan authorized by its Board of Directors to buy back up to 1.5 billion shares, representing 1.81% of outstanding shares, with a budget of up to 200 billion yen. This move aims to improve capital efficiency and enhance shareholder returns, potentially strengthening NTT’s market position and benefiting its stakeholders.

NTT Announces Corporate Name Change and Governance Restructuring

NTT has announced a series of significant changes, including adopting its widely recognized name ‘NTT, Inc.’ as its official corporate name and transitioning to a company with an Audit and Supervisory Committee. These changes aim to enhance global market operations, strengthen governance, and align with the company’s medium-term strategy focused on innovation and sustainability. The restructuring is expected to promote unity within the NTT Group and improve corporate value, reflecting the company’s commitment to adapting to evolving business environments and stakeholder expectations.

NTT Releases Financial Performance Data for FY2025

NTT has released its supplementary data for the fiscal year ended March 31, 2025, highlighting its financial performance and projections. The company reported consolidated operating revenues of 13,704.7 billion yen for FY2024, with a forecast of 14,190.0 billion yen for FY2025. Despite fluctuations in various segments, NTT continues to maintain a strong financial position with significant investments in capital and technology, which are expected to enhance its market competitiveness and operational efficiency.

NTT Reports Decline in Profits Despite Revenue Growth

NTT reported its financial results for the fiscal year ending March 31, 2025, showing a slight increase in operating revenues but a significant decline in profits compared to the previous year. The company’s operating profit and profit before taxes decreased by 14.2% and 21.0% respectively, highlighting challenges in maintaining profitability. Despite these declines, NTT’s total assets and equity showed growth, and the company announced an increase in annual dividends, indicating a commitment to returning value to shareholders. The financial outlook for the next fiscal year anticipates a recovery in profits, with projected increases in operating revenues and profit margins.

NTT Announces Tender Offer to Fully Acquire NTT DATA Group

Nippon Telegraph and Telephone Corporation has announced a tender offer to acquire the remaining shares of NTT DATA Group Corporation, aiming to make it a wholly-owned subsidiary. This strategic move is intended to strengthen NTT’s position in the market by consolidating its operations and enhancing its service capabilities, potentially impacting stakeholders by increasing operational efficiency and market competitiveness.

NTT Addresses Media Reports on Subsidiary Plans

NTT has acknowledged media reports about its potential plan to make NTT Data Group Corporation a wholly-owned subsidiary, though it clarifies that these reports are not based on an official announcement from the company. The decision is expected to be made by the Board of Directors, and NTT will issue an announcement if necessary. This move, if confirmed, could significantly impact NTT’s operational structure and market positioning, potentially affecting stakeholders and the broader industry.

NTT to Enhance Governance with New Committee Structure

NTT has announced its decision to transition from a company with an audit and supervisory board to one with an audit and supervisory committee. This change aims to strengthen corporate governance, enhance management discussions, and make the governance structure more comprehensible for global stakeholders. The transition is pending approval at the upcoming shareholders’ meeting and from the Minister of Internal Affairs and Communications.