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KDDI Corporation (KDDIY)
OTHER OTC:KDDIY
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KDDI
(OTC:KDDIY)
Rating:79Outperform
Price Target:
$20.50
▲(17.08% Upside)
KDDI (KDDIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.37B
Dividend Yield0.92%
Average Volume (3M)13.24K
Price to Earnings (P/E)20.7
Beta (1Y)0.17
Revenue Growth2.22%
EPS Growth43.84%
CountryUS
Employees61,288
SectorCommunication Services
Sector Strength89
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.29
Shares Outstanding4,187,847,700
10 Day Avg. Volume8,545
30 Day Avg. Volume13,243
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.06
Forecast
1Y Price Target
$20.50Price Target Upside17.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
KDDI Business Overview & Revenue Model
Company DescriptionKDDI Corporation (KDDIY) is a prominent Japanese telecommunications company that provides a wide range of services, including mobile and fixed-line communications, broadband internet, and various IT solutions. Established in 2000, KDDI operates primarily in the telecommunications sector but also has significant interests in technology solutions, content distribution, and IoT services. The company's core products include mobile phone services under the au brand, data services, and enterprise solutions that cater to both individual consumers and businesses.
How the Company Makes MoneyKDDI generates revenue through multiple streams, primarily from its mobile communications segment, which includes subscription fees from its au mobile services and prepaid plans. The company also earns money from fixed-line services, broadband internet subscriptions, and data center operations. In addition, KDDI has ventured into the IoT space, providing services that connect devices and enhance smart solutions for various industries. Strategic partnerships with global tech companies and local enterprises further bolster its revenue through collaborative projects and joint ventures. Furthermore, KDDI's focus on expanding its digital services, including content delivery and cloud solutions, contributes to its overall earnings, allowing the company to diversify its income sources.
KDDI Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed sentiment with notable revenue growth and successful financial services expansion, but offset by profit declines and challenges in specific segments like Digital BPO and smartphone subscriptions. The highlights and lowlights are fairly balanced.Q1-2026 Updates
Positive Updates
Revenue Increase
Operating revenue was JPY 1.4363 trillion, up 3.4% year-on-year, indicating a positive revenue growth for the company.
Financial and Energy Business Growth
The combined financial and energy businesses saw an increase of JPY 6.2 billion, and Lawson's equity method profit was up JPY 5.7 billion.
Mobile Revenue Growth
Mobile revenues for Personal and Business Services segments combined were JPY 550.6 billion, up JPY 7.6 billion year-on-year, with a mobile ARPU increase to JPY 4,340, up JPY 60.
Financial Services Expansion
au Financial Holdings operating income increased by 33% year-on-year to JPY 11.7 billion, with the au Money Activity Plan exceeding 1.6 million subscriptions.
Business Services Segment Growth
Consolidated operating revenue in the Business Services segment was JPY 349.7 billion, up 4.5% year-on-year, with operating income up 5.4%.
Negative Updates
Profit Decrease
Operating income was JPY 272.5 billion, down 1.6% year-on-year, and profit attributable to owners of the parent was JPY 171.1 billion, down 3.3%.
Sales Promotion Expenses Impact
The impact of prior year's promotional expenses, including a JPY 7.3 billion onetime expense, negatively affected operating income by JPY 4.4 billion.
Challenges in Digital BPO
The Digital BPO segment saw a decline in revenue and profit, with a slow progress in customer acquisition.
Weak Smartphone Subscription Growth
Smartphone subscription net additions were slowing down, indicating weaker growth in this area.
