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KDDI Corporation (KDDIY)
OTHER OTC:KDDIY
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KDDI
(OTC:KDDIY)
Rating:78Outperform
Price Target:
$19.50
▲(17.54%Upside)
KDDI (KDDIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.79B
Dividend Yield1.91%
Average Volume (3M)18.10K
Price to Earnings (P/E)14.9
Beta (1Y)0.19
Revenue Growth-2.35%
EPS Growth29.95%
CountryUS
Employees61,288
SectorCommunication Services
Sector Strength81
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.30
Shares Outstanding4,187,847,700
10 Day Avg. Volume40,989
30 Day Avg. Volume18,103
Financial Highlights & Ratios
PEG Ratio-4.51
Price to Book (P/B)1.43
Price to Sales (P/S)0.00
P/FCF Ratio9.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
KDDI Business Overview & Revenue Model
Company DescriptionKDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers smartphone, mobile phone, and other mobile communication services, as well as fixed-line services under the au Hikari brand; MVNO services; mobile services under the au brand; and voice communications, data transmission, FTTH services, and CATV services. It also provides smartphone-centric payment, financial, and other services through au PAY gateway; au HOME, an IoT service that watches over pets using sensors and cameras; au Denki to conserve energy usage; AEON, an English conversation school. The Business Services segment offers data center services to corporate customers under the TELEHOUSE brand; and various solutions for network and cloud services, smartphones, and other devices. It is also involved in the provision of broadcasting, wireless broadband, mail order, IT support, call center, and temporary personnel services; and design, construction, maintenance, and operation support for communication equipment and submarine cable. The company was founded in 1953 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyKDDI Corporation generates revenue primarily through its telecommunications services. The Personal Services segment is its largest revenue contributor, driven by mobile communications, including voice and data services under the 'au' brand. This segment also includes revenue from broadband and Internet services. The Business Services segment provides telecommunications and network solutions to corporate clients, contributing significantly to the company's earnings. Additionally, KDDI earns from data center services and global services catering to international clients. Strategic partnerships and collaborations with other technology and telecommunications firms further enhance its service offerings and revenue potential.
KDDI Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q3-2025)
| % Change Since: -1.25%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call reflects a company experiencing steady growth, particularly in ARPU revenues and collaborative initiatives with Lawson. However, challenges remain in specific segments such as MVNO, roaming revenues, and BPO services. Overall, the highlights slightly outweigh the lowlights, suggesting a generally positive outlook.Q3-2025 Updates
Positive Updates
Record Operating Revenue Growth
The operating revenue for the third quarter was ¥4,364.2 billion, up 2.3% year-on-year, with a progress ratio of 75.6% versus the full-year forecast.
Steady Increase in Operating Income
The operating income was ¥864.6 billion, up 2.0% year-on-year, with a progress ratio of 77.9%.
Growth in ARPU Revenues
Total ARPU revenues increased steadily, with communications ARPU revenues up ¥3.5 billion and value-added ARPU revenues up ¥27.9 billion year-on-year.
Lawson's Strong Performance
Lawson's equity method accounted income increased by ¥18.2 billion, contributing to the consolidated income growth.
Expansion in Business Services Segment
The Business Services segment saw consolidated operating revenue reach ¥1,012 billion, driven by a 19.9% year-on-year growth in the growth area.
Successful Collaborative Initiatives with Lawson
New acquisitions for Ponta Pass increased by about 20% quarter-on-quarter, and Lawson's daily sales increased by 3.4% year-on-year.
Negative Updates
Decline in MVNO and Roaming Revenues
Group MVNO and Rakuten roaming revenues were down ¥12.2 billion year-on-year.
Increased Competition and Churn Rates
Intensifying competition led to an increased churn rate, although the au brand maintained a low churn rate.
Challenges in BPO and Data Center Growth
BPO sales have been sluggish due to rapid digitalization, and data center sales were flat due to changes in billing for electricity.
