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Nippon Telegraph And Telephone Corp. (NTTYY)
OTHER OTC:NTTYY
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Nippon Telegraph And Telephone
(OTC:NTTYY)
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Rating:55Neutral
Price Target:
$25.00
â–²(0.32% Upside)
Action:ReiteratedDate:02/07/26
The score is held back primarily by higher leverage and deteriorated free cash flow, alongside bearish technical momentum. These are partially offset by steady operating performance and a relatively attractive valuation (low P/E and a moderate dividend yield).
Positive Factors
Diversified revenue streams
NTT's business spans consumer telecom, enterprise cloud, data centers and systems integration. This diversification reduces single-market cyclicality, enables cross‑selling, and aligns with durable secular demand for cloud and IT services, supporting steadier medium‑term revenues.
Scale and market position
Very large scale and global footprint give NTT structural advantages: bargaining power with suppliers, ability to win large enterprise and government contracts, and capacity to invest in network and data center infrastructure that competitors struggle to match over the next several quarters.
Profitability and margin resilience
Despite modest revenue growth, NTT sustains healthy EBITDA and net margins. Durable margin levels across telecom and enterprise services support internal cash generation potential, allow ongoing investment in infrastructure, and underpin ability to fund operations and dividends over months ahead.
Negative Factors
Elevated leverage
Leverage nearly doubled versus prior reports, reducing financial flexibility. Higher debt raises refinancing and interest‑rate sensitivity, limits ability to fund capex or absorb shocks, and increases medium‑term risk if cash generation does not recover.
Weakened free cash flow
A shift to slightly negative FCF, despite positive operating cash flow, indicates heavier investment or weaker conversion. Persistent negative FCF would constrain debt reduction, limit reinvestment and shareholder returns, and weaken the balance sheet over several quarters.
Muted earnings growth & margin volatility
EPS contraction and choppy margins signal slower profit momentum and potential margin pressure from competition or cost increases. This reduces the company's ability to expand returns and makes medium‑term earnings less predictable, complicating strategic planning.
Nippon Telegraph And Telephone (NTTYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.54B
Dividend Yield2.82%
Average Volume (3M)3.57K
Price to Earnings (P/E)11.3
Beta (1Y)0.09
Revenue Growth2.78%
EPS Growth-8.43%
CountryUS
Employees338,467
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.64
Shares Outstanding3,622,012,700
10 Day Avg. Volume0
30 Day Avg. Volume3,567
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)1.18
Price to Sales (P/S)0.88
P/FCF Ratio52.26
Enterprise Value/Market Cap337.12
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit9.16
Enterprise Value/Ebitda7.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.03
Revenue Forecast (FY)$90.68B
Nippon Telegraph And Telephone Business Overview & Revenue Model
Company DescriptionNTT, 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 MoneyNTTYY generates revenue primarily through its telecommunications services, which include fixed-line and mobile voice services, broadband internet subscriptions, and data transmission. A significant portion of its income comes from enterprise solutions, including cloud services and IT systems integration, which cater to large businesses and organizations. The company also earns revenue from its data centers and other IT-related services. Key partnerships with global technology firms enhance its service offerings and broaden its market reach. Additionally, strategic investments in new technologies and infrastructure projects contribute to NTTYY's revenue streams, ensuring a diversified income base.
Nippon Telegraph And Telephone Earnings Call Summary
Earnings Call Date:Feb 07, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted record operating revenue and strong performance in certain segments like Global Solutions and Data Centers. However, significant challenges remain, particularly in the Integrated ICT and Regional Communication Businesses, with a notable decrease in operating profit and overall profit. The sentiment leans towards a cautious outlook with efforts focused on cost reduction and strategic investments for future growth.Q3-2024 Updates
Positive Updates
Record High Operating Revenue
Operating revenue increased by JPY332.9 billion, reaching a record JPY10,049.7 billion, due to growth in domestic and global revenue, especially from the Smart Life Business at Docomo.
Positive Performance in Global Solutions
Sales increased year-on-year in the public, financial, and corporate sectors in Japan, with a significant contribution from foreign exchange rates.
Expansion in Data Center and Urban Solutions
Sales and profit in the Other business segment increased year-on-year due to the expansion of data center engineering and NTT Urban solutions.
Fiber Service Growth
Net increase in optical fiber services posted a year-on-year increase due to stronger sales of 10 gigabit plans and all unit plans for the condominium market.
Negative Updates
Decrease in Operating Profit
Operating profit decreased by JPY87 billion, reaching JPY1,399.2 billion, due to a decline in communication service revenues in mobile and fixed line segments.
Profit Decline
Profit fell by JPY160.4 billion year-on-year to JPY850.7 billion, mainly due to declining operating profit and a rebound from gains on stock sales from the previous year.
Integrated ICT Business Challenges
Despite growth in finance and payment in the Smart Life business, overall profit declined due to measures to strengthen the customer base and weak performance in the consumer communication segment.
Regional Communication Business Struggles
Both revenue and profit decreased due to a decline in network revenue and a rebound from the impact of slowing down non-core assets implemented in the previous year.
Challenges in Enterprise Business
The enterprise business faced challenges, particularly in the SME market, leading to weakened revenue and profit growth.
