KDDI Corporation (JP:9433)
:9433
Want to see JP:9433 full AI Analyst Report?
Top Page
KDDI
(9433)
Select Model
Select Model
Rating:69Neutral
Price Target:
¥3,013.00
▲(12.43% Upside)
Action:Reiterated
Date:06/11/26
The score is driven primarily by mixed financial performance—stable profitability but weakening growth trends, declining free cash flow, and materially higher leverage. Technicals are constructive with an uptrend across major moving averages and positive momentum indicators, while valuation is reasonable with a moderate P/E and a ~2.9% dividend yield.
Positive Factors
Diversified revenue streams
KDDI's mix of consumer mobile, fixed-line/broadband, enterprise ICT, and platform/financial services creates multiple recurring revenue pools. This structural diversification reduces reliance on any single segment, supports cross-selling of higher‑margin digital services, and stabilizes cash flow over multi‑year technology cycles.
Negative Factors
Rising leverage
Leverage rising sharply to around 1.06 reduces financial flexibility and raises refinancing and interest expense risk. For a capital‑intensive telecom, higher debt limits room for discretionary investment, increases sensitivity to rate moves, and can constrain strategic maneuvers over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
KDDI's mix of consumer mobile, fixed-line/broadband, enterprise ICT, and platform/financial services creates multiple recurring revenue pools. This structural diversification reduces reliance on any single segment, supports cross-selling of higher‑margin digital services, and stabilizes cash flow over multi‑year technology cycles.
Read all positive factors
KDDI (9433) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.78T
Dividend Yield2.85%
Average Volume (3M)9.18M
Price to Earnings (P/E)14.2
Beta (1Y)0.32
Revenue Growth4.05%
EPS Growth13.53%
CountryJP
Employees61,288
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)188.21
Shares Outstanding4,007,451,000
10 Day Avg. Volume9,688,190
30 Day Avg. Volume9,180,513
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)2.07
Price to Sales (P/S)1.73
P/FCF Ratio8.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,865.00Price Target Upside-30.41% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)199.28
Revenue Forecast (FY)¥6.34T
KDDI Business Overview & Revenue Model
Company Description
KDDI Corporation operates as a leading telecommunications company, serving customers in Japan and across international markets. Its diverse operations are structured into two primary segments: Personal Services and Business Services. The Personal ...
How the Company Makes Money
KDDI primarily makes money by selling connectivity and related services to consumers and enterprises. (1) Consumer telecommunications: The largest revenue driver is typically service revenue from mobile subscribers (monthly fees for voice/data pla...
KDDI Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Negative
The call combined substantial operational and strategic positives (stable consolidated growth, mobile ARPU and churn improvements, strong finance/card performance, IoT and AI infrastructure progress, and an unchanged dividend policy) with a very significant governance and accounting crisis (suspected fictitious transactions totaling JPY 246 billion of revenue, ~JPY 50 billion profit reversal, JPY 33 billion provisioning and ongoing investigation). While core businesses demonstrate healthy momentum and clear growth initiatives, the scale, duration (multi-year) and materiality of the improper transactions create major financial, governance and reputational risks and leave material uncertainty until the Special Investigation Committee and auditors conclude. Overall, the negatives are substantial and weigh heavily on near-term confidence.Positive Updates
Consolidated Financial Performance (9-month cumulative)
Operating revenue grew by +3.8% year-on-year, operating income increased by +2.0% YoY, and profit for the period rose +5.3% YoY for the first three quarters (reference values after adjustments).
Negative Updates
Large-Scale Fictitious Transactions Identified
Suspected fictitious transactions in the advertising agency business at consolidated subsidiary BIGLOBE and its subsidiary G-PLAN spanning multiple years (G-PLAN business since 2017; BIGLOBE entered in 2022). Reference total canceled booked revenue: JPY 246 billion (JPY 96b before FY'24 + JPY 82b FY'25 + JPY 68b FY'26).
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Financial Performance (9-month cumulative)
Operating revenue grew by +3.8% year-on-year, operating income increased by +2.0% YoY, and profit for the period rose +5.3% YoY for the first three quarters (reference values after adjustments).
