KDDI (9433) AI Stock Analysis

• Market Cap: $9.51T
• Dividend Yield: 4.35%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.51
• Revenue Growth: 2.66%
• EPS Growth: 11.83%
• Country: JP
• Employees: 61,288
• Sector: Communication Services
• Sector Strength: 95
• Industry: Telecommunications Services
• EPS (TTM): 43.01
• Shares Outstanding: 4,187,847,700
• 10 Day Avg. Volume: 6,602,260
• 30 Day Avg. Volume: 7,321,990
• PEG Ratio: -0.32
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 9.97
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $3,022.84
• Price Target Upside: 22.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ¥2,727.00 ▲(10.40% Upside)

KDDI's overall stock score is driven by strong financial performance and a reasonable valuation, which are offset by bearish technical indicators and mixed earnings call results. The company's profitability and stable revenue growth are significant strengths, while increased leverage and challenges in cash conversion present potential risks. The successful launch of new plans and attractive dividend yield provide additional support to the stock's appeal.

Positive Factors

Earnings

A 9.3% year-over-year increase in earnings per share was supported by a significant ¥400 billion share buyback.

Financial Performance

KDDI's Q4 FY3/25 operating profit of ¥254 billion surpassed market expectations, showcasing strong growth in Business Services and Personal Services.

Future Guidance

FY3/26 operating profit guidance of ¥1,178 billion indicates KDDI's confidence in its business services forecast.

Negative Factors

Growth Challenges

Without robust growth drivers, KDDI's earnings per share target remains heavily reliant on large share buyback plans.

Industry Outlook

Japanese telecom companies, including KDDI, are generally considered to be part of an ex-growth sector, impacting future growth prospects.

Market Expectations

FY3/26 earnings guidance falls below market consensus, raising concerns about meeting investor expectations.

KDDI Business Overview & Revenue Model

Company Description

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers smartphone, mobile phone, and other mobile communication services, as well as fixed-line services under the au Hikari brand; MVNO services; mobile services under the au brand; and voice communications, data transmission, FTTH services, and CATV services. It also provides smartphone-centric payment, financial, and other services through au PAY gateway; au HOME, an IoT service that watches over pets using sensors and cameras; au Denki to conserve energy usage; AEON, an English conversation school. The Business Services segment offers data center services to corporate customers under the TELEHOUSE brand; and various solutions for network and cloud services, smartphones, and other devices. It is also involved in the provision of broadcasting, wireless broadband, mail order, IT support, call center, and temporary personnel services; and design, construction, maintenance, and operation support for communication equipment and submarine cable. The company was founded in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KDDI generates revenue primarily through its telecommunications services. The mobile segment is the largest contributor, with earnings derived from subscription fees, data packages, and value-added services. Additionally, KDDI's fixed-line services, including internet and broadband offerings, contribute significantly to its income. The company also earns through its enterprise solutions, providing network and IT solutions to businesses. Furthermore, KDDI's international business and data center operations supplement its revenue streams. Strategic partnerships and collaborations with tech companies and content providers enhance its service offerings and customer base, further driving its financial performance.

KDDI Financial Statement Overview

Summary

KDDI demonstrates strong profitability and stable revenue growth, key strengths in the telecommunications industry. However, increased leverage and mixed cash flow performance pose potential risks.

Income Statement

KDDI shows strong profitability with a consistent gross profit margin around 42% and a net profit margin of approximately 11.6% in the TTM. The EBIT and EBITDA margins are healthy, indicating efficient operations. Revenue growth is modest but stable, reflecting steady demand in the telecommunications sector.

