Nippon Telegraph And Telephone (NTTYY) AI Stock Analysis

• Market Cap: $92.00B
• Dividend Yield: 2.64%
• Average Volume (3M): 8.54K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.06
• Revenue Growth: 1.23%
• EPS Growth: -15.51%
• Country: US
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): 0.53
• Shares Outstanding: 3,622,012,700
• 10 Day Avg. Volume: 3,850
• 30 Day Avg. Volume: 8,545
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $30.00
• Price Target Upside: 10.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $30.00 ▲(10.86% Upside)

Nippon Telegraph And Telephone's overall stock score reflects solid financial performance and positive technical indicators. While the company shows strong operational efficiency and a stable capital structure, challenges in sustaining growth and profitability are evident. The earnings call sentiment is cautious, with efforts focused on cost reduction and strategic investments for future growth. The valuation appears fair, providing a moderate dividend yield.

Nippon Telegraph And Telephone Business Overview & Revenue Model

Company Description

NTT, Inc. operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. Its Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers system integration, network system, cloud, global center, and related services, as well as consulting, managed, and system and software development services. Its Others segment engages in the real estate and construction, energy, and other businesses. The company was formerly known as Nippon Telegraph and Telephone Corporation and changed its name to NTT, Inc. in July 2025. NTT, Inc. was founded in 1952 and is headquartered in Tokyo, Japan.

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 exhibits solid financial performance with strong revenue growth and profitability, as indicated by healthy margins. The balance sheet is stable, with a good equity ratio, though there is a need to manage increasing leverage. Cash flow generation is robust, but declining free cash flow requires strategic attention.

Income Statement

Nippon Telegraph And Telephone shows strong revenue growth with a 1.81% increase from the previous year, reflecting a positive trend. The company maintains robust profitability with a gross profit margin of 14.38% and a net profit margin of 9.57% for the latest annual period. EBIT and EBITDA margins are also healthy at 14.38% and 27.96%, respectively. These figures highlight the company's efficiency and cost management, contributing to its stable profitability. However, the slight decline in gross profit from previous years may indicate rising costs or competitive pressures.

Balance Sheet

The balance sheet exhibits a solid equity position with an equity ratio of 33.25%, indicating financial stability and a healthy balance between debt and equity. The debt-to-equity ratio stands at 1.09, which is manageable but suggests moderate leverage. Return on equity is strong at 12.99%, showcasing effective use of shareholders' equity to generate profits. The company's increase in total assets and stockholders' equity from the previous year demonstrates an upward trajectory in financial strength. However, the rising debt levels could pose a risk if not managed carefully.

Cash Flow

The cash flow statement reveals a decrease in free cash flow by 29.1% over the previous year, which could impact future investments or debt servicing. The operating cash flow to net income ratio is 1.86, indicating strong cash generation relative to reported net income. However, the free cash flow to net income ratio has declined to 0.23, suggesting potential constraints in liquidity for discretionary spending. While operating cash flows remain robust, the declining trend in free cash flow necessitates attention to maintain financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.70T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.82T	3.79T	1.92T	10.37T	9.59T	9.48T
EBITDA	3.47T	3.51T	3.74T	3.41T	3.33T	3.20T
Net Income	1.00T	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	30.06T	30.06T	29.60T	25.31T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	1.00T	1.00T	1.05T	892.57B	923.00B	977.46B
Total Debt	11.17T	11.17T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	18.72T	18.72T	18.71T	15.96T	14.84T	14.76T
Stockholders Equity	10.22T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	231.74B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.36T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-2.00T	-2.00T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	-343.03B	-343.03B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph And Telephone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.06
• 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 NTTYY, the sentiment is Positive. The current price of 27.06 is below the 20-day moving average (MA) of 27.23, above the 50-day MA of 26.46, and above the 200-day MA of 25.63, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTTYY.

Nippon Telegraph And Telephone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	83 Outperform	$186.28B	10.26	18.26%	6.11%	2.05%	61.39%
CMCSA	81 Outperform	$125.35B	5.61	25.44%	3.77%	2.54%	60.53%
TMUS	81 Outperform	$283.74B	23.83	19.74%	1.39%	6.27%	31.78%
T	77 Outperform	$211.51B	16.55	12.12%	3.75%	1.46%	0.88%
NTTYY	72 Outperform	$92.00B	13.50	10.39%	2.64%	1.23%	-15.51%
AMX	68 Neutral	$59.76B	20.64	14.41%	2.67%	-0.64%	56.92%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%