Read all positive updates
Company Guidance
KDDI said the Special Investigation Committee report is expected by end‑March and corrected Q3 FY3/26 (and any prior‑year) results will be disclosed by end‑March with full‑year results to follow promptly; the dividend forecast for FY3/26 is unchanged. Management currently estimates fictitious sales to be reversed of JPY96bn (pre‑FY24), JPY82bn (FY25) and JPY68bn (FY26) — total JPY246bn — with operating‑income reversals of about JPY8bn, JPY17bn and JPY25bn (total ~JPY50bn) and provisions for externally flowed commissions of JPY5bn, JPY11bn and JPY17bn (total ~JPY33bn; JPY17bn already provisioned through Q3). Separately the business trends remain solid: nine‑month mobile revenue +JPY29.9bn YoY; consolidated cumulative operating revenue +3.8%, operating income +2%, profit for the period +5.3%; mobile ARPU +JPY190 YoY; smartphone churn down 0.01 percentage points in Q3; UQ→au device‑bundle retention +4pp; au Starlink Direct ~3.5m connections (over 80 devices); 5G SA coverage target >90% population by year‑end; SORACOM connections >66m; credit‑card operating income +30.5% YoY, personal deposits up 1.3x and gold card members +24.5% YoY; Business Services Q3 +7.7% and >1,000 drone ports — while KDDI builds AI capacity (Sakai live, Miyazaki launching) and targets ~3,000 AI engineers by FY2028 with CapEx broadly focused on AI infrastructure.KDDI Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.07T | 5.92T | 5.75T | 5.67T | 5.45T |
| Gross Profit | 2.59T | 2.51T | 2.43T | 2.41T | 2.46T |
| EBITDA | 1.84T | 1.78T | 1.62T | 1.71T | 1.78T |
| Net Income | 707.11B | 685.68B | 637.87B | 679.11B | 672.49B |
Balance Sheet | |||||
| Total Assets | 19.06T | 16.88T | 14.15T | 11.92T | 11.08T |
| Cash, Cash Equivalents and Short-Term Investments | 1.08T | 944.14B | 907.73B | 504.62B | 819.05B |
| Total Debt | 5.38T | 4.69T | 2.66T | 1.66T | 1.74T |
| Total Liabilities | 13.47T | 11.23T | 8.35T | 6.25T | 5.57T |
| Stockholders Equity | 5.08T | 5.13T | 5.25T | 5.13T | 4.98T |
Cash Flow | |||||
| Free Cash Flow | 1.21T | 958.47B | 1.12T | 834.45B | 1.04T |
| Operating Cash Flow | 1.61T | 1.36T | 1.64T | 1.23T | 1.47T |
| Investing Cash Flow | -1.09T | -1.28T | -820.24B | -739.43B | -767.35B |
| Financing Cash Flow | -544.46B | -5.76B | -462.97B | -671.76B | -721.50B |
KDDI Technical Analysis
Positive
2680.00
Price Trends
2655.65
Positive
2646.28
Positive
2584.44
Positive
Market Momentum
20.24
Positive
53.46
Neutral
41.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9433, the sentiment is Positive. The current price of 2680 is below the 20-day moving average (MA) of 2703.05, above the 50-day MA of 2655.65, and above the 200-day MA of 2584.44, indicating a bullish trend. The MACD of 20.24 indicates Positive momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 41.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9433.
KDDI Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥544.53B | 22.14 | 15.67% | 1.31% | 9.02% | 21.15% | |
73 Outperform | ¥10.02T | 18.28 | ― | 3.99% | 7.55% | 3.35% | |
70 Outperform | ¥334.90B | 25.15 | 13.42% | 2.27% | 2.41% | 9.05% | |
69 Neutral | ¥9.78T | 14.19 | 13.75% | 2.85% | 4.05% | 13.53% | |
63 Neutral | ¥19.02B | 25.02 | ― | ― | 25.92% | -10.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | ¥12.61T | 11.31 | 11.22% | 3.36% | 5.14% | 5.33% |
* Communication Services Sector Average
JP:9433
KDDI
2,721.50
380.45
16.25%
JP:3774
Internet Initiative Japan
2,998.00
285.96
10.54%
JP:9432
Nippon Telegraph and Telephone
144.40
-0.93
-0.64%
JP:9436
Okinawa Cellular Telephone Company
3,650.00
1,197.68
48.84%
JP:9424
Japan Communications Inc.
113.00
-43.00
-27.56%
JP:9434
SoftBank Corp.
