KDDI (9433) AI Stock Analysis

• Market Cap: $9.14T
• Dividend Yield: 3.17%
• Average Volume (3M): 9.18M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.48
• Revenue Growth: 2.66%
• EPS Growth: 11.83%
• Country: JP
• Employees: 61,288
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 43.01
• 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: 1.59
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $2,972.11
• Price Target Upside: 21.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥2,711.00 ▲(10.90% Upside)

KDDI's overall stock score reflects strong financial performance and a reasonable valuation, which are offset by technical indicators suggesting potential overbought conditions and mixed earnings call results. The company's profitability and stable revenue growth are key strengths, while increased leverage and challenges in cash conversion pose risks. The successful launch of new plans and growth in financial services provide a positive outlook.

Positive Factors

Revenue Growth

The consistent increase in operating revenue indicates strong demand for KDDI's services, reflecting its robust market position and effective business strategies in the telecommunications sector.

Financial Services Expansion

Significant growth in financial services showcases KDDI's successful diversification strategy, enhancing its revenue streams and reducing reliance on traditional telecom services.

New Product Launch Success

The successful launch of new plans demonstrates KDDI's ability to innovate and adapt to customer needs, strengthening its competitive edge and customer loyalty.

Negative Factors

Profit Decline

The decline in profit, despite revenue growth, suggests margin pressures that could affect long-term profitability if not addressed through cost management or pricing strategies.

High Sales Promotion Expenses

Increased promotional expenses indicate potential challenges in maintaining customer acquisition costs, which could pressure margins if such expenses persist.

Weak Smartphone Subscription Growth

Slowing smartphone subscription growth may signal market saturation or increased competition, potentially limiting future revenue growth in the core mobile segment.

KDDI Business Overview & Revenue Model

Company Description

KDDI Corporation (9433) is a leading telecommunications and digital service provider based in Japan. Established in 2000, the company operates primarily in the telecommunications sector, offering a wide range of services including mobile and fixed-line communications, data centers, and cloud services. KDDI serves both individual consumers and businesses, with core products such as mobile telephony, internet access, and value-added services like IoT (Internet of Things) solutions and content delivery.

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	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	944.14B	907.73B	504.62B	819.05B	840.07B
Total Debt	5.10T	4.44T	2.43T	1.66T	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	5.13T	4.98T	4.76T
Cash Flow
Free Cash Flow	485.51B	958.47B	1.12T	834.45B	1.04T	1.27T
Operating Cash Flow	876.05B	1.36T	1.64T	1.23T	1.47T	1.68T
Investing Cash Flow	-931.82B	-1.28T	-820.24B	-739.43B	-767.35B	-663.74B
Financing Cash Flow	-402.06B	-5.76B	-462.97B	-671.76B	-721.50B	-580.76B

KDDI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2444.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2444.5 is above the 20-day moving average (MA) of 2378.57, below the 50-day MA of 2463.32, and above the 200-day MA of 2427.80, indicating a neutral trend. The MACD of -8.71 indicates Negative momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 95.12 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	75 Outperform	€246.91B	19.56	13.98%	2.45%	7.33%	10.59%
9432	73 Outperform	$13.49T	13.38	10.39%	3.30%	1.65%	-15.29%
9433	72 Outperform	$9.14T	13.95	13.28%	3.17%	2.66%	11.83%
3774	70 Neutral	$484.27B	23.07	15.20%	1.35%	12.19%	4.12%
9434	67 Neutral	¥10.25T	20.40	―	3.91%	7.71%	-1.03%
9984	65 Neutral	$36.45T	20.90	15.53%	0.19%	6.69%	2988.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

KDDI Corporate Events

KDDI Completes Significant Share Repurchase Program

KDDI Corporation has completed a significant share repurchase program, acquiring 4,255,200 shares of common stock at a cost of over 10.7 billion yen between September 1 and September 12, 2025. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 196 million shares, aiming to enhance shareholder value and optimize capital structure. The completion of this phase underscores KDDI’s commitment to its strategic financial management and could influence its market positioning positively.

The most recent analyst rating on (JP:9433) stock is a Hold with a Yen2727.00 price target. To see the full list of analyst forecasts on KDDI stock, see the JP:9433 Stock Forecast page.

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 Corporation Reports Modest Revenue Growth Amid Strategic Expansions

KDDI Corporation is a leading Japanese telecommunications company that offers a wide range of services, including mobile communications, internet, and data center solutions, with a focus on integrating advanced technologies like 5G and AI to enhance connectivity and customer experience.

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.