KDDI (9433) AI Stock Analysis

• Market Cap: $9.28T
• Dividend Yield: 3.17%
• Average Volume (3M): 9.18M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.48
• 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: 1.56
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $2,810.01
• Price Target Upside: 5.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,911.00 ▲(9.15% Upside)

KDDI's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The company's profitability and revenue growth are robust, and the earnings call highlighted strategic advancements and growth in key segments. However, technical indicators suggest caution due to overbought conditions, and increased leverage on the balance sheet presents a risk if not managed carefully. The valuation is reasonable, with an attractive dividend yield providing additional support to the stock's score.

Positive Factors

Revenue Growth

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

Technological Advancements

Investments in technology enhance operational efficiency and competitive positioning, fostering sustainable growth.

Telecom Infrastructure Enhancements

Expanding infrastructure supports service reliability and capacity, crucial for maintaining leadership in telecommunications.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility, posing risks if not managed, impacting long-term financial health.

Challenges in Finance and DX Segments

Struggles in key segments may hinder growth and require strategic adjustments to maintain profitability.

Stakeholder Benefit Sharing Costs

High stakeholder costs could pressure margins, affecting profitability and cash flow over the long term.

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	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: 2667.00
• 50DMA: Positive
• 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 2667 is above the 20-day moving average (MA) of 2574.47, above the 50-day MA of 2469.44, and above the 200-day MA of 2447.06, indicating a bullish trend. The MACD of 67.38 indicates Negative momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.32 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
3774	76 Outperform	$489.14B	23.55	15.67%	1.27%	12.48%	18.38%
9436	76 Outperform	€241.55B	25.29	13.42%	2.41%	5.10%	12.48%
9433	76 Outperform	$9.28T	14.46	13.75%	3.17%	3.34%	20.36%
9432	73 Outperform	$13.25T	12.38	10.59%	3.31%	2.10%	-9.29%
9434	65 Neutral	¥10.32T	20.53	―	3.94%	7.79%	5.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9984	55 Neutral	¥24.35T	7.98	24.50%	0.19%	7.31%	44.73%

KDDI Corporate Events

KDDI Corporation Reports Strong Revenue Growth

KDDI Corporation, a leading telecommunications company in Japan, is known for its comprehensive services in mobile communications, finance, energy, and digital transformation, with a strong focus on innovation and sustainable growth. In its latest earnings report for the six-month period ending September 30, 2025, KDDI Corporation reported a 3.8% increase in operating revenue, reaching ¥2,963,161 million, and a 7.6% rise in profit attributable to owners of the parent, totaling ¥377,723 million. The company attributes this growth to increased revenue from its finance business and mobile communication services, alongside expansion in IoT-related services and data centers. Despite a slight decrease in operating income due to promotional expenses, KDDI continues to focus on strategic investments in AI and 5G technologies. Looking ahead, KDDI remains committed to its Satellite Growth Strategy, aiming for a 7% increase in operating revenue for the fiscal year ending March 31, 2026, while continuing to enhance its service offerings and expand its business segments to drive sustainable growth.

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.

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.