210.60
1.18
0.56%
KDDI Corporate Events
KDDI Completes Tender Offer Share Buyback at ¥2,325 Per Share
Jun 10, 2026
KDDI has completed a tender offer to repurchase its own ordinary shares as part of a broader treasury share buyback program authorized by its board on May 12, 2026. The tender offer, conducted between May 13 and June 9 at a price of 2,325 yen per ...
KDDI Reports No Share Repurchases Yet Under ¥300 Billion Buyback Plan
Jun 4, 2026
KDDI said it did not repurchase any of its common shares between May 13 and May 31, 2026, under the share buyback framework authorized by its board. The resolution permits buybacks of up to 146 million shares, or 3.83% of shares outstanding exclud...
KDDI Files Improvement Report to TSE After Correcting Past Financial Disclosures
Jun 2, 2026
KDDI has submitted an Improvement Report to the Tokyo Stock Exchange, responding to an April 30, 2026 request related to corrections of its past Annual Securities Reports and financial statements. The move signals regulatory scrutiny of the compan...
KDDI Begins Preparations to List au Financial Holdings on Tokyo Stock Exchange
May 12, 2026
KDDI has resolved to begin preparations for the listing of its consolidated subsidiary au Financial Holdings on the Tokyo Stock Exchange, aiming to support the medium- to long-term expansion of its financial business. The company plans to keep lev...
KDDI to Cancel Over 180 Million Treasury Shares in Capital Policy Move
May 12, 2026
KDDI CORPORATION has resolved to cancel 180,396,507 shares of its common stock, representing 4.31% of its total issued shares before cancellation. The cancellation, scheduled for May 29, 2026, will reduce the total number of issued shares to 4,007...
KDDI launches new share buyback and tender offer to bolster capital efficiency
May 12, 2026
KDDI has approved a new share repurchase program, including a tender offer for its own shares, as part of a capital allocation strategy that emphasizes higher capital efficiency and enhanced shareholder returns. The move aligns with its mid-term m...
KDDI to Revamp and Expand Performance-Linked Stock Plan for Executives
May 12, 2026
KDDI plans to continue and partially revise its performance-linked stock compensation plan for directors and senior executives, subject to shareholder approval at the June 17, 2026 annual meeting. The scheme, based on a Board Incentive Plan trust ...
KDDI Posts Solid FY2026 Results and Strengthens Balance Sheet
May 12, 2026
KDDI reported consolidated financial results for the fiscal year ended March 2026, highlighting steady operating revenue growth alongside solid EBITDA and operating margins, despite some quarterly volatility. The company also detailed its financia...
KDDI Hits Mid-Term EPS Target on Strong Underlying Profit Growth in FY2026
May 12, 2026
KDDI reported consolidated results for the fiscal year ended March 2026, with operating revenue rising 4.1% to ¥6,071.9 billion and operating income climbing 6.0% to ¥1,164.3 billion. Profit attributable to owners of the parent reached &...
KDDI lifts earnings and cash reserves, signals steady growth for FY2027
May 12, 2026
KDDI reported a 4.1% increase in operating revenue to ¥6.07 trillion for the fiscal year ended March 31, 2026, with operating income edging up 1.1% and profit attributable to owners of the parent rising 7.9%. Earnings per share climbed to ...
KDDI Hit With TSE Listing Violation Penalty, Vows Governance Fix
May 1, 2026
KDDI said it has received a request from the Tokyo Stock Exchange for an improvement report and has been hit with a listing agreement violation penalty, following a notice dated April 30, 2026. While details of the breach are disclosed by the Japa...
KDDI Deepens Investment in Thai Data Center Arm with Major Capital Increase
Apr 15, 2026
KDDI will inject 2,432 million baht into its consolidated unit TELEHOUSE (Thailand) Ltd., significantly raising the subsidiary’s capital to 3,132 million baht and boosting KDDI’s stake to 87.7 percent. The move will make the Thai data ...
KDDI Posts Solid Q3 FY2026 Earnings and Adjusts Past Figures After Subsidiary Probe
Mar 31, 2026
KDDI reported consolidated results for the third quarter of the fiscal year ending March 2026, showing steady growth in operating revenue and EBITDA but with some volatility in operating income and profit attributable to owners of the parent. The ...
KDDI Unveils Probe Findings and Governance Reforms After Subsidiary Misconduct
Mar 31, 2026
KDDI CORPORATION has disclosed the results of an investigation by a Special Investigation Committee into inappropriate transactions at its subsidiaries, centering on fictitious circular transactions in its advertising agency business. The company&...
