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KDDI Corporation (KDDIY)
OTHER OTC:KDDIY
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KDDI
(OTC:KDDIY)
Rating:76Outperform
Price Target:
$19.00
▲(10.85% Upside)
KDDI (KDDIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.21B
Dividend Yield0.93%
Average Volume (3M)22.04K
Price to Earnings (P/E)20.2
Beta (1Y)0.16
Revenue Growth2.22%
EPS Growth64.92%
CountryUS
Employees61,288
SectorCommunication Services
Sector Strength80
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.29
Shares Outstanding4,187,847,700
10 Day Avg. Volume11,795
30 Day Avg. Volume22,035
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
KDDI Business Overview & Revenue Model
Company DescriptionKDDI Corporation, listed as KDDIY, is a leading Japanese telecommunications company that offers a wide range of services in the telecommunications sector. The company operates through several segments, including Personal Services and Business Services. Its core products and services encompass mobile communications, fixed-line communications, Internet services, and data center services. KDDI is renowned for its 'au' brand, which provides mobile phone services, and it also offers a variety of solutions for both individual consumers and corporate clients.
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:Aug 01, 2025
(Q1-2026)
| % Change Since: 3.75%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable revenue growth and success in financial services, but challenges with profit decline and slower smartphone subscription growth. Despite some positive developments in new plans and business services, significant impacts from promotional expenses and struggles in digital BPO contributed to a balanced sentiment.Q1-2026 Updates
Positive Updates
Revenue Growth
Operating revenue was JPY 1.4363 trillion, up 3.4% year-on-year. The mobile revenues for Personal and Business Services segments combined were JPY 550.6 billion, up JPY 7.6 billion year-on-year.
Financial Services Success
au Financial Holdings operating income increased 33% year-on-year to JPY 11.7 billion. The au Money Activity Plan exceeded 1.6 million subscriptions.
Business Services Segment Performance
Consolidated operating revenue was JPY 349.7 billion, up 4.5% year-on-year, and operating income was JPY 57.5 billion, up 5.4%.
New Plans and Connected Experience
The new connected experience value, including au 5G Fast Lane and Starlink Direct, has been well received. 80% of customers chose the au value-linked plan.
Negative Updates
Profit Decline
Operating income was JPY 272.5 billion, down 1.6%. Profit for the period attributable to owners of the parent was JPY 171.1 billion, down 3.3%.
Impact of Promotional Expenses
Previous year's promotional expenses, including a JPY 7.3 billion onetime expense, negatively impacted operating income by JPY 21.4 billion.
Challenges in Digital BPO
Digital BPO is not performing well, with a decrease in revenue and profit year-on-year, and a need for turnaround in the second half of the fiscal year.
Slow Smartphone Subscription Growth
Net addition of smartphone subscriptions was slower than expected, with challenges in acquisition and competition in the low-volume area.
Company Guidance
In the KDDI Corporation's financial briefing for the first quarter of the fiscal year ending March 2026, several key metrics and strategic initiatives were highlighted. The company reported a 3.4% year-on-year increase in operating revenue to JPY 1.4363 trillion, while operating income and profit attributable to owners of the parent declined by 1.6% and 3.3%, respectively. The Personal Services segment aimed for a year-on-year profit increase of JPY 1.9 billion and a full-year profit growth of over JPY 30 billion. Key contributors to financial performance included a JPY 6.2 billion increase from Financial and Energy businesses and a JPY 5.7 billion rise from Lawson's equity method profit. However, promotional expenses from the previous year negatively impacted operating income by JPY 21.4 billion. The company noted that mobile revenues rose by JPY 7.6 billion year-on-year, with ARPU increasing by JPY 60 and smartphone subscriptions up by 450,000. New plans, such as au 5G Fast Lane and Unlimited Data Overseas, were well received, with 80% of customers opting for the au value-linked plan. In the Business Services segment, operating revenue increased by 4.5% to JPY 349.7 billion, with a 5.4% rise in operating income to JPY 57.5 billion. The company plans to expand in areas like security and IoT and strengthen its alliance with SBI Securities to enhance its financial services.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
Positive
17.14
Price Trends
16.81
Positive
16.97
Positive
16.53
Positive
Market Momentum
0.03
Negative
56.33
Neutral
84.15
Negative
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 17.14 is above the 20-day moving average (MA) of 16.69, above the 50-day MA of 16.81, and above the 200-day MA of 16.53, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 84.15 is Negative, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $18.14B | 12.55 | 17.71% | 7.11% | -5.13% | -5.90% | |
76 Outperform | $64.21B | 20.20 | 13.28% | 0.93% | 2.22% | 64.92% | |
74 Outperform | $55.32B | 19.23 | 14.41% | 2.75% | -0.64% | 56.92% | |
67 Neutral | $34.43B | 29.40 | 9.59% | 3.70% | 3.12% | 3.06% | |
64 Neutral | £1.86B | 9.43 | -20.06% | 3.64% | 2.24% | -54.62% | |
62 Neutral | $27.83B | 9.21 | -7.17% | 4.40% | 0.89% | -494.16% | |
60 Neutral | $30.12B | ― | -3.55% | 6.65% | -2.29% | -182.68% |
* Communication Services Sector Average
Performance Comparison
KDDIY
KDDI
17.14
1.76
11.44%
AMX
America Movil
18.97
2.31
13.87%
CHT
Chunghwa Telecom Co
45.14
8.44
23.00%
TLK
PT Telekomunikasi Indonesia Tbk
18.11
1.26
7.48%
TEF
Telefonica
5.36
1.16
27.62%
VOD
Vodafone
11.26
2.26
25.11%
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.