Balance Sheet

The company's debt-to-equity ratio has increased over time, reaching 0.87 in the TTM, which suggests a higher reliance on debt financing. However, the return on equity remains strong at 13.3%, indicating effective use of equity capital. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

KDDI's cash flow performance is mixed, with a significant decline in free cash flow growth in the TTM. The operating cash flow to net income ratio is relatively low, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio remains above 0.7, indicating decent cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.97T	5.92T	5.75T	5.67T	5.45T	5.31T
Gross Profit	2.51T	2.51T	2.43T	2.41T	2.46T	2.38T
EBITDA	1.77T	1.78T	1.62T	1.71T	1.78T	1.76T
Net Income	679.85B	685.68B	637.87B	679.11B	672.49B	651.50B
Balance Sheet
Total Assets	17.59T	16.88T	14.15T	11.92T	11.08T	10.54T
Cash, Cash Equivalents and Short-Term Investments	963.51B	921.17B	887.21B	844.97B	819.05B	1.11T
Total Debt	5.10T	4.44T	2.43T	1.65T	1.74T	1.76T
Total Liabilities	11.94T	11.23T	8.35T	6.25T	5.57T	5.28T
Stockholders Equity	5.15T	5.13T	5.25T	5.12T	4.98T	4.76T
Cash Flow
Free Cash Flow	551.95B	958.47B	956.97B	444.74B	793.08B	1.06T
Operating Cash Flow	942.49B	1.36T	1.71T	1.08T	1.47T	1.68T
Investing Cash Flow	-925.28B	-1.18T	-832.43B	-732.48B	-761.59B	-658.92B
Financing Cash Flow	-438.27B	-33.55B	-476.48B	-669.84B	-727.26B	-585.57B

KDDI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2470.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9433, the sentiment is Negative. The current price of 2470 is below the 20-day moving average (MA) of 2589.32, below the 50-day MA of 2522.19, and above the 200-day MA of 2469.85, indicating a neutral trend. The MACD of -4.83 indicates Positive momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 3.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9433.

KDDI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9433	69 Neutral	$9.51T	14.81	13.28%	4.35%	2.66%	11.83%
Sector *	60 Neutral	$46.60B	4.15	-11.40%	4.15%	1.85%	-42.71%
IIJIF	―	$3.37B	24.38	15.20%	1.23%	―	―
NPPXF	―	$91.84B	13.26	10.39%	3.39%	―	―
OCU	―	€1.40B	17.59	13.98%	―	―	―
SFTBF	―	$157.45B	13.56	15.53%	0.27%	―	―
9434	69 Neutral	¥10.81T	21.53		3.80%	7.71%	-1.03%

KDDI Corporate Events

KDDI Reports Progress on Share Repurchase Program

KDDI Corporation has announced the status of its share repurchase program, revealing that it has repurchased 157,407,464 shares of common stock at a cost of 363,911,453,348 yen between July 1 and July 31, 2025. This move is part of a larger plan authorized by the Board of Directors to repurchase up to 196 million shares, with a total budget of 400 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:9433) stock is a Sell with a Yen1865.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

KDDI Announces Strategic Merger of Subsidiaries to Streamline Operations

KDDI Corporation has announced an absorption-type merger involving eight of its subsidiaries, including J:COM West, into J:COM Tokyo, effective April 1, 2026. This strategic move aims to streamline operations and strengthen the management framework within the JCOM Group, with minimal impact expected on the company’s business results.

The most recent analyst rating on (JP:9433) stock is a Sell with a Yen1865.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

KDDI Reports Q1 2025 Financial Results with Revenue Growth Amidst Profit Decline

KDDI Corporation reported a slight increase in operating revenue for the three-month period ending June 30, 2025, despite a decrease in operating income and profit attributable to owners of the parent compared to the previous year. The company conducted a two-for-one stock split on April 1, 2025, which affected the earnings per share calculations. KDDI’s financial position remains strong with total assets and equity showing growth, and the company has maintained its forecast for the fiscal year ending March 31, 2026, indicating stability in its operations.

The most recent analyst rating on (JP:9433) stock is a Sell with a Yen1865.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

KDDI Announces No Share Repurchases in June 2025

KDDI Corporation announced that no shares were repurchased during the specified period from June 1 to June 30, 2025, despite a prior resolution allowing for the repurchase of up to 196 million shares. This indicates a pause or delay in the company’s share repurchase strategy, which could impact its financial strategies and shareholder value.

The most recent analyst rating on (JP:9433) stock is a Sell with a Yen3730.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.