KDDI (9433) AI Stock Analysis

• Market Cap: $9.33T
• Dividend Yield: 3.02%
• Average Volume (3M): 8.16M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.52
• Revenue Growth: 2.85%
• EPS Growth: 12.58%
• Country: JP
• Employees: 61,288
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 46.16
• Shares Outstanding: 4,187,847,700
• 10 Day Avg. Volume: 10,511,460
• 30 Day Avg. Volume: 8,156,073
• PEG Ratio: 3.86
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.10
• 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: $2,480.09
• Price Target Upside: -0.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: ¥2,802.00 ▲(12.76%Upside)

KDDI's strong financial performance and positive earnings call are the key strengths, contributing to a solid overall score. The technical analysis suggests a neutral market sentiment, while the valuation is fair. Challenges in certain business segments and increased churn rates pose some risks.

Positive Factors

Business Growth

KDDI's confidence is reflected in its forecasted operating profit growth of 5.3% for FY3/26, highlighting strong business service prospects.

Earnings

A 9.3% year-over-year increase in earnings per share was supported by a ¥400 billion buyback.

Financial Performance

KDDI's Q4 operating profit of ¥254 billion surpassed expectations, thanks to strong growth in Business Services and Personal Services.

Negative Factors

Growth Strategy

The challenging earnings per share target still heavily relies on a large share buyback plan due to a lack of strong growth elements.

Guidance

The FY3/26 earnings guidance falls below market consensus, raising concerns about growth expectations.

Sector Trends

Japanese telecom companies, including KDDI, are generally considered to be in an ex-growth sector.

KDDI Business Overview & Revenue Model

Company Description

KDDI Corporation is a leading telecommunications company in Japan, operating under the brand name 'au.' It offers a wide range of services including mobile communications, fixed-line communications, and internet services. In addition to these core offerings, KDDI is involved in solution services for corporate clients and has a growing presence in global telecommunications markets through strategic partnerships and investments.

How the Company Makes Money

KDDI makes money primarily through its telecommunications services, which include mobile phone services, fixed-line communications, and internet services. The largest revenue stream is from mobile communications, where KDDI provides both voice and data services. The company also generates revenue from its fixed-line and internet services, catering to both residential and business clients. Additionally, KDDI offers solution services for enterprises, which contribute to its revenue by providing IT solutions, data center services, and cloud services. Significant partnerships with global and local technology companies enhance its service offerings and customer reach, further supporting its revenue growth.

KDDI Financial Statement Overview

Summary

KDDI shows strong financial performance with consistent revenue growth and efficient operations. However, there is room for improvement in net income growth and free cash flow optimization. The balance sheet is stable, although further debt reduction could enhance financial stability.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.92T	5.75T	5.67T	5.45T	5.31T
Gross Profit	2.51T	2.43T	2.41T	2.46T	2.38T
EBITDA	1.79T	1.68T	1.71T	1.78T	1.77T
Net Income	685.68B	637.87B	679.11B	672.49B	651.50B
Balance Sheet
Total Assets	16.88T	14.15T	11.92T	11.08T	10.54T
Cash, Cash Equivalents and Short-Term Investments	921.17B	887.21B	844.97B	819.05B	1.11T
Total Debt	4.44T	2.43T	1.65T	1.74T	1.76T
Total Liabilities	11.23T	8.35T	6.25T	5.57T	5.28T
Stockholders Equity	5.13T	5.25T	5.12T	4.98T	4.76T
Cash Flow
Free Cash Flow	958.47B	956.97B	444.74B	793.08B	1.06T
Operating Cash Flow	1.36T	1.71T	1.08T	1.47T	1.68T
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 Price: 2485.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2485 is above the 20-day moving average (MA) of 2439.08, below the 50-day MA of 2496.54, and above the 200-day MA of 2428.94, indicating a neutral trend. The MACD of -1.80 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9434	80 Outperform	¥10.52T	20.16		3.88%	7.57%	6.30%
9433	76 Outperform	$9.33T	14.56	13.04%	3.02%	2.85%	12.58%
9436	76 Outperform	€235.69B	19.23	12.86%	2.55%	8.11%	6.49%
9432	72 Outperform	$13.15T	12.90	9.84%	3.37%	2.47%	-20.92%
3774	70 Outperform	¥496.76B	24.49	14.78%	1.27%	14.76%	0.69%
Sector *	66 Neutral	¥372.81B	13.63	2.32%	2.51%	5.41%	-17.67%
9984	57 Neutral	$15.58T	13.64	10.28%	0.41%	7.21%	―

KDDI Corporate Events

KDDI Announces No Share Repurchases in June 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

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

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

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

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

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

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.