Nippon Telegraph And Telephone Corp. (NTTYY)
OTHER OTC:NTTYY
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Nippon Telegraph And Telephone
(OTC:NTTYY)
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Rating:54Neutral
Price Target:
$24.50
â–¼(-1.69% Downside)
Action:Reiterated
Date:05/11/26
The score is mainly held back by weakened 2026 cash generation (negative free cash flow) and increased leverage, which elevate financial risk. Technicals also lean weak with the stock below major moving averages and negative MACD. Valuation is a relative positive due to the low P/E, but it is not enough to offset the cash flow and balance-sheet concerns.
Positive Factors
Diversified recurring revenue streams
NTT's broad portfolio across mobile, fixed broadband, enterprise IT, cloud and data centers creates multiple recurring revenue channels and long-term contracts. This diversification reduces reliance on any single market and supports steady cash inflows and cross-sell opportunities over several years.
Negative Factors
Negative free cash flow in 2026
A shift to materially negative free cash flow in 2026 weakens internal funding for capex, dividends and acquisitions. If sustained, this reduces flexibility, may force higher borrowing or asset sales, and complicates execution of long-term strategic projects without increasing financial risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified recurring revenue streams
NTT's broad portfolio across mobile, fixed broadband, enterprise IT, cloud and data centers creates multiple recurring revenue channels and long-term contracts. This diversification reduces reliance on any single market and supports steady cash inflows and cross-sell opportunities over several years.
Read all positive factors
Nippon Telegraph And Telephone (NTTYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.83B
Dividend Yield2.82%
Average Volume (3M)3.57K
Price to Earnings (P/E)28.1
Beta (1Y)0.06
Revenue Growth6.16%
EPS Growth7.35%
CountryUS
Employees338,467
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)319.50
Shares Outstanding3,622,012,700
10 Day Avg. Volume0
30 Day Avg. Volume3,567
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)1.33
Price to Sales (P/S)0.85
P/FCF Ratio-15.94
Enterprise Value/Market Cap335.13
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit10.29
Enterprise Value/Ebitda7.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.08
Revenue Forecast (FY)$94.21B
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 off...
How the Company Makes Money
NTT makes money primarily by charging customers for telecommunications connectivity and for enterprise IT/ICT services. Key revenue streams typically include: (1) Mobile services: recurring monthly fees and usage-based charges for wireless voice/d...
Nippon Telegraph And Telephone Earnings Call Summary
Earnings Call Date:Feb 07, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 12, 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.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.
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.
Read all updates
Q3-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
71
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.28T | 13.70T | 13.37T | 13.14T | 12.16T |
| Gross Profit | 2.33T | 3.79T | 1.92T | 1.83T | 1.77T |
| EBITDA | 3.92T | 3.51T | 3.74T | 3.41T | 3.33T |
| Net Income | 1.10T | 1.00T | 1.28T | 1.21T | 1.18T |
Balance Sheet | |||||
| Total Assets | 46.92T | 30.06T | 29.60T | 25.31T | 23.86T |
| Cash, Cash Equivalents and Short-Term Investments | 1.93T | 1.00T | 1.05T | 892.57B | 923.00B |
| Total Debt | 16.99T | 11.17T | 10.71T | 9.15T | 8.21T |
| Total Liabilities | 36.66T | 18.72T | 18.71T | 15.96T | 14.84T |
| Stockholders Equity | 9.77T | 10.22T | 9.84T | 8.56T | 8.28T |
Cash Flow | |||||
| Free Cash Flow | -817.01B | 231.74B | 290.15B | 409.13B | 1.25T |
| Operating Cash Flow | 1.57T | 2.36T | 2.37T | 2.26T | 3.01T |
| Investing Cash Flow | -3.53T | -2.00T | -1.99T | -1.74T | -1.70T |
| Financing Cash Flow | 2.91T | -343.03B | -234.45B | -590.20B | -1.44T |
Nippon Telegraph And Telephone Technical Analysis
Negative
24.92
Price Trends
24.24
Negative
24.52
Negative
25.22
Negative
Market Momentum
>-0.01
Negative
48.09
Neutral
61.40
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 24.00, above the 50-day MA of 24.24, and below the 200-day MA of 25.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $90.04B | 11.94 | 19.83% | 4.42% | 1.39% | 24.78% | |
72 Outperform | $207.21B | 23.07 | 17.82% | 1.75% | 9.48% | -8.46% | |
71 Outperform | $80.53B | 14.75 | 20.61% | 2.69% | 9.51% | 187.55% | |
67 Neutral | $201.89B | 10.46 | 16.68% | 6.60% | 2.85% | -2.51% | |
66 Neutral | $175.52B | 13.24 | 19.59% | 4.56% | 2.92% | 83.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $81.83B | 28.14 | 10.96% | 2.82% | 6.16% | 7.35% |
* Communication Services Sector Average
NTTYY
Nippon Telegraph And Telephone
23.98
-2.24
-8.55%
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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.