Nippon Telegraph and Telephone (9432) AI Stock Analysis

• Market Cap: $13.89T
• Dividend Yield: 3.19%
• Average Volume (3M): 138.62M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.49
• Revenue Growth: 1.65%
• EPS Growth: -15.29%
• Country: JP
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 3.14
• Shares Outstanding: 90,550,310,000
• 10 Day Avg. Volume: 180,976,763
• 30 Day Avg. Volume: 138,622,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 13.13
• Enterprise Value/Ebitda: 7.45
• 1Y Price Target: $161.84
• Price Target Upside: -0.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ¥184.00 ▲(12.88% Upside)

The stock of Nippon Telegraph and Telephone is supported by strong financial performance, particularly in revenue growth and cash flow generation. Technical indicators show strong upward momentum, although caution is advised as the stock approaches overbought levels. The valuation is reasonable with a solid dividend yield, making it an attractive option for income-focused investors.

Nippon Telegraph and Telephone Business Overview & Revenue Model

Company Description

Nippon Telegraph and Telephone Corporation provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationally. The company's Mobile Communications Business segment offers mobile phone services and related services, including movie and music distribution, e-book, and finance and payment services, as well as smart life area and internet connection services. Its Regional Communications Business segment provides intra-prefectural communications services, and FTTH and other services. The company's Long Distance and International Communications Business segment offers inter-prefectural communications services, international communications services, and services related to the solutions business and related services. This segment primarily provides cloud, data center, migration and maintenance support, IT system building, professional security, ICT, network, managed, mobile connectivity, and other services, as well as teleconference, web conference, and video conference services. Its Data Communications Business segment offers network system and system integration services comprising ERP services, ICT outsourcing, consulting, system design and development, and other services. The company's Other Business segment engages in the acquisition, development, construction, lease, and management of real estate; design, management, and maintenance of buildings, equipment, and electric power facilities; development of smart energy solutions and energy management systems; credit card transaction settlement activities; development, production, operation, and maintenance of information communications systems and software; billing and collection of charges for communications and other activities; design and development of systems; finance; and technology transfer and technical consulting businesses. It also sells telecommunications equipment. The company was founded in 1952 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NTT makes money through several key revenue streams. The primary source is its telecommunications services, which include mobile and fixed-line communication services to both individual and corporate customers. Additionally, NTT generates significant revenue from its data and internet services, which provide high-speed internet connectivity and related solutions. The company also earns from its system integration services, where it offers IT infrastructure solutions and consulting services to businesses. Furthermore, NTT benefits from strategic partnerships and collaborations with other technology companies, enhancing its service offerings and reaching a broader customer base. International business operations and investments in technology development also contribute to its revenue.

Nippon Telegraph and Telephone Financial Statement Overview

Summary

Nippon Telegraph and Telephone displays strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable, with a balanced approach to leverage and strong equity returns. Cash flow management is effective, ensuring sufficient liquidity for operations and investments.

Income Statement

The company exhibits a healthy gross profit margin and net profit margin, reflecting strong profitability in the telecommunications sector. Revenue growth over the years is consistent, indicating steady business expansion. However, the EBIT margin has seen slight fluctuations, suggesting some variability in operating efficiency.

Balance Sheet

The balance sheet is robust with a moderate debt-to-equity ratio, indicating a balanced approach to leverage. Return on equity is strong, showcasing effective use of shareholder funds. The equity ratio is stable, reflecting a solid capital structure, though liabilities have increased over time.

Cash Flow

The company has demonstrated strong operating cash flow relative to net income, indicating good cash generation from operations. Although free cash flow has fluctuated, the overall trend shows positive free cash flow, supporting future investments and debt management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.73T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	1.93T	2.07T	1.92T	10.37T	9.59T	9.48T
EBITDA	3.39T	3.43T	3.70T	3.41T	3.33T	3.20T
Net Income	985.59B	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	31.00T	30.06T	29.60T	25.31T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	2.03T	1.00T	982.87B	892.57B	923.00B	977.46B
Total Debt	13.90T	11.17T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	20.92T	18.72T	18.71T	15.96T	14.84T	14.76T
Stockholders Equity	9.40T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	538.20B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.70T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-3.38T	-2.01T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	1.62T	-328.64B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph and Telephone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 163.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 163 is above the 20-day moving average (MA) of 154.92, above the 50-day MA of 154.18, and above the 200-day MA of 150.33, indicating a bullish trend. The MACD of 2.52 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.75 is Negative, 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
9432	78 Outperform	$13.89T	13.78	10.39%	3.19%	1.65%	-15.29%
Sector *	60 Neutral	$44.04B	1.91	-11.99%	3.99%	2.50%	-38.33%
IIJIF	―	$3.55B	25.88	15.20%	1.19%	―	―
KDDIF	―	$66.32B	14.93	13.28%	4.35%	―	―
OCU	―	€1.45B	18.32	13.98%	―	―	―
SFTBF	―	$154.35B	13.06	15.53%	0.27%	―	―
9434	77 Outperform	¥11.24T	22.41		3.58%	7.71%	-1.03%

Nippon Telegraph and Telephone Corporate Events

NTT DOCOMO Initiates Tender Offer for CARTA HOLDINGS

NTT DOCOMO, a subsidiary of NTT, Inc., announced the commencement of a tender offer to acquire CARTA HOLDINGS Inc. shares, aiming to delist the company and form a business and capital alliance with Dentsu Group Inc. The tender offer is part of a strategic move to consolidate ownership and enhance market positioning, with regulatory procedures in Japan and South Korea completed, and pending in China.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 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 Mixed Financial Results for Q2 2025

NTT reported a slight increase in operating revenues for the three months ended June 30, 2025, compared to the same period in 2024, but experienced declines in operating profit, profit before taxes, and profit attributable to NTT. The company’s equity ratio also decreased, indicating a shift in its financial position. Despite these declines, NTT has maintained its dividend forecasts for the fiscal year ending March 31, 2026, suggesting confidence in its long-term financial stability. The announcement highlights the challenges NTT faces in maintaining profitability amidst changing market conditions.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Completes Successful Tender Offer for NTT DATA Shares

NTT has successfully completed a tender offer to acquire shares of NTT DATA Group Corporation, purchasing a total of 336,797,773 shares, which exceeded the minimum requirement of 125,314,700 shares. This acquisition strengthens NTT’s position in the data services sector, potentially enhancing its market influence and operational capabilities.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT DOCOMO to Acquire CARTA HOLDINGS and Form Alliance with Dentsu Group

NTT DOCOMO, a subsidiary of Nippon Telegraph and Telephone Corporation, announced plans to acquire CARTA HOLDINGS Inc. through a tender offer and establish a business and capital alliance with CARTA’s parent company, Dentsu Group Inc. This strategic move aims to delist CARTA HOLDINGS from the Tokyo Stock Exchange, making NTT DOCOMO and Dentsu Group the sole shareholders, thereby strengthening NTT’s market position and expanding its business operations.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 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 Amendments to Tender Offer for SBI Sumishin Net Bank

NTT announced changes to its previous notice regarding a tender offer by its subsidiary, NTT DOCOMO, for SBI Sumishin Net Bank. The tender offer, which began on May 30, 2025, received necessary approvals from the Financial Services Agency, leading to amendments in the tender offer statement and related documents. These changes do not affect the conditions of purchase, maintaining the stability of the offer and potentially strengthening NTT’s market position in the financial services sector.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT 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.