KDDI Corporation (JP:9433)
:9433
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KDDI
(9433)
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Rating:65Neutral
Price Target:
¥2,914.00
▲(8.73% Upside)
Action:ReiteratedDate:04/09/26
The score is held back mainly by the earnings-call governance/accounting crisis and elevated leverage risk, partly offset by resilient profitability/cash generation, constructive technical momentum, and a moderate valuation with a ~3% dividend yield.
Positive Factors
Free cash flow generation
Consistent positive free cash flow indicates earnings are backed by cash, supporting dividends, recurring network capex and strategic investments (5G/AI). Over the medium term this reduces reliance on external financing and underpins capital allocation flexibility despite periodic volatility.
Negative Factors
Accounting and governance crisis
Discovery of multi‑year fictitious transactions represents a major governance failure. Beyond immediate restatements, such systemic control weaknesses can erode stakeholder trust, invite regulatory or legal actions, and necessitate costly remediation programs that divert management focus and resources for many months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistent positive free cash flow indicates earnings are backed by cash, supporting dividends, recurring network capex and strategic investments (5G/AI). Over the medium term this reduces reliance on external financing and underpins capital allocation flexibility despite periodic volatility.
Read all positive factors
KDDI (9433) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.91T
Dividend Yield2.85%
Average Volume (3M)9.18M
Price to Earnings (P/E)12.0
Beta (1Y)0.36
Revenue Growth3.34%
EPS Growth20.36%
CountryJP
Employees61,288
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)44.15
Shares Outstanding4,187,847,700
10 Day Avg. Volume9,688,190
30 Day Avg. Volume9,180,513
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)1.86
Price to Sales (P/S)1.61
P/FCF Ratio9.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)208.95
Revenue Forecast (FY)¥6.32T
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...
How the Company Makes Money
KDDI makes money primarily by selling connectivity and related services to consumers and enterprises. Its core revenue stream is telecommunications service revenue: (1) consumer mobile services, where it earns recurring fees from monthly service p...
KDDI Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 12, 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
78
Positive
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.07T | 5.92T | 5.75T | 5.67T | 5.45T | 5.31T |
| Gross Profit | 2.57T | 2.51T | 2.43T | 2.41T | 2.46T | 2.38T |
| EBITDA | 1.82T | 1.78T | 1.62T | 1.71T | 1.78T | 1.76T |
| Net Income | 712.53B | 685.68B | 637.87B | 679.11B | 672.49B | 651.50B |
Balance Sheet | ||||||
| Total Assets | 18.36T | 16.88T | 14.15T | 11.92T | 11.08T | 10.54T |
| Cash, Cash Equivalents and Short-Term Investments | 732.16B | 944.14B | 907.73B | 504.62B | 819.05B | 840.07B |
| Total Debt | 5.25T | 4.69T | 2.66T | 1.66T | 1.74T | 1.76T |
| Total Liabilities | 12.92T | 11.23T | 8.35T | 6.25T | 5.57T | 5.28T |
| Stockholders Equity | 4.93T | 5.13T | 5.25T | 5.13T | 4.98T | 4.76T |
Cash Flow | ||||||
| Free Cash Flow | 1.41T | 958.47B | 1.12T | 834.45B | 1.04T | 1.27T |
| Operating Cash Flow | 1.80T | 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 | -835.72B | -5.76B | -462.97B | -671.76B | -721.50B | -580.76B |
KDDI Technical Analysis
Negative
2680.00
Price Trends
2644.28
Negative
2644.88
Negative
2531.69
Positive
Market Momentum
1.82
Positive
43.97
Neutral
12.38
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 2680 is above the 20-day moving average (MA) of 2669.71, above the 50-day MA of 2644.28, and above the 200-day MA of 2531.69, indicating a neutral trend. The MACD of 1.82 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 12.38 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥322.88B | 18.43 | 13.42% | 2.27% | 5.10% | 12.48% | |
66 Neutral | ¥20.69B | 23.11 | ― | ― | 30.15% | 31.28% | |
65 Neutral | ¥9.91T | 12.02 | 13.75% | 2.85% | 3.34% | 20.36% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥458.50B | 19.63 | 15.67% | 1.31% | 12.48% | 18.38% | |
60 Neutral | ¥10.46T | 19.08 | ― | 3.99% | 7.79% | 5.53% | |
56 Neutral | ¥13.01T | 9.80 | 11.22% | 3.36% | 2.10% | -9.29% |
* Communication Services Sector Average
JP:9433
KDDI
2,607.00
169.52
6.95%
JP:3774
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JP:9432
Nippon Telegraph and Telephone
152.10
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7.59%
JP:9436
Okinawa Cellular Telephone Company
3,460.00
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69.72%
JP:9424
Japan Communications Inc.
125.00
-16.00
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JP:9434
SoftBank Corp.
217.80
11.37
5.51%
KDDI Corporate Events
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...
KDDI Flags Potential Revisions to Q3 Results Amid Probe Into Inappropriate Subsidiary Transactions
Feb 6, 2026
KDDI has released preliminary consolidated financial figures for the third quarter of the fiscal year ending March 2026, cautioning that the numbers may be revised pending the outcome of an internal special investigation and an external audit into...
KDDI Delays Q3 Earnings as Probe Uncovers Large-Scale Fictitious Transactions at Subsidiaries
Feb 6, 2026
KDDI has postponed the official disclosure of its third-quarter earnings for the fiscal year ending March 2026 due to an ongoing investigation into suspected inappropriate transactions at its consolidated subsidiaries BIGLOBE Inc. and G-PLAN INC.,...
KDDI Delays Q3 Earnings Amid Probe Into Suspected Inappropriate Transactions
Feb 6, 2026
KDDI has decided to postpone the release of its earnings report for the third quarter of the fiscal year ending March 2026, acknowledging that this delay will push disclosure beyond the standard 45-day post-quarter window and apologizing to shareh...
KDDI Probes Suspected Inappropriate Transactions at Advertising Subsidiaries
Jan 14, 2026
KDDI has uncovered suspected inappropriate transactions within the advertising agency business of its consolidated subsidiaries BIGLOBE and G-PLAN, including potential overstatement of revenue and related figures, following delayed payments from c...
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.