Nippon Telegraph And Telephone (NTTYY) AI Stock Analysis

• Market Cap: $83.37B
• Dividend Yield: 2.8%
• Average Volume (3M): 3.57K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.10
• Revenue Growth: 2.78%
• EPS Growth: -8.43%
• Country: US
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.66
• Shares Outstanding: 3,622,012,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,567
• PEG Ratio: -0.58
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 52.26
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $28.00 ▲(11.33% Upside)

Nippon Telegraph And Telephone's strong financial performance is the most significant factor, supported by reasonable valuation metrics. However, technical indicators suggest a lack of upward momentum, which slightly offsets the overall score.

Positive Factors

Stable Revenue Base

A stable revenue base indicates consistent demand for NTT's services, providing a reliable foundation for future growth and operational planning.

Operational Efficiency

Improved gross profit margins reflect effective cost control and operational efficiency, enhancing profitability and competitive positioning.

Strong Cash Flow

Strong operating cash flow supports NTT's ability to invest in growth opportunities, manage debt, and return value to shareholders.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow may limit NTT's capacity to fund new projects or service debt, potentially affecting long-term growth and financial stability.

Decreased Net Profit Margin

A reduced net profit margin can indicate rising costs or competitive pressures, which may challenge NTT's profitability and pricing strategy.

Decreased Return on Equity

A decrease in return on equity suggests potential difficulties in efficiently using equity capital to generate profits, impacting shareholder value.

Nippon Telegraph And Telephone Business Overview & Revenue Model

Company Description

Nippon Telegraph and Telephone Corporation (NTTYY) is a leading telecommunications and IT services provider based in Japan. Established in 1952, NTT operates across various sectors, including fixed-line and mobile telecommunications, data centers, cloud services, and IT solutions. The company is known for its extensive network infrastructure and technology innovations, catering to both individual consumers and businesses with services such as broadband internet, digital communications, and integrated solutions for enterprise customers.

How the Company Makes Money

NTTYY generates revenue primarily through its telecommunications services, which include fixed-line and mobile subscriptions, generating consistent income from consumer and business customers. Additionally, the company earns significant revenue from data services, including cloud computing and data center operations, by providing infrastructure and platform services to corporate clients. NTT also engages in system integration and IT services, helping businesses optimize their operations through tailored technological solutions. Key partnerships with global technology firms and investments in emerging technologies further bolster its revenue streams, allowing it to maintain a competitive edge in the evolving telecommunications landscape.

Nippon Telegraph And Telephone Financial Statement Overview

Summary

Nippon Telegraph And Telephone demonstrates strong financial performance with robust revenue growth and profitability. The balance sheet is stable, though there is a reliance on debt. Cash flow generation is impressive, but the company should monitor its free cash flow relative to net income for sustainability.

Income Statement

Nippon Telegraph And Telephone shows strong revenue growth with a TTM increase of 16.1%, indicating robust market demand. The company maintains healthy profitability with a net profit margin of 7.18% and an EBIT margin of 12.20%. However, the gross profit margin has decreased compared to the previous year, which could indicate rising costs or pricing pressures.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 1.48, which is manageable but indicates a reliance on debt financing. The return on equity is strong at 9.91%, showcasing effective use of shareholder funds. However, the equity ratio is moderate, suggesting a balanced approach to asset financing.

Cash Flow

The company demonstrates impressive free cash flow growth of 132.24% in the TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is stable, indicating efficient conversion of earnings into cash. However, the free cash flow to net income ratio is relatively low, suggesting potential reinvestment or capital expenditure needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.73T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.81T	3.79T	1.92T	1.83T	1.77T	9.48T
EBITDA	3.46T	3.51T	3.74T	3.41T	3.33T	3.20T
Net Income	985.59B	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	31.00T	30.06T	29.60T	25.31T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	2.03T	1.00T	1.05T	892.57B	923.00B	977.46B
Total Debt	13.90T	11.17T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	20.92T	18.72T	18.71T	15.96T	14.84T	14.76T
Stockholders Equity	9.40T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	538.20B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.70T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-2.02T	-2.00T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	265.98B	-343.03B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph And Telephone Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTTYY, the sentiment is Neutral. The current price of 25.15 is above the 20-day moving average (MA) of 24.68, below the 50-day MA of 25.38, and below the 200-day MA of 25.90, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 87.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTTYY.

Nippon Telegraph And Telephone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMX	74 Outperform	$68.43B	18.15	17.70%	2.57%	1.14%	83.48%
TMUS	73 Outperform	$235.03B	20.21	19.03%	1.76%	7.30%	17.67%
NTTYY	72 Outperform	$83.37B	11.57	10.59%	2.80%	2.78%	-8.43%
VZ	72 Outperform	$173.97B	8.67	19.70%	6.60%	2.42%	102.17%
T	72 Outperform	$180.92B	8.29	20.88%	4.37%	1.98%	150.68%
CMCSA	69 Neutral	$99.11B	4.55	24.73%	4.78%	0.20%	61.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Nippon Telegraph And Telephone Corporate Events

NTT Reports Mixed Q2 2025 Financial Results

Nippon Telegraph and Telephone Corporation (NTT) is a leading telecommunications company based in Japan, providing a wide range of services including fixed and mobile voice-related services, IP/packet communications, and system integration services. It operates in various segments such as Integrated ICT, Global Solutions, and Regional Communications.