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KDDI Corporation (JP:9433)
:9433
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KDDI (9433) AI Stock Analysis

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JP:9433

KDDI

(OTC:9433)

Rating:78Outperform
Price Target:
¥2,849.00
▲(8.33% Upside)
KDDI's strong financial performance and fair valuation are the primary strengths, supported by stable technical indicators. However, mixed earnings call results, particularly decreased profit and challenges in key segments, slightly dampen the overall outlook.
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 (9433) vs. iShares MSCI Japan ETF (EWJ)

KDDI Business Overview & Revenue Model

Company DescriptionKDDI 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 MoneyKDDI 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 Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q1-2026)
|
% Change Since: 5.81%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable revenue growth in key segments and successful new pricing plans. However, it also highlighted challenges such as decreased profit and weak smartphone subscription growth. The multi-brand strategy and financial services showed positive progress, but were offset by issues in the Personal Services and Digital BPO areas.
Q1-2026 Updates
Positive Updates
Revenue Growth in Key Segments
Operating revenue increased to JPY 1.4363 trillion, a 3.4% year-on-year growth. Business Services segment revenue grew 4.5% year-on-year, driven by mobile revenues and solid ARPU.
Successful Launch of New Pricing Plans
The new pricing plans, including au 5G Fast Lane and Unlimited Data Overseas, have been well received, with about 80% of au customers choosing the au value-linked plan.
Financial Services Growth
au Financial Holdings operating income increased by 33% year-on-year to JPY 11.7 billion, with the successful expansion of the au Money Activity Plan to over 1.6 million subscriptions.
Positive Impact of Multi-Brand Strategy
The multi-brand strategy has improved brand migration trends with a 1.4x increase in migrations from UQ mobile to au year-on-year.
Negative Updates
Decrease in Profit
Profit for the period attributable to owners of the parent decreased by 3.3% year-on-year to JPY 171.1 billion.
Challenges in Personal Services Segment
Operating income in the Personal Services segment was down 1.6%, attributed to increased sales promotion expenses and the impact of the smartphone Tokusuru program.
Slow Smartphone Subscription Growth
Net addition of smartphone subscriptions was weak, with a need for improved acquisition efforts despite the positive reception of new pricing plans.
Digital BPO Performance
Digital BPO faced challenges with revenue and profit decreases, impacting overall growth in the Business Services segment.
Company Guidance
During KDDI Corporation's first quarter financial results briefing for the fiscal year ending March 2026, several key metrics were discussed. Consolidated operating revenue increased by 3.4% year-on-year to JPY 1.4363 trillion, while operating income decreased by 1.6% to JPY 272.5 billion. Profit attributable to owners of the parent fell by 3.3% to JPY 171.1 billion. The Personal Services segment saw a year-on-year mobile revenue increase of JPY 7.6 billion, with mobile ARPU rising by JPY 60 to JPY 4,340 and smartphone subscriptions up by 450,000. The Business Services segment reported an operating revenue increase of 4.5% to JPY 349.7 billion and a 5.4% rise in operating income to JPY 57.5 billion. Despite a decline in profit, the overall business progress is aligned with forecasts, with a full-year profit growth target of over JPY 30 billion in the mobile sector. The company's new pricing plans and strategic focus on digital data, AI, and financial services are expected to drive future growth.

KDDI Financial Statement Overview

Summary
KDDI displays strong financial health with consistent revenue growth, effective cost management, and a stable balance sheet. However, there is room for improvement in net income growth and free cash flow optimization.
Income Statement
88
Very Positive
KDDI has demonstrated consistent revenue growth with a notable increase in total revenue from prior years. The gross profit margin remains strong, suggesting effective cost management. The EBIT and EBITDA margins indicate robust operational efficiency. However, the net profit margin, while healthy, shows limited growth, which could be improved.
Balance Sheet
82
Very Positive
The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, indicating prudent leverage. The return on equity is strong, showcasing effective use of shareholder funds. The equity ratio suggests a balanced capital structure, though there is room for reducing debt further to enhance financial stability.
Cash Flow
78
Positive
Cash flow analysis reveals sound operational cash generation, with a solid operating cash flow to net income ratio. The free cash flow has shown growth, though capital expenditures remain high, impacting free cash flow growth potential. A balanced approach to managing investing and financing activities would strengthen cash flow performance.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.92T5.75T5.67T5.45T5.31T
Gross Profit2.51T2.43T2.41T2.46T2.38T
EBITDA1.79T1.68T1.71T1.78T1.77T
Net Income685.68B637.87B679.11B672.49B651.50B
Balance Sheet
Total Assets16.88T14.15T11.92T11.08T10.54T
Cash, Cash Equivalents and Short-Term Investments921.17B887.21B844.97B819.05B1.11T
Total Debt4.44T2.43T1.65T1.74T1.76T
Total Liabilities11.23T8.35T6.25T5.57T5.28T
Stockholders Equity5.13T5.25T5.12T4.98T4.76T
Cash Flow
Free Cash Flow958.47B956.97B444.74B793.08B1.06T
Operating Cash Flow1.36T1.71T1.08T1.47T1.68T
Investing Cash Flow-1.28T-832.43B-732.48B-761.59B-658.92B
Financing Cash Flow-5.76B-476.48B-669.84B-727.26B-585.57B

