NTT DATA (9613) AI Stock Analysis

• Market Cap: $5.56T
• Dividend Yield: 0.63%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.13
• Revenue Growth: 3.73%
• EPS Growth: 11.64%
• Country: JP
• Employees: 193,513
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 15.04
• Shares Outstanding: 1,402,500,000
• 10 Day Avg. Volume: 2,777,209
• 30 Day Avg. Volume: 3,637,996
• PEG Ratio: 4.12
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -12.84
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: 12.69
• 1Y Price Target: $4,187.98
• Price Target Upside: 5.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $4,188.00 ▲(5.62% Upside)

The overall stock score of 61 reflects significant financial challenges, particularly in revenue growth and cash flow, which are partially offset by strong technical momentum. High valuation metrics suggest limited upside potential, while the absence of earnings call and corporate events data limits additional insights.

NTT DATA Business Overview & Revenue Model

Company Description

NTT DATA Corporation (9613) is a leading global IT services provider headquartered in Tokyo, Japan. The company operates across various sectors, including healthcare, financial services, telecommunications, and public sector, delivering a wide range of IT and business services. NTT DATA focuses on consulting, system development, and business IT outsourcing, providing solutions that help clients navigate the digital landscape and optimize their business operations.

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 faces challenges with declining revenue growth and cash flow issues, despite maintaining stable profit margins. High leverage poses a risk, but operational efficiency remains a strength. The company needs to address cash flow and leverage to improve financial health.

Income Statement

The income statement shows a decline in revenue growth rate to -16.7% TTM, indicating potential challenges in maintaining sales momentum. However, the company maintains stable profitability with a gross profit margin of 28.1% and a net profit margin of 3.1% TTM. EBIT and EBITDA margins are also consistent, reflecting operational efficiency despite the revenue drop.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.55 TTM, suggesting significant leverage. Return on equity is modest at 7.9% TTM, indicating average profitability relative to equity. The equity ratio stands at 23.7%, highlighting a moderate reliance on equity financing.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow, with a negative growth rate of -26.88% TTM. The operating cash flow to net income ratio is 0.18 TTM, indicating limited cash generation relative to net income. Negative free cash flow to net income ratio suggests cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.63T	4.64T	4.37T	3.49T	2.55T	2.32T
Gross Profit	1.30T	1.29T	1.19T	922.23B	676.00B	584.58B
EBITDA	706.60B	715.84B	674.21B	545.53B	442.19B	357.67B
Net Income	142.29B	142.45B	133.87B	149.96B	142.98B	76.84B
Balance Sheet
Total Assets	7.70T	7.78T	7.22T	6.16T	3.08T	2.90T
Cash, Cash Equivalents and Short-Term Investments	561.10B	444.63B	431.77B	415.36B	246.94B	287.06B
Total Debt	2.84T	2.84T	2.45T	2.00T	663.04B	738.21B
Total Liabilities	4.85T	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	-214.16B	-292.89B	-155.68B	-16.19B	135.41B	189.38B
Operating Cash Flow	493.84B	397.15B	498.79B	350.57B	310.40B	352.49B
Investing Cash Flow	-654.39B	-672.98B	-628.69B	-327.12B	-200.06B	-175.96B
Financing Cash Flow	169.99B	292.64B	113.35B	140.50B	-162.94B	-99.55B

NTT DATA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3965.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9613, the sentiment is Neutral. The current price of 3965 is below the 20-day moving average (MA) of 3965.70, above the 50-day MA of 3962.14, and above the 200-day MA of 3401.32, indicating a neutral trend. The MACD of 2.29 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9613.

NTT DATA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3626	72 Outperform	¥1.13T	21.85	―	1.44%	4.39%	7.80%
9719	66 Neutral	¥1.35T	27.50	―	1.94%	33.00%	21.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9613	61 Neutral	$5.56T	39.07	7.93%	0.63%	3.73%	11.64%