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Nippon Telegraph and Telephone Corporation (JP:9432)
:9432
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Nippon Telegraph and Telephone (9432) AI Stock Analysis

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JP:9432

Nippon Telegraph and Telephone

(OTC:9432)

Rating:78Outperform
Price Target:
¥184.00
▲(15.58% 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 (9432) vs. iShares MSCI Japan ETF (EWJ)

Nippon Telegraph and Telephone Business Overview & Revenue Model

Company DescriptionNTT, 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 MoneyNTT 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
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.
Q3-2024 Updates
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.
Growth in Smart Life Business
Smart Life Business at Docomo contributed to the increase in operating revenue, with a focus on expanding finance and payment segments.
Global Solution Business Segment Growth
Operating profit increased year-on-year due to higher sales in public, financial, and corporate sectors in Japan, as well as increased income from the data center business overseas.
Expansion in Data Center and Urban Solutions
Year-on-year growth in sales and profit for the Other business segment due to the expansion of data center engineering and NTT Urban solutions.
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.
Significant Decline in Profit
Profit fell by JPY160.4 billion year-on-year due to declining operating profit and rebound from gains on stock sales from the previous year.
Challenges in Integrated ICT Business
Despite growth in Smart Life Business, overall profit declined due to measures to strengthen the customer base and a decline in mobile communication service revenue.
Intense Competition Affecting ARPU
The consumer communication segment faced challenges with lower-than-expected ARPU and increased marketing expenses to maintain market share.
Enterprise Business Struggles
The enterprise section of Integrated ICT business experienced weaker profitability, with challenges in SME market growth and slower growth in large companies.
Impact of Inflation and Market Competition
Market conditions, including inflation and intense competition, have made it challenging to realize the expected growth in telecommunications business.
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
Nippon Telegraph and Telephone demonstrates strong revenue growth and cash flow generation, which are positive indicators for future performance. However, the increasing leverage and declining gross profit margins are areas of concern that need to be addressed to ensure long-term financial stability and profitability.
Income Statement
75
Positive
The company shows a strong revenue growth rate of 16.1% in the TTM, indicating robust expansion. However, the gross profit margin has decreased compared to previous years, suggesting rising costs. The net profit margin is stable, but lower than the industry average, indicating room for improvement in profitability.
Balance Sheet
70
Positive
The debt-to-equity ratio has increased to 1.48 in the TTM, reflecting higher leverage which could pose a risk if not managed properly. The return on equity is solid at 9.91%, though it has declined from previous years, indicating a slight decrease in efficiency in generating returns from equity.
Cash Flow
80
Positive
The free cash flow growth rate is impressive at 132.24% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, the free cash flow to net income ratio suggests that not all earnings are being converted into free cash flow.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2021Dec 2021
Income Statement
Total Revenue13.73T13.70T13.37T13.14T11.94T12.16T
Gross Profit1.93T2.07T1.92T10.37T9.48T9.59T
EBITDA3.39T3.43T3.70T3.41T3.20T3.33T
Net Income985.59B1.00T1.28T1.21T916.18B1.18T
Balance Sheet
Total Assets31.00T30.06T29.60T25.31T22.97T23.86T
Cash, Cash Equivalents and Short-Term Investments2.03T1.00T982.87B892.57B977.46B923.00B
Total Debt13.90T11.17T10.71T9.15T8.37T8.21T
Total Liabilities20.92T18.72T18.71T15.96T14.76T14.84T
Stockholders Equity9.40T10.22T9.84T8.56T7.56T8.28T
Cash Flow
Free Cash Flow538.20B231.74B290.15B409.13B1.21T1.25T
Operating Cash Flow2.70T2.36T2.37T2.26T3.01T3.01T
Investing Cash Flow-3.39T-2.01T-1.99T-1.74T-1.42T-1.70T
Financing Cash Flow1.63T-328.64B-234.45B-590.20B-1.69T-1.44T

Nippon Telegraph and Telephone Technical Analysis

Technical Analysis Sentiment
Positive
Last Price159.20
Price Trends
50DMA
155.86
Positive
100DMA
154.27
Positive
200DMA
151.44
Positive
Market Momentum
MACD
0.58
Positive
RSI
52.36
Neutral
STOCH
51.18
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 159.2 is below the 20-day moving average (MA) of 160.64, above the 50-day MA of 155.86, and above the 200-day MA of 151.44, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 51.18 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$13.57T13.4610.39%3.27%1.65%-15.29%
60
Neutral
$46.60B4.09-11.41%4.12%1.85%-42.71%
$3.33B23.8215.20%1.25%
$64.44B15.3313.28%4.28%
€1.40B17.7213.98%
$153.47B12.9615.53%0.29%
69
Neutral
¥10.85T21.61
3.77%7.71%-1.03%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9432
Nippon Telegraph and Telephone
159.20
10.28
6.90%
IIJIF
Internet Initiative Japan
18.27
-2.07
-10.18%
KDDIF
KDDI
17.40
-0.02
-0.11%
DE:OCU
Okinawa Cellular Telephone Company
29.60
5.36
22.11%
SFTBF
SoftBank Group
104.23
50.96
95.66%
JP:9434
SoftBank Corp.
228.30
35.81
18.60%

Nippon Telegraph and Telephone Corporate Events

NTT DOCOMO Initiates Tender Offer for CARTA HOLDINGS
Aug 15, 2025

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
Aug 6, 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
Jun 20, 2025

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
Jun 16, 2025

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
Jun 13, 2025

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
May 29, 2025

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
May 29, 2025

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
May 28, 2025

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.

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.Date of analysis: Aug 15, 2025