KDDI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2630.00
Price Trends
50DMA
2467.75
Positive
100DMA
2480.48
Positive
200DMA
2452.36
Positive
Market Momentum
MACD
40.17
Negative
RSI
63.25
Neutral
STOCH
80.27
Negative
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 2630 is above the 20-day moving average (MA) of 2512.90, above the 50-day MA of 2467.75, and above the 200-day MA of 2452.36, indicating a bullish trend. The MACD of 40.17 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 80.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9433.

KDDI Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥9.76T15.1913.28%4.09%2.66%11.83%
56
Neutral
AU$3.61B19.21-6.45%4.08%3.58%-16.96%
$3.55B25.8815.20%1.19%
$93.85B12.2510.39%3.67%
€1.45B18.3213.98%
$154.35B13.0615.53%0.27%
77
Outperform
¥11.24T22.41
3.58%7.71%-1.03%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9433
KDDI
2,630.00
358.44
15.78%
IIJIF
Internet Initiative Japan
19.83
1.86
10.35%
NPPXF
Nippon Telegraph and Telephone
0.97
-0.16
-14.16%
DE:OCU
Okinawa Cellular Telephone Company
30.20
5.76
23.57%
SFTBF
SoftBank Group
112.00
55.15
97.01%
JP:9434
SoftBank Corp.
240.00
53.98
29.02%

KDDI Corporate Events

KDDI Reports Progress on Share Repurchase Program
Aug 6, 2025

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
Aug 1, 2025

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
Aug 1, 2025

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
Jul 4, 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.

KDDI Reports No Share Repurchases in May 2025
Jun 5, 2025

KDDI Corporation announced that no shares were repurchased during the period from May 15 to May 31, 2025, despite a board resolution allowing for the repurchase of up to 196 million shares at a cost of up to 400 billion yen. This lack of repurchase activity may impact the company’s stock market strategy and investor relations, as share buybacks are often used to enhance shareholder value and signal confidence in the company’s financial health.

The most recent analyst rating on (JP:9433) stock is a Hold with a Yen4920.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

KDDI Announces Strategic Cancellation of Treasury Stock
May 14, 2025

KDDI Corporation announced the cancellation of a portion of its treasury stock, amounting to 195,845,358 shares or 4.47% of the total issued shares, as part of its strategic financial management. This move is expected to optimize the company’s capital structure and potentially enhance shareholder value by reducing the number of outstanding shares, which could positively impact the company’s stock performance.

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.

KDDI Announces Treasury Share Repurchase to Boost Shareholder Returns
May 14, 2025

KDDI has announced a repurchase of treasury shares through a tender offer, as part of its strategy to enhance shareholder returns and support sustainable growth. This move aligns with KDDI’s Mid-Term Management Strategy and Satellite Growth Strategy, which focus on business transformation centered on 5G, generative AI, and data-driven management, aiming to strengthen profit growth and shareholder returns.

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.

KDDI Proposes Revisions to Executive Compensation Plan
May 14, 2025

KDDI Corporation announced a proposal to continue and partially revise its performance-linked stock compensation plan for directors and executives, aiming to strengthen the connection between executive compensation and the company’s performance and share price. The proposed changes, contingent on shareholder approval, include extending the target period and increasing the total contribution to the trust, reflecting KDDI’s commitment to aligning executive incentives with its medium-term management strategy.

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.

KDDI Proposes Amendments to Articles of Incorporation for Business Expansion
May 14, 2025

KDDI Corporation has announced a proposal to amend its Articles of Incorporation to expand its business purposes, which will be presented for approval at the upcoming Annual Meeting of Shareholders. The changes aim to prepare the company for future business expansion, particularly in information and communication technology services, and include the addition of fee-charging employment placement services.

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.

KDDI Reports Strong Financial Results for Fiscal Year 2025
May 14, 2025

KDDI Corporation reported its financial results for the fiscal year ending March 31, 2025, showing a notable increase in operating income by 16.3% and profit for the period by 16.8% compared to the previous year. The company also conducted a two-for-one stock split on April 1, 2025, which affected earnings per share calculations. The financial results reflect a strong performance, with increased revenue and profitability, positioning KDDI favorably in the telecommunications industry. The announcement also included plans for dividend payments and a forecast for the next fiscal year, indicating continued growth expectations.

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.

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 06, 2025