NTT DATA (9613) AI Stock Analysis

• Market Cap: $5.60T
• Dividend Yield: 0.67%
• Average Volume (3M): 5.70M
• Price to Earnings (P/E): 39.3
• Beta (1Y): 1.24
• Revenue Growth: 6.21%
• EPS Growth: 6.41%
• Country: JP
• Employees: 193,513
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 32.80
• Shares Outstanding: 1,402,500,000
• 10 Day Avg. Volume: 3,406,180
• 30 Day Avg. Volume: 5,703,699
• PEG Ratio: 3.30
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -149.97
• 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: $3,100.52
• Price Target Upside: -22.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥4,070.00 ▲(1.93%Upside)

The overall stock score of 54 reflects a strong financial performance with consistent growth, but the technical indicators suggest a potential price correction. Additionally, the high P/E ratio and low dividend yield indicate overvaluation concerns.

NTT DATA Business Overview & Revenue Model

Company Description

NTT DATA Corporation provides IT and business services worldwide. The company operates through Public & Social Infrastructure, Financial, Enterprise & Solutions, North America, and EMEA & LATAM segments. It offers cloud, cybersecurity, data and intelligence, salesforce, and application development and management services, as well as maintenance support services. The company also provides advisory, technical consulting, business process consulting, ongoing platform support, and industry-specific services. It serves various industries, such as government agencies and municipalities, manufacturing, healthcare and life sciences, automobile, banking and financial institution, electronics and high-tech field, insurance, transportation and logistics, telecommunication, media and entertainment, wholesale, retail, education, service, energy and utility, fundamental technologies, natural resources, and consumer products. The company was formerly known as NTT Data Communications Systems Corporation and changed its name to NTT DATA Corporation in 1996. NTT DATA Corporation was founded in 1967 and is headquartered in Tokyo, Japan. NTT DATA Corporation is a subsidiary of Nippon Telegraph and Telephone Corporation.

How the Company Makes Money

NTT DATA makes money primarily through offering a comprehensive suite of IT services and solutions. The company's key revenue streams include consulting services, which help businesses improve their operations and IT systems; systems integration, where NTT DATA designs and implements IT solutions tailored to client needs; and IT infrastructure management, providing ongoing support and management of IT systems. Additionally, the company generates revenue from digital transformation services, helping clients adapt to modern digital landscapes. Strategic partnerships and collaborations with technology providers and industry leaders also play a significant role in driving the company's earnings by expanding its service offerings and market reach.

NTT DATA Financial Statement Overview

Summary

NTT DATA demonstrates strong financial performance with consistent revenue growth and improved profitability. The balance sheet is well-managed with moderate leverage, though negative free cash flow due to high capital expenditures requires attention.

Income Statement

NTT DATA has shown consistent revenue growth with a significant increase from 2021 to 2025. The gross profit margin remains stable, indicating strong cost management, and the net profit margin has improved, suggesting enhanced profitability. EBIT and EBITDA margins are robust, reflecting efficient operations.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, showcasing a careful balance between leveraging and equity financing. The return on equity (ROE) indicates effective use of shareholder funds, and the equity ratio suggests a sound equity position, although there's room for strengthening equity further.

Cash Flow

Operating cash flow has been positive and consistent, which is a good sign of financial health. However, free cash flow has been negative recently due to high capital expenditures, which could be a concern if not managed properly. The operating cash flow to net income ratio remains stable, indicating efficient cash generation relative to earnings.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.64T	4.37T	3.49T	2.55T	2.32T
	Gross Profit
1.29T	1.19T	922.23B	676.00B	584.58B
	EBIT
323.86B	309.89B	259.11B	212.59B	139.17B
	EBITDA
717.61B	674.21B	530.29B	432.53B	352.53B
	Net Income Common Stockholders
142.45B	133.87B	149.96B	142.98B	76.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
444.63B	431.77B	470.06B	326.28B	303.58B
	Total Assets
7.78T	7.22T	6.16T	3.08T	2.90T
	Total Debt
2.84T	2.45T	2.00T	663.04B	738.21B
	Net Debt
2.39T	2.02T	1.59T	416.10B	451.15B
	Total Liabilities
4.91T	4.44T	3.76T	1.76T	1.77T
	Stockholders Equity
1.83T	1.72T	1.45T	1.27T	1.07T
Cash Flow		Free Cash Flow
-292.89B	-155.68B	-16.19B	135.41B	189.38B
	Operating Cash Flow
397.15B	498.79B	350.57B	310.40B	352.49B
	Investing Cash Flow
-672.98B	-624.51B	-322.28B	-196.49B	-173.89B
	Financing Cash Flow
292.64B	109.17B	135.66B	-166.51B	-101.62B

NTT DATA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3993.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9613, the sentiment is Positive. The current price of 3993 is above the 20-day moving average (MA) of 3988.85, above the 50-day MA of 3304.54, and above the 200-day MA of 2850.93, indicating a bullish trend. The MACD of 171.66 indicates Positive momentum. The RSI at 86.78 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9613.

NTT DATA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
9613	54 Neutral	$5.60T	39.30	7.94%	0.67%	6.21%	6.41%
FJTSF		$44.37B	28.59	11.70%	0.82%	―	―
NIPNF		$36.58B	30.56	8.97%	0.68%	―	―
NURAF		$22.59B	36.49	22.20%	1.10%	―	―
3626	74 Outperform	¥1.08T	21.53		1.52%	4.13%	5.65%
9719	74 Outperform	¥1.33T	29.62		1.67%	24.10%	11.27%