NTT DATA (9613) AI Stock Analysis

• Market Cap: ¥5.60T
• Dividend Yield: 0.67%
• Average Volume (3M): 5.75M
• 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: 83
• Industry: Information Technology Services
• EPS (TTM): 32.80
• Shares Outstanding: 1,402,500,000
• 10 Day Avg. Volume: 3,559,240
• 30 Day Avg. Volume: 5,754,433
• PEG Ratio: 6.66
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.78
• 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: ¥3,092.49
• Price Target Upside: -22.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥4,070.00 ▲(1.95%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 revenue growth and profitability, with efficient operations. The balance sheet shows moderate leverage that requires monitoring, and cash flows reflect heavy investment activity. Sustaining growth will require maintaining financial discipline.

Income Statement

NTT DATA has shown strong revenue growth, with a notable increase in Total Revenue from 2020 to TTM. The Gross Profit Margin and Net Profit Margin have been steady, indicating efficient cost management. The EBIT and EBITDA margins have been healthy, reflecting robust operational performance. A consistent upward trajectory in these metrics highlights the company's strong market position and growth potential.

Balance Sheet

The company's Debt-to-Equity ratio indicates a moderate level of leverage, which is manageable but should be monitored. Return on Equity has shown positive signs, suggesting effective use of equity capital. The Equity Ratio suggests a balanced capital structure, although the high Total Debt relative to Stockholders' Equity could pose risks if interest rates rise or cash flow decreases.

Cash Flow

NTT DATA's Operating Cash Flow to Net Income Ratio suggests decent cash generation relative to net earnings. However, the Free Cash Flow has been negative in recent periods, driven by substantial capital expenditures. This could indicate aggressive investment in growth, but it also necessitates careful management to ensure financial stability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.60T	4.37T	3.49T	2.55T	2.32T	2.27T
	Gross Profit
1.28T	1.19T	922.23B	676.00B	584.58B	572.23B
	EBIT
348.81B	309.89B	259.11B	212.59B	139.17B	130.94B
	EBITDA
627.25B	674.21B	530.29B	432.53B	352.53B	323.40B
	Net Income Common Stockholders
146.60B	133.87B	149.96B	142.98B	76.84B	75.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
633.25B	431.77B	470.06B	326.28B	303.58B	218.65B
	Total Assets
7.80T	7.22T	6.16T	3.08T	2.90T	2.69T
	Total Debt
2.93T	2.45T	2.00T	663.04B	738.21B	759.32B
	Net Debt
2.38T	2.02T	1.59T	416.10B	451.15B	553.96B
	Total Liabilities
4.89T	4.44T	3.76T	1.76T	1.77T	1.70T
	Stockholders Equity
1.83T	1.72T	1.45T	1.27T	1.07T	939.68B
Cash Flow		Free Cash Flow
-314.66B	-155.68B	-16.19B	135.41B	189.38B	88.73B
	Operating Cash Flow
359.88B	498.79B	350.57B	310.40B	352.49B	280.03B
	Investing Cash Flow
-586.56B	-624.51B	-322.28B	-196.49B	-173.89B	-257.24B
	Financing Cash Flow
294.84B	109.17B	135.66B	-166.51B	-101.62B	-66.08B

NTT DATA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3992.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 3992 is above the 20-day moving average (MA) of 3986.95, above the 50-day MA of 3230.86, and above the 200-day MA of 2820.06, indicating a bullish trend. The MACD of 207.87 indicates Positive momentum. The RSI at 86.74 is Negative, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, 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	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
9613	54 Neutral	¥5.60T	39.29	7.94%	0.67%	6.21%	6.41%
FJTSF		$42.88B	29.77	11.70%	0.79%	―	―
NIPNF		$36.09B	30.56	8.97%	0.70%	―	―
NURAF		$22.28B	36.57	22.20%	1.06%	―	―
3626	74 Outperform	¥1.07T	21.36		1.52%	4.13%	5.65%
9719	74 Outperform	¥1.31T	29.10		1.69%	24.10%	11.27%