Company Guidance
During the financial results briefing for the first quarter of fiscal year ending March 2026, KDDI Corporation provided guidance on several key metrics. The company reported a consolidated operating revenue of JPY 1.4363 trillion, marking a 3.4% increase year-on-year, while operating income decreased by 1.6% to JPY 272.5 billion. Profit attributable to owners of the parent was JPY 171.1 billion, a decrease of 3.3% from the previous year. Despite the decline in profit, the company maintained that results were in line with initial forecasts. The Personal Services segment aimed for a full-year profit growth of over JPY 30 billion, with Q1 mobile revenues increasing by JPY 2.3 billion year-on-year. Mobile ARPU rose to JPY 4,340, and smartphone subscriptions increased by 450,000. The Business Services segment saw a 4.5% rise in consolidated operating revenue to JPY 349.7 billion, with operating income up 5.4% to JPY 57.5 billion. KDDI emphasized the successful launch of new pricing plans and their focus on digital data and AI to drive further growth. The company also highlighted the strengthening of financial services, with au Financial Holdings' operating income up 33% year-on-year to JPY 11.7 billion.KDDI Financial Statement Overview
Summary
KDDI demonstrates strong financial performance with consistent revenue and profit growth, stable leverage ratios, and effective cash flow management. The income statement shows robust margins and improved profitability, while the balance sheet and cash flow statements indicate stability and solid cash generation. However, there is room for improvement in equity proportion and capital expenditure efficiency.Income Statement
KDDI has demonstrated strong revenue growth with a 2.85% increase from 2024 to 2025. Gross profit margin remains robust, showing effective cost management. Net profit margin improved slightly from 11.08% in 2024 to 11.58% in 2025, indicating enhanced profitability. EBIT and EBITDA margins have improved, reflecting efficient operations and solid earnings before interest and taxes.88
Very Positive
Balance Sheet
KDDI maintains a stable balance sheet with a debt-to-equity ratio of 0.87, slightly higher than the previous year but still within a reasonable range. Return on equity (ROE) is strong at 13.37%, showing effective utilization of equity. The equity ratio is at 30.38%, reflecting a stable capital structure, albeit with room for improvement in equity proportion.83
Very Positive
Cash Flow
Cash flow metrics are solid, with a free cash flow to net income ratio of 0.83, indicating strong cash generation relative to net earnings. Operating cash flow to net income ratio is favorable at 1.82, showing efficient cash flow management. However, the free cash flow growth rate is negative due to the higher capital expenditures, suggesting potential areas for efficiency improvement.85
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.92T | 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 | 1.78T | 1.82T | 1.62T | 1.71T | 1.78T | 1.76T |
| Net Income | 685.68B | 685.68B | 637.87B | 679.11B | 672.49B | 651.50B |
Balance Sheet | ||||||
| Total Assets | 16.88T | 16.88T | 14.15T | 11.92T | 11.08T | 10.54T |
| Cash, Cash Equivalents and Short-Term Investments | 1.36T | 1.36T | 887.21B | 844.97B | 1.12T | 1.11T |
| Total Debt | 4.44T | 4.44T | 2.43T | 1.65T | 1.74T | 1.76T |
| Total Liabilities | 11.23T | 11.23T | 8.35T | 6.25T | 5.57T | 5.28T |
| Stockholders Equity | 5.13T | 5.13T | 5.25T | 5.12T | 4.98T | 4.76T |
Cash Flow | ||||||
| Free Cash Flow | 848.10B | 566.11B | 956.97B | 444.74B | 793.08B | 1.06T |
| Operating Cash Flow | 1.25T | 1.25T | 1.71T | 1.08T | 1.47T | 1.68T |
| Investing Cash Flow | -1.18T | -1.18T | -832.43B | -732.48B | -761.59B | -658.92B |
| Financing Cash Flow | -33.55B | -33.55B | -476.48B | -669.84B | -727.26B | -585.57B |
KDDI Technical Analysis
Positive
17.51
Price Trends
17.05
Positive
17.24
Positive
16.69
Positive
Market Momentum
0.16
Positive
49.15
Neutral
9.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KDDIY, the sentiment is Positive. The current price of 17.51 is below the 20-day moving average (MA) of 17.55, above the 50-day MA of 17.05, and above the 200-day MA of 16.69, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 9.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KDDIY.
KDDI Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $65.37B | 20.69 | 13.28% | 0.92% | 2.22% | 43.84% | |
76 Outperform | $33.52B | 28.50 | 9.95% | 3.84% | 3.12% | 3.14% | |
74 Outperform | $18.86B | 13.52 | 17.71% | 6.80% | -5.13% | -5.90% | |
68 Neutral | $60.94B | 21.16 | 14.41% | 2.62% | -0.64% | 56.92% | |
60 Neutral | $44.01B | 4.13 | -12.81% | 4.14% | 1.86% | -42.71% | |
60 Neutral | $28.84B | 9.21 | -7.17% | 4.22% | 0.89% | -494.16% | |
60 Neutral | $30.25B | ― | -3.55% | 6.65% | -4.73% | -251.31% |
* Communication Services Sector Average
Performance Comparison
KDDIY
KDDI
17.51
0.78
4.66%
AMX
America Movil
19.91
4.25
27.14%
CHT
Chunghwa Telecom Co
43.51
5.98
15.93%
TLK
PT Telekomunikasi Indonesia Tbk
18.92
0.21
1.12%
TEF
Telefonica
5.36
0.94
21.27%
VOD
Vodafone
11.72
2.21
23.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.