KDDI (9433) AI Stock Analysis

• Market Cap: ¥10.14T
• Dividend Yield: 2.85%
• Average Volume (3M): 9.18M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.44
• Revenue Growth: 3.34%
• EPS Growth: 20.36%
• Country: JP
• Employees: 61,288
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 53.94
• Shares Outstanding: 4,187,847,700
• 10 Day Avg. Volume: 9,688,190
• 30 Day Avg. Volume: 9,180,513
• PEG Ratio: 1.12
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 9.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,050.00 ▲(13.81% Upside)

KDDI's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's solid cash flow management and strategic initiatives in the mobile segment contribute significantly to the score. Technical analysis supports a bullish outlook, though valuation metrics suggest the stock is fairly valued. Challenges in certain business segments and increasing leverage are risks to monitor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, enabling strategic investments and debt servicing, crucial for sustainable growth.

Technological Advancements

Investments in technology improve operational efficiency and competitive positioning, fostering long-term growth and innovation.

Negative Factors

Increasing Leverage

Rising debt levels can strain financial resources, limiting flexibility and increasing vulnerability to economic downturns.

Challenges in Finance and DX Segments

Sector-specific challenges may require strategic shifts, potentially impacting growth and profitability in these key segments.

Stakeholder Costs

High stakeholder costs could pressure margins, affecting profitability and limiting resources for reinvestment in growth initiatives.

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 through multiple streams, primarily from mobile communications, which includes voice and data services provided to its subscribers. A significant portion of its income comes from its vast mobile user base, as well as from fixed-line services and broadband internet access. Additionally, KDDI has expanded its revenue model by investing in digital solutions and cloud services, catering to enterprise clients. The company also benefits from partnerships with various technology and content providers, enhancing its service offerings and driving additional revenue. International operations and strategic collaborations further contribute to its earnings, solidifying KDDI's position in the competitive telecommunications market.

KDDI Financial Statement Overview

Summary

KDDI demonstrates strong profitability and stable revenue growth, which are key strengths in the telecommunications industry. The balance sheet shows increased leverage, which could pose risks if not managed carefully. Cash flow metrics indicate some challenges in cash conversion, but overall, the company maintains a solid financial position with effective capital utilization.

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	6.03T	5.92T	5.75T	5.67T	5.45T	5.31T
Gross Profit	2.53T	2.51T	2.43T	2.41T	2.46T	2.38T
EBITDA	1.80T	1.78T	1.62T	1.71T	1.78T	1.76T
Net Income	712.20B	685.68B	637.87B	679.11B	672.49B	651.50B
Balance Sheet
Total Assets	18.02T	16.88T	14.15T	11.92T	11.08T	10.54T
Cash, Cash Equivalents and Short-Term Investments	910.45B	944.14B	907.73B	504.62B	819.05B	840.07B
Total Debt	5.40T	4.44T	2.43T	1.66T	1.74T	1.76T
Total Liabilities	12.54T	11.23T	8.35T	6.25T	5.57T	5.28T
Stockholders Equity	4.97T	5.13T	5.25T	5.13T	4.98T	4.76T
Cash Flow
Free Cash Flow	958.47B	958.47B	1.12T	834.45B	1.04T	1.27T
Operating Cash Flow	1.33T	1.36T	1.64T	1.23T	1.47T	1.68T
Investing Cash Flow	-1.05T	-1.28T	-820.24B	-739.43B	-767.35B	-663.74B
Financing Cash Flow	-503.58B	-5.76B	-462.97B	-671.76B	-721.50B	-580.76B

KDDI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2680.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2680 is below the 20-day moving average (MA) of 2709.60, above the 50-day MA of 2658.61, and above the 200-day MA of 2496.96, indicating a neutral trend. The MACD of 9.57 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 10.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9433.

KDDI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	78 Outperform	¥268.47B	20.92	13.42%	2.27%	5.10%	12.48%
9433	76 Outperform	¥10.14T	14.84	13.75%	2.85%	3.34%	20.36%
9432	73 Outperform	$13.56T	12.68	10.59%	3.36%	2.10%	-9.29%
3774	71 Outperform	¥488.60B	21.33	15.67%	1.31%	12.48%	18.38%
9984	64 Neutral	$24.34T	7.96	24.50%	0.25%	7.31%	44.73%
9434	64 Neutral	¥10.21T	18.84	―	3.99%	7.79%	5.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

KDDI Corporate Events

KDDI Outside Audit & Supervisory Board Member to Resign at Year-End

KDDI Corporation announced that Outside Audit & Supervisory Board Member Naoki Fukushima will step down from his position effective December 31, 2025, citing personal reasons. The company emphasized that, despite this resignation, it will continue to meet the number of Audit & Supervisory Board Members required under applicable laws and its Articles of Incorporation, indicating that its governance structure will remain compliant and operational.

The most recent analyst rating on (JP:9433) stock is a Buy with a Yen3050.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

KDDI Transfers Bulk Power Service to Next Power for Strategic Growth

KDDI Corporation has announced the transfer of its bulk power purchasing service for condominiums to Next Power Co., Ltd., a subsidiary of Kansai Electric Power Co., Inc., through an absorption-type company split. This strategic move is aimed at leveraging Next Power’s expertise to enhance the service’s growth and reach, while KDDI plans to concentrate on expanding its retail electricity business for individual customers, particularly through its au Denki brand. The transition is expected to be seamless for current customers, with no service interruptions.

The most recent analyst rating on (JP:9433) stock is a Buy with a Yen3050.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

KDDI Reports Revenue Growth and Positive Outlook for 2025

KDDI Corporation reported a 3.8% increase in operating revenue and a 6.7% rise in profit for the six-month period ending September 30, 2025, compared to the same period last year. The company also conducted a two-for-one stock split on April 1, 2025, affecting dividend figures and earnings per share calculations. KDDI’s financial position remains strong with a total equity of 5,475,126 million yen as of September 30, 2025. The company forecasts a 7.0% increase in operating revenue for the fiscal year ending March 31, 2026, indicating positive growth expectations. No significant changes in the scope of consolidation were reported, and the company has adjusted its accounting policies as required under IFRS.

The most recent analyst rating on (JP:9433) stock is a Buy with a Yen2711.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.