Company Guidance
In the recent call, NTT provided detailed guidance on their fiscal year 2024 third-quarter financial results. The company reported record-high operating revenue for the quarter at JPY10,049.7 billion, an increase of JPY332.9 billion, driven by domestic and global revenue growth, particularly in the Smart Life Business at Docomo. However, operating profit decreased by JPY87 billion to JPY1,399.2 billion, influenced by a decline in communication service revenues and the impact of non-core asset slowdown. Profit was JPY850.7 billion, down JPY160.4 billion year-on-year, largely due to a drop in operating profit and a rebound from previous stock sales gains. EBITDA slightly declined by JPY19.2 billion, reaching JPY2,552.5 billion. The company highlighted segment-specific performances, noting growth in the Integrated ICT business and challenges in the Regional Communication Business. The Global Solution business saw increased sales and operating profit due to favorable foreign exchange rates and strong performance in the data center business. NTT is actively reviewing its cost structure and exploring medium-term growth strategies, including regional revitalization initiatives and expanding its data center business in India. Despite challenges, NTT remains committed to achieving its annual profit targets through strategic efforts across its operating companies.Nippon Telegraph And Telephone Financial Statement Overview
Summary
Operations look stable with modest TTM revenue growth and solid profitability, but risk has increased due to higher leverage (debt-to-equity near ~1.9x) and weakened cash generation as TTM free cash flow is slightly negative.Income Statement
TTM (Trailing-Twelve-Months) revenue is still growing (about 1.8%), and profitability remains solid with roughly mid‑20s EBITDA margin and ~7–8% net margin. However, margins have been choppy versus prior annual periods (notably weaker gross margin in TTM vs FY2025), and earnings growth looks more muted as net margin sits below the stronger FY2022–FY2024 levels.72
Positive
Balance Sheet
The balance sheet shows meaningful leverage: TTM debt is high relative to equity (debt-to-equity near ~1.9x), representing a clear increase versus recent annual reports (~1.0–1.1x). Returns on equity are still reasonable (low‑teens in TTM), but the rising debt load reduces flexibility and increases sensitivity to funding costs and refinancing conditions.56
Neutral
Cash Flow
Cash generation quality has weakened: TTM free cash flow is slightly negative and sharply lower versus prior years, despite positive operating cash flow. This suggests higher investment needs and/or less efficient cash conversion recently, creating a weaker near-term cushion for debt reduction and shareholder returns compared with the consistently positive free cash flow seen in the annual results.41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.20T | 13.70T | 13.37T | 13.14T | 12.16T | 11.94T |
| Gross Profit | 3.04T | 3.79T | 1.92T | 1.83T | 1.77T | 9.48T |
| EBITDA | 3.64T | 3.51T | 3.74T | 3.41T | 3.33T | 3.20T |
| Net Income | 1.09T | 1.00T | 1.28T | 1.21T | 1.18T | 916.18B |
Balance Sheet | ||||||
| Total Assets | 46.87T | 30.06T | 29.60T | 25.31T | 23.86T | 22.97T |
| Cash, Cash Equivalents and Short-Term Investments | 2.82T | 1.00T | 1.05T | 892.57B | 923.00B | 977.46B |
| Total Debt | 18.24T | 11.17T | 10.71T | 9.15T | 8.21T | 8.37T |
| Total Liabilities | 36.87T | 18.72T | 18.71T | 15.96T | 14.84T | 14.76T |
| Stockholders Equity | 9.52T | 10.22T | 9.84T | 8.56T | 8.28T | 7.56T |
Cash Flow | ||||||
| Free Cash Flow | -54.53B | 231.74B | 290.15B | 409.13B | 1.25T | 1.21T |
| Operating Cash Flow | 2.24T | 2.36T | 2.37T | 2.26T | 3.01T | 3.01T |
| Investing Cash Flow | -1.35T | -2.00T | -1.99T | -1.74T | -1.70T | -1.42T |
| Financing Cash Flow | 192.45B | -343.03B | -234.45B | -590.20B | -1.44T | -1.69T |
Nippon Telegraph And Telephone Technical Analysis
Negative
24.92
Price Trends
24.94
Negative
25.05
Negative
25.83
Negative
Market Momentum
-0.19
Positive
40.11
Neutral
26.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTTYY, the sentiment is Negative. The current price of 24.92 is above the 20-day moving average (MA) of 24.64, below the 50-day MA of 24.94, and below the 200-day MA of 25.83, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTTYY.
Nippon Telegraph And Telephone Risk Analysis
Nippon Telegraph And Telephone disclosed 17 risk factors in its most recent earnings report. Nippon Telegraph And Telephone reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nippon Telegraph And Telephone Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $110.89B | 5.74 | 21.92% | 4.42% | 0.20% | 61.54% | |
76 Outperform | $238.12B | 22.34 | 18.18% | 1.75% | 7.30% | 17.67% | |
72 Outperform | $210.80B | 12.35 | 16.86% | 6.60% | 2.42% | 102.17% | |
67 Neutral | $196.09B | 9.18 | 20.43% | 4.56% | 1.98% | 150.68% | |
62 Neutral | $79.29B | 18.23 | 22.81% | 2.69% | 1.14% | 83.48% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $82.54B | 11.26 | 10.59% | 2.82% | 2.78% | -8.43% |
* Communication Services Sector Average
NTTYY
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-2.64%
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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.