KDDI Delivers Steady Profit Growth and Confirms Higher EPS, Dividend Post-Split
Mar 31, 2026
KDDI reported solid year-on-year growth for the nine months to December 31, 2025, with operating revenue rising 3.8% to ¥4.47 trillion and operating income edging up 1.1% to ¥856.7 billion. Profit attributable to owners of the parent inc...
KDDI Probes Fictitious Deals at Subsidiaries, Books ¥246 Billion Revenue Hit
Mar 31, 2026
KDDI has disclosed the findings of an independent Special Investigation Committee into suspected inappropriate transactions at consolidated subsidiary BIGLOBE and its unit G-PLAN, confirming that two subsidiary employees conducted fictitious circu...
KDDI Restates Past Financial Data After Misconduct at Advertising Subsidiaries
Mar 31, 2026
KDDI has revealed that inappropriate transactions were carried out by employees at its consolidated subsidiary BIGLOBE Inc. and BIGLOBE’s unit G-Plan Inc. in their advertising agency business, prompting the company to convene an external Spe...
KDDI Revises First-Half FY2025 IFRS Results but Confirms Earnings Growth
Mar 31, 2026
KDDI Corporation has issued a partial correction to its previously disclosed IFRS financial statements summary for the six-month period ended September 30, 2025, originally released on November 6, 2025. The company also submitted amended prior-yea...
KDDI Corrects Q1 FY2025 IFRS Results as Profit Declines Despite Revenue Growth
Mar 31, 2026
KDDI Corporation has issued a correction to its previously disclosed IFRS-based financial statements summary for the three-month period ended June 30, 2025, originally released on August 1, 2025. The company said numerical data have been amended a...
KDDI Restates FY2025 IFRS Results, Posts Higher Profit and Revenue
Mar 31, 2026
KDDI has issued a partial correction to its previously disclosed IFRS financial statements summary for the year ended March 31, 2025, and released updated numerical data. The company reported operating revenue of ¥5.84 trillion, operating inc...
KDDI Revises Nine-Month FY2024 IFRS Financial Summary and Data
Mar 31, 2026
KDDI Corporation has issued a partial correction to its previously disclosed IFRS-based financial statements summary for the nine-month period ended December 31, 2024. The company has also released corrected numerical data and a fully revised vers...
KDDI Corrects Quarterly IFRS Data While Keeping Profit Outlook and Dividend Plan Intact
Mar 31, 2026
KDDI has issued a partial correction to its previously disclosed IFRS financial statements summary for the three-month period ended June 30, 2024, including amended numerical data. The company also submitted related amended securities and financia...
KDDI Restates Multiple Fiscal-Year Results After Subsidiary Misconduct Probe
Mar 31, 2026
KDDI has filed amended annual, semiannual and quarterly securities reports, along with corrections to multiple IFRS financial statement summaries, after confirming inappropriate transactions in the advertising agency business at consolidated subsi...
KDDI Admits Internal Control Failures, To Restate Multi-Year Results After Fictitious Transactions
Mar 31, 2026
KDDI has acknowledged material weaknesses in internal controls over financial reporting after uncovering fictitious circular transactions at consolidated subsidiaries BIGLOBE and G-PLAN in their advertising agency business. The company will retroa...
KDDI Delays Nine-Month Earnings Release Amid Probe Into Subsidiary Transactions
Mar 31, 2026
KDDI has released its consolidated financial statements summary for the nine‑month period ended December 31, 2025, under IFRS, after a delay beyond the customary 45‑day window. The company explained that the timing was pushed back beca...
KDDI Cuts Full-Year Forecast After Advertising Irregularities and Strategy Shift
Mar 31, 2026
KDDI has sharply revised down its full-year consolidated forecast for the fiscal year ending March 31, 2026, cutting projected operating revenue from 6.33 trillion yen to 6.06 trillion yen and profit attributable to owners from 748 billion yen to ...
KDDI Overhauls Board and Audit Structure in Governance Revamp
Mar 31, 2026
KDDI has announced a broad reshuffle of its board, including the planned retirement of Representative Director Yasuaki Kuwahara on June 17, 2026. Kuwahara will step down from his representative role at KDDI but will remain in the group as chairman...
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.