Company Guidance
During the third quarter of the fiscal year ending March 2025, KDDI reported consolidated operating revenue of ¥4,364.2 billion, marking a 2.3% year-on-year increase, with a progress ratio of 75.6% towards the full-year forecast. Operating income reached ¥864.6 billion, a 2.0% increase year-on-year, with a progress ratio of 77.9%. Net income also showed a progress ratio of 77.8%, excluding temporary impacts, with a year-on-year increase of 0.6%. Key growth drivers included communications ARPU revenues, financial and energy business expansions, and strong performance from Lawson, contributing an equity method accounted income increase of ¥18.2 billion. The Business Services segment saw a 19.9% year-on-year growth, with IoT connections increasing by 22.2%. The company aims to leverage advancements in AI and communications to further drive growth, with strategic collaborations and new service offerings like the Money Activity Plan+ and Ponta Pass enhancing customer engagement and sales.KDDI Financial Statement Overview
Summary
KDDI exhibits strong financial performance with consistent revenue and profit growth. The income statement shows robust profitability, the balance sheet is stable with a reasonable debt-to-equity ratio, and cash flow metrics indicate strong cash generation, although there is room for improvement in capital expenditures 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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.92T | 5.75T | 5.67T | 5.45T | 5.31T |
| Gross Profit | 2.51T | 2.43T | 2.41T | 2.46T | 2.38T |
| EBITDA | 1.82T | 1.62T | 1.71T | 1.78T | 1.76T |
| Net Income | 685.68B | 637.87B | 679.11B | 672.49B | 651.50B |
Balance Sheet | |||||
| Total Assets | 16.88T | 14.15T | 11.92T | 11.08T | 10.54T |
| Cash, Cash Equivalents and Short-Term Investments | 1.36T | 887.21B | 844.97B | 1.12T | 1.11T |
| Total Debt | 4.44T | 2.43T | 1.65T | 1.74T | 1.76T |
| Total Liabilities | 11.23T | 8.35T | 6.25T | 5.57T | 5.28T |
| Stockholders Equity | 5.13T | 5.25T | 5.12T | 4.98T | 4.76T |
Cash Flow | |||||
| Free Cash Flow | 566.11B | 956.97B | 444.74B | 793.08B | 1.06T |
| Operating Cash Flow | 1.25T | 1.71T | 1.08T | 1.47T | 1.68T |
| Investing Cash Flow | -1.18T | -832.43B | -732.48B | -761.59B | -658.92B |
| Financing Cash Flow | -33.55B | -476.48B | -669.84B | -727.26B | -585.57B |
KDDI Technical Analysis
Neutral
16.59
Price Trends
17.08
Negative
16.91
Negative
16.47
Positive
Market Momentum
-0.15
Positive
46.00
Neutral
33.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KDDIY, the sentiment is Neutral. The current price of 16.59 is below the 20-day moving average (MA) of 16.70, below the 50-day MA of 17.08, and above the 200-day MA of 16.47, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 33.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KDDIY.
KDDI Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.10B | 11.51 | 16.28% | 5.90% | -5.14% | -7.47% | |
78 Outperform | $61.79B | 14.89 | 13.04% | 1.91% | -2.35% | 29.95% | |
76 Outperform | $34.44B | 29.11 | 9.59% | 2.92% | 3.12% | 3.06% | |
71 Outperform | $53.53B | 31.77 | 8.54% | 3.19% | 0.19% | -49.68% | |
62 Neutral | $41.14B | -1.94 | -12.06% | 3.94% | 2.09% | -69.68% | |
59 Neutral | $29.55B | ― | -0.55% | 4.94% | -2.29% | -182.68% | |
57 Neutral | $26.77B | 9.21 | -7.17% | 4.63% | 0.89% | -494.16% |
* Communication Services Sector Average
Performance Comparison
KDDIY
KDDI
16.59
2.02
13.86%
AMX
America Movil
17.11
0.09
0.53%
CHT
Chunghwa Telecom Co
43.78
8.39
23.71%
TLK
PT Telekomunikasi Indonesia Tbk
16.94
-1.75
-9.36%
TEF
Telefonica
5.18
0.92
21.60%
VOD
Vodafone
10.97
2.36
27.41%
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.