NTT DATA (9613) AI Stock Analysis

• Market Cap: $5.56T
• Dividend Yield: 0.63%
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.17
• Revenue Growth: 3.73%
• EPS Growth: 11.64%
• Country: JP
• Employees: 193,513
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): 15.04
• Shares Outstanding: 1,402,500,000
• 10 Day Avg. Volume: 6,996,810
• 30 Day Avg. Volume: 3,039,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 6.96
• Enterprise Value/Ebitda: 14.61
• 1Y Price Target: $3,992.33
• Price Target Upside: 0.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥4,261.00 ▲(7.19% Upside)

The overall stock score reflects strong financial performance as the most significant factor, supported by consistent revenue and profit growth. Technical analysis indicates balanced momentum, while high valuation metrics suggest limited potential for price appreciation. The lack of substantial dividend yield also weighs on the score.

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 its IT services and solutions offered to businesses and organizations worldwide. The company's revenue model is centered around providing consulting services, system integration, and IT outsourcing services. Key revenue streams include long-term contracts for managed services, custom application development, and cloud services. NTT DATA's strategic partnerships with technology providers and its global network of clients are significant contributors to its earnings, allowing the company to offer comprehensive solutions that address complex business challenges.

NTT DATA Financial Statement Overview

Summary

NTT DATA demonstrates strong financial performance with consistent revenue and profit growth. Though the balance sheet is well-managed with moderate leverage, the negative free cash flow due to high capital expenditures suggests a need for careful management to ensure sustainable long-term growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.64T	4.64T	4.37T	3.49T	2.55T	2.32T
Gross Profit	1.29T	1.29T	1.19T	922.23B	676.00B	584.58B
EBITDA	613.35B	717.61B	674.21B	530.29B	432.53B	352.53B
Net Income	142.46B	142.45B	133.87B	149.96B	142.98B	76.84B
Balance Sheet
Total Assets	7.78T	7.78T	7.22T	6.16T	3.08T	2.90T
Cash, Cash Equivalents and Short-Term Investments	444.63B	444.63B	431.77B	470.06B	326.28B	303.58B
Total Debt	2.84T	2.84T	2.45T	2.00T	663.04B	738.21B
Total Liabilities	4.91T	4.91T	4.44T	3.76T	1.76T	1.77T
Stockholders Equity	1.83T	1.83T	1.72T	1.45T	1.27T	1.07T
Cash Flow
Free Cash Flow	-292.89B	-292.89B	-155.68B	-16.19B	135.41B	189.38B
Operating Cash Flow	397.15B	397.15B	498.79B	350.57B	310.40B	352.49B
Investing Cash Flow	-669.80B	-672.98B	-624.51B	-322.28B	-196.49B	-173.89B
Financing Cash Flow	289.46B	292.64B	109.17B	135.66B	-166.51B	-101.62B

NTT DATA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3975.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 3975 is above the 20-day moving average (MA) of 3960.60, above the 50-day MA of 3960.34, and above the 200-day MA of 3356.74, indicating a bullish trend. The MACD of 3.96 indicates Negative momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 82.14 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
9613	65 Neutral	$5.56T	39.12	7.93%	0.63%	3.73%	11.64%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
FJTSF	―	$47.01B	17.05	11.82%	0.73%	―	―
NIPNF	―	$42.08B	28.43	10.52%	0.14%	―	―
NURAF	―	$22.71B	34.72	23.37%	1.08%	―	―
9719	75 Outperform	¥1.51T	30.26		1.47%	33.00%	21.00%
3626	67 Neutral	¥1.20T	22.85		1.36%	4.39%	7.80%